The National newspaper reported that the three PPLs, 302, 306 and 307, cover a large area of the nation - from Wutung on the western border's northern coast and east to coastal Wewak in East Sepik Province, and 175km south to Telefomin in West Sepik Province.

Prime Minister Sir Michael Somare and Petroleum Minister William Duma congratulated principal landowner and Min Oil representative Mary Lane on her successful permit applications at her homeland of Telefomin.

Reported by the Post-Courier newspaper, Lane had once been jailed for her struggle to allow more than 10,000 people from the area to have authority over their resources, despite the area's lack of infrastructure and health, educational and phone services.

Along with the permits, which consist of 467 blocks in the largest exploration area ever granted, the PNG Government has thrown in K500,000 ($A198,398) seed capital to kick-start exploration.

Duma said he was shocked the landowners wanted such a licence area, given the history of foreign companies seeking permits, but his department had fast-tracked the licence approvals, taking less than a year.

"As a Papua New Guinean, I am also proud that our own countrymen and women will own such a licence [area]," he said.

Somare said infrastructure services in the remote areas would start developing in conjunction with exploration operations.

"My government will work closely with landowners to find and screen potential developers to make sure they have the credentials and the money to work," Somare said.

Somare also said he had told Duma to get licences back from companies who have sat on them for more than five years and to give the licences to those that have money to quickly develop projects.

Lane said a number of interested Asian developers had shown interest in the new permit areas but she wanted to retain 100% ownership to develop the resources in future oil and gas projects.