The Canadian company said it had successfully completed process performance and reliability tests and the refinery had operated continuously over 33 days in accordance with its design specifications.

"The successful completion of these tests is critical because it confirms the mechanical and processing integrity of the refinery," InterOil said.

The refinery operated at full capcity while meeting yield structures and product specifications, acccording to Interoil.

"The refinery has also shown its flexibility by processing crude oils other than Kutubu Blend sourced within Papua New Guinea," the company said.

InterOil CEO Phil Mulacek said this was an important achievement for the company and for Papua New Guinea.

"It signifies the commencement of what is expected to be a reliable domestic supply of refined products in Papua New Guinea and for the surrounding region,” Mulacek said.

The bulk of refined products from InterOil’s refinery are secured by off-take contracts with Shell and InterOil’s wholly owned subsidiary, InterOil Products Limited.

BP Singapore is InterOil’s agent for crude oil supplied to the refinery.

InterOil is also undertaking an extensive petroleum exploration program within its eight million acre license area located in Papua New Guinea.