5. Assets Used in Operation

Oil and Gas Properties [1]

PTTEP and its subsidiaries’ properties mainly are jointly controlled oil
and gas properties in each project. Oil and Gas properties, which
located at each project, comprise land, buildings and construction,
machine and equipment including transportation pipeline, capitalized
exploratory and production drilling costs, property acquisition costs of
concession right which shall incur when PTTEP and its subsidiaries
acquire the concession right and decommissioning costs which have been
determined based on reviews and estimates by the Group’s own engineers
and managerial judgment.

As of 31 December 2008, PTTEP and its subsidiaries’ oil and gas
properties are represented as share of the joint ventures’ individual
assets for each project as follows:-

  ---------- ------------------------------------------ ----------------------
  PTTEP’s                                               Company's interest (%)
  joint                                                 
  ventures                                              

  1.         Unocal III                                 5

  2.         E 5                                        20

  3.         Sinphuhorm (E 5-North)                     20

  4.         S 1                                        25

  5.         Bongkot (Block B15, B16, B17)              44.4445

  6.         Pailin                                     45

  7.         Arthit (Block B14A, B15A, B16A)            80

  8.         Bahrain 2                                  100

  PTTEPI’s                                              Company's interest (%)
  joint                                                 
  ventures                                              

  9.         Yetagun                                    19.3178

  10.        G4/43                                      21.375

  11.        Yadana                                     25.50

  12.        Cambodia B                                 33.33334

  13.        MTJDA - B17 ( Block B-17 and B-17-01)      50

  14.        PTTEP1                                     100

  15.        G9/43                                      100

  16.        L 22/43                                    100

  17.        Myanmar M3 & M4&M7                         100

  18.        Myanmar M9 & M11                           100
  ---------- ------------------------------------------ ----------------------

  ---------- --------- ------------------------------------------ ----------------------
  PTTEPO’s                                                        Company's interest (%)
  joint                                                           
  venture                                                         

  19.                  B8/32 & 9A [2]                             25.0010

  20.                  New Zealand Great South                    36

  PTTEP SV’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  21.        Vietnam                                              7
             52/97                                                

  PTTEP KV’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  22.        Vietnam B                                            8.5
             & 48/95                                              

  PTTEP HL’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  23.        Vietnam                                              28.5
             16-1                                                 

  PTTEP HV’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  24.        Vietnam                                              25
             9-2                                                  

  PTTEP OM’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  25.        Oman 44                                              100

  26.        Oman 58                                              100

  PTTEP AG’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  27.                  Algeria 433a & 416b                        35

  PTTEPT’s                                                        Company's interest (%)
  joint                                                           
  venture                                                         

  28.                  Bongkot (Block G12/48)                     44.4445

  29.                  Arthit (Block G9/48)                       84

  30.                  L53/43 & 54/43                             100

  PTTEPS’s                                                        Company's interest (%)
  joint                                                           
  venture                                                         

  31.                  Sinphuhorm (EU-1)                          20

  32.                  L21, 28 & 29/48 [3]                        70

  33.                  S1                                         75

  34.                  Nang Nuan (B6/27) [4]                      100

  35.                  A4, A5, A6/48                              100

  PTTEP IR’s                                                      Company's interest (%)
  joint                                                           
  venture                                                         

  36.                  Iran Saveh                                 100

  PTTEPM’s                                                        Company's interest (%)
  joint                                                           
  venture                                                         

  37.                  Indonesia Merangin-1                       40
  ---------- --------- ------------------------------------------ ----------------------

  ---------- ----------- ----------------------------------------- ----------------------
  PTTEPB’s                                                         Company's interest (%)
  joint                                                            
  venture                                                          

  38.        Indonesia                                             40
             Bengara-1                                             

  PTTEP TP’s                                                       Company's interest (%)
  joint                                                            
  venture                                                          

  39.        Unocal III                                            5
             (Block                                                
             G6/50)                                                

  40.        Pailin                                                45
             (Block                                                
             G7/50)                                                

  41.        Arthit                                                80
             (Block                                                
             G8/50)                                                

  PTTEP AO’s                                                       Company's interest (%)
  joint                                                            
  venture                                                          

  42.        Australia                                             20
             AC/P36                                                

  43.        Australia                                             30
             WA-423-P                                              

  PTTEP BD’s                                                       Company's interest (%)
  joint                                                            
  venture                                                          

  44.                    Bangladesh 17&18                          30

  PTTEP PR’s                                                       Company's interest (%)
  joint                                                            
  venture                                                          

