Kutubu, in the Southern Highlands, is PNG’s first petroleum field. A development agreement was signed in 1990 and production began in June 1992. Oil is piped 261 kilometers to the coast and 40 kilometers to an offshore loading platform where it is transferred to tankers for export. The project is owned by Chevron (US) 19.375 percent, British Petroleum (UK) 19.375 percent, Ampol Exploration (Australia) 16.455 percent, Broken Hill Pty Co Ltd (Australia) 9.688 percent, Oil Search (Australia) 7.763 percent, Merlin (Japanese) 4.844 percent and PNG government 22.5 percent. The project is managed by Chevron. The project produced 19.3 million barrels of oil worth $US400 million in the second half of 1992.