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Background
During the main quest
Goblin Keys, if you meet with Omar the giant chieftain in
Rotwood, and if you ask him for a key, then he'll give you this quest.
Walkthrough
Before giving you anything, Omar (#1) will want you to prove that you're a friend to the giants. So he'll ask you to retrieve the skull of the former giant chieftain Thorus, who as killed many years ago by a human named Thorndike. You'll find the
Giant Skull inside Camp Thorndike in
Baron's Thicket (#2). Thorndike won't be there to stop you, but you'll have to battle numerous Raptors on your way to the skull.
When you deliver the
Giant Skull to Omar, you'll earn 6000 xp, and Omar will allow you to loot the chest in his hut, where you'll find the
Red Goblin Key and 250 gp. If you were polite to Omar during the quest, then he'll also send some giants to help you with the battle in the courtyard of the
Goblin Citadel.
1 - Giant Chieftain's Hut
2 - Chest