3. Nature of the Business

3.1 Changes and Significant Development

  Year 2009

January: On 9 January 2009, PTTEP has established Andaman Transportation
Limited to carry out petroleum exploration and production activities and
related business in Myanmar.

February: The contract for participation interest swap of 20% in the
production sharing contract swap in PTTEPI’s blocks M 3 and M4 with
CNOOC Myanmar Limited’s block A4 and C1 has expired before receiving an
approval from Myanmar government, which causes the contract to be
invalid. Therefore, PTTEPI (Operator) will maintain its holding of 100%
participation interest in blocks M3 and M 4.

March: PTTEP has reviewed the company’s exploration project portfolio in
accordance with the company’s strategy under the current economic
environment and decided to withdraw the participation in 2 projects: (1)
Indonesia Merangin 1 project with the participation interest of 40%.
Exploration wells that have been drilled in the area have resulted in
non-commercial discovery. The completion of withdrawal process is
subject to officially authorized from Indonesian government. (2)
Bangladesh 17 and 18 project with the participation interest of 30%.
Because of low potential for commercial discovery.

July: On 24 July 2009, PTTEPT together with Chevron Pattani Limited
(Operator) and Mitsui Oil Exploration Company Limited have participated
in the Petroleum Concession Block G4/48 in the Gulf of Thailand with the
participating interest of 5%, 71.25% and 23.75 % respectively.
Concession Block G4/48 is adjacent to Unocal 3 Project in the Gulf of
Thailand which enables to use the existing facilities in Unocal 3
Projects. This will make the Block G4/48 commercially feasible and also
raise the economics of both projects.

August: PTTEP and other joint venture partners (the sellers) have
officially signed the Gas Sales Agreement for the Bongkot South Field
with PTT (the buyer). Under the GSA, the Daily Contractual Quantity for
natural gas is 320 million cubic feet per day. The planned production
start-up period will be within the middle of 2012 to the middle of 2013.
The signing of the GSA for Bongkot South Field will raise the DCQ of the
Bongkot Project to 870 MMSCF/D and represents another PTTEP’s major
achievement.

September: On 24 September 2009, PTTEP AB has signed the Share Sale
Agreement to purchase 100% shareholders’ equity in OMV Timor Sea Pty Ltd
engaging in investment and development of oil and gas exploration and
production business in Australia. The purchase price is approximately
US$ 10 million in cash. The acquisition is in line with PTTEP’s key
strategic objective of investment expansion in Australia.

October: PTTEP AAA has entered into the Sale and Purchase Agreement with
the Australian Companies; Auralandia Parties and Stuart Petroleum
Limited (Operator) to invest in the 100% participation interest in
Petroleum Permit AC/P 33 (Oliver Block) with the purchase price of
approximately US$ 35 million. The agreement will be fully effective upon
receiving approvals from Australian government. The participation
investment in Oliver Block is in line with PTTEP’s key strategic
objectives in expanding investment in Australia in order to support a
future development of Floating LNG business.

November On 9 November 2009, PTTEP has restructured the shareholding of
subsidiaries for management efficiency. The transactions between the
companies are (1) PTTEP buys 2% shares of PTTEPS from PTTEPO (2) PTTEPI
buys 49% shares of PTTEPT from PTTEP OM and (3) PTTEPI buys 75% of PTTEP
Services from PTTEPT. The present shareholding structure is illustrated
in No. 3.2.3.

  Year 2010

  January PTTEP AAA has entered into the farm-in agreement with Woodside
  Energy Limited and the joint venture partners under which PTTEP will
  acquire Petroleum Exploration Permits WA-378-P, WA-396-P and WA-397-P
  in Australia. The farm-in agreement will be fully effective upon
  receiving approvals from the Australian government. After completion
  of the agreement, the joint venture partners will consist of Woodside
  Energy Limited (Operator) with 50% participation interest, PTTEP
  Australasia E&P Browse Pty Ltd with 20%, Mitsui E&P Australia Pty Ltd
  and Toyota Tsusho Gas E&P Browse Pty Ltd with 20% and 10%
  participation interests respectively. The success in the participation
  investment is in line with PTTEP’s key strategic objective in
  expanding its investment in high potential petroleum area.