  45.                    Rommana                                   30

  PTTEP                                                            Company's interest (%)
  SAER’s                                                           
  joint                                                            
  venture                                                          

  46.                    Sidi AbdEl Rahman Offshore                30

  PTTEP SEMI                                                       Company's interest (%)
  II Limited                                                       
  ’s joint                                                         
  venture                                                          

  47.                    Indonesia Semai II                        33.33
  ---------- ----------- ----------------------------------------- ----------------------

As of 31 December 2008, details of properties’ net book value are as
follows:-

Unit: Million Baht

  ---------------------- ------------ ------------ ----------- ---------- ---------------
  Properties, Plants and Oil and Gas               Pipelines   Other      Consolidated*
  Equipments             Properties                                       Total

                         Proved       Unproved                            
                         Properties   Properties                          
                         and Related                                      
                         Producing                                        
                         Properties                                       

  Land                   38.14        1.45         -           102.86     142.45

  Building and           244.33       8.41         -           852.91     1,105.65
  Construction                                                            

  Acquisition Cost       11,553.02    1,512.86     -           -          13,065.88

  Geological and         670.21       9.33         -           -          679.54
  Geophysical Survey                                                      

  Exploration /          15,414.77    8,662.59     -           -          24,077.36
  Delineation Well                                                        

  Development Well       29,925.47    1,936.24     -           -          31,861.71

  Production Facilities  73,096.72    3,238.87     4,622.26    -          80,957.85

  Other Development Cost 3,263.42     42.73        -           -          3,306.15

  Decommissioning Cost   11,393.64    460.95       -           -          11,854.59

  Support Facilities and 439.92       52.38        -           340.67     832.97
  Other Assets                                                            

  Allowance for          (468.04)     (90.03)      -           -          (558.07)
  Impairment                                                              

  Total                  145,571.60   15,835.78    4,622.26    1,296.44   167,326.09
  ---------------------- ------------ ------------ ----------- ---------- ---------------

* Inter-company transaction have already been eliminated

Investments 

As of 31 December 2008, PTTEP has 32* subsidiaries and 6** associated
companies. PTTEP and its subsidiaries’ investment lists are presented as
follows:

