Chairman of ExxonMobil Australia, Mark Nolan, said upgrade work would shortly commence to modify the refinery to meet the 2006 national fuel standards and new clean fuels standards planned for 2008 and 2009.

"The decision to invest in clean fuels at Altona is a significant vote of confidence in the refinery's future. It enables Altona to plan with clarity through the balance of this decade, and beyond," Nolan said.

Refining director, Australia and New Zealand Glenn Henson said the Altona personnel had worked hard for a number of years to achieve significant improvements in the efficiency, productivity and reliability of the refinery.

"However, we believe business conditions will continue to be challenging for the refining industry in the Asia Pacific region. We are therefore restructuring Altona's operations to focus on supply to the domestic market rather than competing for export business, and we will continue to pursue productivity improvements and operational efficiencies.

ExxonMobil is the last of the country's four refiners to commit to an upgrade for the standards which the Australian Institute of Petroleum has estimated will cost the country's 800,000 barrels per day industry $1 billion to implement.