Chinese regulators have ordered a shutdown at a troubled offshore oilfield operated by ConocoPhillips, a surprise escalation in a months-long oil spill off the coast of China that has released around 700 barrels of oil into the sea.
The spill at the Penglai 19-3 field, which is jointly owned by ConocoPhillips and Chinese offshore producer Cnooc , is the biggest leak from an offshore rig ever reported in China and occurs at one of the country’s most established oilfields. The industry is scrutinising Beijing’s reaction as a litmus test for how stricter environmental regulation will impact China’s extraction industries such as mining and oil and gas.
China’s maritime regulator announced late on Friday that ConocoPhillips had failed to meet requirements for stopping the leaks, and that as a result production at the entire Penglai 19-3 field would be halted indefinitely.