On 14 January 2009, PTTEP has established PTTEP Southwest Vietnam
Pipeline Company limited to carry out petroleum exploration and
production activities and related business in Vietnam.

On 15 January 2010, PTTEP has restructured its organization for greater
efficiency in management and in line with the company’s strategy. The
details of the new organization structure is shown in No. 8

On 17 January 2010, the Company signed the Petroleum Contract in block
Hassi Bir Rekaiz in Algeria. The joint venture partners consist of PTTEP
(the operator), CNOOC International Limited (CNOOC) and Sonatrach with
the participation interests of 24.50%, 24.50% and 51% respectively.
However, the Contract will be effective upon announcement in the Gazette
of Algeria.

  February MTJDA-B17 project has already started up its production.  The
  current delivery of natural gas to PTT Public Company Limited has met
  the gas quality and quantity specified in the Gas Sales Agreement at
  approximately 135 million standard cubic feet per day (MMSCFD). The
  current production rate of condensate is approximately 4,900 barrels
  per day.  The production for natural gas is expected to reach 335
  MMSCFD by the fourth quarter this year. The commencement of natural
  gas production in MTJDA-B17 is considered as a major step of PTTEP to
  serve the domestic gas demand in the future.

3.2 Business Operation

3.2.1 Business Overview

PTTEP’s core business is petroleum exploration and production. As of
year-end 2009, it had 41 petroleum exploration and production projects
and 4 investment projects, and on 17 January 2010 PTTEP signed the
Petroleum Contract for Algeria Hassi Bir Rekaiz project, detailed in
topic 3.1. Consequently, it had a total of 42 petroleum E&P projects of
which it had 18 petroleum E&P projects under commercial production, and
in February 2010, MTJDA-B17 project started up its production, detailed
in topic 3.1. Consequently, it had a total of 19 petroleum E&P projects
under commercial production.

(1) Exploration and Production Projects: 42 Projects

    1.  Thailand Project: 17 Projects

  ----- ------------------------- ------------- ------------- -----------------
  No.   Projects with PTTEP as    Phase         Location      Participation
        Operator                                              Interest

  1     Bongkot                   Production    Gulf of       44.4445%
                                                Thailand      

  2     S1                        Production    North of      100%
                                                Thailand      

  3     PTTEP 1                   Production    Central       100%
                                                Thailand      

  4     B6/27                     Production    Gulf of       60%
                                                Thailand      

  5     Arthit                    Production    Gulf of       80%
                                                Thailand      

  6     Arthit North              Production    Gulf of       100%
                                                Thailand      

  7     L22/43                    Exploration   North of      100%
                                                Thailand      

  8     L53/43 & L54/43           Exploration   Central       100%
                                                Thailand      

  9     L21, 28 & 29/48           Exploration   Northeast     70%
                                                Thailand      

  10    A4, 5 & 6/48              Exploration   Andaman Sea   100%
  ----- ------------------------- ------------- ------------- -----------------

  ----- ----------------- ------------ ----------------- --------------- -------------
  No.   Projects with     Phase        Location          Participation   Operator
        PTTEP as                                         Interest        
        Non-Operator                                                     

  11    E5                Production   Northeast         20%             ExxonMobil
                                       Thailand                          

  12    Unocal III        Production   Gulf of Thailand  5%              Chevron

  13    Pailin            Production   Gulf of Thailand  45%             Chevron

  14    G4/43             Production   Gulf of Thailand  21.375%         Chevron

  No.   Projects with     Phase        Location          Participation   Operator
        PTTEP as                                         Interest        
        Non-Operator                                                     

  15    Sinphuhorm        Production   Northeast         20%             Hess
                                       Thailand                          (Thailand)

  16    B8/32 & 9A        Production   Gulf of Thailand  25%             Chevron

  17    G4/48             Production   Gulf of Thailand  5%              Chevron
  ----- ----------------- ------------ ----------------- --------------- -------------

2.  Regional Projects: 13 Projects

  (1.2.1) Myanmar

  ----- ------------------------ ------------- -------------- -----------------
  No.   Projects with PTTEP as   Phase         Location       Participation
        Operator                                              Interest

