Canadian Firm Picks Up BP Assets

Over $113 million of BP's downstream assets and operations in Papua New Guinea have been sold to Canada?s InterOil Corporation. The assets include
three terminals, seven depots and over 40 retail sites.

?We are excited about the synergies this distribution business will have with
InterOil?s future refining operations. The vertical integration of these businesses will be beneficial to current and future customers through increased efficiencies resulting in a more cost competitive market,? said Phil Mulacek, CEO of InterOil.

InterOil is focused on Papua New Guinea and the surrounding region, and is
developing an integrated energy business consisting of an oil refinery, petroleum exploration, and retail assets. The bulk of products from the refinery is secured by contracts with Shell Overseas Holdings Ltd.

BP Singapore is the exclusive agent for all crude oil supplied to the refinery. In addition to the refinery and retail assets, InterOil has started an extensive exploration program in Papua New Guinea.