5. Assets Used in Operation

Property, Plant and Equipment 

Oil and Gas Properties*

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 equipments 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 at December 31, 2007, 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.         Phu Horm (E 5-North)                    20                       

  4.         S 1                                     25                       

  5.         Rommana                                 30                       

  6.         Sidi Abd El Rahman Offshore             30                       

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

  8.         Pailin                                  45                       

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

  10.        Bahrain 2                               100                      

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

  11.        Yetagun                                 19.3178                  

  12.        G4/43                                   21.375                   

  13.        Yadana                                  25.50                    

  14.        Cambodia B                              33.33334                 

  15.        Bongkot (Block B 13/38)                 44.4445                  

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

  17.        PTTEP1                                  100                      

  18.        G9/43                                   100                      

  19.        L 22/43                                 100                      

  20.        Myanmar M3 & M4                         100                      
  ---------- --------------------------------------- ------------------------ --

* See more detail in Attachment 3 – FAS 69

  ---------- --------- --------------------------------------- ------------------------
  21.        Myanmar                                           100
             M7 & M9                                           

  22.        Myanmar                                           100
             M11                                               

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

  23.                  B8/32 & 9A ^(**)                        25.0010

  24.                  New Zealand Great South                 36

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

  25.        Vietnam                                           7
             52/97                                             

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

  26.        Vietnam B                                         8.5
             & 48/95                                           

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

  27.        Vietnam                                           28.5
             16-1                                              

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

  28.        Vietnam                                           25
             9-2                                               

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

  29.                  Algeria 433a & 416b                     35

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

  30.                  Bongkot (Block G12/48)                  44.4445

  31.                  Arthit (Block G9/48)                    84

  32.                  L53/43 & 54/43                          100

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

  33.                  Phu Horm (EU-1)                         20

  34.                  S1                                      75

  35.                  Nang Nuan (B6/27)                       100

  36.                  L21, 28 & 29/48                         100

  37.                  A4, A5, A6/48                           100

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

  38.                  Indonesia Merangin-1                    40

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

  39.                  Indonesia Bengara-1                     40

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

  40.        Oman 44                                           100

  41.        Oman 58                                           100

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

  42.                  Iran Saveh                              100
  ---------- --------- --------------------------------------- ------------------------

^(**)PTTEPO has shareholding in Orange Energy Limited and B8/32 Partners
Limited, which hold project’s concessions.

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

  43.       Unocal III (Block G6/50)                5

  44.       Pailin (Block G7/50)                    45

  45.       Arthit (Block G8/50)                    80

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

  46.       Australia AC/P36 ^(***)                 20

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

  47.       Bangladesh 17&18 ^(****)                30
  --------- --------------------------------------- ------------------------

^(***)The joint venture agreement will be effective only after the
approval from Australia Government.

^(****)The joint venture agreement will be effective only after the
approval from Bangladesh Government and the Joint Ventures

  As at December 31, 2007, details of properties’ net book value are as
  follows:-

  []

Investments 

As at December 31, 2007, PTTEP has 27^(*)subsidiaries and
6^(**)associated companies. PTTEP and its subsidiaries’ investment lists
are presented as follows:

+---------+---+---------+--------+---------+-------+-------+-----------+
| Company | T |         | P      | %       | Cost  | E     | Major     |
|         | y |         | aid-in |         | M     | quity |           |
|         | p |         | C      | Percent | ethod | M     |           |
|         | e |         | apital | of      |       | ethod |           |
|         | o |         |        | i       |       |       |           |
|         | f |         |        | nterest |       |       |           |
|         | B |         |        |         |       |       |           |
|         | u |         |        |         |       |       |           |
|         | s |         |        |         |       |       |           |
|         | i |         |        |         |       |       |           |
|         | n |         |        |         |       |       |           |
|         | e |         |        |         |       |       |           |
|         | s |         |        |         |       |       |           |
|         | s |         |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |         | (M     |         | (Mi   | (Mi   | sh        |
|         |   |         | illion |         | llion | llion | areholder |
|         |   |         | Baht)  |         | Baht) | Baht) |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| Subsi   |   |         |        |         |       |       |           |
| diaries |   |         |        |         |       |       |           |
| company |   |         |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPI  |   | Pe      | 20,000 | 100     | 2     | 33,4  | PTTEP     |
|         |   | troleum |        |         | 0,000 | 86.76 | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPO  |   | C       | 0.17   | 75      | 0.13  | 14,0  | PTTEP 75% |
|         |   | ommerce |        |         |       | 76.56 |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |         |        | 25      | 0.04  | 4,7   | PTTEPI 25 |
|         |   |         |        |         |       | 09.32 | %         |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.03   | 100     | 2.03  | (18   | PTTEPO    |
| SV      |   | troleum |        |         |       | 3.45) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.03   | 100     | 2.03  | (30   | PTTEPO    |
| KV      |   | troleum |        |         |       | 6.35) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.12   | 100     | 2.12  | (3,27 | PTTEPO    |
| HL      |   | troleum |        |         |       | 3.15) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.16   | 100     | 2.16  | (1,88 | PTTEPO    |
| HV      |   | troleum |        |         |       | 2.17) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.16   | 100     | 2.16  | (20   | PTTEPO    |
| OM      |   | troleum |        |         |       | 6.20) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 2.10   | 100     | 2.10  | (1,21 | PTTEPO    |
| AG      |   | troleum |        |         |       | 8.62) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPT  |   | Pe      | 100.00 | 51      | 51.00 | (1    | PTTEPI    |
|         |   | troleum |        |         |       | 0.39) | 51%       |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |         |        | 49      | 49.00 | (     | PTTEP OM  |
|         |   |         |        |         |       | 9.99) | 49%       |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | S       | 1.00   | 25      | 0.25  | 25.35 | PTTEP 25% |
| S       |   | ervices |        |         |       |       |           |
| ervices |   |         |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |         |        | 75      | 0.75  | 76.06 | PTTEPT    |
|         |   |         |        |         |       |       | 75%       |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPS  |   | Pe      | 100.00 | 49      | 3,7   | 5,8   | PTTEP 49% |
|         |   | troleum |        |         | 19.03 | 06.20 |           |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |         |        | 51      | 3,8   | 6,0   | PTTEPO    |
|         |   |         |        |         | 64.89 | 39.95 | 51%       |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   | Pe      | 1.91   | 100     | 1.91  | (33   | PTTEP OM  |
| IR      |   | troleum |        |         |       | 8.77) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| DPC     |   | Pe      | 2.05   | 100     | 2.05  | 1.29  | PTTEPO    |
|         |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
|         |   |  Pe     |  2.05  | 100     | 2.05  | (17   | PTTEPO    |
| PTTEPM  |   | troleum |        |         |       | 0.09) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.90   | 100     | 1.90  | 1.41  | PTTEP OM  |
| BH      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPH  |   |  Pe     | 1.88   | 100     | 1.88  | (14   | PTTEPO    |
|         |   | troleum |        |         |       | 2.48) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.88   | 100     | 1.88  | (14   | PTTEPH    |
| ID      |   | troleum |        |         |       | 0.94) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPB  |   |  Pe     | 1.88   | 100     | 1.88  | (14   | PTTEP ID  |
|         |   | troleum |        |         |       | 0.66) | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.00   | 100     | 1.00  | 0.94  | PTTEPT    |
| TP      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPA  |   |  Pe     | 0.25   | 100     | 0.25  | 0.20  | PTTEPS    |
|         |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.69   | 100     | 1.69  | 1.36  | PTTEPH    |
| EG      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEPR  |   |  Pe     | 1.69   | 100     | 1.69  | 1.58  | PTTEP EG  |
|         |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.69   | 100     | 1.69  | 1.58  | PTTEP EG  |
| SAER    |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.53   | 100     | 1.53  | 0.67  | PTTEPH    |
| AU      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.53   | 100     | 1.53  | 1.48  | PTTEP AU  |
| AO      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+
| PTTEP   |   |  Pe     | 1.67   | 100     | 1.67  | 1.64  | PTTEPH    |
| BD      |   | troleum |        |         |       |       | 100%      |
|         |   | E&P     |        |         |       |       |           |
+---------+---+---------+--------+---------+-------+-------+-----------+