  1     Myanmar M3, M4 & M7      Exploration   Gulf of        100%
                                               Martaban       

  2     Myanmar M9 & M11         Development   Gulf of        100%
                                               Martaban       
  ----- ------------------------ ------------- -------------- -----------------

  ----- ---------------- ------------ ------------ --------------- ----------
  No.   Projects with    Phase        Location     Participation   Operator
        PTTEP as                                   Interest        
        Non-Operator                                               

  3     Yadana           Production   Gulf of      25.5%           TOTAL
                                      Martaban                     

  4     Yetagun          Production   Gulf of      19.31784%       Petronas
                                      Martaban                     
  ----- ---------------- ------------ ------------ --------------- ----------

(1.2.2) Vietnam

+---+---------------+------------+------------+-------------+---------+
| N | Projects with | Phase      | Location   | Pa          | O       |
| o | PTTEP as      |            |            | rticipation | perator |
| . | J             |            |            | Interest    |         |
|   | oint-Operator |            |            |             |         |
+---+---------------+------------+------------+-------------+---------+
| 5 | Vietnam 9-2   | Production | Offshore   | 25%         | HV JOC  |
+---+---------------+------------+------------+-------------+---------+
| 6 | Vietnam 16-1  | D          | Offshore   | 28.5%       | HL JOC  |
|   |               | evelopment |            |             |         |
+---+---------------+------------+------------+-------------+---------+

+---+----------------+-----------+------------+-------------+---------+
| N | Projects with  | Phase     | Location   | Pa          | O       |
| o | PTTEP as       |           |            | rticipation | perator |
| . | Non-Operator   |           |            |             |         |
|   |                |           |            | Interest    |         |
+---+----------------+-----------+------------+-------------+---------+
| 7 | Vietnam B &    | De        | Offshore   | 8.5%        | Chevron |
|   | 48/95          | velopment |            |             |         |
+---+----------------+-----------+------------+-------------+---------+
| 8 | Vietnam 52/97  | De        | Offshore   | 7%          | Chevron |
|   |                | velopment |            |             |         |
+---+----------------+-----------+------------+-------------+---------+

(1.2.3) Cambodia

  ----- --------------------- ------------- ---------------- -----------------
  No.   Projects with PTTEP   Phase         Location         Participation
        as Operator                                          Interest

  9     Cambodia B            Exploration   Offshore         33.333334%
  ----- --------------------- ------------- ---------------- -----------------

(1.2.4) Indonesia

  ----- -------------------- ------------- ---------- --------------- -------------
  No.   Projects with PTTEP  Phase         Location   Participation   Operator
        as Non-Operator                               Interest        

  10    Indonesia Bengara I  Exploration   Onshore    40%             PT Medco E&P
                                                                      Bengara

  11    Indonesia Semai II   Exploration   Offshore   33.33%          Murphy
  ----- -------------------- ------------- ---------- --------------- -------------

(1.2.5) Overlapping Area

  ----- ----------------- ------------- ------------------- -----------------------
  No.   Projects with     Phase         Location            Participation Interest
        PTTEP as Operator                                   

  12    G9/43             Exploration   Thailand-Cambodia   100%
  ----- ----------------- ------------- ------------------- -----------------------

+---+-----------------+----------+-------------+---------+------------+
| N | Projects with   | Phase    | Location    | Partic  | Operator   |
| o | PTTEP as        |          |             | ipation |            |
| . | Joint-Operator  |          |             |         |            |
|   |                 |          |             | I       |            |
|   |                 |          |             | nterest |            |
+---+-----------------+----------+-------------+---------+------------+
| 1 | MTJDA-B17       | Produc   | Malays      | 50%     | CPOC       |
| 3 |                 | tion^(∗) | ia-Thailand |         |            |
+---+-----------------+----------+-------------+---------+------------+

^(∗) Started up its production in February 2010

3.  International Projects: 12 Projects

  (1.3.1) Oman

  ----- ---------------------------- ------------- ---------- ---------------
  No.   Projects with PTTEP as       Phase         Location   Participation
        Operator                                              Interest

