CNOOC Ltd, China's largest offshore oil explorer, said on Sunday that the Penglai oil block in the northeastern coast has received permission from the government to restart operations, 17 months after an oil spill.

The State Oceanic Administration said that the Penglai 19-3 oilfield has now normal conditions for production and normal operations after a series of measures were taken after the oil spill.

The oilfield is operated under a production-sharing contract between CNOOC, which holds a 51-percent stake, and ConocoPhilips, the United States energy company, which owns a 49-percent stake.

The administration said it will boost on-spot supervision of the oilfield and required CNOOC to continue to supervise and assist the operator of the oilfield, Conoco, in strictly complying with oil and gas production standards and ensuring production safety.

The Penglai 19-3 block had a daily output of about 126,000 barrels before the oil spill in June 2011, contributing about 6 percent of CNOOC's total annual output.

Resuming operations at the block will help the company reach its target of producing 3.38 million to 3.48 million barrels of oil this year, industry observers said.