$117-mln oilfield ship sinks during construction

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A workship worth 740 million yuan (US$117 million) has sunk during construction in east China's Jiangsu Province.

Ship worth over $100m sinks during construction

Photo taken on Jan. 18, 2012 shows the bilged oilfield workship at a dock in Nantong City, East China's Jiangsu Province. [Photo/Xinhua]



Owned by China Oilfield Services Ltd. (COSL), a leading Chinese oil field service provider, the high-powered deep-water anchor-handling tug supply vessel bilged while under construction at a dock in Nantong, Jiangsu Province, on January 14

The cause of the accident is under investigation and no environmental pollution was incurred, said COSL, a listed subsidiary of the China National Offshore Oil Corp. (CNOOC), the country's biggest offshore oil producer.

Wuchang Shipbuilding Industry Company Ltd., the builder of the ship, should take responsibility for losses caused by the accident according to contracts, said COSL.

Port workers are still working to salvage the vessel.

The CNOOC has been under public scrutiny after a string of oil leaks in 2011. A gas leak was found in a sub-sea gas pipeline of the CNOOC's Zhuhai Hengqin gas processing terminal in the South China Sea in December, forcing the company to shut down some platforms. No injuries or environmental pollution were reported.

Oil spills occurred in the CNOOC's Penglai 19-3 oil field, a joint venture with ConocoPhillips China, in the summer and the Jinzhou 9-3 West oil field in October.

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