PTTEP Says Shortages Cause Start Up Delays at Arthit Field

PTTEP says the recent sustained rise in oil price has been the key contributor to largest increase in the number of major oil and gas construction projects worldwide. This immediate upturn in the oil and gas construction industry has created severe shortages in materials and equipment resulting in start-up delays of numerous major oil and gas construction projects worldwide.

PTTEP's Arthit Project construction is also being affected by these worldwide shortages. The company expects that gas delivery from Arthit Field might be delayed between 6 to 9 months from the original schedule of April 2007 under current conventional construction method.

PTTEP is very concerned about this delay and is developing alternate construction methods as well as sourcing worldwide for equipment and materials in order to improve the construction schedule, thus, minimizing any impact from any delay.

PTTEP owns an 80 percent stake in the field. Chevron Corp.'s Chevron Thailand Exploration and Production Ltd. holds 16 percent and Moeco (Thailand), a Thai unit of Mitsui Oil Exploration Co., has the remaining 4 percent.