3. Nature of Business

3.  Revenue Structure

Commencing January 1, 2011, the Company’s management has determined US
Dollar as the functional currency and has presented its financial
statements in US Dollars in accordance with Thai Accounting Standard No.
21 “The Effects of Changes in Foreign Exchange Rates”.

PTTEP and its subsidiary’s revenues have come mainly from sales of
petroleum products prices for which are marked to the world fuel prices
in US Dollars. Thus, PTTEP and its subsidiaries’ revenue structures of
2009 – 2011 are presented here in US Dollars in order to reflect the
company’s revenue structures.

The petroleum exploration and production projects which generated
revenues for PTTEP and its subsidiaries comprised 21 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, G4/48 , MTJDA-B17 Canada oil Sands KKD and
Vietnam 16-1 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)

Revenue structure of PTTEP and its subsidiaries during 2009-2011

  ---------------- ---------- ---------- -------------- -------------- ---------- ---------- -------- ---------- ---------- ---------- ------- -------- ---------- ---------- ------- -------- ---------- ---------- ------- --------
  Product                     Operated                  Shareholding   % of                                      2009*                                  2010                                   2011                          
                              by                        by             interest                                                                                                                                              

                                                                       2010                  2011                Revenue               %                Revenue               %                Revenue               %       
                                                                                                                 (Million                               (Million                               (Million                      
                                                                                                                 USD)                                   USD)                                   USD)                          

  Petroleum                                                                                                                                                                                                                  
  Exploration and                                                                                                                                                                                                            
  Production                                                                                                                                                                                                                 
  Segment                                                                                                                                                                                                                    

  Crude                       PTTEP                     -              -                     -                   136.54                3.89             184.24                4.07             257.49                4.53    

                              PTTEPI                    PTTEP          100.00                100.00              44.27                 1.26             60.67                 1.34             70.17                 1.23    

                              PTTEPS                    PTTEP          51.00                 51.00               323.34                9.21             426.18                9.40             627.98                11.05   

                                                        PTTEPO         49.00                 49.00               -                     -                -                     -                -                     -       

                              PTTEPO ¹                  PTTEP          75.00                 75.00               244.32                6.96             283.91                6.26             314.11                5.52    

                                                        PTTEPI         25.00                 25.00               -                     -                -                     -                -                     -       

                              PTTEP HV                  PTTEPO         100.00                100.00              68.16                 1.94             55.33                 1.22             60.36                 1.06    

                              PTTEPT²                   PTTEPI         100.00                100.00              0.17                  0.01             1.68                  0.04             -                     -       

                              PTTEP AP                  PTTEPH         100.00                100.00              59.74                 1.70             60.40                 1.33             -                     -       

                              PTTEP HL                  PTTEPO         100.00                100.00              -                     -                -                     -                149.95                2.64    

  Natural Gas                 PTTEP                     -              -                     -                   1,375.99              39.20            1,611.16              35.55            1,619.77              28.49   

                              PTTEPI                    PTTEP          100.00                100.00              300.26                8.55             506.16                11.17            659.95                11.61   

                              PTTEPS                    PTTEP          51.00                 51.00               33.04                 0.94             41.48                 0.92             51.40                 0.90    

                                                        PTTEPO         49.00                 49.00               -                     -                -                     -                -                     -       

                              PTTEPO ¹                  PTTEP          75.00                 75.00               73.31                 2.09             77.53                 1.71             80.22                 1.41    

                                                        PTTEPI         25.00                 25.00               -                     -                -                     -                -                     -       

                              PTTEP HV                  PTTEPO         100.00                100.00              3.46                  0.10             2.26                  0.05             1.59                  0.03    

                              PTTEP OM                  PTTEPO         100.00                100.00              16.56                 0.47             16.66                 0.37             16.30                 0.29    

                              PTTEPT²                   PTTEPI         100.00                100.00              0.04                  0.01             0.26                  0.01             -                     -       

  LPG                         PTTEP                     -              -                                         5.35                  0.15             5.60                  0.12             6.58                  0.11    

                              PTTEPS                    PTTEP          51.00                 51.00               16.06                 0.46             16.80                 0.37             19.75                 0.35    

                                                        PTTEPO         49.00                 49.00               -                     -                -                     -                -                     -       

  Condensate                  PTTEP                     -              -                     -                   596.64                17.00            835.98                18.45            1,145.45              20.15   

                              PTTEPI                    PTTEP          100.00                100.00              19.58                 0.56             89.49                 1.97             134.34                2.36    

                              PTTEPS                    PTTEP          51.00                 51.00               1.35                  0.04             1.80                  0.04             2.24                  0.04    

                                                        PTTEPO         49.00                 49.00               -                     -                -                     -                -                     -       

                                                                                                                                                                                                                             

  Product          Operated              Shareholding                             % of                                      2009*                                  2010                                   2011               
                   by                    by                                       interest                                                                                                                                   

                                                                                  2010                2011                  Revenue            %                   Revenue            %                   Revenue            %
                                                                                                                            (Million                               (Million                               (Million           
                                                                                                                            USD)                                   USD)                                   USD)               

