The InterOil Files

The InterOil Files
Quarterly E-news
Issue 2
January - March 2013
InterOil builds community centre in Wabo
Newly built InterOil Wabo Community Complex.
InterOil Executive Vice President Christian Vinson (left) hands over office keys to
Baimuru LLG Manager Akia Kairi to his new office.
InterOil has built a modern office
and accommodation complex to
foster local and provincial government functions in education,
health and business development in Wabo and surrounding
villages.
The InterOil Wabo Community
Complex and trade store - also
started by InterOil to encourage
locals to participate in business,
- was officially opened on April 9
2013 by InterOil Executive Vice
President Christian Vinson and
Gulf Governor Havila Kavo.
Wabo is a former patrol post, located upstream Purari River, in
the Baimuru District, Gulf.
Main government services
have been lacking for many
years.
In PNG. For PNG
InterOil started construction of
the office complex after a meeting was held in 2011, followed
by a Memorandum of Understanding, signed between InterOil, clan leaders, Gulf Governor
Havila Kavo and Kikori MP Mark
Maipakai.
The office and accommodation
complex will accommodate InterOil’s Community Affairs section and the core government
functions of local level government (LLG) managers and police officers for Wabo.
Local villagers travelled for days
to Wabo, to witness the official
opening of the InterOil Wabo
Community Complex and trade
store and participated in dances
and activities to mark their special event.
Purari River (above) meanders through thick rugged terrain
through communities such as Wabo. Essential government
services is almost non-existent in this remote area.
This is Wabo. Formerly a patrol post, this remote community
will now have the presence of core government functions.
www.interoil.com
100th crude shipment for InterOil
100th crude shipment for InterOil without any incident
No oil spills, no marine incidents since InterOil refinery
was built- a milestone achievement for InterOil, Fairfax
Harbour, pilot boats and other stakeholders involved.
InterOil staff and media witnessed the 100th crude
shipment at the refinery jetty.
InterOil’s Damaris Minikula shares a moment with Intertek
Laboratory Supervisor Faith Orillaza. The event was a significant occasion for Faith who tested the first crude shipment in 2004. InterTek operates an independent laboratory
at Napa Napa to ensure that all refinery products meets international quality assurance standards.
InterOil staff and media witnessed the 100th crude shipment at the refinery jetty.
A media entourage also witnessed the occasion. Pictured
is EMTV’s Fabian Hakalits.
In PNG. For PNG
InterOil’s refinery at Napa Napa
outside Port Moresby, received
and discharged its 100th crude
shipment on Sunday February
10 2013.
The lighter materials such as butane and naphtha are removed
in the upper section of the tower
and the heavier residue settle at
the bottom.
The shipment highlighted the
company’s track safety record there were no oil spills or marine
accidents since the first crude
shipment in 2004 .
Jet fuel, diesel, unleaded petrol
(gasoline) and household kerosene are the primary products
produced for the domestic market.
The shipment also marked an
achievement for pilot boats, tug
boats and the Fairfax Harbour.
The refining process after this
point may put in dyes to differentiate the various end products.
“They have handled and we
have offloaded around six million barrels of crude oil without
any incident,” said refinery General Manager Andy Dolman.
All crude imports and finished
products are tested and certified
on-site to contractual specifications by global chemical industry
leader, Intertek, to suit world market requirements and specifications.
“No oil spills, no marine incidents with such large Aframax
crude vessels,” he added.
The crude oil on the 100th shipment was from Kutubu, PNG’s
local crude, showing InterOil’s
commitment to the PNG economy.
The refinery at Napa Napa is self
sufficient for water, steam and
power. A reverse osmosis desalination unit produces all the water
used. Power generation facilities
using residue provides the electrical energy.
This milestone achievement
also coincided with the refinery’s safety record of five million
working hours clocked in January 2013.
The refinery ensures it minimises
its impact on the environment and
has a waste water treatment plant
to ensure all water is treated and
meets global standards.
