BP faces ban on drilling in US waters
BP could be banned from offshore drilling in the US for up to seven years following a US?Congressional vote last night that agreed to preclude companies with poor safety records from offshore oil exploration permits.
The proposed law does not name BP, but would apply to any company that has experienced 10 or more deaths in the last seven years. April’s explosion of BP’s Deepwater Horizon rig killed 11 workers. The proposal would need to be passed by both houses of Congress before it can be signed into law. If approved it would be a devastating blow for BP, which employs a quarter of its 80,000-strong workforce in the US.
The vote came as the energy giant began tests of a new cap to fit over the oil leak. The test, expected to yield information on how to seal the well permanently, began late yesterday and could last up to 48 hours. The test had earlier been delayed so experts could review the procedure.
Meanwhile, well partner Mitsui has informed BP that it will withhold payment for its 10 per cent share in the Macondo site, worth $111m (£72m).
Mitsui joins Anadarko, which owns 25 per cent of the well, in its refusal to pay the oil giant for clean-up costs now worth $3.5bn. BP said it was disappointed by the decision.
Meanwhile, the company has come under further fire from the US government after secretary of state Hilary Clinton demanded that BP suspend offshore drilling in Libya after allegations surfaced that the group lobbied the UK government to release Lockerbie bomber Abdel Basset al-Megrahi. A statement from BP said: “In late 2007 BP told the UK government that we were concerned about the slow progress being made in concluding a Prisoner Transfer Agreement with Libya. We were aware that this could have a negative impact on UK commercial interests, including the ratification by the Libyan government of BP’s exploration agreement. The decision to release Mr. Al Megrahi in August 2009 was taken by the Scottish government. It is not for BP to comment.”