BP allowed to participate in bidding for US government contracts
Baku, March 14 (AZERTAC). The US government Thursday lifted a ban on UK oil giant BP to allow it to once more bid for government contracts.
The ban was imposed after the 2010 Gulf of Mexico oil spill, caused by an explosion on BP's Deepwater Horizon rig, which caused the death of 11 people.
The ban was lifted after BP entered into an administrative agreement with the United States Environmental Protection Agency (EPA),
"As a result of this agreement, BP is once again eligible to enter into new contracts with the US government, including new deepwater leases in the Gulf of Mexico," the BP said in a statement.
Under the deal, BP has agreed to a set of safety, operations and compliance requirement and also drop its lawsuit against the US Environmental Protection Agency (EPA).
The firm had sued the EPA after it imposed the ban for "improper statutory disqualification and suspension".
The administrative agreement, which will apply for five years, will be applicable to all of the suspended and debarred BP entities, including BP Exploration and Production Inc., BP p.l.c. and certain affiliated companies.
It would also include commitments made under the remedial order stemming from BP's 2012 Plea Agreement with the US Department of Justice and Final Judgment Order with the US Securities and Exchange Commission.
The US government action follows the UK government intervened in December in support of BP over the ban.
In a court filing lodged as part of BP's appeal against the ban, the government said the move could be "excessive" and "destabilising". It moreover pointed out that what happened to BP affected UK jobs and pensions.
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