Combine the annatto seeds and olive oil in a saucepan then apply heat.

Maintain the heat to medium. When bubbles start to form around the annatto seeds, turn off the heat and let the seeds soak in oil for 1 to 2 minutes (Do not overcook the seeds because it will produce a bitter taste).

Transfer the oil to a container. Use a strainer to filter-out the annatto seeds.

You are now ready to use annatto oil as an ingredient to any dish that requires it.