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  7. PTTEP and its Subsidiaries’ Assets

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Property, Plant and Equipment 

7.1.1 Oil and Gas Properties¹ 

  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 tangible properties e.g. land,
  buildings and construction, machine and equipments, decommissioning
  costs as well as transportation pipeline and capitalized exploratory
  and production drilling costs. In addition, these properties comprise
  intangible properties e.g. property acquisition costs of concession
  right which shall incur when PTTEP and its subsidiaries acquire the
  concession right.

  As at December 31, 2003, 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.         S 1                                   25

  2.         E 5                                   20

  3.         Unocal 3                              5

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

  5.         Pailin (B12/27)                       45

  6.         Arthit (B14A, B15A, B16A)             80

  7.         E 5-North²                            20
  ---------- ------------------------------------- -----------------------

+---------+-------------------------------------+----------------------+
| P       |                                     | Company's interest   |
| TTEPI’s |                                     |                      |
| joint   |                                     |                      |
| v       |                                     |                      |
| entures |                                     |                      |
+---------+-------------------------------------+----------------------+
| 8.      | PTTEP1                              | 100                  |
+---------+-------------------------------------+----------------------+
| 9.      | Yadana (M5, M6)                     | 25.5                 |
+---------+-------------------------------------+----------------------+
| 10.     | Yetagun                             | 19.3178              |
+---------+-------------------------------------+----------------------+
| 11.     | JDA (Block B-17 and C-19)           | 50                   |
+---------+-------------------------------------+----------------------+
| 12.     | Bongkot (Block B 13/38)³            | 44.4445              |
+---------+-------------------------------------+----------------------+
| 13.     | W 7/38 (On process of surrender the | 15                   |
|         | Petroleum Concession)               |                      |
+---------+-------------------------------------+----------------------+
| 14.     | L 22/43                             | 35                   |
+---------+-------------------------------------+----------------------+
| 15.     | G 4/43                              | 15                   |
+---------+-------------------------------------+----------------------+
| 16.     | Block M-7                           | 100                  |
+---------+-------------------------------------+----------------------+
| 17.     | Block M-9                           | 100                  |
+---------+-------------------------------------+----------------------+
| See     |                                     |                      |
| more    |                                     |                      |
| detail  |                                     |                      |
| in      |                                     |                      |
| Chapter |                                     |                      |
| 19-     |                                     |                      |
| FAS69   |                                     |                      |
| page    |                                     |                      |
| 118     |                                     |                      |
|         |                                     |                      |
| ²       |                                     |                      |
| Counted |                                     |                      |
| as E5   |                                     |                      |
| project |                                     |                      |
| but     |                                     |                      |
| sep     |                                     |                      |
| arating |                                     |                      |
| of      |                                     |                      |
| assets  |                                     |                      |
| due to  |                                     |                      |
| di      |                                     |                      |
| fferent |                                     |                      |
| op      |                                     |                      |
| erators |                                     |                      |
|         |                                     |                      |
| ³       |                                     |                      |
| Counted |                                     |                      |
| as      |                                     |                      |
| Bongkot |                                     |                      |
| project |                                     |                      |
| but     |                                     |                      |
| sep     |                                     |                      |
| arating |                                     |                      |
| of      |                                     |                      |
| assets  |                                     |                      |
| due to  |                                     |                      |
| di      |                                     |                      |
| fferent |                                     |                      |
| co      |                                     |                      |
| mpanies |                                     |                      |
| holding |                                     |                      |
| the     |                                     |                      |
| conc    |                                     |                      |
| essions |                                     |                      |
+---------+-------------------------------------+----------------------+
| PTTEP   |                                     | Company's interest   |
| KV’s    |                                     |                      |
| joint   |                                     |                      |
| venture |                                     |                      |
+---------+-------------------------------------+----------------------+
| 18.     | Block B and 48/95                   | 8.5                  |
+---------+-------------------------------------+----------------------+
| PTTEP   |                                     | Company's interest   |
| SV’s    |                                     |                      |
| joint   |                                     |                      |
| venture |                                     |                      |
+---------+-------------------------------------+----------------------+
| 19.     | Block 52/97                         | 7                    |
+---------+-------------------------------------+----------------------+
| PTTEP   |                                     | Company's interest   |
| HV’s    |                                     |                      |
| joint   |                                     |                      |
| venture |                                     |                      |
+---------+-------------------------------------+----------------------+
| 20.     | Block 9-2                           | 25                   |
+---------+-------------------------------------+----------------------+
| PTTEP   |                                     | Company's interest   |
| HL’s    |                                     |                      |
| joint   |                                     |                      |
| venture |                                     |                      |
+---------+-------------------------------------+----------------------+
| 21.     | Block 16-1                          | 28.5                 |
+---------+-------------------------------------+----------------------+
| PTTEP   |                                     | Company's interest   |
| ME’s    |                                     |                      |
| joint   |                                     |                      |
| venture |                                     |                      |
+---------+-------------------------------------+----------------------+
| 22.     | Block 44                            | 100                  |
+---------+-------------------------------------+----------------------+

  As at December 31, 2003, details of properties’ net book value are as
  follows:-

Unit: Million Baht

[TABLE]

Unit: Million Baht

[TABLE]

⁴ Eliminated related entries.

