BP sues US government over contracts veto

14th Aug 2013 10:52

BP is suing the US government over claims the Environmental Protection Agency (EPA) blocked it from winning new contracts following the 2010 Deepwater Horizon disaster.The oil company said EPA's ban affected 21 of its subsidiaries that had nothing to do with the Gulf of Mexico explosion that killed 11 workers and led to the largest spill in US history. "We believe that the EPA's action here is inappropriate and unjustified as a matter of law and policy, and we are pursuing our right to seek relief in federal court," said Geoff Morrell, BP's head of US communications."At the same time, we remain open to a reasonable settlement with the EPA."BP has been hit by an abundance of compensation claims related to the incident. The group said it has paid almost all the $20bn set aside in the compensation fund.Aside from struggling to keep up with the number of claims, the company has also been affected by lower oil prices.Second quarter profits came to $2.7bn, some $1.5bn less than the previous quarter and $900m less than the same quarter last year.RD