U.S.-based energy company ConocoPhillips announced a compensation deal in China to resolve issues related to the June 2011 incidents at the Peng Lai 19-3 field in Bohai Bay.

ConocoPhillips and the China National Offshore Oil Corporation reportedly reached an agreement with China's Ministry of Agriculture under which CNY1 billion will be paid as compensation to settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities. ConocoPhillips says the agreement fulfills the objectives of the compensation fund announced in September 2011 by the company.

ConocoPhillips will also designate CNY100 million of the company’s previously announced environmental fund to be used to improve fishery resources.

ConocoPhillips China says it had two separate incidents in June 2011 in Bohai Bay, where approximately 115 cubic meters of oil were released into the sea and 400 cubic meters of mineral oil based drilling mud were released onto the seabed. ConocoPhillips says it sincerely regrets the incidents in Bohai Bay, and accepts its responsibilities.

On August 19, 2011, Georg Storaker, president of ConocoPhillips China, stated: "Any release of oil, no matter how small, is too great, and we will take all appropriate steps to contain and clean up these releases and prevent them from recurring."