ConocoPhillips Issues An Apology to China Over Oil Spills
After a three-month long of oil spills in China's Bohai Bay, Energy Giant ConocoPhillips has issued an apology to China and vowed to release funds to ameliorate the conditions of the affected environment, says a Reuters report.
The apology came on Wednesday after China's State Oceanic Administration released an order to ConocoPhillips China commanding to stop its operations on the 19-3 oilfield because the U.S. oil magnate failed to stop the leaks. An official of ConocoPhillips told reporters the subsidiary in China has halted all its operations on Tuesday.
"ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment," Chief Executive James Mulva said in a statement to Reuters.
ConocoPhillips has been a favorite target of criticisms by Chinese regulators and media particularly the People's Daily, which published a report criticizing ConocoPhillips China for its "delays, negligence, cover-ups, and cheatings," according to AFP and AP reporters.
Although Mulva seems sincere in his offer of an undisclosed-value fund, it is not clear however whether the move can better the image of his subsidiary in China and therefore, abate the criticisms hurled against it.
None from ConocoPhillips Corporation is available for comments after the apology.
Meanwhile, CNOOC, China's largest offshore gas producer and biggest stock owner of ConocoPhillips China with 51 percent, published a statement on its website stating the Chinese CEO is willing to cooperate on the Bohai Bay fund, a Reuter report says.
The website statement further says that ConocoPhillips China will collaborate with CNOOC and Chinese authorities concerning the establishment and operations of the fund.
Maintaining an annual output of 8.4 million tons accounting for 20 percent of overall crude oil production in Bohai Bay, Penglai 19-3 oilfields is China's biggest offshore oil field. However, due to the suspension of operations, CNOOC is likely to lose 62,00o barrels of output each day, a representative of the Chinese company said to reporters.