Resources giant BHP Billiton has signed a final agreement to pay $US3 million ($A3.42 million) to Otto Energy to withdraw from an exploration joint venture in the Philippines.
Otto has submitted a request to the Philippines Department of Energy for the re-assignment of BHP Billiton’s 60 per interest to Otto, taking Otto’s interest to 93.2 per cent.
Under the terms of the termination agreement BHP Billiton will pay a further $US24.5 million ($A27.91 million) to Otto after completing exploration drilling.
Otto added that it had started a process to introduce a new partner into the joint venture to participate in the drilling of the Hawkeye-1 exploration well.
Shares in the junior oil and gas company were flat at 10 cents while BHP shares were 0.43 per cent lower at $37.83 at 1452 AEDT.