The ban had been in place since the 2010 Gulf of Mexico oil spill that followed an explosion on the company’s Deepwater Horizon rig. It has been lifted after BP agreed to a detailed set of safety, operations and compliance requirements. The move will allow BP to enter into new contracts with the US government, including in the Gulf of Mexico.
"After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable," John Mingé, chairman of BP America Inc., said in a statement. "Today's agreement will allow America's largest energy investor to compete again for federal contracts and leases."
Following the news, BP's US-listed shares rose be around one percent in after-hours trading. Investors are now hopeful that BP will be able to expand its important US offshore operations. As Mike Breard, energy analyst with Dallas-based Hodges Capital Management put it, "it's time to let them out from the doghouse. Let's let them get back to work.”