18 June 2014, News Wires – BP is back in business with the Pentagon with a new natural-gas supply contract following the cancellation of US sanctions against the UK supermajor in March.
According to the Wall Street Journal, the Pentagon’s Defense Logistics Agency awarded BP a contract valued at $43 million to supply it with fuel.
BP confirmed the award but a spokesman was not able to provide any additional information when contacted by Upstream.
In December 2012, the US Environmental Protection Agency forbid BP from entering into new contracts with the federal government as punishment for the Macondo oil well blowout and subsequent spill in 2010.
The injunction was lifted in March, just prior to the regularly scheduled central Gulf of Mexico lease sale. Free to resume dealings with the US government, BP took part in the sale, placing 24 apparent high bids and spending a total of just over $41.6 million.
Prior to the ban, BP regularly scored more than $1 billion a year in aviation fuel supply contracts with the Pentagon, according to the Wall Street Journal.
Bloomberg reported that BP garnered $2.51 billion in contract awards with the US government in fiscal year 2012, prior to the EPA sanction.