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Beijing, China (AHN) – United States oil giant ConocoPhillips has denied allegations it was trying to cover up an oil spill at China’s biggest offshore oilfield off Bohai Bay.

China’s State Oceanic Administration (SOA) on Friday ordered the U.S. company to stop operations at the Penglai 19-3 oilfield, since the drilling site had leaked 3,200 barrels of oil since June. In issuing the order, SOA said it found ConocoPhillips’ efforts in a clean-up operation rather slow.

ConocoPhillips said it is taking responsibility for the matter, and had been arresting the leak since it first erupted by sealing the source as well as rounding up the containment and clean-up activities.

ConocoPhillips co-owns the Penglai 19-3 field with the state-owned China National Offshore Oil Corporation (CNOOC).

The Penglai 19-3 oilfield started production in 1999. CNOOC said the suspension of production would reduce output by about 40,000 barrels a day. The figure is less than than an earlier slowdown of 22,000 barrels a day when the oilfield was closed down on government orders on July 13.

The spill seriously polluted about 870 square kilometers (336 square miles) of Bohai Bay.

CNOOC shares fell 8.6 percent in early Hong Kong trade on Monday, as traders assessed the effect of the production closure on oil supplies that will feed China’s increasing demand for petroleum.

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