BP has entered an administrative agreement with the United States Environmental Protection Agency (EPA) on the British multinational’s business in the country following a suspension over the Deepwater Horizon disaster.
The agreement allows the firm to sign new contracts with the US government, including new deepwater leases in the Gulf of Mexico, for the first time since November 2012, when it was temporarily suspended by EPA.
The Agency justified the decision by claiming BP demonstrated lack of business integrity in its handling of the disaster.
The petroleum giant was unable to obtain new federal government contracts, grants or other covered transactions until it could “provide sufficient evidence … demonstrating that it meets Federal business standards,” EPA statement said.
“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.
“Today’s agreement will allow America’s largest energy investor to compete again for federal contracts and leases.”
The new agreement, valid for five years, requires BP to outline and follow a set of safety and operations, ethics and compliance and corporate government requirements.
BP has also agreed to dismiss the lawsuit it had filed against the EPA in federal court in Texas for improper statutory disqualification and suspension.
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