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China to file lawsuit demanding compensation for oil leaks in Bohai Bay

08-16-2011 15:35 BJT

BEIJING, Aug. 16 (Xinhua) -- China's maritime authority on Tuesday confirmed that it will sue companies responsible for oil leaks in the Bohai Bay.

The State Oceanic Administration (SOA) said in a statement that the oil spill in the Penglai 19-3 oil-field developed by ConocoPhillips China caused damage to China's oceanic ecological system, and the North China Sea branch of the SOA will, on behalf of the country, file lawsuits against companies responsible for the leaks.

The administration also dismissed a report by the Economic Information Daily that said China is demanding compensation of at least 100 million yuan (15.6 million U.S. dollars) from ConocoPhillips China for the leaks, claiming the amount was not determined yet.

ConocoPhillips China, a subsidiary of U.S. energy giant ConocoPhillips, first reported spills to authorities in June. The oil spills have spread to beaches in Hebei and Liaoning provinces. The spills have been blamed for losses in the provinces' tourism and aquatic farming industries.

Pollutants were later found near the Penglai 19-3 platform C during the company's clean-up work.

The company said Friday in a statement on its website that a total of 2,500 barrels of oil and mud have leaked from the company's platforms in the bay so far.

Oil-drilling operations in the field are conducted by ConocoPhillips China, partnering with the China National Offshore Oil Corporation (CNOOC), the country's largest offshore oil producer.

Editor:Wang Xiaomei |Source: Xinhua

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