PTTEP to Acquire Pogo's Assets in Thailand

PTTEP Offshore Investment Company Limited or and Mitsui Oil Exploration Company have entered into a Stock Purchase Agreement with Pogo Overseas Production B.V. and Pogo Producing Company Limited to buy all the shares held by the Pogo Group in Thaipo Limited and B8/32 Partners Limited. The Pogo Group through its subsidiaries holds 46.34% interests in Blocks B8/32 and 9A in the Gulf of Thailand. The purchase will come into effect conditional upon the waiver of pre-emptive rights by the existing joint venture partners of these Blocks under the Joint Operating Agreement. Such decisions are expected by mid July.

The transaction is valued at US$ 820 million. PTTEPO will hold approximately 60% interests worth about US$ 490 million and MOECO will hold the remaining approximately 40% interests.

"This opportunity offers excellent value to PTTEP both strategically and economically" said PTTEP President Mr. Maroot Mrigadat "This represents an excellent opportunity to acquire material interests in substantial, high quality E&P assets with a well regarded operator. These Blocks are situated here in Thailand, and have high potential and very low risk. The Block B8/32 is already producing both liquids and gas, the latter being secured under long-term sales agreements and PTTEP will benefit from these revenue streams immediately. This transaction will increase PTTEP's production by as much as 18% or 27,000 barrels of oil equivalent per day and this is expected to increase further in 2006. Its geographical proximity to PTTEP-held blocks such as G4/43 and Unocal III offers a great opportunity for PTTEP to benefit from operational synergies."

Mr.Maroot Mrigadat went on to say "We are delighted to be in partnership with MOECO on this transaction and look forward to working with them and the existing remaining participants in these blocks in the future".

Block B8/32, operated by Chevron Offshore (Thailand) Limited, is located in the Gulf of Thailand off Chumporn coast, covering an area of 2,460 square kilometers, encompassing such fields as Benchamas, Maliwan, Tantawan, Jarmjuree and Chaba. The block currently produces around 98,800 barrel of oil equivalent per day, consisting of approximately 59,200 barrels per day of crude oil, and approximately 240 million standard cubic feet per day of natural gas.

Block 9A is also operated by Chevron Offshore (Thailand) Limited and located off the coast of Chumporn, in the Gulf of Thailand. It covers an area of about 81 square kilometers. This block is now being appraised.