PTT Annual Report 2551 - 2008 - ENG

2 Annual Report 2008
PTT Public Company Limited 3

Annual Report 2008
12
President & CEO, PTT Plc

ident & CEO, PTT Plc

PTT Information
Name PTT Public Company Limited

Initial PTT
Registered Number 0107544000108
Type of Business Engage in integrated gas and petroleum business, and other support
activities, including a dominant position in oil and investment in related busi-
ness
Registered Capital Baht 28,572,457,250 including 2,857,245,725 common shares,
Baht 10 per share (as of December 31, 2008)
Paid-up Capital Baht 28,240,566,250 including 2,824,056,625 common shares, Baht 10 per
share (as of December 31, 2008)
Location 555 Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900, Thailand

Telephone : 66 (0)-2537-2000
PTT Public Company Limited

Telefax : 66 (0)-2537-3498-9
Website : http://www.pttplc.com
Corporate Communications Telephone : 66 (0)-2537-2150-1

Department Telefax : 66 (0)-2537-2169, 66 (0)-2537-2171
Email : corporate@pttplc.com
Capital Market & Investor Relations Telephone : 66 (0)-2537-2792-3

Department Telefax : 66 (0)-2537-2791
Email : ir@pttplc.com
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Office of the President Telephone : 66 (0)-2537-3850-1
and Corporate Secretary Telefax : 66 (0)-2537-3887
Email : corporatesecretary@pttplc.com
References
ë Share Registrar Thailand Securities Depository Company Limited
4th Floor, SET Building, 62 Ratchadapisek Road,
Klongtoey, Bangkok 10500, Thailand
Telephone : 66 (0)-2359-1200-1
Telefax : 66 (0)-2359-1259
ë Auditor Office of the Auditor General

Rama VI Road, Phayathai, Bangkok 10400, Thailand
Telephone : 66 (0)-2618-5803
Telefax : 66 (0)-2618-5807
ë Registrar Siam Commercial Bank PLC.

Registrar 1, Markets Operations Division
2nd Building, 3rd Floor, 1060 Petchaburi Road, Ratchatawee,
Bangkok 10400, Thailand
Telephone : 66 (0)-2256-2323-7
Telefax : 66 (0)-2256-2406
Securities Services Product 1, Corporate Trust
9 Rutchadapisek Road, Jatujak, Bangkok 10900, Thailand
Telephone : 66 (0)-2544-3937, 66 (0)-2544-3930
Telefax : 66 (0)-2937-7662
Message from The Board of Directors
The year 2008 was extraordinary to PTT Plc, which commemorated its 30th anniversary of service to
the Kingdom. With a modest start as a small entity charged with securing oil supply during the critical days
of World War II to sustain the domestic demand, PTT later pioneered the application of natural gas to bolster
national energy security and yet later supplemented value to natural gas and completed the integrated
business cycle. Today, the national energy arm has gained widespread acceptance from all around,
including the international community.
What these achievements reflect are the vision and dedication of the management and staff through
these years to undertaking the mission for Thailand while basing a PTT culture on its resolution to become a
sustainable force for Thais.
The past year also brought on great fluctuation in both the sky rocketing oil price and the world eco-
nomic crisis, which originated as financial problems in the US. With fuel prices at historic highs, PTT played
a part in alleviating people’s hardship by delaying price rises for retail products and, through its refinery
affiliates, offering special discounts to public transport services and the agricultural sector. Apart from this,
PTT prevented LPG shortage by importing the commodity while assuming the burden of discrepancy be-
tween import prices and government-imposed domestic prices until the Oil Fund made its reimbursement.
Meanwhile, NGV service stations grew this year to 303, with its logistics vastly improved to handle the de-
mand, which climbed by 214% year-on-year; gasohol and biodiesel sales were the public’s other choices in
Annual Report 2008
the collective efforts for greater self-reliance.

The ongoing economic crisis has suppressed industrial energy demand worldwide along with the
plunging world oil price, thus causing petroleum
and petrochemical business operators to face crude
oil, feedstock, and product stock losses. In short,
products bought at elevated prices were sold at
lower prices; accounting surplus entries made at
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the much lower world prices at year-end therefore

produced heavy stock losses.
The performance of PTT Group reflected both
crises. In the first three quarters of the year, it was
buoyed by rising prices and sales volumes. Yet,
during the last quarter, the about-face crisis caused
the notorious stock losses for the year. That is to
say, while sales revenue rose to Baht 2,000,816
million (a 33% year-on-year rise) and EBITDA to
Baht 156,133 million (a 7% rise), the refineries
suffered. With the sales revenue dropped to Baht
51,705 million (or Baht 18.33 per share, a 47% drop).
At any rate, PTT adjusted its dividend rate from 33%
to 43.6% of its net income, resulting in dividend pay-
ment of Baht 8 per share.
Another major mission required by the
Supreme Administrative Court verdict against PTT,
which required the Company to transfer the public
domain comprising of the gas transmission pipelines
Norkun Sittiphong
Chairman
system and the land attached to it as well as the right of way to the Treasury Department on December 31,
2008. That action completed, PTT entered into an agreement governing the use of such properties at a fee to
the department. Therefore the Supreme Administrative Court noted in the summary of PTT actions taken
under its verdict “...Having considered and is of the opinion that the First to the Fourth Respondent and other
relevant authorities have completely compiled with the judgement...”
As regards its business strategic direction, PTT defined its vision of becoming a ‘Thai Premier
Multinational Energy Company’. In the short term, its strategy is to forge synergy within PTT Group while
sharpening its potential and competitive edge to bolster its immunity and manage its risks and cash effi-
ciently to preserve liquidity. PTT will also be ranking assorted projects and downsizing ongoing projects in
line with economic circumstances. For the long term, PTT plans to not only expand its investment, but also
identify new investment opportunities in related businesses, both domestic and international. Also, selected
businesses will be weighed for mergers & acquisitions and joint venturing if they hold sufficient potential but
somehow faced financial difficulties, for such investment could yield continued success for PTT Group and
enable it to sustain growth while supplementing value along PTT’s business chain and boosting national
energy security.
What this crisis did was to stress the criticality of integrated business management for total excel-
lence. On its part, PTT implemented the Thailand Quality Award (TQA) criteria in driving its business
management toward being a High-Performance Organization (HPO).
Over the past three decades, PTT has firmly committed itself to corporate governance and ethical
practices in tandem with corporate, social responsibility. Countless educational, sports, arts and cultural,
social, and environmental activities have been earnestly launched. Known as the ‘84 Tambons On A Suffi-

