BP Plc share price up, reaches an agreement with EPA to once again bid for US leases

An agreement has been reached between BP Plc, which is the third-largest oil company in Europe, and the U.S. Environmental Protection Agency. The accord puts an end to a ban the oil and gas company received over doing business with the federal government.

After the Deepwater Horizon rig explosion in 2010 and the oil spill in the Gulf of Mexico, the company was banned from getting any contracts with the U.S. Government. The agreement is now expected to provide BP Plc with the opportunity to continue making deals for drilling rights in the region. BP Plc will also be able to sign contracts for fuel supplies with different branches of the U.S. government, including the military one.

The U.S. Bureau of Ocean Energy Management, which is part of the Interior Department was reported to be planning an auction for oil and gas exploration leases on the territory of more than 40 million acres on the Gulf of Mexico. The auction will take place next week. BP Plc refused to make any comments and did not reveal if it plans to participate in the auction, which is scheduled for March the 19th and will be held in New Orleans.

The Chairman and President of BP America – Mr. John Mingé explained in an e-mailed statement, which was cited by Bloomberg: “After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable.”

The agreement reached between the company and the US Environmental Protection Agency is deemed crucial because it will allow BP to continue developing its business in the region. The deal had been said by Craig Hooks to have taken “many months of discussions”.

Mr. Craig Hooks, who is currently a senior official of Environmental Protection Agency said for the Financial Times: “This is a fair agreement that requires BP to improve its practices in order to meet the terms weve outlined together. Im confident weve secured strong provisions to protect the integrity of federal procurement programmes.”

BP Plc rose by 0.49% by 8:04 GMT in London to trade at 480.90 pence, marking a one-year change of +7.11%. The company is valued at 88.22 billion pounds.