Downstream

Customers

We sell approximately 15% of our refined petroleum products to a major mining project in Papua New Guinea pursuant to a wholesale distribution contract. These volumes were contracted with narrow margins in order to provide volumes for the Midstream Refinery operations and as such, the loss of this customer, at least in the short term, would not adversely affect the profitability of our retail and wholesale distribution business.

We entered into an additional supply agreement with a major mine in January 2010 for a two plus two year period.

During 2011, we sold approximately 10% of our refined petroleum products to Pacific Energy Aviation (PNG) Ltd for aviation refueling at Papua New Guinea’s international airport in Port Moresby.