cient Path Project Forest Sustained, People Prevail’ this recent project sees the application of the Sufficiency
Economy initiative of His Majesty the King to nurture communities under this concept. PTT fervently hopes
that this project will exemplify its practicality for expansion to other communities around the Kingdom.
One solid proof of our success is this past year’s high number of awards and prestigious ranking, both
domestic and international. According to Fortune 500, PTT was the only Thai company ranked among the
top 135 companies worldwide. An award
bestowed by Her Royal Highness Princess Maha
Chakri Sirindhorn this year called the Thailand
Corporate Excellence Awards cited PTT’s overall
corporate excellence, social responsibility, and
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leadership excellence. PTT continued harvesting
awards from the Ministry of Finance, which
recognized outstanding state enterprise perfor-
mance in various aspects. Then there were the
Best in Corporate Governance in Thailand Award,
presented by The Asset Magazine; Best Managed
Company in Thailand Award, presented by
FinanceAsia Magazine; and Platts Global Energy
Awards 2008 in the category of CEO of the Year,
and so on.
May we take this opportunity to thank all
our shareholders and stakeholders, relevant
government and private agencies, as well as mem-
bers of the media corps and the general public,
for their valued trust, confidence, and solid sup-
port lent to PTT’s operation day in and day out.
Your support has given us the strength to confi-
dently carry on serving as Thailand’s pillar of
energy for the years to come.
Prasert Bunsumpun
President & CEO
Report of the Audit Committee
The Audit Committee consists of three independent directors knowledgeable about finance and
organization management, namely Khunying Jada Wattanasiritham as Chairperson, with Khun Pornthip Jala
and Mr. Chulayuth Hirunyavasit as members. During the year, the Committee performed its duties as
assigned by the Board, in compliance with the criteria and practical guidelines governing the Audit
Committee, in line with the regulations of the Stock Exchange of Thailand (SET), namely the review of
financial statements; review of risk management; review of internal audit assessment; and oversight of good
corporate governance (GCG) practices. During the year, the Committee held nine meetings with the
Management, the external auditor, and the head of the Office of Corporate Audit, as summarized below.
1. Review of quarterly, annual, and consolidated financial statements. This review was made along
with the Management and the Office of Corporate Audit and, each time quarterly financial
statements and annual financial statements were deliberated, with the external auditor in
attendance. In reviewing such statements, the Committee asked the external auditor about the
Company’s complete and accurate presentation in its financial statements, its adequacy of
Annual Report 2008
information disclosure and disclosure of events after the preparation of financial statements, and
adjustments for accounting entries materially affecting the statements. These questions ensured
that the prepared financial statements complied with legal and accounting standard requirements
under the generally accepted accounting
principles; that its accounting procedures
and financial statements were both accurate
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and reliable; and that adequate and timely

information was disclosed in financial
statements for the benefit of investors or
potential investors. This year the Committee
and the external auditor held one meeting
without the presence of management to
deliberate accounting approaches and
audit plans.
2. Review of risk management. To ensure
acceptable risk management practices, the
Committee supervised PTT Group’s
business by reviewing the risk management
plans of 2008 and quarterly achievements
against the plan. The Committee made
recommendations on dealing with the major
risks for PTT Group, including risk manage-
ment related to foreign exchange and the
volatility of oil and product prices and inter-
national trading.
3. Review of internal audit assessment.
Together with the external auditor and the
head of the Office of Corporate Audit, the
Committee revised and reviewed the inter-
nal control system with a focus on resource
utilization, due care of properties, and prevention or minimization of defects, losses, waste, and
fraud. It also investigated the reliability of financial and operation reports, and compliance with
laws, rules, regulations, and Cabinet resolutions. The external auditor agreed that no significant
findings or shortcomings were encountered. During the year, PTT assessed its internal control
against the regulations of the Auditor Commission on internal control standard B.E. 2544 (2001).
The Management and the Office of Corporate Audit concluded that PTT’s internal control was both
adequate and effective.
4. Review of connected transactions. The Committee looked into connected transactions with PTT
Group companies and those between business groups to ensure that these were conducted at
arm’s length with complete and adequate information disclosure.
5. Oversight of internal audit. The Committee reviewed the annual audit plan and the three-year
audit plan, as well as their compliance. The audit findings were reviewed and recommendations
given to follow up the corrective actions of those items considered significant to bring about GCG
and sufficient internal control. The Committee approved PTT’s amended regulations concerning
internal audits and a manual on internal audits in line with international standards. Finally, it
reviewed the annual budget for the Office of Corporate Audit, including its recruitment plan,
rotation, training, resource adequacy assessment, performance measurement indicators, as well

as appointments and transfers, and the annual merit consideration for its head.
6. Self-Assessment. The Committee conducted individual (through cross assessment) and collec-
tive self-assessment against best practices. For 2008, it was found that the Committee had
performed its duties efficiently.
7. Appointment of the external auditor for 2009. The Committee proposed the appointment of the
Office of the Auditor-General as the external auditor for PTT Plc. for 2009 to the Board, which would
in turn submit it for shareholders’ approval at their 2009 AGM.
The Committee attaches great importance to good internal control and continuous risk
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management so that PTT may command GCG, sufficient internal control compatible with its business,
effective risk management, together with accurate accounting practices and financial statements, and
compliance with relevant laws and regulations.
Khunying Jada Wattanasiritham

Chairperson, Audit Committee
Report of the Corporate Governance
Committee
By its definition, good corporate governance (GCG) implies a given organization’s structure and
mechanism for internal management to link the Board of Directors, the Management, the rank and file, and
shareholders primarily to appropriately benefit the shareholders, taking into account stakeholders as a whole
and accountability for decisions and actions; responsibility for performance of duties with sufficient
competency and efficiency; fair and accountable treatment of stakeholders; business transparency and
openness to examination; disclosure of information to relevant parties; vision for supplementing long-time
value to the organization; and ethics and a code of business conduct.
PTT’s Corporate Governance Committee members are chosen from independent directors of the Board.
The three-member committee screens, supervises, steers, and monitors compliance with GCG principles to
be at least comparable with the principles defined by the Stock Exchange of Thailand (SET) and compatible
with OECD (The Organization for Economic Co-operation and Development’s Principles of Corporate
Governance).
Meeting three times in 2008 to undertake its duties as defined by the Board concerning the
Annual Report 2008
appointment of this committee by PTT Plc., the committee reported its performance to the Board as summa-
rized below.
1. Continually conducted good corporate
governance (GCG) activities to cultivate
awareness among employees, elevate the
standard and align the GCG culture of PTT
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Group; instances of these were the

