(XINHUA)

A ship from China's State Oceanic Administration (SOA) evaluates ConocoPhillips's clean-up efforts in the Bohai Bay on September 2.

That day, the SOA ordered the U.S. oil giant to cease all operations on the Penglai 19-3 Oilfield after the company failed to plug leaks in the oilfield by the administration's August 31 deadline.

The oil leaking from the oilfield caused by ConocoPhillips at the Penglai 19-3 Oilfield in the Bohai Bay was first spotted in June. The oil has since spread to beaches in China's Hebei and Liaoning provinces, causing huge losses in the provinces' tourism and aquatic farming industries.

On September 7, ConocoPhillips said it will establish a fund to compensate victims of the oil spill in line with Chinese laws and to benefit the general environment of the Bohai Bay.