+----------+------------+---------+------+-------+--------+----------+
| Company  | Type of    | Paid-in | %    | Cost  | Equity | Major    |
|          | Business   | Capital |      | M     | Method |          |
|          |            |         | of   | ethod |        |          |
|          |            |         | inte |       |        |          |
|          |            |         | rest |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
|          |            | (       |      | (Mi   | (M     | sha      |
|          |            | Million |      | llion | illion | reholder |
|          |            | Baht)   |      | Baht) | Baht)  |          |
+----------+------------+---------+------+-------+--------+----------+
| Subs     |            |         |      |       |        |          |
| idiaries |            |         |      |       |        |          |
| company  |            |         |      |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPI   | Petroleum  | 20,000  | 100  | 2     | 35,    | PTTEP    |
|          | E&P        |         |      | 0,000 | 124.01 | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPO   | Commerce   | 0.17    | 75   | 0.13  | 19,    | PTTEP    |
|          |            |         |      |       | 648.62 | 75%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         | 25   | 0.04  | 6,     | PTTEPI   |
|          |            |         |      |       | 538.56 | 25 %     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP SV | Petroleum  | 2.03    | 100  | 2.03  | (2     | PTTEPO   |
|          | E&P        |         |      |       | 37.89) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP KV | Petroleum  | 2.03    | 100  | 2.03  | (4     | PTTEPO   |
|          | E&P        |         |      |       | 15.77) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP HL | Petroleum  | 2.12    | 100  | 2.12  | (6,7   | PTTEPO   |
|          | E&P        |         |      |       | 43.22) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP HV | Petroleum  | 2.16    | 100  | 2.16  | (1,9   | PTTEPO   |
|          | E&P        |         |      |       | 79.31) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP OM | Petroleum  | 2.16    | 100  | 2.16  | 1,     | PTTEPO   |
|          | E&P        |         |      |       | 682.98 | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP AG | Petroleum  | 2.10    | 100  | 2.10  | (2,2   | PTTEPO   |
|          | E&P        |         |      |       | 20.96) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPT   | Petroleum  | 100.00  | 51   | 51.00 | (      | PTTEPI   |
|          | E&P        |         |      |       | 10.73) | 51%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         | 49   | 49.00 | (      | PTTEP OM |
|          |            |         |      |       | 10.31) | 49%      |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP    | Services   | 1.00    | 25   | 0.25  | 32.98  | PTTEP    |
| Services |            |         |      |       |        | 25%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         | 75   | 0.75  | 98.93  | PTTEPT   |
|          |            |         |      |       |        | 75%      |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPS   | Petroleum  | 100.00  | 49   | 3,7   | 5,     | PTTEP    |
|          | E&P        |         |      | 19.03 | 948.49 | 49%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         | 51   | 3,8   | 6,     | PTTEPO   |
|          |            |         |      | 64.89 | 188.55 | 51%      |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP IR | Petroleum  | 1.91    | 100  | 1.91  | (4     | PTTEP OM |
|          | E&P        |         |      |       | 47.65) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| DPC ⁵    | Petroleum  | 2.05    | 100  | 2.05  | -      | PTTEPO   |
|          | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
|   PTTEPM |  Petroleum |  2.05   | 100  | 2.05  | (4     | PTTEPO   |
|          | E&P        |         |      |       | 63.52) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP BH |  Petroleum | 1.90    | 100  | 1.90  | (      | PTTEP OM |
|          | E&P        |         |      |       | 30.30) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPH   |  Petroleum | 1.88    | 100  | 1.88  | (4     | PTTEPO   |
|          | E&P        |         |      |       | 37.25) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP ID |  Petroleum | 1.88    | 100  | 1.88  | (1     | PTTEPH   |
|          | E&P        |         |      |       | 85.32) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPB   |  Petroleum | 1.88    | 100  | 1.88  | (1     | PTTEP ID |
|          | E&P        |         |      |       | 81.54) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP TP |  Petroleum | 1.00    | 100  | 1.00  | (4.63) | PTTEPT   |
|          | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPA   |  Petroleum | 0.25    | 100  | 0.25  | 0.15   | PTTEPS   |
|          | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP EG |  Petroleum | 1.69    | 100  | 1.69  | (      | PTTEPH   |
| ⁶        | E&P        |         |      |       | 71.74) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEPR ⁶ |  Petroleum | 1.69    | 100  | 1.69  | (      | PTTEP EG |
|          | E&P        |         |      |       | 17.37) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP    |  Petroleum | 1.69    | 100  | 1.69  | (      | PTTEP EG |
| SAER ⁶   | E&P        |         |      |       | 52.34) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP AU |  Petroleum | 1.53    | 100  | 1.53  | (1     | PTTEPH   |
|          | E&P        |         |      |       | 70.58) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP AO |  Petroleum | 1.53    | 100  | 1.53  | (1     | PTTEP AU |
|          | E&P        |         |      |       | 68.36) | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP BD |  Petroleum | 1.67    | 100  | 1.67  | (3.64) | PTTEPH   |
|          | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP    |  Petroleum | 1.59    | 100  | 1.59  | 1.56   | PTTEPH   |
| MYA ⁶    | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP NZ |  Petroleum | 1.70    | 100  | 1.70  | 1.70   | PTTEPH   |
| ⁶        | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP SM |  Petroleum | 1.74    | 100  | 1.74  | 1.58   | PTTEPID  |
| ⁶        | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| Company  | Type of    | Paid-in | % of | Cost  | Equity | Major    |
|          | Business   | Capital | inte | M     | Method |          |
|          |            |         | rest | ethod |        |          |
+----------+------------+---------+------+-------+--------+----------+
|          |            | (       |      | (Mi   | (M     | sha      |
|          |            | Million |      | llion | illion | reholder |
|          |            | Baht)   |      | Baht) | Baht)  |          |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP AP |  Petroleum | 1.20    | 100  | 1.20  | 1.13   | PT       |
| ⁶        | E&P        |         |      |       |        | TEPH100% |
+----------+------------+---------+------+-------+--------+----------+
| PTTEP AB |  Petroleum | 1.20    | 100  | 1.20  | 1.17   | PTTEP AP |
| ⁶        | E&P        |         |      |       |        | 100%     |
+----------+------------+---------+------+-------+--------+----------+
| As       |            |         |      |       |        |          |
| sociated |            |         |      |       |        |          |
| Company  |            |         |      |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
| EnCo     | Commerce   | 800.00  | 50   | 4     | 337.42 | PTTEP    |
|          |            |         |      | 00.00 |        | 50%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | PTT 50%  |
+----------+------------+---------+------+-------+--------+----------+
| PTT ICT  | Services   | 150.00  | 20   | 30.00 | 46.92  | PTTEP    |
|          |            |         |      |       |        | 20%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | PTT 20%  |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | ATC 20%  |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | PTTCH    |
|          |            |         |      |       |        | 20%      |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | TOP 20%  |
+----------+------------+---------+------+-------+--------+----------+
| Jointly  |            |         |      |       |        |          |
| co       |            |         |      |       |        |          |
| ntrolled |            |         |      |       |        |          |
| Entities |            |         |      |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
| CPOC     | Petroleum  | 2.21    | 50   | 1.11  | 1.01   | PTTEPI   |
|          | E&P        |         |      |       |        | 50 %     |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | CARIGALI |
|          |            |         |      |       |        | 50%      |
+----------+------------+---------+------+-------+--------+----------+
| MGTC     | Natural    | 0.76    | 25.5 | 0.19  | 2,     | PTTEPO   |
|          | gas        |         |      |       | 068.10 | 25.50%   |
|          | pipelines  |         |      |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
|          | - Overseas |         |      |       |        | UNOCAL   |
|          |            |         |      |       |        | 28.2625% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | TOTAL    |
|          |            |         |      |       |        | 31.2375% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | MOGE     |
|          |            |         |      |       |        | 15.0%    |
+----------+------------+---------+------+-------+--------+----------+
| TPC      | Natural    | 2.62    | 19.  | 4     | 1,     | PTTEPO   |
|          | gas        |         | 3178 | 45.33 | 637.89 | 19.3178% |
|          | pipelines  |         |      |       |        |          |
+----------+------------+---------+------+-------+--------+----------+
|          | - Overseas |         |      |       |        | PETRONAS |
|          |            |         |      |       |        | 40.9102% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | NIPPON   |
|          |            |         |      |       |        | 19.3178% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | MOGE     |
|          |            |         |      |       |        | 20.4542% |
+----------+------------+---------+------+-------+--------+----------+
| Orange   | Petroleum  | 100.00  | 53.  | 13,5  | 9,     | PTTEPO   |
|          | E&P        |         | 9496 | 67.69 | 108.25 | 53.9496% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | MOECOI   |
|          |            |         |      |       |        | 36.0504% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | PSI 10%  |
+----------+------------+---------+------+-------+--------+----------+
| B8/32    | Petroleum  | 110.00  | 25.  | 4,5   | 2,     | PTTEPO   |
| Partners | E&P        |         | 0009 | 23.69 | 940.19 | 25.0009% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | MOECOI   |
|          |            |         |      |       |        | 16.7064% |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | PSI      |
|          |            |         |      |       |        | 4.6346%  |
+----------+------------+---------+------+-------+--------+----------+
|          |            |         |      |       |        | Chevron  |
|          |            |         |      |       |        | 53.6583% |
+----------+------------+---------+------+-------+--------+----------+