updating of GCG information on PTT’s
website and intranet for the information of
employees and the regular distribution of
relevant information in print and other
media, both internally and externally
2. Took relevant actions under the Securities
and Exchange Act of 1992 (amended in
2008), including the appointment of a
Corporate Secretary, institution of an
internal database, and the requirement for
a report on directors’ vested interests
3. Efficiently provided information to investors,
handled complaints and inquiries through
assorted channels by units such as the
Capital Market & Investor Relations
Department, Corporate Communications
Department, Office of the President &
Corporate Secretary
4. Co-hosted the ‘2008 PTT Group CG Day’,
held on March 29 and attended by PTT and
PTT Group (namely PTTEP, PTT Chemical,
PTTAR, and Thai Oil) employees to
improve the standard and align the GCG
culture of PTT Group
5. Amended the GCG Manual to Version 2 (2008) by aligning the vision more with business; aligning
the information with the principles defined by SET and modernizing it as required by OECD by
defining a more explicit code of business conduct and amending the forms for possible conflicts of
interest; completed in late 2008, Version 2 was approved by the Board and a publication is being
prepared before presentation to the Board, the Management, and the rank and file for compliance
6. Complied with PTT’s internal control regulation by instituting a requirement for annually reporting
conflicts of interest for all employees by the end of January each year as well as reporting of
individual cases
7. Monitored the Company’s social responsibility activities, including the ‘84 Tambons on A Sufficient
Path Project Forest Sustained, People Prevail’
8. Organized three open-house activities on November 29 and 30 and December 1 at Rayong gas
separation plant and HRH Princess Maha Chakri Sirindhorn Herb Garden, attended by 480 selected
shareholders
9. Organized an open-house activity for investors on January 10 and 11 at the PTT Research and
Technology Institute in Amphoe Wang Noi and the Sara Buri Oil Terminal
10. Organized the 2008 Annual General Meeting (AGM) of the shareholders on April 11 in compliance
with the AGM Checklist of the Office of Securities and Exchange Commission
11. Monitored the upgrading of PTT service stations to achieve service excellence, cleanliness, and

standard for the maximum satisfaction of customers
12. Promoted clear understanding of GCG for the Board by informing them of the training/seminar
schedules by the Thai Institute of Directors Association (IOD) or other institutions for their periodic
participation.
Thanks to these GCG moves in 2008, PTT has garnered several awards for GCG and corporate social
responsibility (CSR), notably
* Outstanding Social and Environmental Operation Award at the “Outstanding State Enterprises”
event, conferred by the Ministry of Finance
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* Best Investor Relations Issuer, conferred by The Thai Bond Market Association
* Excellence in Social Responsibility, an award bestowed by HRH Princess Maha Chakri Sirindhorn
and conferred at the Thailand Corporate Excellence Award 2007 event
* Shareholder Awards 2008: Best Shareholder Treatment Award, conferred by Thailand Securities
Depository, Co., Ltd.
* “Excellence” rating under a project to survey GCG practices among listed companies in 2008,
conducted by Thai IOD
* Best Corporate Governance Award, conferred by Corporate Governance Asia Magazine
* Best Corporate Governance Award, conferred by Euromoney Magazine
* Best in Corporate Governance, Thailand, conferred by The Asset Triple A Awards 2008 Magazine.
These awards spoke volumes for PTT’s constant commitment, dedication, and diligence in compliance
with the GCG principles.
General Somdhat Attanand

Chairman, Corporate Governance Committee
February 5, 2009
Report of the Remuneration
Committee
According to PTT Plc’s regulations, a Remuneration Committee is to be appointed, with all members
coming from the Board of Directors, charged with defining the compensation for the Board and the Chief
Executive Officer (CEO)/President through fair and reasonable criteria or a procedure for Board compensation.
The Committee consists of three members, one of whom is to be an independent director.
Meeting once during the year, the Committee performed its assigned duties with due prudence, care,
and logic. At the meeting, compensation for the Board and the CEO/President was deliberated, with
consideration given to achievements and success against goals, through efficient appraisal. The Board is to
conduct its own appraisal in three ways: collective, self-assessment, and cross-assessment; the CEO/
President had a series of performance indicators defined at the beginning of the year, to be appraised at
year-end. In their deliberation, the committee took into account economic reality in comparison with the
compensation packages of leading companies in comparable industries, both in and outside SET.
For transparency of examination, the Remuneration Committee has disclosed the compensation
details of the Board, the committees, and the Management in this annual report.
Annual Report 2008
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Mr. Ampon Kittiampon

Chairman, Remuneration Committee
February 5, 2009
Report of the Nominating Committee
According to PTT Plc’s regulations, a Nomination Committee is to be appointed, with all members
coming from the Board of Directors, charged with selection and nomination of people qualified to become
directors or the Chief Executive Officer (CEO)/President by defining a procedure and selection criteria for the
benefit of transparency and fairness while fulfilling PTT’s goals and direction. The Committee consists of
three members, one of whom is to be an independent director.
Currently consisting of only independent directors, the Committee performed its assigned duties with
due prudence, care, and logic. Five meetings were held during the year to select those qualified by law and
other regulations to fill director vacancies; these people were knowledgeable about PTT’s business, coming
from diverse professions, dignified, and without blemished profiles.
In appointing directors to fill vacancies created by term retirement, the Committee followed the
process of proposing names for the Board’s consideration before submitting them to the AGM. As regards

the appointment of directors to fill vacancies created by resignations during the year, the Committee
nominated people for the Board’s approval. Details have been disclosed in this annual report for
transparency of examination.
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Mr. Chakramon Phasukavanich

Chairman, Nominating Committee
February 5, 2009
Economic and Petroleum Overview
Annual Report 2008
26
Overview of World Economy
The World Bank has predicted that the world economy in 2008 would grow only 2.5% which was 1.2%
lower growth from 2007. In this regard, major industrial countries, i.e. the US, Europe, and Japan have
undergone a continuous contraction of economic growth during the first three quarters of the year due to the
reduced consumption and investment from the private sector, as well as the slow exports, of which the
downward trend could be observed since the 2nd quarter due to the shrinking economy of trading partner
countries. Meanwhile, emerging countries, China and India in particular, could achieve high economic growth
thanks to the expanding domestic demand and exports. In the 4th quarter, the growth rates of developed
countries and major industrial countries as well as export-oriented countries, especially those in Asia, have
gone through sharp contraction. This situation stemmed from the sub-prime troubles in the US, which started
in 2007, and their severity later escalated into a financial crisis. The collapse of renowned financial
institutions in the US, including Lehman Brothers and Washington Mutual, resulted in a lack of liquidity in the
world financial regime. The situation consequently caused the capital markets in all regions to plummet.
Moreover, the impact from the crisis expanded into the real sector and investment sector. Prices of goods
and commodities dropped while unemployment increased. Domestic spending has dropped significantly,
thus causing many exporting countries to lower their exports, which brought about the world economic crisis.
Estimates of Economic Growth Rate for Various Clusters

Unit : %
Estimates 2009
2007 2008 Forecast
World 3.7 2.5 0.9
Developed Countries 2.6 1.3 -0.1
US 2.0 1.4 -0.5
Europe 2.6 1.1 -0.6
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Japan 2.1 0.5 -0.1
Developing Countries 7.9 6.3 4.5
East Asia and Pacific 10.5 8.5 6.7
China 11.9 9.4 7.5
Thailand 4.9 2.6 (-1) - 0

Sources: World Bank and National Economic and Social Development Board (NESDB) of Thailand as of February 23, 2009
World Demand for Energy and Energy Price

