BP PLC BP. Statement Re: EPA Temporary Suspension

  BP PLC (BP.) - Statement Re: EPA Temporary Suspension

RNS Number : 2608S
28 November 2012

press release

28 November 2012



       Company working with EPA to demonstrate "present responsibility"

                     and have temporary suspension lifted

Today's announcement by the US Environmental Protection Agency (EPA) regarding
BP's temporary suspension relates only to future potential contracts with  the 
US government. The temporary suspension does not affect any existing contracts
the company has with  the US government, including  those relating to  current 
and ongoing drilling and production operations in the Gulf of Mexico.

The EPA's  action  is  pursuant to  administrative  procedures  providing  for 
discretionary  suspension   until   a   company   can   demonstrate   "present 
responsibility" to conduct  business with the  US government. BP  has been  in 
regular dialogue  with  the  EPA  and has  already  provided  both  a  present 
responsibility statement of more  than 100 pages  and supplemental answers  to 
the EPA's questions  based on that  submission. Moreover, in  support of  BP's 
efforts to  establish present  responsibility, the  US Department  of  Justice 
agreed, in the plea agreement, that it will advise any appropriate  suspension 
or debarment authority that in the Department's view, BP has accepted criminal
responsibility for  its conduct  relating to  the Deepwater  Horizon  blowout, 
explosion, oil  spill  and  response. The  EPA  has  informed BP  that  it  is 
preparing a  proposed administrative  agreement that,  if agreed  upon,  would 
effectively resolve and lift  this temporary suspension.  The EPA notified  BP 
that such a draft agreement would be available soon.

As BP's  submissions  to  the  EPA  have made  clear,  the  company  has  made 
significant enhancements since the accident. The company launched an  internal 
investigation immediately after the  accident, publicly released the  results, 
and has been implementing  all 26 of  the investigation's recommendations.  BP 
has also, among  other things,  made key leadership  changes, reorganized  its 
upstream  business,  created  a   centralized  Safety  and  Operational   Risk 
organization, and adopted voluntary deepwater  drilling standards in the  Gulf 
of Mexico that exceed current regulatory  requirements. BP has shared what  it 
has learned with industry and regulators around the world.

In the two  and a  half years  since the  Deepwater Horizon  accident, the  US 
government has granted BP more than 50 new leases in the Gulf of Mexico, where
the company  has been  drilling  safely since  the government  moratorium  was 
lifted. BP is the  largest investor and deepwater  leaseholder in the Gulf  of 
Mexico with more  than 700 gross  blocks and seven  rigs currently  conducting 
drilling operations.

Over the past five years, BP has invested more than $52 billion in the  United 
States - more than any other oil and gas company, and more than it invests  in 
any other country where it operates. The company employs 23,000 Americans  and 
supports nearly a quarter of a million American jobs.

On top of this business investment, BP has to date spent more than $14 billion
in operational response and clean-up costs.  BP continues to monitor the  Gulf 
and its shoreline, and  the company has  supported regional tourism,  promoted 
Gulf seafood, and committed $1 billion to early restoration projects. BP  also 
quickly set up a process  to pay all legitimate  claims and established a  $20 
billion  Trust  to  assure  Americans  that  the  resources  to  pay   claims, 
settlements, and other costs would be there. To date, BP has paid more than $9
billion to individuals,  businesses and  government entities  and has  already 
agreed to a settlement with the Plaintiffs' Steering Committee, resolving  the 
substantial majority of outstanding private economic loss, property damage and
medical claims, which BP estimates will cost approximately $7.8 billion.

Further information:

BP press office, London: +44 (0)20 7496 4076, bppress@bp.com

                                  -- ENDS --

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCLLFLDLDLTFIF -0- Nov/28/2012 17:31 GMT
Press spacebar to pause and continue. Press esc to stop.