Australian-listed Otto Energy has been given the green light by the Philippines government to take over an offshore license assigned from BHP Billiton.

Otto has received approval from the Philippines Department of Energy for the re-assignment of a 60% equity in license SC55 from BHP, and to become operator. The Aussie independent revealed in January the termination of a farmout agreement for the licence area with BHP, under which BHP agreed to pay US $3 million and a further $24 million upon the drilling of an exploration well on the acreage.

Timing for the planned exploration well has been rescheduled for later this year after force majeure was declared in 2013.

Meanwhile Otto is still working to find another partner with deepwater experience to step in and participate in the drilling of the planned Hawkeye 1 well in SC55. Well designs have already been developed, equipment procurement for the well is under review and expressions of interested have been invited from contractors able to supply a rig in a suitable time frame.

Otto now has a total interest of 93.18% in SC55, and says “several suitable companies with SE Asia operations” have started technical due diligence reviews of the available data.

Completion of the farm-out process is anticipated to be completed and a new partner secured by mid-2014, it says.