China National Offshore Oil Company CNOOC Limited (NYSE: CEO) reported 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 oil fields.
The Haiyangshiyou 102 FPSO has since been safely secured and tugged to safe area. There were no injuries during the process, and no oil spill was found. CNOOC is actively working on the recovery plan to resume production as early as possible.
The oil fields affected this time include Bozhong (BZ) 28-2 S, BZ 28-2 SN, BZ 34-1N and BZ 29-4. All four fields are owned and operated by CNOOC. The total production capacity was approximately 39,000 barrels per day.
CNOOC maintains appropriate insurance coverage of the operations related to the oil fields.