The shipment, which should have already arrived in PNG, consists of heat exchangers and processing equipment for the crude distillation unit.

Work on the construction jetty at the refinery has been completed and was used recently for off- loading equipment from the second major shipment that left Houston in early May.

Phil Mulacek, CEO of InterOil said, "The refinery is now in peak construction mode as we continue to work towards mechanical completion. Last minute modifications requested by the contractor have delayed the inclusion of the refinery main column in this shipment, and as a result we are working closely with the contractor to finalise the work to get the last shipment out in July.

"The modifications requested by the contractor will extend mechanical completion into the first quarter, 2004. The refinery will underpin new oil and gas exploration in PNG as displayed by InterOil's recent multi well drilling program currently in progress."

InterOil is dedicated to developing an integrated energy business in the region consisting of an oil refinery, petroleum exploration, and retail assets. The exploration program is thought to be the largest by a single company in PNG history.

The majority of product from the refinery is secured by contracts valued by InterOil at approximately US$1.4 billion with Shell Overseas Holdings.