Kutubu Area

The Kutubu Area is a group of oil fields, in the Southern Highlands of Papua New Guinea. The project was the first petroleum development in the country. Oil is processed on site, and then transported via a 261-kilometre pipeline to an offshore export terminal located in the Gulf of Papua. Oil production started in early 1992 and peaked in 1993, averaging around 125,000 b/d. Production stayed above 100,000 b/d until 1997, at which point it declined sharply. Infill drilling and well workovers have reduced the rate of decline since 2001. Historically, all produced gas was re-injected, but from 2014 has been supplied to Papua New Guinea LNG, with the balance of produced gas reinjected into the reservoirs to maintain pressure and enhance oil recovery.