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.