BHP to take up to 60 pct of Philippine oil block

MANILA, May 11 (Reuters) - Top global miner BHP Biliton Ltd will take over operations and get a participating interest of up to 60 percent in an oil prospect off the southwestern Philippine island of Palawan, the owners of the block said on Wednesday.

In separate disclosures, Philippine-listed Trans-Asia Oil and Energy Development Corp and partner Otto Energy Ltd of Australia said commodities giant BHP would exercise an option to farm-in to service contract 55, taking a majority of the interest of NorAsian Energy Limited, a unit of Otto.

Otto Energy's interest in the oil prospect would fall to 33.2 percent following BHP's farm-in. Trans-Asia has around 7 percent interest.

Under the farm-in agreement with Otto, BHP would assume operations of the service contract by reimbursing Otto's past costs and funding one offshore deepwater well next year, with an option to drill a second deepwater well in 2013.

BHP's entry into the oil prospect is subject to approvals of the joint venture and the Philippines' Department of Energy. BHP has a petroleum unit called BHP Biliton Petroleum.

'We are looking forward to continuing to work with BHP Biliton in service contract 55 as we move into the drilling phase of exploration activities,' Otto managing director Paul Moore said.

Otto said it has explored the oil prospect in the last 16 months and has acquired extensive 3D seismic data over an area covering 1,800 square kilometres (695 square miles) indicating an active petroleum system.



(Reporting by Erik dela Cruz; Editing by Rosemarie Francisco) ([e-mail])([phone])(Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.