5. PTTEP and its Subsidiaries’ Assets

Property, Plant and Equipment 

5.1.1 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 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, 2005, 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.         Bongkot (Block B15, B16, B17)           44.4445

  2.         S 1                                     25

  3.         E 5                                     20

  4.         Unocal III                              5

  5.         Pailin                                  45

  6.         Arthit                                  80

  7.         Phu Horm (E 5-North)                    20
  ---------- --------------------------------------- -------------------------

+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| I’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| ve  |   |                                       |                       |
| ntu |   |                                       |                       |
| res |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 8.  | P |                                       | 100                   |
|     | T |                                       |                       |
|     | T |                                       |                       |
|     | E |                                       |                       |
|     | P |                                       |                       |
|     | 1 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 9.  | Y |                                       | 25.50                 |
|     | a |                                       |                       |
|     | d |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | a |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 10. | Y |                                       | 19.3178               |
|     | e |                                       |                       |
|     | t |                                       |                       |
|     | a |                                       |                       |
|     | g |                                       |                       |
|     | u |                                       |                       |
|     | n |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 11. | C |                                       | 30                    |
|     | a |                                       |                       |
|     | m |                                       |                       |
|     | b |                                       |                       |
|     | o |                                       |                       |
|     | d |                                       |                       |
|     | i |                                       |                       |
|     | a |                                       |                       |
|     | B |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 12. | C |                                       | 100                   |
|     | T |                                       |                       |
|     | J |                                       |                       |
|     | D |                                       |                       |
|     | A |                                       |                       |
|     | ( |                                       |                       |
|     | B |                                       |                       |
|     | l |                                       |                       |
|     | o |                                       |                       |
|     | c |                                       |                       |
|     | k |                                       |                       |
|     | G |                                       |                       |
|     | 9 |                                       |                       |
|     | / |                                       |                       |
|     | 4 |                                       |                       |
|     | 3 |                                       |                       |
|     | ) |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 1.  | B |                                       | 44.4445               |
|     | o |                                       |                       |
|     | n |                                       |                       |
|     | g |                                       |                       |
|     | k |                                       |                       |
|     | o |                                       |                       |
|     | t |                                       |                       |
|     | ( |                                       |                       |
|     | B |                                       |                       |
|     | l |                                       |                       |
|     | o |                                       |                       |
|     | c |                                       |                       |
|     | k |                                       |                       |
|     | B |                                       |                       |
|     | 1 |                                       |                       |
|     | 3 |                                       |                       |
|     | / |                                       |                       |
|     | 3 |                                       |                       |
|     | 8 |                                       |                       |
|     | ) |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 13. | L |                                       | 100                   |
|     | 2 |                                       |                       |
|     | 2 |                                       |                       |
|     | / |                                       |                       |
|     | 4 |                                       |                       |
|     | 3 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 14. | G |                                       | 15                    |
|     | 4 |                                       |                       |
|     | / |                                       | 15                    |
|     | 4 |                                       |                       |
|     | 3 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 15. | M |                                       | 50                    |
|     | T |                                       |                       |
|     | J |                                       |                       |
|     | D |                                       |                       |
|     | A |                                       |                       |
|     | ( |                                       |                       |
|     | B |                                       |                       |
|     | l |                                       |                       |
|     | o |                                       |                       |
|     | c |                                       |                       |
|     | k |                                       |                       |
|     | B |                                       |                       |
|     | - |                                       |                       |
|     | 1 |                                       |                       |
|     | 7 |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | d |                                       |                       |
|     | B |                                       |                       |
|     | - |                                       |                       |
|     | 1 |                                       |                       |
|     | 7 |                                       |                       |
|     | - |                                       |                       |
|     | 0 |                                       |                       |
|     | 1 |                                       |                       |
|     | ) |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 16. | M |                                       | 100                   |
|     | y |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | m |                                       |                       |
|     | a |                                       |                       |
|     | r |                                       |                       |
|     | M |                                       |                       |
|     | 7 |                                       |                       |
|     | & |                                       |                       |
|     | M |                                       |                       |
|     | 9 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 17. | M |                                       | 100                   |
