BP Wants to Resume Gulf Drilling

BBC reports:

BP is close to reaching an agreement that would allow it to restart drilling for oil in the Gulf of Mexico.

US regulators dismissed reports of a "done deal", but it is thought that BP has been given informal approval.

The oil giant has asked to restart work on existing wells in the Gulf, where a BP rig explosion last year killed 15 workers and caused a huge oil spill.

Despite media reports of an agreement, the Bureau of Ocean Energy Management said "there is no such deal".

However, the BBC's business editor, Robert Peston, understands that BP has been told privately that it should be able to resume drilling in July.

The issue is sensitive for BP and the Obama administration as the oil spill is still fresh in the minds of Gulf communities and environmental groups.

BP would like to restart work on 10 existing wells, all in deep water locations.

The company's rivals have been given permission to resume drilling on existing operations. New deep water explorations are still banned.