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China's top offshore oil and gas producer CNOOC Ltd said on Dec. 30, 2011 that its parent plans to set up an environmental protection fund following a recent oil spill at the listed company's Penglai 19-3 oilfield operated by partner ConocoPhillips.

"The oil spill incident has reminded us that safety and environmental protection risks always exist," CNOOC Ltd's newly appointed Chief Executive Li Fanrong said in a statement.

The statement said CNOOC's board had approved a plan to contribute 500 million yuan as initial capital for the CNOOC Marine Environmental and Ecological Protection Public Welfare Foundation.

The plan has yet to be endorsed by the central government, it added.

CNOOC has said production in the third quarter fell 9.1 percent year on year to 80.9 million barrels of oil equivalent, mainly due to halted production at the Penglai 19-3 oilfield in Bohai Bay.

CNOOC had been losing 22,000 bpd since July 13 when operations at two platforms at Penglai 19-3 were halted. A further 40,000 bpd was lost after China's State Oceanic Administration ordered the suspension of all operations in the field, CNOOC executives have said.

The State Oceanic Administration said earlier this month that the spill, which began in June, had polluted 6,200 square km of waters, describing it as a major accident caused by negligence.

ConocoPhillips owns a 49 percent stake in the 168,000 barrel-per-day oilfield and acts as operator, while CNOOC Ltd has a 51 percent stake.