BP has been temporarily suspended from any new US government contracts, including drilling leases in the Gulf of Mexico, a fresh blow that could have wide implications for its US operations.

The US Environmental Protection Agency said yesterday it had suspended the energy group “due to BP’s lack of business integrity” as demonstrated by its conduct over the 2010 Deepwater Horizon disaster.

The EPA said the suspension would temporarily prevent BP from getting new federal government contracts or grants until it could provide sufficient evidence that it met federal business standards.

The move means BP will not be able to participate in lease sales in the Gulf of Mexico, one of its key areas of operations and a critical growth area. – (Copyright The Financial Times Limited 2012)