Vanuatu's Minister of Lands and Environment says the government may not press for compensation from P&O Cruises over its disposal of 500,000 litres of oil waste at a Port Vila dump.
P&O representatives have been meeting Maxime Carlot Korman this week and he says they are doing all they can to alleviate the potentially hazardous situation at the Teouma dump site.
Mr Korman says P&O have been very proactive in its remediation plan, which is underway.
"By responding to secure and clean up the site is the big investment already made by P&O so we will consider if they secure it - maybe government will agree that ok, we will not claim other compensation. But if we are to sign a new agreement to continue it then I think the government must request some funds from P&O first."
P&O has engaged environmental experts from New Caledonia to secure the area and pump the waste into liquid holding containers for safe storage prior to treatment on site.
The complete clean-up is estimated to take between three to six months.