^(*) Include Orange Energy Limited which is recorded by percentage of
interest.

^(**) Comprise of EnCo, PTT ICT and jointly control entity which is
CPOC, MGTC, TPC and B8/32 Partners.

⁵ DPC was relinquished on 3 November 2008.

⁶ As of 31 December 2008, PTTEP EG, PTTEPR, PTTEP SAER, PTTEP MYA, PTTEP
NZ, PTTEP AP and PTTEP AB have the outstanding balance of share
subscription receivable.

Net Book Value

As of 31 December 2008, PTTEP’s net book value amounted to Baht 134,104
million or Baht 40.55 per share.

5.4 Investment Policy in Subsidiary and Associated Companies

PTTEP investment policy focuses on its petroleum exploration and
production business aligning with Company business strategy. When making
a new investment, PTTEP will consider establishing
a subsidiary or an associated company to serve as the means to conduct
business in the targeted investment regions or countries. PTTEP takes
into account a number of factors, including flexibility and operational
efficiency, alignment with PTTEP business strategy, rules and
regulations as well as fiscal and tax regimes of these countries or
regions, risk management, etc. In addition, PTTEP always adheres to its
Corporate Governance principles as the compelling philosophy in managing
subsidiaries and associated companies within the PTTEP group with the
objectives of ensuring a fair, effective, and transparent organization
enabled to achieve its business goals.

5.5 Management Policy in Subsidiary and Associated Companies

Details as prescribed in item 2.2.2

[1] See more detail in Attachment 3 - FAS69

[2] PTTEPO has shareholding in Orange Energy Limited and B8/32 Partners
Limited, which hold project’s concessions.

[3] The selling of 30% participation interest to Resourceful Petroleum
(Thailand) Ltd. (RPL) was approved by the Thai Government on
24 January 2008.

[4] In November 2007 PTTEPS has signed Farm-out Agreement by
transferring 40% participation interest to Nippon Oil Exploration
Limited (NOEX) which will be effective only after receiving approval
from Thai Government.