  1     Oman 44                      Production    Onshore    100%

  2     Oman 58                      Exploration   Onshore    100%
  ----- ---------------------------- ------------- ---------- ---------------

(1.3.2) Iran

+---+---------------------------+------------+----------+------------+
| N | Projects with PTTEP as    | Phase      | Location | Par        |
| o | Operator                  |            |          | ticipation |
| . |                           |            |          |            |
|   |                           |            |          | Interest   |
+---+---------------------------+------------+----------+------------+
| 3 | Iran Saveh                | E          | Onshore  | 100%       |
|   |                           | xploration |          |            |
+---+---------------------------+------------+----------+------------+

(1.3.3) Bahrain

+---+---------------------------+------------+----------+------------+
| N | Projects with PTTEP as    | Phase      | Location | Par        |
| o | Operator                  |            |          | ticipation |
| . |                           |            |          |            |
|   |                           |            |          | Interest   |
+---+---------------------------+------------+----------+------------+
| 4 | Bahrain 2                 | E          | Offshore | 100%       |
|   |                           | xploration |          |            |
+---+---------------------------+------------+----------+------------+

(1.3.4) Algeria

+---+---------------------------+------------+----------+------------+
| N | Projects with PTTEP as    | Phase      | Location | Par        |
| o | Operator                  |            |          | ticipation |
| . |                           |            |          |            |
|   |                           |            |          | Interest   |
+---+---------------------------+------------+----------+------------+
| 5 | Algeria Hassi Bir Rekaiz  | Explo      | Onshore  | 24.5%      |
|   |                           | ration^(∗) |          |            |
+---+---------------------------+------------+----------+------------+

^(∗) Signed the Petroleum Contract on 17 January 2010

+---+-----------------+----------+-------------+---------+------------+
| N | Projects with   | Phase    | Location    | Partic  | Operator   |
| o | PTTEP as        |          |             | ipation |            |
| . | Joint-Operator  |          |             |         |            |
|   |                 |          |             | I       |            |
|   |                 |          |             | nterest |            |
+---+-----------------+----------+-------------+---------+------------+
| 6 | Algeria 433a &  | Dev      | Onshore     | 35%     | GBRS       |
|   | 416b            | elopment |             |         |            |
+---+-----------------+----------+-------------+---------+------------+

(1.3.5) Egypt

+---+-----------------+----------+-------------+---------+------------+
| N | Projects with   | Phase    | Location    | Partic  | Operator   |
| o | PTTEP as        |          |             | ipation |            |
| . | Non-Operator    |          |             |         |            |
|   |                 |          |             | I       |            |
|   |                 |          |             | nterest |            |
+---+-----------------+----------+-------------+---------+------------+
| 7 | Rommana         | Exp      | Onshore     | 30%     | Sipetrol   |
|   |                 | loration |             |         |            |
+---+-----------------+----------+-------------+---------+------------+
| 8 | Sidi Abd El     | Exp      | Offshore    | 30%     | Edison     |
|   | Rahman Offshore | loration |             |         |            |
+---+-----------------+----------+-------------+---------+------------+

(1.3.6) New Zealand

+---+-----------------+----------+-------------+---------+------------+
| N | Projects with   | Phase    | Location    | Partic  | Operator   |
| o | PTTEP as        |          |             | ipation |            |
| . | Non-Operator    |          |             |         |            |
|   |                 |          |             | I       |            |
|   |                 |          |             | nterest |            |
+---+-----------------+----------+-------------+---------+------------+
| 9 | New Zealand     | Exp      | Offshore    | 36%     | OMV N      |
|   | Great South     | loration |             |         | ew Zealand |
+---+-----------------+----------+-------------+---------+------------+

(1.3.7) Australia

+---+---------------------------+------------+----------+------------+
| N | Projects with PTTEP as    | Phase      | Location | Par        |
| o | Operator                  |            |          | ticipation |
| . |                           |            |          |            |
|   |                           |            |          | Interest   |
+---+---------------------------+------------+----------+------------+
| 1 | PTTEP Australasia         | Production | Offshore | 100%       |
| 0 |                           |            |          |            |
+---+---------------------------+------------+----------+------------+

