U.S. says no deal with BP as it seeks to drill again

[Judi Lynn]

Source: Reuters

U.S. says no deal with BP as it seeks to drill again

(2011-04-04)
(Reuters) -
By Mica Rosenberg and Ayesha Rascoe

MEXICO CITY/WASHINGTON (Reuters) - The U.S. government lashed out at companies at the heart of last year's Gulf oil spill on Monday, denying reports it had negotiated a deal with BP to resume drilling.

The tough talk by Interior Secretary Ken Salazar highlights the Obama administration's sensitivity toward letting BP -- the biggest holder of deepwater acreage in the Gulf of Mexico -- drill there again a year after an explosion on the Deepwater Horizon rig led to the worst offshore oil spill in U.S. history.

The blast killed 11 workers, ruptured the company's underwater Macondo well and unleashed millions of barrels of oil into the Gulf of Mexico.

Since the government lifted a ban on drilling in the region in October established after the spill, BP has submitted one permit application to drill one well, said a source who spoke on the condition of anonymity because the request was under review.



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