From The Guardian UK: http://www.guardian.co.uk/environment/2012/nov/28/epa-suspends-bp-oil-spill
Environmental Protection Agency accuses oil giant of a ‘lack of business integrity’ over its behaviour following 2010 Gulf spill
Suzanne Goldenberg, US environment correspondent, and Terry Macalister
The Guardian, Wednesday 28 November 2012
BP has been blocked from seeking new contracts with the US government because of the oil company’s “lack of business integrity” during the Gulf of Mexico oil disaster, the Environmental Protection Agency said Wednesday.
The temporary order bans BP from competing for new oil leases in the Gulf of Mexico – such as the auction of 20m acres taking place on Wednesday – or from bidding on new contracts to supply the Pentagon or other government agencies with fuel.
While the ban does not affect existing business, it raises wider questions about the company’s future in a crucial market.
The type of suspension imposed by the EPA typically does not last more than 18 months. But an official said that in this case the ban could be extended because of the ongoing legal proceedings. That could mean BP, the largest oil producer in the Gulf of Mexico, would remain under an extended moratorium until all criminal charges and law suits are resolved.
BP was clearly taken by surprise and struggled to explain the impact on its business. Its shares fell nearly 2% in London as investors reacted with dismay to the news which puts a major dent in the company’s already battered reputation.
The finance director of the London-based oil group warned investors at a recent presentation that any outright ban could “affect BP’s investment thesis in the US”.
The order was handed down just two weeks after BP agreed to plead guilty to manslaughter and other charges arising from the April 2010 explosion of the Deepwater Horizon oil rig, as well as pay a record $4.5bn in fines.
Continue reading at: http://www.guardian.co.uk/environment/2012/nov/28/epa-suspends-bp-oil-spill
