US EPA suspends BP from new federal government contracts

28 November 2012 14:31  [Source: ICIS news]

HOUSTON (ICIS)--The US Environmental Protection Agency (EPA) has temporarily suspended UK-based oil giant BP from winning new contracts with the US federal government, the agency said on Wednesday.

The suspension affects BP Exploration and Production, BP PLC and a number of affiliated companies, the agency said.

“[The] EPA is taking this action due to BP’s lack of business integrity, as demonstrated by the company's conduct with regard to the [2010] Deepwater Horizon blowout, explosion, oil spill and response, as reflected by the filing of criminal information,” the agency said.

Suspensions are standard practice when a question of responsibility is raised by action in a criminal case, the agency added.

The BP suspension will temporarily prevent the company and its affiliates from getting new federal government contracts, grants or related transactions until the company can provide sufficient evidence to the EPA demonstrating that it meets US federal business standards. 

The suspension does not affect any existing agreements BP may have with the government.

On 15 November, BP agreed to plead guilty to eleven counts of misconduct or neglect of ship officers, one count of obstruction of Congress, one misdemeanour count of a violation of the US Clean Water Act and one misdemeanour count of a violation of the Migratory Bird Treaty Act.

The charges all arose from BP’s conduct leading to the Deepwater Horizon incident, which resulted in the loss of 11 lives and led to the largest environmental disaster in US history, the EPA added.

By: Stefan Baumgarten
+1 713 525 2653

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