BP is suing the US government for barring the company from winning new federal contracts in the wake of the Deepwater Horizon explosion, it was reported.
The oil company was banned from obtaining new contracts by the Environmental Protection Agency (EPA) in November, which accused the firm of a "lack of business integrity" following the 2010 disaster in the Gulf of Mexico, which killed 11 workers and caused a devastating oil spill.
The ban is in place until BP shows it has met federal "business standards", the Times said, but the company has grown frustrated at failures to reach an agreement with the EPA.
Geoff Morrell, BP's head of US communications, said: "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," the BBC reported.
" At the same time, we remain open to a reasonable settlement with the EPA."
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