In 2008, the world economy made a strong impact on the world demand for energy, particularly oil.
During the first three quarters, rapid economic growth in emerging countries, especially China, India, Middle
East and Latin American countries, significantly boosted the world’s demand for oil. Notably for China, the
country’s built-up domestic oil stock for use during the Olympic Games has caused the spare capacity of oil
exporting countries to continuously reduce from the 1st quarter to the 3rd quarter. Moreover, price hedging in
the oil futures market has contributed to a rapid increase in the oil price. Dubai crude shot up from $89.3
per barrel at the beginning of the year to a historic peak of $140.8 per barrel in July, thereby creating an oil
price crisis during that period. But following the dramatic economic slump in the 4th quarter, which caused a
reduction in world oil consumption, spare capacity significantly and rapidly increased, thus producing a
result on the sharp and continuous reduction of world oil price towards the end of the year. OPEC tried to
lower its oil production level, thus bringing down the Dubai price to $40.2 per barrel at the end of December,
a 71% reduction; the annual average price of Dubai was $93.4 per barrel, which still exceeded that of the
previous year by 37%. As for refined products in the Singapore market, the prices of octane-95 gasoline
and diesel moved up and down in accordance with the world price, registering their annual averages of
$102.5 and $119.5 per barrel, 24% and 40% higher than the previous year.
Regarding the gross refining margin (GRM), the demand for finished petroleum products, particularly
diesel used in the transportation sector, rose in response to the world economic expansion until the middle of
the 3rd quarter. This resulted in a rising GRM in various regions of the world. But after the world economic
crisis started, consumption of petroleum products significantly shrunk since the middle of the 3rd quarter.
Coupled with new refining capacities, i.e. new refinery, with 580,000 bbl/d capacity, belonging to Reliance
Industries and Reliance Petroleum in India, brought on stream in December 2008, the GRM during the last
quarter of the year fell sharply.
World Oil Demand and Supply in 2008

(Unit: MBPD)
2008 2008
Demand 2007
Q1 Q2 Q3 Q4 average
Africa 3.1 3.1 3.2 3.0 3.2 3.1
North America 31.1 30.5 30.4 29.7 30.0 30.2
Asia-Pacific 25.1 26.3 25.4 24.7 24.7 25.3
Europe 16.0 16.0 15.7 16.1 16.0 15.9
Russia 4.1 4.1 4.1 4.3 4.3 4.2

Annual Report 2008
Middle East 6.5 6.7 7.0 7.3 6.8 7.0
Total 86.0 86.8 85.7 85.2 85.0 85.7
Supply
OPEC 34.9 37.3 37.1 36.2 35.3 35.9
Non-OPEC 50.7 49.8 49.7 50.0 50.6 50.6

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Total 85.6 87.1 86.8 86.2 85.9 86.4
Source : International Energy Agency (IEA as of February 11, 2009)
Regarding petrochemical products, the prices in the world market moved upwards with the crude
price. In the first half of the year, the world crude price increased continuously, thus causing the naphtha
price in Asia to rise by 54% than the same period of 2007. The price reached its peak of $1,133 per ton in
June. Around the end of the year, however, the naphtha price in Asia dropped sharply due to more
production in the Middle East, coupled with the sharply dropping world oil price as a result of the much lower
demand. Naphtha’s annual average price was at $803 per ton, up 19% from 2007. As for petrochemical
products in the olefins line, the annual average of SEA ethylene price was at $1,144 per ton, down about 4%
from 2007. This was due to the expansion of production capacity in the region and new capacity in the Middle
East. Regarding high-density polyethylene (HDPE), its price moved up and down in line with the world oil
price with its annual average of $1,481 per ton, up 9% from 2007. The propylene price also increased during
the first half of the year as a result of the opening of a new 450,000-ton-per-year polypropylene (PP) plastic
pellet plant belonging to Formosa Petrochemical in China. Besides, crackers in Japan and Indonesia
underwent their temporary shutdowns. However, in the 4th quarter, the propylene price dropped following
new capacities in the Middle East and decreased demand from China and India resulting from the economic
crisis. The annual average price of propylene was $1,258 per ton, up about 9% from 2007.
As for the prices of aromatics products, the benzene price adjusted upwards in line with the crude
price, with an annual average of $987 per ton, a 3% increase from 2007.
Affected by the price fluctuation of crude and petroleum products as well as petrochemical products
and naphtha which shot up in the beginning of the year and rapidly dropped off in the last quarter of the year,
refining and petrochemical businesses have experienced significant losses. Such losses were contributed
by stock losses of oil and feedstock, physical losses, and accounting losses at the end of the fiscal year.
2008 Price of Dubai Oil Price Crisis Economic Crisis
Crude and Refined
Products In
Singapore Market
Unit :US$/bbl
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Fuel Oil Crude Gasoline Diesel
2008

Petroleum Price 2006 2007 2008
Q1 Q2 Q3 Q4
Crude 61.5 68.4 91.2 116.7 113.4 52.6 93.5

Gasoline 73.1 82.9 104.9 129.6 119.3 56.2 102.5
Diesel 76.7 85.1 114.1 154.2 139.0 70.4 119.5
Fuel Oil 49.2 58.4 74.4 92.5 102.5 44.8 78.6
Source: PLATTS Oilgram News
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Price of Oil Price Crisis Economic Crisis
Petrochemical
Products in
Asia Market
Unit :US$/ton
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Naphtha Benzene Ethylene Propylene High Density Polyethylene
2008
Petrochemical Price 2006 2007 2008
Q1
st
1 quarter Q2
nd
2 quarter Q3
3rd quarter Q4
4th quarter
Ethylene 1,168 1,189 1,247 1,386 1,378 565 1,144

Propylene 1,132 1,155 1,296 1,520 1,574 644 1,258
Benzene 865 1,020 1,049 1,217 1,208 475 987
Naphtha 515 625 854 1,017 991 352 803
High Density 1,234 1,352 1,607 1,677 1,713 928 1,481
Polyethylene
Source: PLATTS Oilgram News
Thailand’s Economy in Brief
The National Economic and Social Development Board (NESDB) concluded that Thailand’s 2008
economic growth was 2.6%, down 2.3% from 4.9% growth in 2007. During the first three quarters of the year,
the country had healthy economic growth, averaging at 5.1% due to the expansion of domestic demand and
exports. However, in the 4th quarter, the economic growth weakened by 4.3% from the contraction of export
and service sectors, in turn affected by the world economic crisis, especially in trading partner countries, i.e.
European countries, the US, and China. In addition, the closure of Suvarnabhumi and Don Mueang Interna-
tional Airports from late November to early December created huge impacts on the tourism and transporta-
tion industries. The world financial and economic crises, moreover, has caused the Thai capital market to
plunge, in the same manner as in other parts of the world. This includes the impact from the relocation of
foreign investment, which prompted foreign investors to sell shares for cash. As a consequence of export
contraction and world economic crisis, the Thai currency has weakened.
Domestic Demand for Energy and Energy Price