+---+----------------+---------+-------------+---------+-------------+
| N | Projects with  | Phase   | Location    | Partic  | Operator    |
| o | PTTEP as       |         |             | ipation |             |
| . | Non-Operator   |         |             |         |             |
|   |                |         |             | I       |             |
|   |                |         |             | nterest |             |
+---+----------------+---------+-------------+---------+-------------+
| 1 | Australia      | Expl    | Offshore    | 20%     | Murphy Au   |
| 1 | AC/P36         | oration |             |         | stralia Oil |
+---+----------------+---------+-------------+---------+-------------+
| 1 | Australia      | Expl    | Offshore    | 30%     | Murphy Au   |
| 2 | WA-423-P       | oration |             |         | stralia Oil |
+---+----------------+---------+-------------+---------+-------------+

(2) 4 Investment Projects

+---+--------------------------------+---------------+----------------+
| N | Company                        | Location      | Participation  |
| o |                                |               | Interest       |
| . |                                |               |                |
|   |                                |               | I              |
+---+--------------------------------+---------------+----------------+
| 1 | Energy Complex Company Ltd.    | Thailand      | 50%            |
+---+--------------------------------+---------------+----------------+
| 2 | PTT ICT Solutions Company Ltd. | Thailand      | 20%            |
+---+--------------------------------+---------------+----------------+
| 3 | PTTEP Petroleum Development    | Thailand      | 100%           |
|   | Support Base (PSB)             |               |                |
+---+--------------------------------+---------------+----------------+
| 4 | PTTEP Gas Pipeline Investment  |               |                |
+---+--------------------------------+---------------+----------------+
|   | 4.1 Yadana Gas Pipeline        | Gul           | 25.5%          |
|   | Investment Project             | f of Martaban |                |
+---+--------------------------------+---------------+----------------+
|   | 4.2 Yetagun Gas Pipeline       | Gul           | 19.31784%      |
|   | Investment Project             | f of Martaban |                |
+---+--------------------------------+---------------+----------------+

3.2.2 Structuring Policy for PTTEP Group

PTTEP established subsidiaries and associated companies mainly to
conduct its core business. Its continuous expansion in domestic
territory and overseas necessitates the establishment of subsidiaries
and/or associated companies for flexible, efficient business operations
and competitive advantages comparable with other international oil
companies. To achieve this, PTTEP considered factors such as rules &
regulations, financial structure, tax regimes, and risk management.

PTTEP’s policy is to manage its subsidiaries as “One Company” with a
clear direction that its subsidiaries follow PTTEP’s business direction
and strategy and being mainly managed as one team by PTTEP executives
and employees. In addition, its management and internal control systems
are also to be adopted and implemented in all PTTEP subsidiaries in the
same way that they are standardized at PTTEP. To manage associated
companies, PTTEP nominates a representative to serve as a shareholder
and/or a member of each board of directors to participate in defining
the overall business strategy and policy for these companies. To manage
subsidiaries and associated companies, PTTEP adheres to its Good
Corporate Governance principles as its compelling philosophy to ensure
effectiveness, transparency, fairness, and achievement of its business
goals.

3.2.3 Shareholding Structure of PTTEP Group

On 31 December 2009, PTTEP invested in 52 companies, comprising 41
subsidiaries^(#) and 11 associated companies^(#), and on 14 January
2010, it established another subsidiary, PTTEP Southwest Vietnam
Pipeline Company Limited. Consequently, PTTEP has invested in a total of
53 companies, detailed in No. 1.2. and 1.3. The shareholding structure
is presented as follows:

^(#) Defined according to the notification of the Securities and
Exchange Commission kor jor 17/2008

[]

3.  Revenue Structure

As of year-end 2009 the petroleum exploration and production projects
which generated revenues for PTTEP and its subsidiaries comprised 18
projects: the Bongkot, Pailin, S1, Yadana, Yetagun, Unocal III, B8/32 &
9A, PTTEP1, E5, B6/27, Sinphuhorm, G4/43, Oman 44, Arthit, Vietnam 9-2,
Arthit North, PTTEP Australasia and G4/48 projects. In addition, PTTEP
and its subsidiaries recorded revenues proportionately from gas pipeline
transportation which MGTC and TPC rendered to Myanmar Oil and Gas
Enterprise (MOGE), and in February 2010, MTJDA-B17 project started up
its production, detailed in topic 3.1.