From the tanker, the crude oil is
discharged through to two main
crude tanks for storage before
they are pumped into the distillation columns.
This process separates the hydrocarbons in crude oil into different products based on their
boiling points.
InterOil’s refinery moves fuel
products by sea and road.
The lighter materials such as
fuel gas rise to the top while the
heavier materials sink to the
bottom.
Its jetty has two berths for loading
and offloading ships and a truck
loading gantry designed for handling 40 trucks per day.
Refined products are also
shipped out across the company’s 13 terminals and 11 aviation
depots around the country before
they are redistributed to service
stations and airports.
www.interoil.com
Mulacek retires
CEO & founder Mulacek retires
Phil Mulacek founded InterOil Corporation in 1997.
He led the development of InterOil into a fully integrated refining and
exploration company that is based in Papua New Guinea and currently
employs over 1 000 Papua New Guineans across the company’s integratbusiness segments in Papua New Guinea, Australia and Singapore.
Retiring InterOil CEO Phil Mulacek
Phil Mulacek founded InterOil
Corporation and has served
as Chief Executive Officer
since 1997.
Mr Mulacek led the construction of InterOil’s refinery at
Napa Napa, outside Port Moresby, securing a US$85 million loan from the Overseas
Private Investment Coporation (OPIC), a subsidiary of
the US State Department, to
finance the project.
In the early 2000s, when
major petroleum companies
were looking to exit Papua
New Guinea, InterOil acquired the assets of firstly BP
then Shell.
“Phil Mulacek is a remarkable visionary, engineer and
entrepreneur who built a
successful company with a
US$3.5 billion market capitalization.
A petroleum engineer by
profession, Mr Mulacek also
spearheaded the discovery
of three major geologic discoveries in the Gulf of Papua,
with four of PNG’s highest
gas flow rates and two world
records for gas well flow rates
(705 million cfpd and 382 million cfpd).
Mr Mulacek pioneered InterOil’s exploration activities
in the Gulf Province that resulted in the discovery of the
Elk, Antelope and Triceratops
fields which contain in total
a best case estimate of 1.6
billion BOE of contingent resources.
“This is an unusual feat, seldom accomplished in any
field.
We are thankful for Phil’s
many years of dedication
and hard work and pleased
that he will continue to advise
the company as we continue
our very successful exploration program and work to finalize our LNG partnership
arrangements with the PNG
government and an internationally recognized partner,”
said InterOil Chairman Dr
Gaylen Byker.
Phil Mulacek takes a bird’s eye view of Antelope 2 well.
Former Prime Minister Grand Chief Sir Michael Somare and Phil Mulacek
at the flaring of Antelope 2.
Phil Mulacek (left) and InterOil Board of Driectors Chairman
Gaylen Byker before the flaring of Antelope 2.
In PNG. For PNG
Peter Boru (left) and Jennifer Vogae (right) say goodbye to Phil
Mulacek.
www.interoil.com
Feature: International Women’s Day
Mericha Masta
GIS Specialist
Port Moresby
Mericha Masta designs,
creates and maintains a
Geographic Information
System (GIS) and database
of all of InterOil’s land and
acquisition related claims
under the Oil and Gas Act
and Land Act to ensure all
payments to landowners
and the State are processed
and paid in a timely manner
and meet PNG regulatory
requirements.
International Women’s Day is celebrated on the 8th of March every
year.
Across InterOil’s country offices, talented women, alongside their
male counterparts, have made their mark within the company, contributing to InterOil’s success.
InterOil has its head office in Port Moresby and support offices in
Houston-Texas, Singapore & Cairns (Australia).
We feature some of these women in this issue.
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Judith is attached with the
refinery’s Miantenance Department.
Her work includes trouble
shooting electronic control
systems; maintaining, repairing and installing transformers, switchboards and
regulators; testing electrical
and electronic equipment
and generally maintain electrial assets is the refinery so
there is a full feed production
of fuel products daily.
