PTTEP Outlines Five-Year Investment Plan

PTT Exploration and Production Public Company Limited (PTTEP) reports that the estimated Capital Expenditure and Operating Expenditure for the Company and its subsidiaries over the five-year period from 2005 to 2009 will be approximately Baht 133,800 million. Expenditures have been revised to incorporate the latest work programs.

At present, the Company has a total of 24 projects, which consist of 1) major projects that are under production, and will be in production in 2005, such as Bongkot, Pailin, Yadana, Yetagun, and S1, and Nang Nual, which are approximately 40 percent of the total Capital and Operating Expenditures; 2) projects that will start production in the future such as Arthit and MTJDA, which are approximately 41 percent of the total Capital and Operating Expenditures, and 3) projects that are under exploration such as Oman 44 project, Myanmar M7 & M9 project, Vietnam 9-2 and Vietnam 16-1 projects, and Algeria 433a & 416b project.

The details of five - year investment plan are as follows: Capital Expenditure:
2005: 25,300
2006: 26,100
2007: 13,200
2008: 11,100
2009: 9,100

Operating Expenditure:
2005: 11,200
2006: 8,700
2007: 8,900
2008: 10,200
2009: 10,000
Unit: Million Baht

Plan for the year 2005
For 2005, Capital Expenditure will be used for the Company's existing projects as follows:
1. Major Projects that are under production

1.1 Bongkot Project - Navamindra Petroleum Area
Expected natural gas sale is 560 million standard cubic feet per day (MMSCFD). Expenditure is mainly for the construction of production facilities, 3 additional wellhead platforms, and the drilling of 6 development wells.

1.2 Pailin Project
Expected natural gas sale is 358 MMSCFD, with expenditure planned for the construction of 3 wellhead platforms, and the drilling of 44 development wells.

1.3 Yadana Project
Expected natural gas sale is 648 MMSCFD. Expenditure is mainly for the construction of a Medium Compression Platform, and studies on Sein gas field development. This includes the construction of 1 production platform, and the drilling of 2 development wells.

1.4 Yetagun Project
Expected natural gas sale will increase to 400 MMSCFD. Expenditure is mainly for a 3-D seismic survey, and the drilling of 3 appraisal wells

1.5 S1 Project
Expected crude oil sale is 20,000 barrels per day, with expenditure planned for the drilling of 30 development wells.

2. Projects that will start production in the future

2.1 Arthit Project
The current plan for the Arthit Project is that gas production start-up will be in the first half of 2007 with an initial production rate of 330 MMSCFD. Expenditure is planned for the construction of 1 production platform, 6 wellhead platforms, and the drilling of 20 development wells.

2.2 MTJDA Project
The plan for the MTJDA Project is that the signing of Gas Sales Agreement will be in the first quarter of 2005. Expected gas production start-up will be in the second half of 2008 with an initial production rate of 270 MMSCFD. Proposed expenditure for 2005 is mainly for the basic engineering design.

3. Projects that are under exploration consist of Oman 44 project, Myanmar M7 & M9 project, Vietnam 9-2 and Vietnam 16-1 projects, Algeria 433a & 416b project. For these exploration projects, the expenditure will be mainly for the drilling of exploration wells, and the seismic surveys.

For 2005, PTTEP plans to increase its petroleum sales to an average of about 143,000 barrels of oil equivalent per day (BOED), which is an increase from the previous sales target of about 134,000 BOED.