BP has requested the US Court of Appeals to reduce the amount of "fictitious" payments to be made towards the Deepwater Horizon or Gulf of Mexico oil spill settlement.

The UK-based multinational oil and gas company has urged the courts to order for stricter standards for evaluating claims, reported Bloomberg.

BP said it believes it is paying millions of dollars in what seems like fictitious payments for business losses based on flawed interpretation of the agreement that was reached with victims’ lawyers in 2012.

BP lawyer Theodore Olson urged the court to stop the hemorrhaging of cash.

"Irreparable injuries are taking place, and monies are being dispensed to parties from whom it will unlikely be recoverable," Olson added.

As part of the settlement, BP agreed to pay $7.8bn, but due to the ruling, it has been forced to pay extra hundreds of millions of dollars.