In PNG. For PNG
Tau Badira
Investor Relations Coordinator
Houston, Texas
Aviation & Marine Marketing Manager
Port Moresby
Meg works in the Investor
Relations Department.
Tau Badira ensures all shipping and aviation fuel requirements for our local and
international customers and
all InterOil terminals, depots
and air fuels, are met.
As Investor Relations Coordinator, her primary role is
liaison to the shareholders,
keeping them apprised of the
operations and objectives of
the company.
Electrical Technician
Napa Napa Refinery, Port Moresby
Felicity works as Financial
Reporting Manager at InterOil Cairns.
She is responsible for all
financial reporting requirements of InterOil including
preparation of the quarterly
and annual reports that are
released to the market.
She is also repsonsible for
communicating with and
managing external auditors.
Meg LaSalle
Judith Kaloa
Felicity Hunter
Financial Reporting Manager
Cairns, Australia
She is also responsible for
coordinating the quarterly
earnings calls, investor field
trips, and coordinating attendance at conferences and
events.
Meg has been working with
InterOil for three years.
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Meg also has her hand in
marketing and intra-company communications.
She manages the company
website, produces the annual shareholder's report, and
distributes press releases to
newswires and throughout
the company.
Felicity has been with the
company for 6 years.
Arabella Gerari
Senior HR Advisor
Napa Napa, Port Moresby
Arabella has worked with
InterOil for 6 years.
InterOil Singapore Finance Team.
Lorraine Tan (second left) is
Treasury Manager.
Lorraine Tan is Treasury
Manager and is based at the
Singapore office.
Her work involves the management of the company’s
liquidity and financing needs.
Lorraine has been working
with the company for two
years.
She is resonsible for the
coordination and implementation of human resource
support services, human
resource processes and systems for the Exploration and
Production (E & P) business
segment of the company.
Her duties have taken her
around InterOil’s various
business segments including
Corporate and the refinery.
www.interoil.com
InterOil in the community
sports
Corporate Slow Pitch Tournament in pictures..
Kepas Taule pitches ...
Batter up! Sally Manuel prepares
to bat.
Strike One! Gwendolyn Kalupio
swings the bat...
Team InterOil at Bisini Softball
grounds.
Team InterOil 2nd in Offshore World Championship
The PNG flag, flew high in Costa
Rica.
Representing Papua New Guinea in the Offshore World Championship (OWC) fishing event held in Costa
Rica on April 14-19, 2013, the InterOil team placed second out of 68 international teams. The team qualified
for OWC by winning the Game Fishing Association of PNG National Titles held in Rabaul in 2012. Team
captain Peter Diezmann, General Manager Downstream, said, “We are proud to have placed well representing Papua New Guinea at this prestigious event”. Mr. Diezmann, individually, placed third in the Top Angler
rankings for the contest. Other anglers on the team are Wayne Andrews, Vice President of Capital Markets,
and Kerry Symes, Operations Manager, with InterOil, and Stephen Lindeman with Newcrest Mining Limited.
InterOil team member reeling
in a catch.
Corporate Walk Challenge 2013
Andrew Ipako (left) helps Esi Sile tag on marathon number. Andrew won himself a 40 inch
Samsung LCD television from Brian Bell in the
event’s lucky draw.
Corina Yamugara (IPL) & Ronu Lence (E & P).
In PNG. For PNG
Frederick Garoau (left) & John Ava.
Corina Yamugara (right) assists John Ava.
Narie Pip, Fenny Kouga & Michelle Panie.
Team InterOil before the start of the challenge.
www.interoil.com
InterOil in the community
student training & staff development
Unitech students on industrial training
InterOil awards staff
InterOil took on board three final year students from the PNG University of
Technology from the Department of Communication and Development Studies for industrial training.
The students Wasita Kavanamur, Levin Mattes and Benny Mitio worked with
InterOil on rotation within the company’s Community Affairs section.
