Distribution

1997–2003

Distribution was part of the original plan

The case for the Napa Napa refinery depended on more than its ability to process crude. InterOil needed dependable routes to the domestic market and buyers for export products. By early 2002, the company was describing agreements and strategic relationships with BP and Shell as part of an integrated plan for refining, marketing and exploration. These commercial arrangements came before InterOil bought the companies’ PNG distribution businesses. ^[2]

Local distribution ownership would add terminals, retail supply agreements and established customer relationships to the refinery project. ^[1]

April 2004

Acquiring BP Papua New Guinea

InterOil acquired BP Papua New Guinea Limited in April 2004 for a reported US$13.2 million, including inventories. The business included three larger depots, seven terminals and supply contracts for more than thirty independently operated stations. It was renamed InterOil Products Limited. ^[3]

The BP acquisition put an established distribution business in place during refinery commissioning. InterOil had added customers and a route to market alongside its new processing capacity. ^[4]

January–October 2006

Adding Shell’s network

InterOil agreed in January 2006 to acquire Shell’s PNG business, with completion effective on 1 October. The reported net purchase price was US$25.8 million, subject to working-capital adjustments. The acquired network included four terminals, three depots and twenty-eight retail sites. Combined with the earlier BP acquisition, it substantially broadened InterOil’s national presence. ^[5]

By the end of 2006, InterOil reported supplying sixty – five retail service stations. The enlarged network made it the country’s leading wholesale and retail petroleum-products distributor, according to its filings. Integrating the former BP and Shell operations brought the acquired sites into a common business while retaining the practical task of supplying a geographically dispersed customer base. ^{[6, 7]}

2006 onward

Building the capacity behind the service stations

InterOil started rebranding Shell & BP’s retail and Distribution assets to the InterOil brand. The service stations depended on storage and delivery infrastructure. In July 2006, InterOil completed a two-million-litre diesel tank at Wewak, increasing its capacity to supply East Sepik. ^[5]

By 2012, facilities extended from Port Moresby and Alotau to Lae, Madang, Wewak, Goroka, Mount Hagen, Rabaul, Kimbe and Kavieng. Coastal shipping and inland road deliveries linked this dispersed network. ^[8]

The operating network

Diesel, Jet A-1 and the commercial economy

Commercial customers included mining, agriculture, fishing and logging businesses. InterOil maintained storage tanks and pumps for many customers, supporting regular deliveries to their operating sites. ^[9]

In 2012, InterOil served eleven airfields and supplied 100% of all Jet fuel (Jet A-1) to Papua New Guinea, including Jacksons International Airport. It supplied fuel there without operating on the apron itself. Aviation complemented the company’s retail and commercial businesses. ^[8]

The network sold diesel, jet fuel, gasoline and kerosene, alongside imported aviation gasoline and lubricants. Its range extended beyond products manufactured at Napa Napa and beyond roadside fuel sales. ^[9]

2010–2012

Running a national supply system

Chartered tankers carried fuel along the coast; independent road-tanker contractors handled inland deliveries. InterOil scheduled shipments and used its terminals and depots to coordinate onward supply. ^[8]

PNG’s Independent Consumer and Competition Commission regulated maximum petroleum prices and margins. InterOil’s network operated within this framework while competing for commercial supply contracts. ^[9]

In 2011, InterOil continued to report refining and downstream operations alongside the investment needed for exploration and liquefaction. The businesses had different time horizons: one delivered and sold fuel in the present; the other sought to establish the resource base and partnerships for a future LNG development. Their coexistence was fundamental to the company Phil had built. ^[10]

2013

The scale of the network at the end of the founding era

InterOil reported 738 million litres of downstream sales in 2013. At year-end, its results release listed fifty-two service stations, eighteen depots and twelve aviation sites. These are dated measures of the network—not fixed numbers for its entire history. The same business had reported sixty-five retail stations in 2006 and fifty-three in 2012. ^{[11, 6, 8]}

Of the fifty-two stations reported in 2013, forty-three carried InterOil branding; seventeen were owned or leased by InterOil and subleased to operators. Retail contributed approximately 14.6% of downstream sales volume, illustrating the importance of wholesale and commercial customers. ^[9]

Phil’s CEO tenure ended on 30 April 2013; he remained a director until 14 November. The year-end network figures describe the business at the close of the wider founding period, including the transition to new leadership. They should not imply that he was CEO for all twelve months. ^{[12, 13]}

30 June 2014

A combined transfer to Puma Energy

Puma Energy acquired the refinery and distribution businesses together for US$525.6 million on 30 June 2014. The announcement listed fifty-two service stations and thirty depots, terminals and aviation sites. Staff would transfer with the businesses. ^[14]

The completed sale separated the businesses into two paths: refining and distribution under Puma, and InterOil’s continuing focus on gas resources and LNG development. ^[15]

2017

The distinction at the ExxonMobil acquisition

When ExxonMobil acquired InterOil in February 2017, it acquired the remaining company after the refinery and distribution sale. The BP and Shell businesses were part of InterOil’s earlier growth, not downstream assets newly purchased by ExxonMobil in that transaction. The exploration chapter explains how the Gulf Province discoveries became central to the company’s later history. ^{[16, 17]}