We have the largest wholesale, retail and aviation petroleum product distribution base in Papua New Guinea. This is the result of the acquisition of BP's entire commercial and retail distribution assets through BP Papua New Guinea in April 2004 and the subsequent acquisition of Shell Papua New Guinea on October 1, 2006.

Our wholesale and retail distribution business supplies petroleum products nationally through an extensive portfolio of sea-board terminals & inland depots and retail service stations. We currently supply approximately 70% of Papua New Guinea's refined petroleum product needs.

Supply of Products

Our retail and wholesale distribution business distributes diesel, jet fuel, gasoline, kerosene and fuel oil as well as Shell and BP branded commercial and industrial lubricants such as engine and hydraulic oils. In general, all of the refined products sold pursuant to our wholesale and retail distribution business are purchased from our refining and marketing business segment. We import the commercial and industrial lubricants, which constitute a small percentage of our sales. We also import fuel oil that we sell to a domestic power generator.

Wholesale Distribution

We also supply petroleum products as a wholesaler to commercial clients. We own and operate 6 large terminals and 11 depots that we use to supply product throughout Papua New Guinea. We supply the aviation, marine, mining, agricultural, fishing, logging and similar commercial clients with their petroleum product needs and in many instances, we also supply and maintain company-owned above-ground storage tanks and pumps that are used by these customers. The head office for our wholesale and retail distribution business is currently located in Port Moresby, the capital of Papua New Guinea.

Retail Distribution

In addition to our wholesale distribution network there are 60 retail service stations that currently operate under the InterOil brand name of which, 21 are either owned by or leased to us with a sublease to company approved operators. The remaining 39 service stations are independently owned and operated. We supply products to each of these service stations pursuant to distribution supply agreements.

Aviation Distribution

We own 11 airfield operations in Papua New Guinea generally also located on or adjacent to an airstrip. Customers whom we supply with fuel products include the following; the national Government carrier, commercial passenger airlines, mining and exploration and independent airlines operators.