In 2008, Thailand went through an oil price crisis during the first seven months of the year, as well as
the financial crisis and the world economic crisis which brought about an impact in the last quarter of the
year. The energy crisis caused the domestic demand for energy to drop. Demand for fuels (excluding LPG
and NGV) totalled to 89.3 million liters per day (equivalent to 562,000 bbl/day), down 7% from the previous
year. Demand for natural gas was at 3,444 MMcf/d, up 5% from 2007. Meanwhile, demand for
Annual Report 2008
electricity was 148,220 million units, up only 0.8%, lower than the prediction in the Power Development Plan
2007, where 5.6% increase was expected.
In addition, the increased retail oil price which kept up with the world oil price caused consumers to
turn to alternative fuels, LPG and NGV in particular. LPG demand for use as fuel increased from 3.1 million
tons per year in 2007 to 3.6 million tons per year in 2008, a 16% increase. This represented 36% and 9%
expansion in the transport and industrial sectors accordingly. NGV demand surged by 220%, due to the
30
retail prices of LPG and NGV, still tightly controlled by the government. The National Energy Policy Council
(NEPC) agreed to cap the ex-refinery LPG price at Baht 10.996 per kilogram ($314-332 per ton at the
exchange rate of around Baht 35-33 per US$ 1) from March 2008, which was the price that LPG producers,
namely gas separation plants and refineries, quoted for oil traders. At the same time, the world LPG price
announced by Saudi Arabia or LPG CP increased to $775 per ton in 2008.
The significant increase of demand for LPG brought about insufficient supplies from gas separation
plants and refineries. This further caused the need for import since April 2008. In this regard, the total
imports of LPG throughout the year was at 446,878 tons. As the sole importer, PTT has shouldered the
burden occurred from the difference between the import price and the government-controlled domestic
price. In this regard, the Oil Fund will reimburse it later on.
Economic and Energy Outlook for 2009

In 2009, many world-leading financial and economic institutions has forecasted that the world would still
be in a downturn, continuously from late 2008. The World Bank envisaged that the world’s overall economic
growth would stand of 0.9%, with a contraction of 0.1% among developed countries and growth of 4.5%
among developing countries. The International Monetary Fund (IMF) foresaw that the world economy would
expand by 0.5%, with a contraction of 2.0% among developed countries and growth of 3.3% among
developing countries and predicted further that the world economy could possibly pick up in 2010. However,
it is difficult to predict when the world economy will recover since this crisis is unique and leading countries
in all parts of the world have been severely affected and it unavoidably affected developing countries.
The sluggish world economy has caused the energy demand to shrink and consequently caused a
reduction of the world oil price in the world market. Experts anticipated that if the world economy would still
be going slow, the oil price would hover around the present level. OPEC would then try to reduce their
production to shore up the oil price. But if the economy started to pick up along with the demand for oil, the
oil price could possibly rise to $60-$80 per barrel, which is the marginal cost of production. And if the
demand for oil increased further, the price might return to its high level as in the first half of 2008.
As for the Thai economy for 2009, NESDB foresees that the annual average growth would be in the
region of minus 1% - 0%. This is due to the world economy, which has shrunk more than expected,
especially in the first half of the year. Moreover, considering the financial institutions’ extreme caution in
granting loans and the private sector’s low confidence amid the dull economic climate, it could be expected
that the business sector will reduce the production capacity and employment, particularly in the industrial,
construction and property, retail and wholesale, transport, and financial sectors.
Regarding the domestic fuel demand, the Energy Policy and Planning Office (EPPO) estimated that
the overall fuel demand growth would be 0.8% in 2009. In this respect, oil demand will likely shrink by 0.3%
while demand for LPG will expand by 6%, based on the assumption that the oil price will stay low. Demand for
natural gas is expected to expand by 2% in 2008 in line with the country’s power demand.
The refining industry is expected to enter its down cycle due to new capacities in China and Vietnam
as well as additional ones in India. Moreover, the global demand for refined products is still slow. According
to a prediction made by Cambridge Energy Research Associates, demand for petroleum products would
decline by about 0.7 million bbl/d in 2009, which would bring down the refining margins.
Regarding the outlook for the petrochemical industry in Asia during 2009, imbalance between
demand and supply could be expected. As from 2009-2012, there will be new capacities in the Middle East,

such as from Saudi Arabia, Iran, Qatar, and some other countries in Asia. At the same time, demand will
shrink in line with the world economy. The petrochemical industry will have to go through its downturn as
well. Analysts foresee that the petrochemical industry’s cycle will move upward again in the next 2-4 years in
line with the recovering global economy.
Thailand's Petroleum Balance in 2008 Unit : Kbd
31
Supply Demand/Distribution
Refined Products LPG Domestic Export

22.1 (Exclude Petrochemical 128.4 0.7
37.5% Feedstocks) 17.6% -92.3%
Domestic Export
Import Crude Oil / Combined Capacity of Gasoline 122.4 25.4 Domestic Demand Volume
(60.1%) Condensate 7 Refineries -2.9% -6.4% 699.4
811.3 1,092 Kbd Domestic Export -3.4%
-0.4% 1.1% Jet 79.8 23.1
Kerosene -6.2% 201.0% Export Volume
Natural Gas 185.9
144.2 Domestic Export 39.3%
-8.4% Diesel 303.2 65.2
-5.3% 41.1%
LPG Derived Domestic Export
from GSPs Fuel Oil 65.6 71.5
Bitumen -22.7% 34.9%
77.2
5.6%
Crude Oil Export
130.8 Crude Oil 46.8
2.0% -9.8%
Indigenous Condensate
(39.9%) 76.1
5.7% 18.0% Power Generation 408.5
-0.3%
Combined Capacity of Oil
Natural Gas 6 GSPs :
440.9 Industry 77.1
1,835 MMcf/d 19.6% Gas
5.0%
Summary Total Supply 1,625.3 Total Demand 1,192.6 -1.2% Export 234.7 20.0%
2.3% Refined Products 707.1 -3.6% Refined Products 187.1 30.8%
Natural Gas 485.6 2.4% Crude Oil 46.8 -9.8%
Source: PTIT, February 24, 2009

Business Operations
And Performance Review
Annual Report 2008
32
The year 2008 was another successful year for PTT with sales revenue increasing by 30% over the
previous year. The diverse factors in the business environment, including the world economy, the world oil
price which fluctuated wildly during the first seven months of the oil price crisis, and the financial and
economic crisis during the last quarter, were all uncontrollable but affected the Company’s performance in
different ways. The upstream petroleum and natural gas businesses flourished while the downstream
petroleum business was heavily impacted by the dramatic slump of the world oil price in the last quarter of
the year. This has consequently caused a significant stock loss and considerably declining performance,
as below :
Upstream Petroleum and Gas Business Group
Natural Gas Business
Natural Gas Business Group is in charge of gas procurement, transmission, distribution, gas separation
plants, and investment in NGV service stations, as well as investment in natural gas-related businesses
in PTT affiliates, both inside and outside Thailand. In 2008, the performance of gas business was better than
that of the previous year thanks to the rising demand from the power and industrial sectors as well as for the

