The loss was due in large part to increased administration and interest expenses in its upstream business as well as higher professional consulting costs related to the asset sale process being undertaken to underpin development of the proposed midstream liquefaction facility.
Earnings before interest taxes, depreciation and amortisation was also down from $US10.9 million in 2009 to $US4.9 million this year while revenue increased by $US16.7 million to $US177.5 million.
"InterOil's track record of success is continuing with the work being undertaken to develop a condensate stripping facility with Mitsui," chief executive officer Phil Mulacek said.
"Having established a resource base, our next step is to monetise it, and we're working diligently towards that and towards delivering on our overall strategic plan. Our efforts are being supported by positive macroeconomic, tax and sector trends."
