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US lifts BP government contract ban | US lifts BP government contract ban |
(about 4 hours later) | |
The US has lifted a ban on oil giant BP that prevented it from bidding for US government contracts. | The US has lifted a ban on oil giant BP that prevented it from bidding for US 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 killed 11 people. | The ban was imposed after the 2010 Gulf of Mexico oil spill, caused by an explosion on BP's Deepwater Horizon rig, which killed 11 people. |
The ban has been lifted after the firm agreed to a set of safety, operations and compliance requirements. | The ban has been lifted after the firm agreed to a set of safety, operations and compliance requirements. |
As part of the agreement, BP will also drop its lawsuit against the US Environmental Protection Agency (EPA). | As part of the agreement, BP will 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 firm had sued the EPA after it imposed the ban for "improper statutory disqualification and suspension". |
"After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable," John Mingé, chairman of BP America Inc, said in a statement. | "After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable," John Mingé, chairman of BP America Inc, said in a statement. |
"Today's agreement will allow America's largest energy investor to compete again for federal contracts and leases." | "Today's agreement will allow America's largest energy investor to compete again for federal contracts and leases." |
Government support | Government support |
The move will allow BP to enter into new contracts with the US government, including in the Gulf of Mexico. | The move will allow BP to enter into new contracts with the US government, including in the Gulf of Mexico. |
In December, the UK government intervened in support of BP over the ban. | In December, the UK government intervened 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". | 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 had said that what happened to BP affected UK jobs and pensions. | It had said that what happened to BP affected UK jobs and pensions. |
"It is the view of Her Majesty's government that the EPA's disqualification and suspension of multiple BP entities may have been excessive," the document said. | "It is the view of Her Majesty's government that the EPA's disqualification and suspension of multiple BP entities may have been excessive," the document said. |
"The government is concerned that such a broad sanction can and will have serious and unjustified economic consequences." | "The government is concerned that such a broad sanction can and will have serious and unjustified economic consequences." |
However, Tyson Slocum, director of the campaigning group Public Citizen's Energy Program, criticised the agreement as letting BP "off the hook". | |
The company "has failed to prove that it is a responsible contractor deserving of lucrative taxpayer deals," he said. | |
Following the news, BP's US-listed shares rose about 1% in after-hours trading. | |
Investors are hopeful that BP will now grow its important US offshore operations. | |
"It's time to let them out from the doghouse. Let's let them get back to work," said Mike Breard, energy analyst with Dallas-based Hodges Capital Management. |
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