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CNOOC: Production suspension will reduce output

0 Comment(s)Print E-mail Xinhua, September 5, 2011
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China National Offshore Oil Corp (CNOOC) said Sunday that suspension of entire production at the PL19-3 oil field will further reduce the company's net production by about 40,000 barrels per day.

Operations of Platform B and C of the oil field have been halted since July 13 as required by the the State Oceanic Administration (SOA), resulting in a cut of 22,000 barrels in net production per day, the CNOOC said in a statement to the Hong Kong Stock Exchange.

The company made the statement after the SOA on Friday ordered ConocoPhillips China (COPC) to cease all production operations on the leaking Penglai 19-3 oil field, which is jointly owned by the two companies.

The company said it respects the SOA's decision and will work with the COPC to implement the maritime authority's requirements.

The oil spill at the Penglai 19-3 oil field, China's largest offshore oilfield, was first spotted in June. The oil has spread to beaches in Hebei and Liaoning provinces. The spills have been blamed for losses in the provinces' tourism and aquatic farming industries.

COPC, a subsidiary of US oil giant ConocoPhillips, is the operator of the Penglai 19-3 oil field and owns a 49 percent stake. CNOOC has a 51 percent stake.

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