HONG KONG, Sept. 4, 2011 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 0883) noticed that on September 2, 2011 State Oceanic Administration of People's Republic of China ("SOA") announced, through SOA's official website, that ConocoPhillips China Inc ("COPC"), as the Operator of Penglai (PL) 19-3 oil field, has neither completely screened out the oil spill risks nor completely sealed the sources of oil spillage. The SOA also announced that, according to the analysis of the Joint Investigation Team ("JIT"), the JIT had determined that the oil spill incident at PL19-3 oil field is clarified as an accident involving liabilities as COPC did not fulfill its duties as a reasonable and prudent operator.
SOA has ordered COPC to suspend water injection, drilling and oil and gas production operations (the "Three Suspensions") at the entire PL19-3 oil field, and to take effective measures to continue screening out the potential oil spill risks, seal all sources of oil spillage and complete the cleanup work in a timely manner. In addition, as announced by the SOA, it has ordered COPC to recompose the Oceanic Environmental Impact Assessment (the "EIA") for the development of PL19-3 oil field and upon further approval on the EIA to resume the operations gradually, and further ordered that COPC must revise the Overall Development Plan (the "ODP") and the "Three Suspensions" will only be lifted after the approval on the ODP.
In addition, the SOA also announced it will, on behalf of State, make claims against COPC for the damage to the marine environment caused by PL19-3 oil spill accident in accordance with Marine Environment Protection Law of the People's Republic of China. Currently, the relevant preparation work is underway.
We fully respect the decisions made by SOA. As the non-operator, the Company will continue to assist COPC to execute SOA's decisions and to inform the public of the work progress as well as to welcome the supervision from the public.
PL19-3 is an oil field operated under a Production Sharing Contract ("PSC"). COPC is the Operator and responsible for the management of daily operations. CNOOC Limited holds 51% of participating interest during the development and production phase under the PSC.
The operations of Platforms B and C of PL19-3 oil field were already suspended on July 13 as required by the SOA. As a result, the Company's net production has been reduced by approximately 22,000 barrels per day. The suspension of operations of the entire PL19-3 oil field will further reduce the Company's net production by approximately 40,000 barrels per day.
Notes to Editors:
More information about the Company is available at http://www.cnoocltd.com.
This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "believe", "intend", "expect", "anticipate", "project", "estimate", "plan", "predict" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes reasonable under the circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties which could cause the actual results, performance and financial conditions to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company has filed from time to time with the United States Securities and Exchange Commission, including 2010 Annual Report on Form 20-F filed on April 29, 2011.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the actual results or developments anticipated will be realized or, even if substantially realized, that they will have the expected effect on the Company, its business or operations.
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SOURCE CNOOC Limited