7.1.2 Reserve quantities as at December 31, 2003 ² [1]

7.2 Investments 

As at December 31, 2003, PTTEP has 8 subsidiary companies³ and 2
associated companies and 3 jointly controlled entities. PTTEP and its
subsidiaries’ investment lists are presented as follows:

+---------+----------+--------+-------+--------+--------+------------+
| Company | Type of  | Paid-i | %     | Cost   | E      | Major Sh   |
|         | Business | n Capi |       | Method | quity  | areholders |
|         |          | tal (M | Perc  |        | Method |            |
|         |          | illion | ent o | (M     |        |            |
|         |          |  Baht) | f int | illion | (M     |            |
|         |          |        | erest |  Baht) | illion |            |
|         |          |        |       |        |  Baht) |            |
+---------+----------+--------+-------+--------+--------+------------+
|         |          |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| Sub     |          |        |       |        |        |            |
| sidiary |          |        |       |        |        |            |
| co      |          |        |       |        |        |            |
| mpanies |          |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEPI  | P        | 20,000 | 100   | 20,000 | 21,    | PTTEP 100% |
|         | etroleum |        |       |        | 034.98 |            |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEPO  | Commerce | 0.17   | 75    | 0.13   | 1,     | PTTEP 75%  |
|         |          |        |       |        | 757.90 |            |
+---------+----------+--------+-------+--------+--------+------------+
|         |          |        | 25    | 0.04   | 622.73 | PTTEPI 25  |
|         |          |        |       |        |        | %          |
+---------+----------+--------+-------+--------+--------+------------+
| PTB     | P        | -      | 100   | 1.51   | 0.09   | PTTEP 100% |
|         | etroleum |        |       |        |        |            |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | 2.03   | 100   | 2.03   | (1     | PTTEPO     |
| KV      | etroleum |        |       |        | 36.83) | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | 2.03   | 100   | 2.03   | (      | PTTEPO     |
| SV      | etroleum |        |       |        | 90.12) | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | 2.16   | 100   | 2.16   | (1,4   | PTTEPO     |
| HV      | etroleum |        |       |        | 25.44) | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | 2.12   | 100   | 2.12   | (8     | PTTEPO     |
| HL      | etroleum |        |       |        | 42.70) | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | 2.16   | 100   | 2.16   | (2     | PTTEPO     |
| ME      | etroleum |        |       |        | 33.26) | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| PTTEP   | P        | -      | 100   | -      | 1.97   | PTTEPO     |
| AG      | etroleum |        |       |        |        | 100%       |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| Ass     |          |        |       |        |        |            |
| ociated |          |        |       |        |        |            |
| Co      |          |        |       |        |        |            |
| mpanies |          |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| TOP     | Power    | 2,810  | 26    | 1,     | 1,     | PTTEPI 26  |
|         | Producer |        |       | 450.06 | 741.34 | %          |
+---------+----------+--------+-------+--------+--------+------------+
|         |          |        |       |        |        | Thai Oil   |
|         |          |        |       |        |        | Co., Ltd.  |
|         |          |        |       |        |        | 74%        |
+---------+----------+--------+-------+--------+--------+------------+
| New     | Commerce | 44.27  | 40    | 9,     | 9,     | PTTEPO 40% |
| Links   | ¹        |        |       | 898.26 | 735.74 |            |
|         |          |        |       |        |        | Cumin and  |
|         |          |        |       |        |        | Encore     |
|         |          |        |       |        |        | Int        |
|         |          |        |       |        |        | ernational |
|         |          |        |       |        |        | 60%        |
+---------+----------+--------+-------+--------+--------+------------+

