It will be the first time BHPB has taken a position in the country and comes on the back of renewed interest from oil companies due to relaxed fiscal terms by a government keen to boost commercial investment.

Talk has centred on BHPB farming into Unocal's SC41 exploration permit in the Sulu Sea. BHPB Vice President Exploration - Australia/Asia, Geoff King, was in meetings all yesterday afternoon and unable to confirm the reports.

Managing director of consultant group Troy-Ikoda Australasia, Alex Parks, which owns a vast tract of exclusive Filipino exploration data, said SC41 was pretty much wildcat country.

"It is essentially virgin territory as there hasn't been much history of drilling. BHPB, along with a host of others, will be chasing new play types," said Parks. He said he had also heard reports of BHPB's Sulu Sea maneuvering.

Adding substance to the rumour was a recent report in the Asia Financial News quoting the Philippine Department of Energy as listing BHP Billiton, among a host of other explorers, as being one of the interested companies.