Revenue structure of PTTEP and its subsidiaries during 2007-2009

[TABLE]

[TABLE]

* Share of loss from investment under equity method amounted of 17.86
million Bath was presented under Expenses.

¹ Hold by PTTEPO 49%

² PTTEPO holds Orange Energy Limited and B8/32 Partners Limited

³ Hold by PTTEPO 100%

⁴ Hold by PTTEPI

⁵ Hold by PTTEPH 100%

⁶ Hold by PTTEPO

⁷ Hold by PTTEPI 75%

⁸ Hold by PTTEP OM 100%

⁹ Hold by PTTEP ID 100%

For 2009, total revenues of PTTEP and its subsidiaries amounted to Baht
120,338 million, a decrease of Baht 19,669 million or 14% when compared
with last year (Baht 140,007 million). This decrease was mainly due to
lower sales of petroleum of Baht 17,073 million or 13%, resulting from
(1) the lower average petroleum sales price for the year 2009, which
fell to USD 39.53 per BOE compared with last year at USD 49.69 per BOE;
however the average sales exchange rate for this year increased to Baht
34.26 per USD from last year’s Baht 33.25 per USD as a result of the
weakened Baht, however (2) the higher sales volume for this year to
233,756 barrels of oil equivalent per day (BOED) compared with last
year’s sales volume of 219,314 BOED. This increased sales volume mainly
came from (1) natural gas and condensate from the Arthit project and the
natural gas and crude oil from the Vietnam 9-2 project which started
production in the previous year (2) increased petroleum sales volume of
the projects which started sales this year, e.g., natural gas from the
Arthit North project and the crude oil from PTTEP Australasia project.
While (3) the natural gas and condensate sales volume from the Bongkot
and Pailin projects decreased.

PTTEP and its subsidiaries collected lower revenue from pipeline
transportation, which was proportionally recorded from Moattama Gas
Transportation Company (MGTC) and Taninthayi Pipeline Company LLC (TPC).
In addition, there was decreased other income from construction service
on the Arthit gas export pipeline to customers.

4.  PTTEP Business Target during 2009-2013

Notable aspects of PTTEP corporate business targets during 2009-2013 and
results of corporate strategy execution are summarized as follows:

+-------------------------------+--------------------------------------+
| Quantitative Target           | Execution in 2009                    |
+===============================+======================================+
| -   PTTEP sales volume target | -   PTTEP’s sales volume averaged    |
|     in 2009 was 240,240       |     233,756 barrels of oil           |
|     Barrels of oil equivalent |     equivalent per day (BOED) in     |
|     per day (BOED). PTTEP     |     2009, higher than the average    |
|     projected the sales       |     sales volume of 2008 of 219,314  |
|     volume for 2013 would be  |     BOED by approximately 7%. This   |
|     305,354 BOED with the     |     increased sales volume mainly    |
|     CAGR (Cumulative Average  |     came from the full year          |
|     Growth Rate) at 6 %.      |     production of Arthit project and |
|                               |     the Vietnam 9-2 project and      |
|                               |     increased petroleum sales volume |
|                               |     of the projects which started    |
|                               |     sales this year, e.g., natural   |
|                               |     gas from the Arthit North        |
|                               |     project and the crude oil from   |
|                               |     PTTEP Australasia project.       |
|                               |                                      |
|                               | -   However, the average sales       |
|                               |     volume of 2009, 233,756 BOED,    |
|                               |     was still lower than the sales   |
|                               |     target of 240,240 BOED. The      |
|                               |     deviation from the target was    |
|                               |     mainly caused by the technical   |
|                               |     problem in Arthit North.         |
+-------------------------------+--------------------------------------+
| Qualitative Target            | Execution in 2009                    |
+-------------------------------+--------------------------------------+
| -   PTTEP aims to maximize    | -   Amidst a highly volatile         |
|     value from the existing   |     business environment, where      |
|     projects and assets.      |     economic downturn affecting      |
|                               |     lower energy demand and oil      |
|                               |     prices, PTTEP has been quite     |
|                               |     successful in maintaining        |
|                               |     business performance and adding  |
|                               |     value to its assets as           |
|                               |     demonstrated in 2009 total       |
|                               |     revenue of 120,338 Million Baht, |
|                               |     the sales revenue of 115,548     |
|                               |     Million Baht, and the net profit |
|                               |     amounted 22,154 Million Baht.    |
|                               |     Key business results are as      |
|                               |     follow:                          |
|                               |                                      |
|                               | -   Exploration: PTTEP succeeded in  |
|                               |     discovering petroleum in 18 out  |
|                               |     of a total of 28 exploration and |
|                               |     appraisal wells drilled in 2009  |
|                               |     which is equivalent to the       |
|                               |     drilling success rate of 64%.    |
+-------------------------------+--------------------------------------+

