CNOOC, ConocoPhilips reach an agreement on compensation over the oil spill in Bohai Bay. [Chinanews.com]

China National Offshore Oil Corp. (CNOOC) said Wednesday that it has reached an agreement with ConocoPhillips China and the Ministry of Agriculture to settle compensation claims stemming from oil spills in north China's Bohai Bay.

Under the agreement, ConocoPhillips will pay 1 billion yuan (158.73 million U.S. dollars) to settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities, according to a statement on CNOOC's website.

ConocoPhillips and CNOOC will earmark 100 million yuan and 250 million yuan, respectively, from their previously announced environmental funds for the restoration, maintenance, environmental monitoring and scientific research of fishery resources, according to the statement.

CNOOC also pledged efforts to offer "expeditious and reasonable" compensation for damages caused by the oil spills, according to the statement.

In September, ConocoPhillips announced the establishment of an environmental fund to support green projects in Bohai Bay and nearby communities.

In December, CNOOC filed an application to the Ministry of Civil Affairs for registration of a marine environmental fund with an initial donation of 500 million yuan.

The CNOOC fund will be spent on projects of marine environmental protection, scientific research and technology development on the marine eco-system, and it will also support marine-related international cooperation, as well as some other public welfare projects.

The severe oil spills in the Penglai 19-3 oilfield in Bohai Bay have polluted over 6,200 square km of water since June, an area about nine times the size of Singapore, and caused huge losses in the tourism and aquatic farming industries of Liaoning and Hebei provinces.

The Penglai 19-3 oilfield is China's largest offshore oilfield, with daily production of about 160,000 barrels. CNOOC holds a 51-percent stake in the field, while ConocoPhillips has 49 percent.