The training took them to InterOil’s sites at Napa Napa (Port Moresby), Kerema and Herd Base (along Purari River) over a period of five months.
They are pictured here with InterOil Corporate HR Shared Services Manager
Hellen Purdy (far right).
Hanua Kora (left) is a Marine Coordinator with InterOil Shipping. He is
pictured here receiving his special award from InterOil Shipping General Manager Steve Underwood for outstanding contribution to the
company’s shipping business segment.
World accredited well control training for InterOil drilling team
The company’s drilling team
undertook an intensive well
control training from 8th 12th April at InterOil’s Napa
Napa site outside Port Moresby.
The five day training was
conducted by international
accredited oil and gas training expert Harness Energy
from Australia.
Harness Energy is a ‘one
stop shop’ company for the
energy industry, providing
training, health and safety
consulting services and supplies personnel on consultancy and direct hire basis to
the energy sector.
InterOil also extended the invitation to drilling specialists
of Department of Petroleum
and Energy and Orion to attend the course.
The course was funded by
InterOil as a refresher course
for some of its drilling staff
and also taught drilling engineers the art of well control
that included intensive technical training, theory and a
simulation exam
“The course is intensive and
participants who pass receive an international
qualification that can get
them a job in any drilling
company in the world.
The course is a requirement
in the drilling world and what
they are getting in the training
is of international standard,”
said Harness Energy trainer
Dean Devenish.
InterOil Drilling Superintendent Gerald Nicholson said
the training gave the drilling team and others who attended the course, access to
an international qualigfication
with the aim of getting more
Papua New Guinean drillers
at the front end of the team.
Drilling team that attended well control training with trainer Harness Energy
trainer Dean Devenish (far left).
In PNG. For PNG
Derrickman Max Kende working
on the simulation exam.
InterOil Drilling Superintendent
Gerald Nicholson working on theory exam.
Keith Silas Tali (left) and Gavin Renata (right) receive instructions from trainer Dean Devenish.
www.interoil.com
InterOil in the community
building local capacity & infrastructure
InterOil initiates trade store for Wabo
A trade store business was
initiated by InterOil to provide
the community in Wabo and
surrounding villages, access
to basic goods and also encourage local business entrepreneurship.
Wabo is remotely located upstream Purari, near the Elk
and Antelope gas fields.
Local landowners representing clans from Poroi, Ura,
Uraru, Wabo and Subu have
formed a landowner company called the Elk-Antelope
Gas Project Landowner Association.
InterOil has assisted and initiated projects such as this and
also provides other assitance
such as up-river freight, power and internet use for the
landowner company.
The trade store project,
was built following a Memorandum of Understanding,
signed between InterOil, clan
leaders, Gulf Governor Havila Kavo and Kikori MP Mark
Maipakai.
Wabo trade store: The trade store recorded an outstanding turnover of K95 000 in its first 90 days of operation.
selling basic needs such as
tinned food, flour and rice
and has now expanded to include other household varieties such as clothes, kitchen
knives and saucepans.
a successful story recording
a turnover of K95 000 in its
first 90 days of operation.
Wabo - a remote
community.
Plans are in place to extend
the store and range of items
that will include hardware and
didiman items.
The trade store already has
Hello Wabo!
Wabo now has access to telecomunication services through the Digicel network. The telecommunication tower project
is a joint venture between Digicel and Papua New Guinea Energy Development Limited (EDL). InterOil transported the
tower frame from Port Moresby to Wabo and provided labour to clear the bush and erect the tower.
In PNG. For PNG
www.interoil.com
Truck Stop & Commercial Centre
The Truck Stop
The Truck Stop is and automated refuelling point and
the first of its kind in PNG,
based in Marsh Street Lae.
serving our customers better
The truck stop is an automated
refuelling point and
the first of its kind in Papua New Guinea.
It is basically a large Diesel
Tank with pumps attached.
These pumps can be either
activated by a fuel card or
by recognising an identifier
fitted to the vehicle.
