Papua New Guineas first commercial oil project. Discovered in 1986 in the Southern Highlands Province.
Commercial production commenced in 1992 with maximum production of 139,000 bbls/day in 1993.
Production has since declined and is now producing at an average of 6,000 bbls / day.
Projects consists of oil producing wells from the Iagifu-Hedinia, Usano and Agogo fields , a Central processing facility , a 265 kilometre export pipeline to the coast and a marine loading terminal in the Gulf of Papua (Kumul Terminal). The pipeline operates under Pipeline Licence 2 (PL-2), while the oilfield operates under Petroleum Development Licence 2 (PDL-2)
The Project is operated by Oil Search Limited (60.05%) in Joint Venture partnership, with Ampolex (PNG Petroleum) Inc and Merlin Pacific Oil Company (14.52%), Merlin Petroleum Company (18.69%) and Petroleum Resources (Kutubu) Ltd (6.75%).
