The $6.4 million refurbishment, which will be done in Texas, is scheduled to be completed by late December 2001 or early 2002 with shipment to its PNG refinery scheduled for the first quarter 2002.

The project site is now prepared and the main marine causeway has reached completion. Negotiations regarding the construction agreement are being conducted with Clough Engineering and are expected to conclude shortly.

The refinery is being constructed across the harbour from Port Moresby, and will process 32,500 barrels of crude oil per day.

The fuel products will be sufficient to supply the PNG domestic market, leaving approximately 35 per cent of the volume available for export according to InterOil. Currently, the company is currently the second largest holder of exploration acreage in PNG.