Very basically the vehicle
pulls up to the pump and
when the nozzle is inserted
in to the filler hole the pump
reads an identifier fitted
to the vehicle and once
confirmed. switches on and
delivers fuel. It is known as
RFID.
Once the required amount of
fuel is allocated, the nozzle
is removed thus switching off the pump, the driver
can then just drive off the
forecourt.
The truck stop in Lae, Morobe Province.
Lae Commercial Centre
The transaction is wirelessly
transmitted to a central sever
where the customer’s account is debited.
The InterOil Commercial Centre in Lae.
In PNG. For PNG
InterOil’s Commercial Centre
in Lae was set up to improve customer service and
enabled InterOil Products
Limited (IPL), the company’s
downstream business segment, to expand its range of
products and service to our
customers.
well.
The centre has a full range
of tank storage devices from
100L to 80 000L that are
available for rent or direct
purchase.
The range of products and
service are continually
checked and evolving to suit
and provide for customers’
requirements.
Our range expansion now
means IPL is not just a fuel
supplier but also a fuel storage soluations provider as
IPL’s Marketing, Operations
and Maintenance departments are also in the build-
A full range of lubricants
is also on offer in bulk and
retail packs.
The centre also facilitates a
warehouse where adequate
stock is stored.
The centre is appropriately
positioned next to the InterOil
truck stop, PNG’s first automated truck stop.
Customers can make payments through purchase
orders, cash and EFTPOS.
InterOil’s Commercial Centre
in Lae is proudly a ‘one-stopshop’, providing our customers a wide range of products,
product availability and
service under one roof.
www.interoil.com
Health & Safety
Chikungunya outbreak
Chikungunya outbreak spreading
By InterOil HSE
What is Chikungunya?
Chikungunya fever is a viral
disease transmitted via mosquito bites.
Symptons
Where the disease is known
to occur, infections are usually common during the rainy
season. It cannot pass from
person to person.
•
Chikungunya is spread by mosquitoes.
There is no vaccine.
Preventing mosquito bites is the only way to prevent
infection.
The incubation period (time
from infection to illness) can
be 2-12 days, but is usually
3-7 days.
There is no cure for chikungunya and it is rarely fatal.
The first sympton is usually a
sudden onset of fever.
Patients are usually instructed to rest.
Other symptons include
severe joint pain, muscular
pain, headache, fatigue
(weakness), nausea, vomiting and rash.
Recovery often takes several
weeks.
The associated joint pain can
last for several months, or
even years and patients may
be more susceptible to other
diseases.
Advice
•
Prevent mosquito bites
•
When outdoors, wear
light-coloured clothing
that covers most of your
body
•
Use an effective insect
repellant that contains
DEET, Picaridin, PMD or
IR3535
•
Ensure windows are
covered with flywire.
•
•
•
Use spray to kill mosquitoes in your room.
Choose air conditioned
accomodation if possible
Seek medical attention if
you develop a high fever
and joint pains.
Get rid of mosquito
breeding sites by emptying standing water from
flower pots, buckets and
open containers.
Background
‘Chikungunya’ is Swahili for
‘that which contorts or bends
up’.
People who suffer from
this usually get weak at the
knees and joints.
An outbreak of chikungunya
began in June 2012 in PNG.
Firefighting Olympics - a fun way to raise safety awareness
Admin Eagles team member in the CPR Event.
IPL Jets won the Firefighting Olympics at the refinery in 2012.
The InterOil refinery outside
Port Moresby organizes an
annual event called the
Firefighting Olympics.
The Firefighting Olympics is
aimed at enhancing firefighting capability, build selfconfidence among fire-
In PNG. For PNG
fighters and support groups
during emergencies in
responding to different kinds
of emergencies in a fun
way.
The refinery operations has
a safety record of five million
working hours in January
2013.
Rokotaba Bullets team member dons a Breathing Apparatus
(BA) .
www.interoil.com