BP faces temporary ban from new US contracts

 

 

BP has been temporarily suspended from new contracts with the US government, the Environmental Protection Agency (EPA) has said.

While it is unclear how long the ban will last, it follows BP's record fine earlier this month over the 2010 oil spill in the Gulf of Mexico.

The EPA said it was taking action due to BP's "lack of business integrity" over its handling of the blowout.

BP has pleaded guilty to 14 criminal charges over the accident.

"The BP suspension will temporarily prevent the company and the named affiliates from getting new federal government contracts, grants or other covered transactions until the company can provide sufficient evidence to EPA demonstrating that it meets federal business standards," said the EPA in a statement.

"The suspension does not affect existing agreements BP may have with the government," it added.

The Deepwater Horizon accident in which an oil rig exploded killing 11 people, caused one of the worst oil spills in history.