  Condensate       PTTEP OM              PTTEPO                                   100.00              100.00                51.95              1.48                52.04              1.15                72.18              1.27
  (cont’d)                                                                                                                                                                                                                   

  Diluted Bitumen  PTTEP CA              PTTEP NC                                 100.00              100.00                -                  -                   -                  -                   149.89             2.64

  Total                                                                                                                     3,370.13           96.02               4,329.63           95.54               5,439.72           95.68

  Overseas                                                                                                                                                                                                                   
  Pipeline Segment                                                                                                                                                                                                           

  Gas Pipeline     MGTC                  PTTEPO                                   25.50               25.50                 69.57              1.99                71.43              1.58                80.00              1.41
  Transportation                                                                                                                                                                                                             

                   TPC                   PTTEPO                                   19.3178             19.3178               40.17              1.14                39.41              0.87                44.07              0.78

  Total                                                                                                                     109.74             3.13                110.84             2.45                124.07             2.19

  Other Segment                                                                                                                                                                                                              

  Other Revenues   PTTEP                 -                                        -                   -                     10.51              0.30                32.33              0.71                18.59              0.33

                   PTTEPI                PTTEP                                    100.00              100.00                10.17              0.29                5.76               0.13                30.14              0.53

                   PTTEPO ¹              PTTEP                                    75.00               75.00                 1.99               0.06                3.10               0.07                5.55               0.10

                                         PTTEPI                                   25.00               25.00                 -                  -                   -                  -                   -                  -

                   PTTEP HV              PTTEPO                                   100.00              100.00                0.02               0.00                0.05               0.00                0.10               0.00

                   PTTEP HL              PTTEPO                                   100.00              100.00                -                  -                   0.02               0.00                0.04               0.00

                   MGTC                  PTTEPO                                   25.50               25.50                 0.10               0.00                0.10               0.00                0.58               0.01

                   TPC                   PTTEPO                                   19.3178             19.3178               -                  -                   -                  -                   0.23               0.00

                   PTTEP                 PTTEP                                    25.00               25.00                 (5.22)             (0.15)              0.38               0.01                0.86               0.01
                   Services                                                                                                                                                                                                  

                                         PTTEPI                                   75.00               75.00                 -                  -                   -                  -                   -                  -

                   PTTEPT²               PTTEPI                                   100.00              100.00                -                  -                   -                  -                   0.08               0.00

                   PTTEPS                PTTEP                                    51.00               51.00                 3.08               0.09                2.44               0.05                5.21               0.09

                                         PTTEPO                                   49.00               49.00                 -                  -                   -                  -                   -                  -

                   PTTEP AP              PTTEPH                                   100.00              100.00                9.33               0.26                45.29              1.00                41.42              0.73

                   PTTEP NZ              PTTEPH                                   100.00              100.00                -                  -                   -                  -                   7.51               0.13

                   PTTEP SM              PTTEP ID                                 100.00              100.00                -                  -                   1.83               0.04                -                  -

                   PTTEP SMD             PTTEP ID                                 100.00              100.00                -                  -                   -                  -                   3.13               0.05

  Product          Operated              Shareholding                             % of                                      2009*                                  2010                                   2011               
                   by                    by                                       interest                                                                                                                                   

                                                                                  2010                2011                  Revenue            %                   Revenue            %                   Revenue            %
                                                                                                                            (Million                               (Million                               (Million           
                                                                                                                            USD)                                   USD)                                   USD)               

  Other Revenues   PTTEP SS              PTTEP ID                                 100.00              100.00                -                  -                   -                  -                   1.16               0.02
  (cont’d)                                                                                                                                                                                                                   

                   PTTEP SD              PTTEP ID                                 100.00              100.00                -                  -                   -                  -                   0.90               0.02

                   PTTEP NC              PTTEP IH                                 0.00005             0.00005               -                  -                   -                  -                   -                  -

                                         PTTEP NL                                 99.99995            99.99995              -                  -                   -                  -                   1.74               0.03

                   PTTEP CA              PTTEP NC                                 -                   100.00                -                  -                   -                  -                   3.77               0.07

                   PTTEP CIF             PTTEP NC                                 -                   100.00                -                  -                   -                  -                   0.29               0.01

  Total                                                                                                                     29.98              0.85                91.30              2.01                121.30             2.13

                   Grand                                                                                                    3,509.85           100.00              4,531.77           100.00              5,685.09           100.00
                   Total                                                                                                                                                                                                     
  ---------------- ---------- ---------- -------------- -------------- ---------- ---------- -------- ---------- ---------- ---------- ------- -------- ---------- ---------- ------- -------- ---------- ---------- ------- --------

* Revenue in THB currency that was reported to the SEC on 17 February
2010 has been converted to be presented in USD currency by using the
2009 average exchange rate of 34.2858 THB per USD.

¹ PTTEPO holds Orange Energy Limited and B8/32 Partners Limited

² As at December 24, 2010, PTTEPT has registered for the dissolution
with the Ministry of Commerce and is in the process of liquidation.