ConocoPhillips to pay 1 billion yuan for oil spill: Beijing

The leak last June from an offshore field operated by the U.S. firm released more than 3,000 barrels of oil and oil-based mud — used as a lubricant in drilling — off China's coast, triggering huge public outcry.

Several groups of fishermen have filed lawsuits against ConocoPhillips, seeking compensation for alleged losses to their livelihoods due to the spill, which polluted an area more than eight times the size of Singapore.

In a statement, the Ministry of Agriculture said it had reached an agreement with ConocoPhillips and CNOOC, a Chinese state-owned oil giant that jointly owns the Penglai offshore field in Bohai Bay with the U.S. company.

“ConocoPhillips will pay out one billion yuan to resolve the issue of compensation for damages to biological cultures and fishing resources in Bohai in parts of the provinces of Hebei (north) and Liaoning (northeast),” it said.

The U.S. firm said in a statement on its website that the money would be used to “settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities.”

Under the agreement, it will also use 100 million yuan of an environmental fund it has already set up “to improve fishery resources.” CNOOC, meanwhile, will pay out 250 million yuan for the same purpose, the ministry said.

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