products from gas separation processes. The price of gas sold to the industrial sector and the prices of
products from gas separation plants used as petrochemical feedstocks also went up.
To cope with the rising demand, the natural gas business was successful in procuring additional
natural gas from new sources in the Gulf of Thailand, namely Arthit and A-18 in the Malaysia-Thailand Joint
Development Area (JDA) under contracts with sales volumes of 330 and 400 MMcf/d respectively. In addi-
tion, PTT’s gas transmission system from Arthit Field to PTT Rising Platform (PRP), which has a transmission
capacity of 1,500 MMcf/d of natural gas and the natural gas pipeline system from Arthit Field to A-18 Field,
which has a capacity of 1,000 MMcf/d of gas were brought on stream in the first and the forth quarter,
respectively.
33
Natural Gas Procurement
In 2008, natural gas procurement of 3,459 MMcf/d in total was achieved, an increase of 165 MMcf/d or
5% when compared to 2007. This could be divided into the procurement of 2,631 MMcf/d from indigenous
sources and 828 MMcf/d of imports from Myanmar. This reflects an indigenous procurement to import ratio of
76:24. In this respect, there was some additional procurement from two fields in the Gulf of Thailand, i.e.
Arthit and A-18 fields in JDA.
Natural Gas Distribution

In 2008, the total volume of gas distribution reached 3,444 MMcf/d, an increase of 5% over 2007. This
comprised the distribution of 2,440 MMcf/d of gas to customers in the power sector, representing 71% of the
total volume; 347 MMcf/d to industrial customers, representing 10%; 74 MMcf/d to the transport sector,
representing 2%; and another 583 MMcf/d of products from gas separation processes, which accounted for
17% of the total distribution.
Taking the 2007 and 2008 volumes into account, distribution to the power sector in 2008 was report-
edly increased by 91 MMcf/d, or 4%, resulting from the higher demand for electricity and substituted volume
for fuel oil, which helped maintain the cost of power generation against the rising the world oil price. This
resulted in the use of natural gas in power generation to increase from 67% in 2007 to 71% in 2008. In this
regard, more gas-fuelled power plants were added to the system, namely Ratchaburi Power Plant, which
started its commercial operation in March; Gulf BLOCK 2 Plant in May; and the 3 rd South Bangkok
Co-Generation Power Plant in June 2008.
Natural gas distributed to the industrial sector increased by 18 MMcf/d, or 5%, when compared with
that of 2007. About 28 new gas customers, who demanded natural gas as fuel and for cogeneration power
plants, were added to the existing ones, who also had higher consumption of gas. Regarding NGV, the total
sales volume during 2008 soared by 51 MMcf/d, or 220%, when compared with 2007. This is due to the sharp
rise of the oil price, especially during the first nine months, causing consumers to turn to NGV as an alternative.
The situation further resulted in an approximately 4% increase of the proportion of natural gas consumption in
the transport sector as a substitute for gasoline and diesel. As at the end of December 2008, the number of
natural gas-fuelled vehicles was 127,735 in total, with 303 NGV retail stations available.
As for products from the gas separation plants, the volume of such products has increased by 11
MMcf/d from 2007. This is due to the expansion of demand for ethane, propane, liquefied petroleum gas
(LPG), and natural gasoline used as feedstocks in the petrochemical industry coupled with the demand for
liquefied petroleum gas used as fuel in the transport sector.
Gas Sales
Growth 5%
Unit :MMcf/d at 1,000 Btu Growth 6%
per Cubic Foot
Annual Report 2008
2006 2007 2008

36
EGAT IPP SPP Industries NGV GSP
Distribution of Products from Gas Separation Plants

PTT’s five gas separation plants altogether processed a total of 1,720 MMcf/d of natural gas during
2008. Yields from gas separation plants, namely ethane, propane, liquefied petroleum gas, and natural gasoline,
totalled 4,066,000 tons, an increase of 286,000 tons, or 3%, when compared with the 2007 volume. This
comprised into 968,000 tons of ethylene, 180,000 tons of propane, 2,384,000 tons of liquefied petroleum gas,
and 534,000 tons of natural gasoline.
Gas Product Growth 3%

Growth 8%
Sales
Unit :Thousand Tons
2006 2007 2008
Ethane Propane LPG NGL

LNG Sale / Purchase Agreement with Qatar M9 Natural Gas Sale / Purchase with Mynmar Stone Laying Ceremony for the Construction of
Gas Operating Co., Ltd. LNG Receiving Terminal
Milestones of Natural Gas Business Unit

Natural Gas Procurement
ë On February 3, 2008 : PTT signed a preliminary memorandum of understanding for sale and
purchase of LNG with Qatar Gas Operating Co., Ltd. The agreement, involving the volume of one
million tons per year, was to ensure energy security and the preparedness for the increasing
demand for natural gas in the power generation, industrial, and transport sectors. In this regard,
the construction of the LNG receiving terminal is scheduled for completion in 2011.

ë On February 26, 2008 : PTT entered into a gas supply agreement with PTTEP Plc. The agreement
dealt with up to 3 MMcf/d of natural gas from Sirikit field for use in the NGV project.
ë On June 23, 2008 : PTT signed a preliminary memorandum of understanding with PTTEP Plc. for
the supply of 240 MMcf/d of natural gas from M9 Field in Myanmar.
ë On March 26, 2008 : The 3rd sub-sea gas transmission pipeline linking Arthit field and PRP started
feeding natural gas to the production system with an initial volume of 80 MMcf/d. The gas volume
increased to 330 MMcf/d as of April 25, 2008. Moreover, the natural gas pipeline system from Arthit
Field to JDA has come to its completion, capable of transmitting 300 MMcf/d since
37
November 12, 2008.
ë On January 21, 2008 : PTT LNG Co., Ltd. hired a contractor for the construction of a jetty and LNG
receiving terminal located in the Map Ta Phut Industrial Estate, Rayong Province. This terminal, in
its 1st phase, is planned for receiving five million tons per year of LNG, and the volume will be
expanded to 10 million in the 2nd phase. The construction is scheduled for completion and the
terminal is planned to start its commercial operation by the middle of 2011.
ë On May 22, 2008 : A small LNG Plant, the first in Southeast Asia, located in the vicinity of PTT Gas
Separation Plant in Rayong Province, was inaugurated. The plant has a production capacity of 20
tons per day, equivalent to approximately 27,800 liters per day (energy equivalent) of diesel. LNG
produced from this plant will be used in experiments or in pilot projects involving substitutes for
diesel in various forms, both in industrial and water transport sectors. If LNG could prove to be a
successful substitute and able to help reduce the fuel cost of industrial operators, it will directly
respond to the need of consumers or industrial users who wish to use natural gas but are not
connected to the gas grid. In addition to helping reduce cost for operators, LNG could help cut the
expense on oil imports for the country as well.
Expansion of Natural Gas Market

