BP has been banned from pitching for future US federal contracts as a repercussion of the Gulf of Mexico oil spill.

The suspension comes from the Environmental Protection Agency (EPA), who have temporarily banned the energy giant from bidding for gas and oil exploration licenses and fuel contracts to government departments.

The ban will not be lifted until BP can demonstrate that: “it meets federal business standards", said the EPA.

The ban could see significant damage to the company’s reputation, investment plans and shareholder profits, and had not been predicted by the company, with general counsel Rupert Bondy saying that there had been: "no indication that any agency would move to suspend or debar us".