ConocoPhillips and CNOOC Reach Agreement with the State Oceanic Administration
HOUSTON--(BUSINESS WIRE)-- As announced by the Chinese State Oceanic Administration (SOA) on Friday, April 27, ConocoPhillips (COP) [NYSE:COP] through its affiliate ConocoPhillips China Inc. (COPC) and the China National Offshore Oil Corp. (CNOOC) have reached an agreement with the SOA related to the June 2011 incidents at the Peng Lai 19-3 Field. This agreement resolves all pending governmental claims.
Under the agreement, COPC will pay $173 million to the SOA over the next two years and will also contribute $18 million by December 2014 toward social projects benefiting Bohai Bay. The agreement also provides that CNOOC will contribute $76 million toward such projects. The initial programs will focus on improving marine environment protection and reducing pollutants in the bay.
COPC continues to work closely with CNOOC to meet the requirements of relevant government agencies to permit the field to return to normal operations.
ConocoPhillips is one of the largest foreign investors in Chinas energy sector, and looks forward to continued operations in China. For more on the incidents, response and clean-up, go to www.conocophillips.com.cn.
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Aftab Ahmed, 281-293-4138 (media)
Vladimir dela Cruz, 212-207-1996 (investors)
Source: ConocoPhillipsCopyright Business Wire 2012