U.S. bans pariah BP from state contracts and accuses it of ‘lack of business integrity’ following Gulf of Mexico spill



Authorities in the US have taken another swipe at BP over the Gulf of Mexico oil spill, banning the British company from all government contracts and accusing it of a ‘lack of business integrity’.

BP will temporarily be locked out of lucrative deals, including contracts to supply the US military with fuel, and will also be barred from winning new licences to drill for oil until bosses can demonstrate what the Environmental Protection Agency (EPA) calls ‘present responsibility’.

BP was forced to pay £2.8billion earlier this month after admitting 14 criminal charges over the 2010 explosion of its Deepwater Horizon rig, which killed 11.

Critical: Authorities in the US have taken another swipe at BP over the Gulf of Mexico oil spill

As well as paying £12.6billion into a compensation fund and spending £8.9billion on cleaning up the Gulf, the company could also be fined as much as £13billion if found guilty of gross negligence under the US Clean Water Act.

In a brief statement, the EPA said its decision was taken in the light of BP’s ‘conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response’.

It said BP had displayed a ‘lack of business integrity’ over the spill, which enraged Gulf Coast residents who rely on pristine waters for tourism and fishing income.

Anti-British sentiment was further whipped up when gaffe-prone former boss Tony Hayward said: ‘I’d like my life back’, prompting fury from victims of the spill.

US politicians frequently referred to the company as ‘British Petroleum’, even though it dropped the name in 2001, in favour of the initials BP.

In practice, this means the firm will have to prove that it is a much safer and more trustworthy company than it was before the oil spill.

BP said it had made ‘significant enhancements since the accident’, including a new safety division, higher drilling standards and changes among its senior staff.

Losing out: BP will temporarily be locked out of lucrative deals, including contracts to supply the US military with fuel. It follows the 2010 explosion of its Deepwater Horizon rig, pictured

And the oil ‘supermajor’ said it had already provided a 100-page document showing that it can be trusted.

The EPA has already drafted an agreement that BP said would ‘effectively resolve and lift this temporary suspension’.

But in the meantime, BP stands to lose ground to rivals competing for access to money-spinning oil exploration and supply contracts.



BP pointed out yesterday that the US has not shied away from doing business with the company, despite public expressions of outrage against the company.

The US has awarded the British firm 50 new oilfield leases in the Gulf of Mexico since the spill and it remains the largest oil firm in the region.