The US Justice Department has said it will press ahead with a multi-billion dollar compensation claim against BP despite a settlement between the company and thousands of local people affected by the huge oil spill in the Gulf of Mexico two years ago.
The oil company has agreed to pay $7.8bn to end the action brought by fishermen, emergency workers and other groups.
BP says the settlement does not mean that it accepts liability for the disaster which killed 11 rig workers and spewed millions of tonnes of oil into the Gulf for three months.
The last-minute deal agreed on Friday means a highly-anticipated trial will be delayed once again after a postponement was ordered last week to allow settlement talks on what became the worst environmental disaster in US history to continue.
"The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast," Bob Dudley, BP's Chief Executive, said in a statement.
A judge's approval is required before the settlement is finalised.
The explosion on the BP-leased Deepwater Horizon drilling rig killed 11 workers when flammable gas leaked from the well and ignited.
The oil spill that followed blackened beaches in five US states and devastated the Gulf Coast's tourism and fishing industries.
It took 87 days to cap BP's runaway well 1,500m below the water surface as it spewed 4.9 million barrels of oil into the Gulf of Mexico.
Several US government probes have already criticized BP, rig operator Transocean and Halliburton - which was responsible for the well's faulty cement job - for cutting corners and missing crucial warning signs.
The US Justice Department, however, suggested the settlement is not the end of BP's legal entanglements or payments.
"Although we remain open to a fair and just settlement, we are fully prepared to try the case," a spokesman said in a statement.
The Justice Department wants to ensure any resolution of damages claims "is just, fair and restores the Gulf for the benefit of the people of the Gulf states," the statement added.
The settlement does not affect what is anticipated to be tens of billions of dollars in fines and claims from the US government, coastal states and local governments impacted by the spill.
Nor does it resolve suits filed by shareholders or those seeking payouts because of a drilling moratorium imposed after the disaster.
Judge Carl Barbier issued an order late Friday adjourning the case indefinitely "because such a settlement would likely result in a realignment of the parties in this litigation... and in order to allow the parties to reassess their respective positions.
The case will probably go to court even if a deal is reached with the federal government, because BP is hoping to shift some of the cost to its subcontractors, which could take years and multiple appeals to resolve.
One set of federal fines could reach $18bn if gross negligence is found.
BP faces other economic liabilities from the spill, including the cost of environmental rehabilitation, and could be hit with costly criminal charges and punitive damages ranging from one to five times the cost of compensation.
