Canadian Manufacturing

Washington reaches deal, lifts BP ban on government contracts

by Dina Cappiello, The Associated Press   

Canadian Manufacturing
Environment Oil & Gas disaster environment justice oil and gas politics U.S.

Oil giant had been suspended from performing any new work for U.S. government since November 2012

WASHINGTON—The oil company behind the largest offshore oil spill in United States history can once again perform work for the federal government.

Under an agreement reached this week with the U.S. Environmental Protection Agency (EPA), more than two dozen BP entities and its Houston-based oil production and exploration arm can secure new government contracts.

The company had been suspended from performing any new government work since November 2012, after BP agreed to plead guilty and to pay a US$4.5-billion fine for criminal charges involving the death of 11 workers and lying to Congress about how much oil was spilling into the Gulf of Mexico.

The temporary ban barred the oil company for 16 months from leasing more offshore oil and gas properties and renewing fuel contracts with the U.S. military.


For five years, BP will have to abide by a series of ethics, safety and other requirements.

An independent auditor will also verify its compliance with the deal.

The company also agreed this week to drop its lawsuit challenging the suspension.

“(This) agreement will allow America’s largest energy investor to compete again for federal contracts and leases,” said John Minge, chairman and president of BP America, Inc., in a statement.

The April 2010 spill occurred after BP’s Macondo well blew out, causing the Deepwater Horizon drilling rig to explode, killing 11 workers.

Millions of gallons of oil spewed into the Gulf, with crude soiling shoreline and beaches from Louisiana to Florida.


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