BP ban on bidding for US government contracts lifted

Will Green is news editor of Supply Management
22 March 2014

22 March 2014 | Will Green

BP has announced it is now able to bid for contracts with the US government after it was barred in the wake of the Deepwater Horizon disaster.

The oil company said it had entered into an “administrative agreement” with the US Environmental Protection Agency (EPA) that would lift the ban, imposed in November 2012.

John Mingé, chairman and president of BP America, said: “After lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable. This agreement will allow America’s largest energy investor to compete again for federal contracts and leases.”

Under the conditions of the agreement, which will apply for five years, BP has agreed to a set of requirements around safety and operations, ethics and compliance, and corporate governance.

As part of the deal BP has dropped a claim for damages against the EPA for “improper statutory disqualification and suspension”.

In the firm’s Sustainability Review 2013, BP said it had paid out around $28.5 billion (£17.3 billion) following the 2010 Gulf of Mexico disaster.

The report said the Gulf Coast accounted for around 18 per cent of the US’s total commercial seafood landings.

“Although research and monitoring continues, many experts believe Gulf of Mexico seafood has made a strong recovery,” said the report. “According to government testing results and commercial landings information, Gulf seafood is safe to consume and available in numbers comparable to pre-accident levels.”

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