ë On February 25, 2008 : PTT and Bangchak Petroleum Public Co., Ltd. entered into a contract for
utilities production and sale-purchase of electricity, industrial steam and water. The power plant is
a combined heat and power plant with a total production capacity of 25 megawatts. The heated
recovery steam generator has a production capacity of 90 tons per hour. The plant is expected for
commercial operation within the 2nd quarter of 2009.
ë On March 24, 2008 : PTT entered into a joint venture agreement with Asahi Kasei Chemicals Co.,
and Marubeni Co., Ltd., two leading petrochemical companies of Japan, with an investment ratio
of 48.5 : 48.5 : 3.0 respectively. This was a venture for the construction of the world’s first production
Opening Ceremony LNG Plant, Rayong Province Utilities Production Project and Electricity, Steam, and Industrial Water
Sale/Purchase Agreement, Rayong Province
plant of high-quality petrochemical feedstocks, i.e. AN and MMA using propane from gas
separation plants as feedstock instead of the usual propylene. Upon completion in the year 2010,
the plant will be able to generate almost Baht 15,000 million per year to the Thai economy from the
saving of AN imports of over 140,000 tons per year worth around Baht 7,750 million. At the same
time, it will create an income from exports of excessive AN and MMA worth over 7,130 million tons
per year.
Natural Gas for Vehicles : NGV

ë In 2008, NGV production capacity has been expanded from 1,330 to 4,420 tons per day by
Annual Report 2008
increasing the production capacity at the existing mother stations while constructing new ones. At
the end of 2009, there were altogether 17 mother stations (12 old and five new stations, with daily
output increasing from 965 to 3,020 tons per day) capable for feeding daughter stations along the
gas pipeline with efficiency. In addition, the number of conventional NGV service stations located
along the gas pipeline route has been urgently expanded from 33 to 55 with the gas dispensing
capacity increasing from 365 tons per day to 1,400 tons per day in an attempt to increase
38
distribution capacity while preventing shortage. Details are as follows:

ë Capacity expansion at existing mother stations and construction of new ones
- On May 28, 2008 : New Pracha-utit (Thung Khru) mother station, with a production capacity of 70
tons per day, was opened. Gas delivery to daughter stations in the inner Bangkok area could be
made more convenient.
- June 11, 2008 : Capacity expansion was made at Kaeng Khoi mother station in Sara Buri
Province and Nam Phong mother station in Khon Kaen Province by installing additional gas
compressors. These two stations, after their production capacities were increased from 145 to
320 tons per day, could better respond to the demand for NGV in the Northeast.
- June 19, 2008 : The 1st stage capacity expansion was made at Lat Lum Kaeo mother station from
290 to 465 tons per day. The 2nd stage expansion, then, followed in July 2008 increasing the
capacity to 515 tons per day, and 3rd stage expansion in September 2008 to 645 tons per day.
The station was, as a result, capable of feeding up to 65 daughter stations in Bangkok and
surrounding areas.
- August 1, 2008 : The 1st stage capacity expansion was made at Pathum-Thani (Rangsit) mother
Grand Opening of NGV Station on Pracha-utit NGV Capacity Expansion at Lat Lum Kaeo NGV Capacity Expansion at Pathum - Thani
Mother Station Mother Station
Opening of Lam Luk Ka NGV Station Opening of Kalapaphruek NGV Station
station from 200 to 290 tons per day. Then, the 2nd stage followed in November 2008, adding
the production capacity to 560 tons per day. Up to 56 daughter stations in the inner Bangkok and
surrounding areas could be better served as a result.
- November 10, 2008 : Kalapaphruek mother station was opened with a production capacity of 70
tons per day.
- December 3, 2008 : Lam Luk Ka mother station was opened with a production capacity of 350
tons per day, capable of feeding up to 35 daughter stations.

ë Urgent capacity expansion of convention stations along the gas grid
- October 15, 2008 : This day marked the opening of the world’s largest conventional NGV retail
station, located at the new Southern Bus Terminal on Borommaratchachonnani Road. The
station is equipped with 44 dispensing heads able to render service to 5,650 vehicles per day
with a total volume of 230 tons per day. PTT also has a plan to build large stations at the four
corners of Bangkok in order to reduce the congestion at NGV retail stations.
ë Increasing the number of NGV delivery trucks from 312 units in 2007 to 903 in 2008 by expanding
the loading capacity of the truck. This could increase the loading capacity from 3 tons per trip to
39
4-5 tons per trip.
ë December 31, 2008 : In response to the government policy in promoting the use of NGV as a
substitute for conventional fuel, PTT has, in an urgent manner, expanded the number of NGV
stations from 166 in 2007 to 303 while the number of NGV-fuelled vehicles has been increased
form 55,868 units in 2007 to 127,735 in 2008.
ë PTT recognized that the installation of NGV equipment requires considerable investment for each
individual, causing some hardship to consumers. The Company, thus, set up a revolving fund of
Baht7,000 million, of which Baht 5,000 million came from PTT and Baht 2,000 million from the
Energy Conservation Fund. The Baht 5,000 million was used as a source of fund for customers to
borrow for installation of NGV equipment or for engine modification to be NGV-compatible. The
revolving fund for NGV-fuelled vehicles offers low interest loans through 11 banks (Bangkok Bank,
Kasikorn Bank, Bank Thai, Siam Commercial Bank, Krung Thai Bank, Bank of Ayudhya, Thai Military
Bank, Government Savings Bank, Thanachart Bank, Siam City Bank, and Bank for Agriculture and
Agricultural Cooperatives). As of December 31, 2008, a total loan of Baht 1,468.66 million was
granted, being Baht 1,308.18 million for 124 corporate customers and Baht 160.48 million for 1,640
retail customers. As for the revolving fund managed by PTT’s revolving fund committee, two
companies were already granted with a credit line of Baht 32 million. Meanwhile, the Baht 2,000
million from Energy Conservation Fund was used to support Bangkok Mass Transit Authority’s bus
contractors in the Bangkok Clear Sky Project. And as at December 31, 2008, 35 companies were
granted with a total loan of approximately Baht 1,201 million while another four companies were
under consideration for a combined loan of Baht 1,053 million. It is expected that the amount of
diesel used by BMTA’s bus contractors could be reduced by 125 million liters per year, accounting
for Baht 4,600 million. Moreover, the project could help reduce air pollution, especially black smoke
and hydrocarbon substances by 640 tons per year. Most importantly, bus operators can save their
fuel cost by approximately Baht 3,000 million per year.
Natural Gas Transmission Pipeline System and Gas Separation Plants
Vietnam
Laos
Myanmar
Phu Hom
Nam Phong
Ban I Tong
Thailand
Yadana
Annual Report 2008
Tha Luang
Kaeng Khoi
Wang Noi
Yetagun NBK
Ratchaburi SBK Bang Pakong

Samut Prakan
Chon Buri
40
ESB
Rayong Cambodia
Benchamas
Tantawan
Platong
Chevron-Additional
Khanom Arthit FPSO Arthit

Erawan
Pailin
Pailin (Additional)
Thai - Malaysia (JDA)
Bongkot
South Bongkot
Gas Separation Songkhla Natural Gas Fields
Unit 1 390 MMcf/d EGAT