+---------+----------+--------+-------+--------+--------+------------+
| Company | Type of  | Paid-i | %     | Cost   | E      | Major Sh   |
|         | Business | n Capi |       | Method | quity  | areholders |
|         |          | tal (M | Perc  |        | Method |            |
|         |          | illion | ent o | (M     |        |            |
|         |          |  Baht) | f int | illion | (M     |            |
|         |          |        | erest |  Baht) | illion |            |
|         |          |        |       |        |  Baht) |            |
+---------+----------+--------+-------+--------+--------+------------+
| Jointly |          |        |       |        |        |            |
| con     |          |        |       |        |        |            |
| trolled |          |        |       |        |        |            |
| E       |          |        |       |        |        |            |
| ntities |          |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
|         |          |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
| CPOC    | P        | 19.80  | 50    | 9.90   | 9.90   | PTTEPI 50  |
|         | etroleum | Baht   |       | Baht   | Baht   | %          |
|         | E&P      |        |       |        |        |            |
+---------+----------+--------+-------+--------+--------+------------+
|         |          |        |       |        |        | CARIGALI   |
|         |          |        |       |        |        | 50%        |
+---------+----------+--------+-------+--------+--------+------------+
| MGTC    | Natural  | 0.76   | 25.50 | 0.19   | 1,     | PTTEPO     |
|         | gas      |        |       |        | 569.60 | 25.50%     |
|         | pip      |        |       |        |        |            |
|         | elines - |        |       |        |        | UNOCAL     |
|         | overseas |        |       |        |        | 28.2625%   |
|         |          |        |       |        |        |            |
|         |          |        |       |        |        | TOTAL      |
|         |          |        |       |        |        | 31.2375%   |
|         |          |        |       |        |        |            |
|         |          |        |       |        |        | MOGE 15.0% |
+---------+----------+--------+-------+--------+--------+------------+
| TPC     | Natural  | 2.62   | 19    | 0.37   | 329.77 | PTTEPO     |
|         | gas      |        | .3178 |        |        | 19.3178%   |
|         | pip      |        |       |        |        |            |
|         | elines - |        |       |        |        | PETRONAS   |
|         | overseas |        |       |        |        | 40.9102%   |
|         |          |        |       |        |        |            |
|         |          |        |       |        |        | NIPPON     |
|         |          |        |       |        |        | 19.3178%   |
|         |          |        |       |        |        |            |
|         |          |        |       |        |        | MOGE       |
|         |          |        |       |        |        | 20.4542%   |
+---------+----------+--------+-------+--------+--------+------------+

+-------+----------------------------+-------+-------------------------+
| P     | : PTTEP International      | CPOC  | : Carigali – PTTEPI Ope |
| TTEPI | Limited                    |       | rating Company Sdn Bhd. |
+-------+----------------------------+-------+-------------------------+
| P     | : PTTEP Offshore           |   TOP | : Thai Oil Power        |
| TTEPO | Investment Company Limited |       | Company Limited         |
+-------+----------------------------+-------+-------------------------+
| PTB   | : PTB Partner Co., Ltd.    |       | : Moattama Gas          |
|       | (on liquidation process)   |  MGTC | Transportation Company  |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Kim Long Vietnam   |   New | : New Links Energy      |
| KV    | Company Limited            |       | Resources Limited       |
|       |                            | Links |                         |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Southwest Vietnam  |   TPC | : Taninthayi Pipeline   |
| SV    | Company Limited            |       | Company LLC             |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Hoan-Vu Company    |       |                         |
| HV    | Limited                    |       |                         |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Hoang-Long Company |       |                         |
| HL    | Limited                    |       |                         |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Middle East        |       |                         |
| ME    | Company Limited            |       |                         |
+-------+----------------------------+-------+-------------------------+
| PTTEP | : PTTEP Algeria Company    |       |                         |
| AG    | Limited                    |       |                         |
+-------+----------------------------+-------+-------------------------+
|   ¹   |                            |       |                         |
|   New |                            |       |                         |
|       |                            |       |                         |
| Links |                            |       |                         |
|   E   |                            |       |                         |
| nergy |                            |       |                         |
|       |                            |       |                         |
|  Reso |                            |       |                         |
| urces |                            |       |                         |
|       |                            |       |                         |
| holds |                            |       |                         |
|   8   |                            |       |                         |
| 5.51% |                            |       |                         |
|   s   |                            |       |                         |
| hares |                            |       |                         |
|   in  |                            |       |                         |
|   PT. |                            |       |                         |
|       |                            |       |                         |
| Medco |                            |       |                         |
|   E   |                            |       |                         |
| nergi |                            |       |                         |
|   Int |                            |       |                         |
| ernas |                            |       |                         |
| ional |                            |       |                         |
|   Tbk |                            |       |                         |
|       |                            |       |                         |
| which |                            |       |                         |
|   en  |                            |       |                         |
| gaged |                            |       |                         |
|   in  |                            |       |                         |
|       |                            |       |                         |
|  petr |                            |       |                         |
| oleum |                            |       |                         |
|   bus |                            |       |                         |
| iness |                            |       |                         |
|   in  |                            |       |                         |
|       |                            |       |                         |
| Indon |                            |       |                         |
| esia. |                            |       |                         |
+-------+----------------------------+-------+-------------------------+

7.3 Net Book Value

7.3.1 As at December 31, 2003, PTTEP’s net book value amounted to Baht 45,674 million.

7.3.2 PTTEP guarantees unsubordinated bonds with amount of USD 200 million, issued by its subsidiary. These bonds are included in consolidated financial statement so the net book value is the same amount as presented in 7.3.1.

7.3.3 Net book value in 7.3.1 and 7.3.2 is Baht 70.01 per share.

7.4 Management Policy of Affiliated Companies

For all affiliate companies of PTTEP to be inline with the corporate
strategy, PTTEP sets the policy for affiliated companies which PTTEP
holds 100 percent to be operated by PTTEP’s employees and takes direct
policies from PTTEP’s Board of Director. As for the joint-invested
company, PTTEP set the policies by nominating representatives at the
management and operating levels and involving in the setting of the
policies, Corporate Governance principles.

[1] ² See additional details in page 114

³ Excluding PTB Partner Co., Ltd. which is on liquidation process