* Sets compensation, environmental funds
* June spill dumped more than 3,300 barrels
* Industry accidents in the spotlight
DEC 21 - ConocoPhillips has set up a fund to pay residents and businesses for damage caused by its June oil spill in China's Bohai Bay and will use another fund to improve the bay's environment, the U.S. oil company said on Wednesday.
Chinese officials have criticized Conoco as negligent in the drilling accident that the company admitted had dumped more than 3,300 barrels of oil and drilling liquids into Bohai Bay.
The Houston-based company did not give a total amount of the financial compensation it planned to pay out.
In September, Conoco had promised to establish the compensation fund, which it said will be independently administered and provide "reasonable compensation" to those affected by its spill.
"These funds can help address the challenges of those who have been affected and promote the environmental sustainability of Bohai Bay," Conoco CEO James Mulva said in a statement.
Conoco's spill is the latest of several recent accidents by oil companies that have put the industry's drilling practices under scrutiny.
That heightened attention comes after BP Plc's disastrous oil well blowout last year in the Gulf of Mexico that spewed more than 4 million barrels of oil into the water, causing tens of billions of dollars in damage.
Earlier on Wednesday, Royal Dutch Shell said it would shut down the 200,000 barrels per day Conga oilfield off the Nigerian coast after a spill the company said was "less than 40,000 barrels."
Last week, Brazil filed a lawsuit against Chevron Corp and its partner seeking ${esc.dollar}11 billion after an accident dumped 2,400 barrels of oil into the waters off Rio de Janeiro. (Reporting by Matt Daily in New York, editing by Dave Zimmerman)
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