The EPA has lifted the ban on BP's ability to bid for federal contracts, Bloomberg reports.
The ban has been in place since Nov. 2012, the result of the 2010 Deepwater Horizon blowout in the Gulf of Mexico, in which 11 people were killed. BP pled to manslaughter charges and paid a $4.5 billion fine.
The contracts, many with the Defense Department, have been worth billions in the past. The company will now again be able to operate in the Gulf.
BP is still virtually at war with the state of Lousiana over how much the firm must pay in broader damages to state residents. It could face up to $18 billion in claims.
Shares are up nearly 1% in after-hours trading, following declines of 1.3% during the trading day.