September 5 -- CNOOC (RCode:0883) reported that its net daily output was reduced by 62,000 barrels on orders to halt operations at the Penglai 19-3 oil field in northeast China, reports chinanews.com, citing a company filing.

The State Oceanic Administration (SOA) had in July directed CNOOC to halt production at two platforms at the 19-3 field where the oil spill took place in June, reducing output by about 22,000 barrels per day.

The SOA ordered CNOOC to stop production at the entire oil field on September 2 due to its inability to deal with the oil spill. This further cut output by about 40,000 barrels per day.

The Penglai 19-3 oil field was jointly developed by CNOOC and ConocoPhillips, with respective stakes of 49 percent and 51 percent.

CNOOC, China’s third-largest natural gas supplier, had posted a 12.9 percent year-on-year growth in oil and gas output during the first half of 2011 to 1.69 million barrels.

In the wake of the oil spill, CNOOC readjusted its 2011 output target to between 3.31 million tons and 3.41 million tons, slightly above the level in 2010.

The SOA said it will demand compensation for damage done to the ecological environment.

Source:CapitalVue