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

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

+----------+---------+--------+---------+-------+--------+-----------+
| Company  | Type of | P      | %       | Cost  | Equity | Major     |
|          | B       | aid-in |         | M     | Method | sh        |
|          | usiness | C      |         | ethod |        | areholder |
|          |         | apital |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         | (M     | Percent | (Mi   | (M     |           |
|          |         | illion | of.     | llion | illion |           |
|          |         | Baht)  |         | Baht) | Baht)  |           |
|          |         |        | i       |       |        |           |
|          |         |        | nterest |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
| As       |         |        |         |       |        |           |
| sociated |         |        |         |       |        |           |
| Company  |         |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
| EnCo     | C       | 800.00 | 50      | 4     | 365.31 | PTTEP 50% |
|          | ommerce |        |         | 00.00 |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PTT 50%   |
+----------+---------+--------+---------+-------+--------+-----------+
| PTT ICT  | S       | 150.00 | 20      | 30.00 | 31.43  | PTTEP 20% |
|          | ervices |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PTT 20%   |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | ATC 20%   |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PTTCH 20% |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | TOP 20%   |
+----------+---------+--------+---------+-------+--------+-----------+
| Jointly  |         |        |         |       |        |           |
| co       |         |        |         |       |        |           |
| ntrolled |         |        |         |       |        |           |
| Entities |         |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
| CPOC     | Pe      | 2.21   | 50      | 1.11  | 1.02   | PTTEPI 50 |
|          | troleum |        |         |       |        | %         |
|          | E&P     |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | CARIGALI  |
|          |         |        |         |       |        | 50%       |
+----------+---------+--------+---------+-------+--------+-----------+
| MGTC     | Natural | 0.76   | 25.5    | 0.19  | 1,     | PTTEPO    |
|          | gas     |        |         |       | 577.63 | 25.50%    |
|          | pipe    |        |         |       |        |           |
|          | lines - |        |         |       |        |           |
|          | o       |        |         |       |        |           |
|          | verseas |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | UNOCAL    |
|          |         |        |         |       |        | 28.2625%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | TOTAL     |
|          |         |        |         |       |        | 31.2375%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | MOGE      |
|          |         |        |         |       |        | 15.0%     |
+----------+---------+--------+---------+-------+--------+-----------+
| TPC      | Natural | 2.62   | 19.3178 | 0.57  | 1,     | PTTEPO    |
|          | gas     |        |         |       | 595.60 | 19.3178%  |
|          | pipe    |        |         |       |        |           |
|          | lines - |        |         |       |        |           |
|          | o       |        |         |       |        |           |
|          | verseas |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PETRONAS  |
|          |         |        |         |       |        | 40.9102%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | NIPPON    |
|          |         |        |         |       |        | 19.3178%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | MOGE      |
|          |         |        |         |       |        | 20.4542%  |
+----------+---------+--------+---------+-------+--------+-----------+
| Orange   | Pe      | 100.00 | 53.9496 | 13,5  | 9,     | PTTEPO    |
|          | troleum |        |         | 67.69 | 782.80 | 53.9496%  |
|          | E&P     |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | MOECOI    |
|          |         |        |         |       |        | 36.0504%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PSI 10%   |
+----------+---------+--------+---------+-------+--------+-----------+
| B8/32    | Pe      | 110.00 | 25.0009 | 4,5   | 3,     | PTTEPO    |
| Partners | troleum |        |         | 23.69 | 492.82 | 25.0009%  |
|          | E&P     |        |         |       |        |           |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | MOECOI    |
|          |         |        |         |       |        | 16.7064%  |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | PSI       |
|          |         |        |         |       |        | 4.6346%   |
+----------+---------+--------+---------+-------+--------+-----------+
|          |         |        |         |       |        | Chevron   |
|          |         |        |         |       |        | 53.6583%  |
+----------+---------+--------+---------+-------+--------+-----------+

Net Book Value

As at December 31, 2007, PTTEP’s net book value amounted to Baht 106,787
million or Baht 32.38 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
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 regime of these countries or regions, risk management,
etc. In addition, PTTEP always adheres to its Corporate Governance
principle 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.