+-------------------------------+--------------------------------------+
| Qualitative Target            | Execution in 2009                    |
+-------------------------------+--------------------------------------+
| -   PTTEP aims to maximize    | -   Production Development: PTTEP    |
|     value from the existing   |     has been successful in           |
|     projects and assets       |     production development and in    |
|     (Cont’d)                  |     adding more proved reserves from |
|                               |     key projects as demonstrated in  |
|                               |     PTTEP’s total proved reserve at  |
|                               |     the end of 2009 of 1,099 million |
|                               |     barrels.                         |
|                               |                                      |
|                               | -   Project Development: PTTEP       |
|                               |     accelerated the development of   |
|                               |     various projects leading to      |
|                               |     start-up as plan. In 2009, PTTEP |
|                               |     started up production from       |
|                               |     Arthit North Project which has a |
|                               |     current production rate of       |
|                               |     natural gas at around 120        |
|                               |     million cubic feet per day       |
|                               |     (MMSCFD) and 3,000 barrels per   |
|                               |     day (BPD) of condensate          |
|                               |                                      |
|                               | -   Production: in 2009 PTTEP        |
|                               |     managed its projects to meet its |
|                               |     production targets. One of the   |
|                               |     key successes was the Arthit     |
|                               |     project where the average export |
|                               |     production in 2009 of 330 MMSCFD |
|                               |     of natural gas and 17,000 BPD of |
|                               |     condensate exceeded the target   |
|                               |     of 2009.                         |
|                               |                                      |
|                               | -   To respond to the dynamics of    |
|                               |     energy demand, PTTEP has closely |
|                               |     monitored petroleum demands and  |
|                               |     has been coordinating with PTT   |
|                               |     and related government agencies  |
|                               |     to collectively outline the      |
|                               |     optimal supply plan. PTTEP also  |
|                               |     has reviewed and adjusted its    |
|                               |     production as well as project    |
|                               |     development plans to match       |
|                               |     energy requirements.             |
|                               |                                      |
|                               | -   Cost Reduction: PTTEP was also   |
|                               |     successful in cost reduction and |
|                               |     efficiency improvement through a |
|                               |     number of initiative programs    |
|                               |     including Operational Excellence |
|                               |     and Procurement Plus which       |
|                               |     yielded tangible outcomes that   |
|                               |     helped improve the Company’s     |
|                               |     performance.                     |
+-------------------------------+--------------------------------------+

