China: Malfunction Occurs on CNOOC’s FPSO at Bohai Bay

CNOOC Limited  announced today that, a malfunction occurred on the single point mooring system of the Floating, Production, Storage and Offloading (FPSO) vessel “Haiyangshiyou 102” serving in the Bohai Bay due to rough sea conditions. Operations were immediately shut down at the affected oilfields.

Till now, the “Haiyangshiyou 102” FPSO has been safely secured and tugged to safe area. There were no injuries during the process and no oil spill was found. The Company is actively working on the recovery plan to resume production as early as possible.

The oilfields affected this time include Bozhong (“BZ”) 28-2 S, BZ 28-2 SN, BZ 34-1N and BZ 29-4. All of these four fields are owned and operated by the Company. The total production capacity was approximately 39,000 barrels per day.

The Company maintains appropriate insurance coverage of the operations related to the oilfields.

Source:CNOOC ,April 22,2011

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