|     | y |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | m |                                       |                       |
|     | a |                                       |                       |
|     | r |                                       |                       |
|     | M |                                       |                       |
|     | 3 |                                       |                       |
|     | & |                                       |                       |
|     | M |                                       |                       |
|     | 4 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 18. | M |                                       | 100                   |
|     | y |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | m |                                       |                       |
|     | a |                                       |                       |
|     | r |                                       |                       |
|     | M |                                       |                       |
|     | 1 |                                       |                       |
|     | 1 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| See |   |                                       |                       |
| m   |   |                                       |                       |
| ore |   |                                       |                       |
| det |   |                                       |                       |
| ail |   |                                       |                       |
| in  |   |                                       |                       |
| A   |   |                                       |                       |
| tta |   |                                       |                       |
| chm |   |                                       |                       |
| ent |   |                                       |                       |
| 3 - |   |                                       |                       |
| FA  |   |                                       |                       |
| S69 |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| T’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 19. |   | Block L53/43 & 54/43                  | 100                   |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| O’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 20. |   | Indonesia Merangin-1                  | 39                    |
+-----+---+---------------------------------------+-----------------------+
| 28. |   | B8/32 & 9A ¹                          | 25.0010               |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| O   |   |                                       |                       |
| M’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 21. | O |                                       | 100                   |
|     | m |                                       |                       |
|     | a |                                       |                       |
|     | n |                                       |                       |
|     | 4 |                                       |                       |
|     | 4 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| I   |   |                                       |                       |
| R’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 22. |   | Iran Saveh                            | 100                   |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| K   |   |                                       |                       |
| V’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 23. | V |                                       | 8.5                   |
|     | i |                                       |                       |
|     | e |                                       |                       |
|     | t |                                       |                       |
|     | n |                                       |                       |
|     | a |                                       |                       |
|     | m |                                       |                       |
|     | B |                                       |                       |
|     | & |                                       |                       |
|     | 4 |                                       |                       |
|     | 8 |                                       |                       |
|     | / |                                       |                       |
|     | 9 |                                       |                       |
|     | 5 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| S   |   |                                       |                       |
| V’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 24. | V |                                       | 7                     |
|     | i |                                       |                       |
|     | e |                                       |                       |
|     | t |                                       |                       |
|     | n |                                       |                       |
|     | a |                                       |                       |
|     | m |                                       |                       |
|     | 5 |                                       |                       |
|     | 2 |                                       |                       |
|     | / |                                       |                       |
|     | 9 |                                       |                       |
|     | 7 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| H   |   |                                       |                       |
| V’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 25. | V |                                       | 25                    |
|     | i |                                       |                       |
|     | e |                                       |                       |
|     | t |                                       |                       |
|     | n |                                       |                       |
|     | a |                                       |                       |
|     | m |                                       |                       |
|     | 9 |                                       |                       |
|     | - |                                       |                       |
|     | 2 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| H   |   |                                       |                       |
| L’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 26. | V |                                       | 28.5                  |
|     | i |                                       |                       |
|     | e |                                       |                       |
|     | t |                                       |                       |
|     | n |                                       |                       |
|     | a |                                       |                       |
|     | m |                                       |                       |
|     | 1 |                                       |                       |
|     | 6 |                                       |                       |
|     | - |                                       |                       |
|     | 1 |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| A   |   |                                       |                       |
| G’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 27. |   | Algeria 433a & 416b                   | 35                    |
+-----+---+---------------------------------------+-----------------------+
| PT  |   |                                       | Company's interest    |
| TEP |   |                                       |                       |
| S’s |   |                                       |                       |
| jo  |   |                                       |                       |
| int |   |                                       |                       |
| v   |   |                                       |                       |
| ent |   |                                       |                       |
| ure |   |                                       |                       |
+-----+---+---------------------------------------+-----------------------+
| 2.  |   | S1                                    | 75                    |
+-----+---+---------------------------------------+-----------------------+
| 7.  |   | Phu Horm (EU-1)                       | 20                    |
+-----+---+---------------------------------------+-----------------------+
| 29. |   | Nang Nuan (B6/27)                     | 100                   |
+-----+---+---------------------------------------+-----------------------+

