PetroChina Shaanxi Unit Pipeline Has Oil Leak, Times Reports

Crude oil has leaked from a cracked pipeline in the Changqing oilfield owned by PetroChina Co. (857) in the northwestern province of Shaanxi, Securities Times reported, citing local village residents.

The “large quantity” of leaked oil from the accident, which occurred in Zhidan county of Yanan city on July 12, entered the surrounding water system and may flow into a downstream reservoir, which provides drinking water to more than 200,000 residents, the newspaper said without citing anyone.

Several attempts by the company to send people to clean up the oil were thwarted by rain, the report said.

PetroChina has not received any report about the accident and is trying to contact the local unit for more details, Beijing-based spokesman Mao Zefeng said by phone today.

In November, 2011, China National Petroleum Corp., the parent of PetroChina, was given a disciplinary warning by the central government for an accident in the previous year, in which an oil spill caused by an explosion polluted more than 183 square kilometers (70 square miles) off the coast.

To contact Bloomberg News staff for this story: William Bi in Beijing at +86-10-6649-7578 or wbi@bloomberg.net

To contact Bloomberg News staff for this story: William Bi in Beijing at wbi@bloomberg.net

To contact the editor responsible for this story: Andrew Monahan at amonahan@bloomberg.net

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