Otto Energy Could Sue BHP Billiton For Pulling Out Of A $60 Million Mining Deal

Getty/ Ryan Pierse

Otto Energy is considering legal action against mining giant BHP after the latter pulled out of a $60 million project.

The two companies had agreed to explore the “Cinco” oil and gas well off the coast of the Philippines, but BHP abandoned the project as it sought to remove itself from energy projects outside of the US or Australia.

In a statement released by Otto, the company said while it had yet to receive notification detailing BHP’s decision, it would “strenuously enforce its full legal rights”.

The move comes after BHP CEO Andrew Mackenzie announced earlier this year that the company would be maximising profits and freeing up cashflow in an attempt to cut spending by 18% in the 2014 budget, reports Mining Australia.

Read more here.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.