BHP Billiton to fund offshore Philippines 3D seismic survey

BHP Billiton (BHPB) has agreed to fund acquisition and processing of 1,000 sq km to 2,000 sq km (386 sq mi to 772 sq mi) 3D seismic program in SC55, offshore Philippines.

Offshore staff

SYDNEY, Australia -- BHP Billiton (BHPB) has agreed to fund acquisition and processing of 1,000 sq km to 2,000 sq km (386 sq mi to 772 sq mi) 3D seismic program in SC55, offshore Philippines. In consideration, operator Otto grants BHPB exclusive review of the entire seismic data base and an option to farm into the permit.

BHPB will earn the 60% net participating interest by funding two deepwater exploration wells and reimbursing Otto’s past costs. BHPB also will be assigned operatorship if it elects to farm into the permit. If BHBP elects to drill only the first deepwater exploration well, the company will transfer back 30% interest and operatorship to Otto.

Otto has completed a 600 sq km (232 sq mi) 3D seismic in the area. SC55 covers 9,000 sq km (3,475 sq mi), offshore Palawan Island. Otto currently has an 85% working interest and is operator of the permit.

01/15/2010

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