US supermajor ConocoPhillips and China's CNOOC Ltd have agreed to jointly pay 305 million yuan ($48 million) in compensation to Chinese fishermen and restore the maritime environment in the Bohai Bay area, following an oil spill last year.

ConocoPhillips and CNOOC reached a preliminary agreement to pay the compensation through the Qinhuangdao city government in the northern province of Hebei, Reuters quoted state-owned China National Radio saying.

The spill at the Penglai 19-3 oilfield last year resulted in the release of about 700 barrels of oil and the State Oceanic Administration said it polluted more than 840 square kilometres of water.

ConocoPhillips owns a 49% operated stake in the field, while state-owned CNOOC has a 51% stake.

ConocoPhillips and CNOOC reached a settlement with the Chinese government in January to pay 1 billion yuan as compensation, and also to designate 100 million yuan  of its previously announced environmental fund to be used to improve fishery resources in the region.