  ¹ PTTEPO hold shares in Orange Energy Limited and B8/32 Partners
  Limited which they had participating interest in the concessions.

  As at December 31, 2005, details of properties’ net book value are as
  follows:-

  []

5.2 Investments 

As at December 31, 2005, PTTEP has 15¹ subsidiaries and 5² associated
companies. PTTEP and its subsidiaries’ investment lists are presented as
follows:

  -------------- --------------- ---------- ---------- ---------- ------------ -------------
  Company        Type of         Paid-in    %          Cost       Equity       Major
                 Business        Capital               Method     Method       shareholder

                                 (Million   Percent of (Million   (Million     
                                 Baht)      interest   Baht)      Baht)        

  Subsidiaries                                                                  
  company                                                                      

  PTTEPI         Petroleum E&P   20,000     100        20,000     28,296.98    PTTEP 100%

  PTTEPO         Commerce        0.17       75         0.13       7,431.90     PTTEP 75%

                                            25         0.04       2,504.87     PTTEPI 25 %

  PTTEPS         Petroleum E&P   100.00     49         3,719.03   2,787.82     PTTEP 49%

                                            51         3,864.89   2,897.14     PTTEPO 51%

  PTTEP Services Services        1.00       25         0.25       2.19         PTTEP 25%

                                            75         0.75       6.57         PTTEPT 75%

  PTTEP KV       Petroleum E&P   2.03       100        2.03       (226.67)     PTTEPO 100%

  PTTEP SV       Petroleum E&P   2.03       100        2.03       (171.98)     PTTEPO 100%

  PTTEP HV       Petroleum E&P   2.16       100        2.16       (1,971.74)   PTTEPO 100%

  PTTEP HL       Petroleum E&P   2.12       100        2.12       (1,185.34)   PTTEPO 100%

  PTTEP OM       Petroleum E&P   2.16       100        2.16       (606.29)     PTTEPO 100%

  PTTEP AG       Petroleum E&P   2.10       100        2.10       (438.76)     PTTEPO 100%

  PTTEPT         Petroleum E&P   100.00     49         49.00      21.04        PTTEP OM 49%

                                            51         51.00      21.90        PTTEPI 51%

  PTTEP IR       Petroleum E&P   1.91       100        1.91       (17.25)      PTTEP OM 100%

  DPC            Petroleum E&P   2.05       100        2.05       1.88         PTTEPO 100%

    PTTEPM        Petroleum E&P   2.05      100        2.05       1.88         PTTEPO 100%
  -------------- --------------- ---------- ---------- ---------- ------------ -------------

¹ include Orange which recorded by percent of interest.

² comprise of Energy Complex and jointly control entity which is CPOC,
MGTC, TPC and B8/32 Partners.

  ------------ --------------- ---------- ---------- ----------- ----------- -------------
  Company      Type of         Paid-in    %          Cost Method Equity      Major
               Business        Capital                           Method      shareholder

                               (Million   Percent of (Million    (Million    
                               Baht)      interest   Baht)       Baht)       

  Associated                                                                  
  Company                                                                    

  Energy       Commerce        800.00     50         400.00      397.86      PTTEP 50%
  Complex                                                                    

                                                                             PTT 50%

  Jointly                                                                     
  controlled                                                                 

  Entities                                                                    

  CPOC         Petroleum E&P   2.21       50         1.11        1.09        PTTEPI 50 %

                                                                             CARIGALI 50%

  MGTC         Natural gas     0.76       25.5       0.19        1,796.47    PTTEPO 25.50%
               pipelines -                                                   
               overseas                                                      

                                                                             UNOCAL
                                                                             28.2625%

                                                                             TOTAL
                                                                             31.2375%

                                                                             MOGE 15.0%

  TPC          Natural gas     2.62       19.3178    0.57        1,935.68    PTTEPO
               pipelines -                                                   19.3178%
               overseas                                                      

                                                                             PETRONAS
                                                                             40.9102%

                                                                             NIPPON
                                                                             19.3178%

                                                                             MOGE 20.4542%

  Orange       Petroleum E&P   100.00     53.9496    13,567.69   14,393.82   PTTEPO
                                                                             53.9496%

                                                                             MOECOI
                                                                             36.0504%

                                                                             PSI 10%

  B8/32        Petroleum E&P   110.00     25.0009    4,523.69    4,772.52    PTTEPO
  Partners                                                                   25.0009%

                                                                             MOECOI
                                                                             16.7064%

                                                                             PSI 4.6346%

                                                                             Chevron
                                                                             53.6583%
  ------------ --------------- ---------- ---------- ----------- ----------- -------------

5.3 Net Book Value

5.3.1 As at December 31, 2005, PTTEP’s net book value amounted to Baht 71,697 million.

5.3.2 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 5.3.1.

5.3.3 Net book value in 5.3.1 and 5.3.2 is Baht 109.48 per share.

5.4 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.