Settlements

​Our discussions with government authorities after the spill led to agreements by ConocoPhillips and CNOOC with the Ministry of Agriculture (MOA) and the State Oceanic Administration (SOA) to address all potential damages that may have been caused by the spill.

The Marine Environmental Protection Law empowers the SOA to assess and pursue damages for marine environmental impacts, and the SOA, in accordance with its regulatory authority, settled all marine ecology claims arising from the spill with ConocoPhillips China and CNOOC.

Ministry of Agriculture

In January 2012, ConocoPhillips and CNOOC reached a settlement agreement with the MOA.  Under this agreement, ConocoPhillips contributed RMB 1 billion (approx. US $160 million) for compensation and indemnification of any economic losses arising from damage to aquatic organisms in specified coastal areas and for damages to natural fishery resources.  The MOA was the organizer of the administrative mediation for compensation of individual natural fishery resources claims.

In addition, ConocoPhillips paid RMB 100 million (approx. US $16 million) and CNOOC paid RMB 250 million (approx. US $39 million) to the MOA to carry out projects for the restoration and maintenance of natural fishery resources.

The MOA supervises and administers the disbursement of these funds.

State Oceanic Administration

ConocoPhillips and CNOOC also reached a settlement agreement with the SOA in April 2012. Under this agreement, ConocoPhillips paid the SOA RMB 1.090 billion (approx. US $173 million) for compensation and indemnification of all potential marine ecological damage, including the ecological restoration costs, arising from the incidents. 

ConocoPhillips paid an additional RMB 113 million (approx. US $18 million) and CNOOC paid RMB 480 million (approx. US $76 million) to fund corporate social responsibility projects in support of marine ecological protection in the Bohai Sea area. 

The SOA supervises and administers the disbursement of these funds.