The contract includes assistance with pre-commissioning and commissioning of the refinery, followed by the total management of day-to-day refinery operations, maintenance and production. The refinery is expected to be mechanically complete in the first quarter 2004.

Petrofac currently operates refineries and offshore platforms around the world and has major operating centres in the UK and the Middle East.

"Petrofac's significant experience in facilities management provides InterOil with an opportunity to optimise operational efficiencies at our refinery while it is still under construction," said Phil Mulacek, CEO of InterOil.

"Both companies view this contract as strategic in light of future business opportunities in PNG's evolving upstream and midstream sectors."

InterOil is developing an integrated energy business in PNG consisting of an oil refinery, petroleum exploration and retail assets. The majority of product from the refinery is secured by contracts with Shell Overseas Holdings Ltd. BP

In addition to the refinery and retail assets, InterOil has commenced an extensive exploration program in Papua New Guinea