A Chinese environmental group is suing PetroChina, the nation's largest oil and gas producer, for what they claim is severe pollution in northeastern Jilin Province.

The All-China Environment Federation said on Friday that it has filed suit in the Beijing Municipal No. 2 Intermediate People's Court against the oil producer and its Jilin subsidiary for illegally discharging waste drilling water which poisoned local groundwater and farmland.

The nationwide organization are demanding that the company pay 60.75 million yuan (almost $10 million) for environmental restoration.

PetroChina refused to comment on the lawsuit but a statement on Thursday said that an investigation team had been sent to Jilin. The company has promised to punish those responsible and repair the local environment.

PetroChina stocks in Shanghai edged down 0.38 percent to 7.91 yuan but rose 0.22 percent to 9.12 Hong Kong dollars in Hong Kong.