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Oil leaks result of CNOOC's 'Great Leap Forward'

2011-07-15 09:48    Ecns.cn     Web Editor: Ma Cunyu
A fire broke out at a CNOOC oil refinery in the city of Huizhou in south China's Guangdong Province on July 11.

A fire broke out at a CNOOC oil refinery in the city of Huizhou in south China's Guangdong Province on July 11.

(Ecns.cn)!China's maritime authorities bitterly criticized ConocoPhillips China Inc (COPC) on Wednesday for not having an effective means of preventing oil leaks, ordering the firm to immediately suspend operation of two of its platforms in northeast China's Bohai Bay following two oil spills.

The State Oceanic Administration (SOA), the country's ocean watchdog, published a notice Wednesday on its official website saying that the leak had polluted at least 4,240 square meters of sea area in Bohai Bay, located in the northern part of the Yellow Sea, and is a "great threat" to the environment there.

In addition to the immediate suspension of two platforms at the Penglai 19-3 Oilfield, the source of the leak, the administration also asked the COPC to clean up the bay and ensure that the oil was collected in a safe and sustainable manner.

The tone of the notice marked a stark contrast with a previous moderate announcement at a press conference on July 5, in which the SOA said the majority of the spills "had been cleaned up" and that the situation was under control.

The administration has been riled by the COPC, which previously had said that the clean up work was almost finished, but admitted on Tuesday that "minor residual seepage" may continue and would only diminish over time.

The SOA said that the COPC failed to bring the situation under "full control," and that the recent efforts to identify the causes and stifle them have been "slow."

In response to the sharp criticism, ConocoPhillips said that the company would comply with all orders from the SOA.

"We have shut down production from Platform B and C until further direction is provided from the SOA," the company said.

New leak for old partner

The Penglai 19-3 Oilfield is the largest offshore oilfield in China. ConocoPhillips China holds a 49-percent stake in the project, with the China National Offshore Oil Corp (CNOOC) holding the rest.

Even as the COPC's competence in handling the leaks takes fire from authorities, its partner, the CNOOC, is dealing with yet another problem.

A new oil leak, the third since June, was reported in northern China's Bohai Bay on Tuesday, just one day after a fire broke out at a CNOOC oil refinery in the city of Huizhou in south China's Guangdong Province. The fire was put out a few hours later, with no casualties reported.

The leak occurred at the Suizhong 36-1 Oilfield at 1:30 a.m. on Tuesday due to a malfunction at the central control system, the CNOOC said in a statement.

The company assured the public that the technicians had sealed the leak, which covered one square kilometer. Production at the oilfield had been suspended and emergency response procedures were activated immediately after the incident, the CNOOC said.

The cause of the leak was a control system malfunction, which had been repaired, it said.

The CNOOC confirmed on Wednesday that production at the repaired oilfield had resumed.

"The latest incident at Suizhong oilfield is not as severe as the earlier ones in terms of volume," said Chen Jianmin, a professor at the School of Petroleum Engineering at China University of Petroleum. ^But safety management and inspection procedures should be enhanced by the company."

Although industry experts said the leak was not as serious as the previous ones, media reports claimed that the CNOOC may face a huge production loss.

Suizhong 36-1 is the country's biggest independent oilfield, annually producing about 5 million tons.

The oilfield, operated by its Tianjin branch, produces "tens of thousands of barrels on a daily basis," and comprises 40-50% of the branch's annual production, Chinanews.com quoted an anonymous industry insider in a report.