+----------------------------------+-----------------------------------+
| Qualitative Target               | Execution in 2009                 |
+==================================+===================================+
| -   PTTEP aims to constantly     | -   In 2009 PTTEP conducted a     |
|     expand the investment both   |     study and detail evaluation   |
|     in domestic and overseas     |     of PTTEP competitive space in |
|     countries to enhance         |     selected countries and        |
|     nation’s energy security     |     business/ technology in order |
|                                  |     to develop a country strategy |
|                                  |     and targeted business areas.  |
|                                  |     The result of the study was   |
|                                  |     consequently integrated into  |
|                                  |     PTTEP’s overall growth        |
|                                  |     strategy roadmap with         |
|                                  |     prioritized countries and     |
|                                  |     technology to be pursued.     |
|                                  |     This strategy roadmap will    |
|                                  |     contribute to PTTEP achieving |
|                                  |     its long term target.         |
|                                  |                                   |
|                                  | -   In 2009, PTTEP continued to   |
|                                  |     expand its investment in line |
|                                  |     with the growth strategy with |
|                                  |     key business results as       |
|                                  |     follow:                       |
|                                  |                                   |
|                                  |     -   Participated in the       |
|                                  |         Petroleum Concession      |
|                                  |         Block G4/48 in the Gulf   |
|                                  |         of Thailand.              |
|                                  |                                   |
|                                  |     -   Selected as the           |
|                                  |         successful bidder of      |
|                                  |         block Hassi Bir Rekaiz in |
|                                  |         Algeria.                  |
|                                  |                                   |
|                                  |     -   Succeeded in expanding    |
|                                  |         the operation base in     |
|                                  |         Australia as follows:     |
|                                  |                                   |
|                                  |         -   Purchased 100% equity |
|                                  |             in Coogee Resources   |
|                                  |             Limited (CRL)         |
|                                  |                                   |
|                                  |         -   Purchased 100%        |
|                                  |             shareholders’ equity  |
|                                  |             in OMV Timor Sea Pty  |
|                                  |             Ltd                   |
|                                  |                                   |
|                                  |         -   Participated with 20% |
|                                  |             participation         |
|                                  |             interest in the       |
|                                  |             Petroleum Exploration |
|                                  |             Permit WA-378-P,      |
|                                  |             WA-396-P, and         |
|                                  |             WA-397-P where        |
|                                  |             Woodside Energy       |
|                                  |             Limited will be the   |
|                                  |             operator.             |
|                                  |                                   |
|                                  |         -   Invested in 100%      |
|                                  |             participation in      |
|                                  |             Petroleum Permits     |
|                                  |             AC/P 33 (Oliver       |
|                                  |             block).               |
+----------------------------------+-----------------------------------+
| -   PTTEP aims to develop        | -   In 2009, PTTEP continuously   |
|     organization capability up   |     strived to improve human      |
|     to international standards   |     resources capabilities        |
|     in order to support current  |     through various initiatives   |
|     activities and long term     |     with details as follows:      |
|     growth.                      |                                   |
|                                  | -   Engaged in Capability         |
|                                  |     Strategy study to define long |
|                                  |     term capability development   |
|                                  |     master plan to support        |
|                                  |     business expansion and long   |
|                                  |     term growth.                  |
|                                  |                                   |
|                                  | -   Fully implemented Technical   |
|                                  |     Career Ladder (TCL) system    |
|                                  |     which will help improve the   |
|                                  |     career development of         |
|                                  |     technical personnel and       |
|                                  |     enable them to progress in    |
|                                  |     their professional career in  |
|                                  |     a way equivalent to           |
|                                  |     management career path.       |
|                                  |                                   |
|                                  | -   Launched the Accelerate       |
|                                  |     Development Program (ADP) for |
|                                  |     fast track development of new |
|                                  |     technical graduates to reduce |
|                                  |     the time for them to reach    |
|                                  |     autonomy.                     |
|                                  |                                   |
|                                  | -   Accelerated Leadership        |
|                                  |     development and succession    |
|                                  |     planning with concrete        |
|                                  |     progress and outcome.         |
|                                  |                                   |
|                                  | -   To strengthen organization to |
|                                  |     support business expansion    |
|                                  |     and long term growth, the     |
|                                  |     organization structure and    |
|                                  |     key business processes were   |
|                                  |     reviewed and streamlined.     |
|                                  |     These included the            |
|                                  |     procurement process, the      |
|                                  |     investment process (PTTEP     |
|                                  |     Project Realization Process), |
|                                  |     and the portfolio management  |
|                                  |     process. In addition, PTTEP   |
|                                  |     also engaged in the country   |
|                                  |     strategy study to set         |
|                                  |     comprehensive investment      |
|                                  |     strategies for PTTEP growth.  |
+----------------------------------+-----------------------------------+