Monday, May 21, 2012

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN





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2point6billion.com discusses investment news and events from the emerging markets of Asia - including India, China and the ASEAN countries. It is produced by the Asian foreign direct business advisors at Dezan Shira & Associates from their offices across emerging Asia.




ConocoPhillips ‘Admits’ to Further Oil Leaks in Bohai Bay

Aug. 22 – On August 20, the China North Sea subsidiary of U.S.-based energy giant ConocoPhillips “admitted” that nine new oil spill sources were found on the northwest side of Platform C of the Penglai 19-3 oilfield in Bohai Bay, according to the North China Sea Branch of the State Oceanic Administration (SOA).

Other leaks had been discovered in June and early August at the same oilfield – which is operated in cooperation with state-run China National Offshore Oil Corp. – and now the amount of spilled oil has increased to 2,500 barrels, as the leaks have not been effectively dealt with. The oil has contaminated 4,250 square kilometers of sea, causing severe environmental damage. Furthermore, fishermen in the coastal provinces of Shandong, Hebei and Liaoning have suffered heavy economic losses as a result, state media reported.

The company’s China unit is closely monitoring and taking samples from nine “small seeps” that appear within a 15 meter (50 feet) diameter on the sea floor about 15 meters north of the C Platform, ConocoPhillips spokesman Rich Johnson said on Saturday. ConocoPhillips China has said that it is currently analyzing samples. If the leaks are caused by oil sludge, the company then just has to continue to clean up the sediment. If the result shows crude oil, there would be some other reason.

“While samples are still being analyzed, it is believed the source of the seeps is residual mineral oil-based mud associated with the June 17 release that is migrating up from shallow sub-surface sand layers,” Johnson told AP reporters.

Chinese authorities have intensified pressure on the company to take effective measures to clean up Bohai Bay in short notice, as well as to thoroughly investigate the cause. The SOA has criticized the company’s “inefficient” cleanup efforts and said it plans to sue ConocoPhillips over the leak.

Related Reading

China Blames ConocoPhillips for Bohai Bay Oil Leak

Chinese Officials Say Dalian Oil Spill Under Control

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