Pakistan oil tanker fire
Pakistani rescue workers and paramedics bring a burns victim injured after an oil tanker caught fire following an accident on a highway in central PakistanMANSOOR ABBAS/AFP/Getty Images

A subsidiary of Royal Dutch Shell has made payment in damages and compensation to the victims of an oil tanker fire in Pakistan that killed 215 people last month, hours after Pakistan's oil and gas regulator threatened legal action.

The tragedy took place after a fuel tanker crashed and started leaking on the side of a highway and hundreds of people from a nearby village rushed to the scene to collect the spilled fuel. They were engulfed in flames when the spill ignited.

Pakistan subsequently asked Shell to pay $2.4 million, orkilled.

On July 12, Shell Pakistan Limited in a statement said it made full payment to Pakistan's Oil and Gas Regulatory Authority, which would distribute the money among the victims.

The latest development came after Shell said it was in discussions with Pakistani authorities over the "means by which this financial assistance can appropriately reach the injured and the families who have lost their loved ones." It did not specify the amount it planned to pay.

Imran Ghazanvi, a spokesman for Pakistan's oil and gas regulator, confirmed they received about $2.4 million. He said their probe found the company responsible for the disaster. The tanker was not fit to transport oil and the driver's licence was invalid, he added.

Shell Pakistan Limited had already paid a $96,000 fine over the disaster.

Pakistan oil tanker fire
Local residents look at burnt bodies after an oil tanker caught fire following an accident on a highway near the town of Ahmedpur EastSTR/AFP/Getty Images