The Straits Times
Published on Nov 28, 2012

BP suspended from new US government contracts


WASHINGTON (REUTERS) - The British oil company BP Plc and its affiliates have been suspended from new contracts with the US government due to the criminal charges in the Deepwater Horizon oil spill in 2010, the US Environmental Protection Agency (EPA) said on Wednesday.

Earlier this month, BP pleaded guilty to criminal misconduct in the Gulf of Mexico disaster, the worst oil spill in US history, and agreed to pay record penalties of US$4.5 billion (S$5.52 billion).

The temporary contract suspension stems from those charges, the EPA said.

"Federal executive branch agencies take these actions to ensure the integrity of federal programmes by conducting business only with responsible individuals or companies. Suspensions are a standard practice when a responsibility question is raised by action in a criminal case," the EPA said in a statement.