Update on Bohai Bay Oil Cleanup and Production Curtailment
ConocoPhillips [NYSE:COP] wishes to provide additional information in
regards to the oil spill incidents that occurred in Bohai Bay, People′s
Republic of China on June 4th and June 17th 2011,
and the ongoing clean up and containment program that is underway.
On June 4 seepage on the seabed was observed along a naturally occurring
fault near the ConocoPhillips-operated Peng Lai B Platform. The majority
of seepage has been stopped following prudent adjustment of certain
production activities. A containment device was designed and constructed
and put in place as a precaution should the seep occur from the main
source again. Trace amounts of oil, estimated to be no more than liters
per day, continue to seep out intermittently near the original seep
location and occasionally cause minor surface sheens. Booms are deployed
around the immediate surface area and are containing and collecting any
such oil.
In a second incident, oil and gas bubbles were observed on the surface
June 17 near another platform (C Platform) during drilling operations.
The platform is about two miles away from the seabed seep near Platform
B. Expert teams were immediately mobilized to contain the release. A
cementing procedure successfully stopped the release within 48 hours,
and the well was stabilized, plugged and abandoned. Trace amounts of
bubblesare occasionally observed from the sea floor, and these
bubbles continue to be monitored. Absorbent boom is in place in
appropriate locations. Final clean up operations are ongoing.
ConocoPhillips responded quickly to both events and mobilized extensive
clean-up equipment, facilities and personnel, including substantial
resources made available by our co-venturer China National Offshore Oil
Corporation ('CNOOC'). Relevant authorities were promptly notified,
along with CNOOC. Almost 3,000 meters of absorbent and inflatable booms
were deployed to contain the oil sheen, and 33 vessels (workboats,
fishing boats and tugs) supported clean-up activities. ConocoPhillips is
appreciative of the support provided by CNOOC during the containment and
cleanup effort and to the State Oceanic Administration ('SOA?) for their
guidance during these unfortunate events.
ConocoPhillips' current estimates of the aggregate amount of fluid
spilled from the two incidents ranges from between 1,500 barrels (240
cubic meters) to 2,000 barrels (320 cubic meters) of oil and oil-based
drilling fluids. The company is working with independent experts to
validate the total spill quantity. During these incidents, no oil sheen
reached the shoreline, and there were no injuries to personnel.
On July 13th, the SOA instructed ConocoPhillips to suspend
production from Platforms B and C, and this order was complied with
immediately. This shut in will result in a temporary reduction of
approximately 17,000 barrels of oil per day net after royalties to
ConocoPhillips. According to the SOA order, this temporary shut in will
be in effect until the risks of another spill are eliminated. While the
detailed causes of these incidents are still under investigation,
ConocoPhillips will continue to work diligently and safely to finalize
clean up activities and will be implementing additional reservoir
management and field operating procedures to eliminate risks of
additional releases.
ConocoPhillips will work closely with SOA and CNOOC to minimize the
impact to the environment. Working safely and in an environmentally
prudent manner is always the top priority to ConocoPhillips.
ConocoPhillips is an integrated energy company with interests around the
world. Headquartered in Houston, the company had approximately 29,600
employees, $160 billion of assets, and $226 billion of annualized
revenues as of March 31, 2011. For more information, go to www.conocophillips.com.
ConocoPhillips
John Roper, 281-293-2073 (media)
john.roper@conocophillips.com
or
Clayton
Reasor, 212-207-1996 (investors)
c.c.reasor@conocophillips.com
