The Kutubu oilfields are located in the Southern Highlands Province, 480 kilometers northwest of Port Moresby. The Kutubu project was Papua New Guinea’s first oil development and consists of a number of producing wells, which together are called the Agogo and lagifu -Hedinia field.
Oil was first discovered in the lagifu structure in the 1986, and production commenced in June 1992. The project was operated by Chevron Niugini, a subsidiary of Chevron until 2003, when its operation was taken over by Oil Search Limited.
PRK Limited is a subsidiary of Mineral Resources Development Company. it was incorporated in 1989 under the Companies Act to hold the landowners and provincial government equity interest in the Kutubu Petroleum Project. It currently manages 6.75% equity in the Project on behalf of the beneficiaries in Petroleum Development License 2 (PDL2). MRDC is mandated to manage resource project landowner’s interests in both mining and petroleum projects. This includes PRK, whose corporate, financial investment and other affairs are managed by MRDC under a management agreement.
The beneficiaries of PRK are; Southern Highlands Provincial Government (1.575%) Gulf Provincial Government (1.125%), Southern Highlands Landowners (Fasu 1.553% and Foe 0.696%) and Kikori pipeline area landowners (1.8%). This Project equity was acquired by the State through MRDC on a carried basis.