PTTEP Plans 5 Year Investment Strategy

PTT Exploration and Production Public Company Limited (PTTEP) wishes to announce that the estimated Capital Expenditures and Operating Expenditures for the Company and its subsidiaries' over the five-year period of 2002 - 2006 will be approximately Baht 85,269 million. The details are as follows:

The estimated Capital Expenditures for 2002 will be mainly for PTTEP’s main projects, namely Bongkot, Pailin and S1, which account for about 79% of the Capital Expenditures. Details are summarized below:

Bongkot Project is expected to produce gas at an average rate of 567 million cubic feet per day (MMCFD). Drilling of 19 development wells and construction of 2 wellhead platforms are planned, an increase from the original plan of 16 wells and only one wellhead platform. In addition, PTTEP will be investing in the construction work for the Jetty Operation in Songkhla province to support the exploration and production activities in the Gulf of Thailand, which was not planned previously.

Pailin Project will boost its gas production rate from the average of 165 MMCFD currently to the average of 330 MMCFD by mid 2002. There will be a confirmation of proved reserves to the gas buyer in accordance with the gas sales agreement in order to raise production. Therefore, the number of exploration and development wells will be increased to 84 wells, from the 55 wells previously planned.

S1 Project will require further investment for the drilling of exploration and development wells, totaling 28 wells, in order to maintain crude oil production at the level of about 22,000 barrels per day.

Furthermore, the Company will have to comply with the Jakarta Stock Exchange regulations with regard to the requirement to make a tender offer to Medco minority / public shareholders.

The new Capital Expenditures plan for the year 2002 is higher than those prepared in 2001 due to the shifting of some workplans from the previous year, as well as additional workplans which were not incorporated last year.

Capital Expenditures plan for this 5 year period will serve the original plans in order to ensure smooth operations of current projects, with the main focus on Bongkot and Pailin which account for about 46% of the total Capital Expenditures plan. Projects which are expected to start production in the future, namely Arthit and JDA, will constitute about 38% of the total Capital Expenditures plan. The plan does not take into account potential new projects which may be added in the future.

PTTEP would like to report its petroleum sales volume which averaged 91,600 Barrels of Oil Equivalent per day (BOE/D) in 2001. The Company plans to increase its average petroleum sales volume to 142,500 BOE/D in 2002 (including sales volume of Medco for its interest).