China National Offshore Oil Corp Ltd and its partner, ConocoPhillips China, have reached an agreement with the city's government of North China's Qinhuangdao port. They will pay 345 million yuan ($54.7 million) in compensation for the oil spill on the Penglai 19-3 oil field, cnr.cn reported Sunday.

According to the agreement, the compensation will be paid for its impact on the livelihood of the fishermen and for restoring the maritime eco-environment.

The city government has formed a special team responsible for this issue and has formulated a working scheme to allocate the compensation money. They are also seeking opinions and suggestions from relevant departments, township governments and key fishing villages.

A household survey and calculating work will be launched by the city's government in the near future.

China's semi-closed Bohai Sea suffered heavy pollution last year after an oil leak at the Penglai 19-3 oil field which is jointly owned by the China National Offshore Oil Corp Ltd and ConocoPhillips China, a subsidiary of the US energy giant, ConocoPhillips.

The oil spill has polluted over 6,200 square km of water in the bay since June, an area about nine times the size of Singapore. The State Oceanic Administration said that its investigation revealed that operations in the oil field were in violation of the region's development plan.