BP cleared to re-tender for US government contracts
17 March 2014
BP announced on March 13 that it had entered into an administrative agreement with the United States Environmental Protection Agency (EPA), on behalf of the federal government, resolving all matters related to the suspension and disqualification of BP following the Deepwater Horizon accident and oil spill.
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 administrative agreement applies to all of the suspended and debarred BP entities, including BP Exploration & Production Inc., BP p.l.c. and certain affiliated companies.
“After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable,” said John Mingé, 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.”
Under the terms and conditions of the administrative agreement, which will apply for five years, BP has agreed to a set of safety and operations, ethics and compliance, and corporate governance requirements, including those contained in 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.
As part of the administrative agreement, BP will dismiss the lawsuit it filed against the EPA in federal court in Texas for improper statutory disqualification and suspension.
The company had been suspended from performing any new government work from November 2012, after BP agreed to plead guilty and to pay a $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. The decision comes just before the Department of Interior will offer more than 40 million acres for oil and gas exploration and development in the Gulf of Mexico in March lease sales.
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