The first shipment of crude oil has arrived at the marine terminal of InterOil's Port Moresby refinery, which is currently under construction.
The Interoil refinery under construction in PNG
"We are extremely pleased with this event and proud of our achievements to date," said Mr Phil Mulacek, CEO of InterOil. "Commissioning can now begin with the introduction of crude oil into the processing units as we build towards full production."
The refinery has a name-plate capacity of 32,500 barrels per day and complies with the World Bank's environmental standards. It has been engineered to process "sweet" crude, low in sulphur, requiring few environmental costs in the refining process.
InterOil said production from the refinery will accommodate the country's domestic requirements while also providing export product to the surrounding region.
The majority of product from the refinery is secured by contracts with Shell Overseas Holdings Ltd. BP Singapore is the exclusive agent for all crude oil supplied to the refinery. In addition to the refinery and retail assets, InterOil has commenced an extensive exploration program in Papua New Guinea.