Incidents Background

In June 2011, COPC experienced two unrelated releases of fluids from the Peng Lai B and C platform areas, where initial estimates indicate approximately 723 barrels (115 cubic meters) of oil were released into the sea and 2,620 barrels (416.45 cubic meters) of mineral oil-based mud (MOBM) were released onto the seabed.


Platform B Incident

On June 4, 2011 oil seepage was observed on the water near the COPC-operated Peng Lai B platform. Investigation revealed that the seepage originated from a natural fault in the reservoir that extended to the seabed.

How did we respond?

Containment and operational efforts - Immediately after the seep was discovered, COPC took several steps, including:

  • COPC made adjustments to reduce reservoir pressure, allowing the fault to seal itself and stop the seep.
  • COPC continued monitoring the fault and discovered small traces of oil occasionally appearing at the surface from a limited seep located in the shallow sediments of the seabed.
  • To manage this small seep, COPC designed, built and deployed a containment and collection device to cover the seep location on the seabed.
  • As an extra protective measure to ensure the fault was sealed, COPC drilled a horizontal well parallel to the fault and pumped in cement.

B Platform


Platform C Incident

In a separate event on June 17, 2011 a sheen of oil was observed near Platform C. This occurred when COPC earlier encountered an abnormally high-pressure zone while drilling a well from Platform C. COPC immediately shut in the well to protect personnel, which increased pressure in the well, causing MOBM to migrate to the seabed. Within 48 hours the well was sealed with cement, isolating it from the reservoir. An additional six cement plugs were set over the next two days as additional safety measures. A small quantity of MOBM remains on or in the seabed.

How did we respond?

Containment and operational efforts - COPC took several steps, including:

  • Deployed five containment devices installed over the original seep holes.
  • Installed additional containment measures around the sides and top of the platform base to address remaining accumulations of MOBM.

C Platform


    Total Oil and Mineral Oil-Based Mud (MOBM) Released and Recovered:  

    Initial estimates indicate that the accidents in June caused approximately 723 barrels (115 cubic meters) of oil were released into the sea and 2,620 barrels (416.45 cubic meters) of mineral oil-based mud (MOBM) were released onto the seabed.

    Since that time, the original seep sources have been identified and sealed, and the vast majority of mineral oil-based mud that was released to the seabed has been recovered. Approximately 440 barrels (70 cubic meters) of oil and water and 2,620 barrels (416.45 cubic meters) of MOB has been recovered. 


    Peng Lai 19-3 Incidents Timeline


    JUNE 4, 2011 – From June 4 to June 21, approximately 100 barrels (18 cubic meters) of oil seeped from a previously inactive fault in the reservoir structure near Platform B in the Peng Lai 19-3 Field in China’s Bohai Bay. ConocoPhillips China (COPC) immediately deployed skimmers, absorbent booms and other clean-up equipment, and we began reducing reservoir pressure to help stop the seep. Chinese government authorities were notified immediately, as was our co-venturer, China National Offshore Oil Company (CNOOC).

    JUNE 17, 2011 – In a separate, unrelated incident, a well being drilled on COPC’s Platform C in the Peng Lai 19-3 Field encountered a high-pressure zone within the reservoir. Approximately 600 barrels (97 cubic meters) of oil and about 2,620 barrels (416 cubic meters) of mineral oil-based mud were released onto the seabed. Chinese government authorities and CNOOC were notified of the incident and containment measures began immediately.

    JUNE 18, 2011 – Employees began patrolling the shoreline to monitor and protect the coast in the event some of the oil was carried there by the current.

    JUNE 19, 2011 – Within 48 hours, a cementing procedure stopped the release at Platform C.

    JUNE 21, 2011 – Reservoir pressure continued to be reduced and the seep stopped at Platform B. In all, more than 900 personnel and 35 vessels would be involved in the response efforts for the incidents at platforms B and C.

    JULY 3, 2011 – As an additional precautionary measure, a steel subsea containment structure was placed over the seep near Platform B.

    JULY 19, 2011 – COPC led a group of reporters on a tour of the Peng Lai field. Reporters observed current conditions and clean-up progress.

    JULY 22, 2011 – COPC launched a website to provide daily updates in both English and Chinese to provide the public with more information about the two incidents and response activities.

    AUG. 6, 2011 – To ensure the safety of those involved, all clean-up efforts were suspended as a typhoon approached Bohai Bay.

    AUG. 10, 2011 – Typhoon Muifa subsided and clean-up operations resumed.

    AUG. 31, 2011 – COPC filed its report responding to State Oceanic Administration (SOA) orders 11 and 13.

    SEP. 2, 2011 – SOA directed COPC to suspend all production, water injection and drilling operations in the Peng Lai 19-3 Field. The directive also required that COPC continue clean-up efforts, seal oil seep sources, prepare a new marine environmental impact report for the oil field, and develop a plan for reducing reservoir pressure to ensure safety of the field and to protect the environment. COPC immediately complied with this order.

    SEP. 6, 2011 – ConocoPhillips announced the establishment of a fund to provide fair and reasonable compensation for any damages arising from the incidents.

    SEP. 11, 2011 – CNOOC agreed to COPC’s plans to depressurize the reservoir and take additional precautionary measures to seal seep sources in the Peng Lai 19-3 Field.

    SEP. 12, 2011 – COPC began depressurizing activities on Platform B.

    SEP. 18, 2011 – ConocoPhillips announced the establishment of a second fund to specifically address environmental issues in Bohai Bay.

    OCT. 12, 2011 – Shoreline surveillance teams are demobilized. In total, the teams covered nearly 155,000 kilometers of shoreline by vehicle and 8,500 kilometers on foot. While patrolling, the teams picked up and disposed of more than 16,000 kg (35,000 lbs.) of trash and debris along beaches.

    Jan. 24, 2012 - ConocoPhillips reached an agreement with China's Ministry of Agriculture that fulfills the objectives of the compensation fund. Under this agreement, RMB 1 billion (approximately $160 million) will be paid as compensation to settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities.