BHP Billiton Limited (ASX:BHP)
will pay $US3 million to Otto Energy Limited (ASX:OEL)
to terminate an exploration joint venture offshore the Philippines.
Otto has submitted a request to the Philippines Department of Energy for the re-assignment of BHP Billiton's 60 per cent working interest to Otto, taking Otto's interest to just over 93 per cent.
Under the terms of the agreement BHP will pay a further $US24.5 million to Otto upon completion of drilling the first exploration well in SC55.
BHP has no enduring rights to any future exploration outcomes.
BHP Billiton reported a net profit of $11.9 billion in the 2013 financial year.