BP Clears Up U.S. Contracting Ban

BP is once again eligible to enter into new contracts with the U.S. government, including new deepwater leases in the Gulf of Mexico.

BP announced March 13 it has reached an agreement with EPA that resolves its suspension and debarment from bidding on federal contracts as a result of the Deepwater Horizon disaster, both the explosion on the drilling platform and the subsequent oil spill. As a result, BP is once again eligible to enter into new contracts with the U.S. government, including new deepwater leases in the Gulf of Mexico.

The agreement applies to every suspended and debarred BP entities, including BP Exploration & Production Inc., BP p.l.c., and affiliated companies.

"After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable,"said John Ming, chairman and president of BP America, Inc. "Today's agreement will allow America's largest energy investor to compete again for federal contracts and leases."

The agreement is in place for five years. BP has agreed to a set of safety and operations, ethics, compliance, and corporate governance requirements, including the items in a remedial order following BP's 2012 Plea Agreement with the U.S. Department of Justice and a final judgment order with the U.S. Securities and Exchange Commission. BP has agreed to dismiss its lawsuit against the EPA in a Texas federal court for alleged improper statutory disqualification and suspension.

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