Sadao
Gas Separation Plant
Unit 2 290 MMcf/d
Unit 1, 2, 3, 5 in Rayong
Gas Separation Plant
Unit 3 390 MMcf/d
Unit 4 in Nakhon Si Thammarat
Unit 4 170 MMcf/d Existing Pipeline

Malaysia
Unit 5 530 MMcf/d Future Pipeline
Petroleum Exploration and Production Business
PTT operates the petroleum exploration and production business through PTT Exploration and Production
41
Public Co., Ltd. or PTTEP. 2008 was considered one of the best years for PTTEP’s operations thanks to the
expanded sales volume and the petroleum price which was increased in line with the world price.
Products of PTTEP, i.e. natural gas, crude oil, condensate, and liquefied petroleum gas, totalled 219.3
Kbd of oil equivalent, representing an increase of 179.8 Kbd from 2007 or 22%. In this respect, indigenous
production increased from that of 2007 by 79% with the production from new projects: Arthit and G4/43. An
overseas project, Vietnam 9-2, has also started its production of crude and natural gas from Ca Ngu Vang
(CNV) field. As for the petroleum price, the 2008 average was $49.7 per barrel, an increase of 25%. This has
resulted in PTTEP’s net profit to increase to 41,675 million Baht, up 46%.
2008 operating results of PTTEP can be summarized as follows :
Exploration : In 2008, PTTEP discovered petroleum from 28 wells out of 43 exploration and appraisal
wells, representing a success rate of 65%. The most significant achievement was Pailin Project, in which
petroleum was found from all of the seven exploration and appraisal wells drilled during 2008.
Production Development : PTTEP has expedited various projects with an intention to start as planned.
This includes Block B17 of Thai-Malaysia Joint Development Area and South Bongkot. As for the development
plan of M9 and M11 fields in Myanmar, PTTEP was already granted approval for the former field. And for
Algeria 433A and 416B, the project already received an approval for petroleum development in Bir Seba
Crude Oil Field from the government of Algeria in 2008.
Production : PTTEP started petroleum production from three projects comprising Arthit, G4/43, and
Vietnam 9-2.
Investment : PTTEP is committed to continuous investment in petroleum exploration and production in
various regions. In January 2008, the company entered into a 30% joint venture agreement in offshore blocks
17 and 18 in Bangladesh. In November 2008, PTTEP and joint investors won the bidding round for petroleum
exploration and production in Semai II concession in Indonesia, with an investment proportion of 33.33% and
with Murphy Oil Corporation as the operator. In Australia, which possesses a strong potential in petroleum,
PTTEP in a joint venture with Murphy Australia Oil Pty Ltd. and with an investment ratio of 30 : 70 was
successful in the bidding round for petroleum exploration and production in WA-426-P concession block.
Moreover, PTTEP signed an agreement to buy all shares of Coogee Resources Co., Limited (CRL), which
was a business developer and joint investor in petroleum exploration and production in Australia.
As for long-term growth, PTTEP signed a memorandum of understanding with Golar LNG Limited for
a joint study on joint investment opportunity in the development of stranded gas fields. The project will adopt
the Floating Liquefied Natural Gas Production (FLNG) technology, which transforms natural gas into liquid for
delivery to markets and can, thus, help make the development of small and medium natural gas fields more
commercially worthwhile. This project will not only benefit the country in terms of energy security, but will also
be in line with PTT’s LNG import plan in the future.
Annual Report 2008
Milestones of PTT Exploration and Production Public Co., Ltd.

ë PTT has altogether 42 petroleum exploration and production projects comprising :
1.Projects under production: main projects are Bongkot, S1, Pailin, B8/32 & 9A, Oman 44, and
Arthit.
2.Projects under development and planned production : main projects are Malaysia-Thailand Joint
42
Development Area, North Arthit, Vietnam 16-1, Myanmar M9, and Algeria Project.
3.Projects under exploration : main projects are Myanmar M11 and M3, M4, and M7, Bahrain block
2, Cambodia B, Iran Saveh, Indonesia Bangara I & Meragin I, and Semai II, Australia AC/P36 and
WA-432-P.
ë In January 2008, G4/43 project in the Gulf of Thailand started its production with average crude
and natural gas volumes of 10,000 bbl/d and 10 MMcf/d respectively. PTT took a 21.375% share in
the venture.
ë January 2008 : PTTEP entered into a joint venture with Total of France in blocks 17 and 18 in
Bangladesh. Being the first time that PTTEP had spread its wings to South Asia, the Company held
30% in the venture while Total was the operator.
ë March 26, 2008 : PTTEP started the natural gas production from Arthit Project with an average flow
rate of 80 MMcf/d, which was increased to 330 MMcf/d in April 2008 as agreed in the supply
agreement. The target production level could be sustained and respond to the country’s demand
for at least 20 years. PTTEP held an 80% share in this project and takes the role of the operator.
ë April 9, 2008 : PTTEP was successful in the negotiation for an asset swap in Myanmar and signed
an agreement with China National Offshore Oil Corporation (CNOOC) from China. PTTEP signed a
joint venture agreement for blocks A4 and C1 belonging to CNOOC while CNOOC agreed to
co-invest in blocks M3 and M4 belonging to PTTEP with a 20% share each.
ë June 23, 2008 : PTTEP International Co., Ltd., an affiliate of PTTEP, signed a gas sales agreement
following the success of the drilling exploration of block M9 in Martaban Bay in Myanmar of
which natural gas was founded in all 4 wells. The Company targets to start gas production in 2012
with a flow rate of 300 MMcf/d.
ë July 25, 2008 : The Vietnam 9-2 project started its crude oil production with an initial flow rate of
approximately 8,000 barrels per day. PTTEP Hoan Vu Co., Ltd., an affiliate of PTTEP, held a 25%
share in this venture.
ë November 13, 2008 : PTTEP Semai II Co., Ltd., an affiliate of PTTEP, won the bidding round for
petroleum exploration and production in Indonesia for the block Semai II with benefit sharing
contract already signed. The venture helped strengthen PTTEP’s investment base in Indonesia.
PTTEP held a 33.33% share in this venture.
ë November 13, 2008 : PTTEP Australia Offshore Pty Ltd (PTTEP AO), an affiliate of PTTEP, won the
bidding round for petroleum exploration in the block WA-423- P in Australia. The block is located in
Browse Basin adjacent to the block AC/P36 in which PTTEP has a share. It is hoped that WA-423-P
has high potential for natural gas. PTTEP held a 30% share in this venture while Murphy Australia
Oil Pty Co., Ltd. is the operator.
ë December 23, 2008 : PTTEP acquired Coogee Resources Co., Limit. (CRL) of Australia and signed
an agreement for the purchase of CRL’s total share. CRL had large reserves of high quality crude
suitable for further development.
ë PTTEP has established a number of affiliates as preparation for expansion in the petroleum
exploration and production business. The affiliates in Bangladesh was registered on December
14, 2008; Myanmar on February 28, 2008; in New Zealand on September 17, 2008; Indonesia on
November 5, 2008 and Australia on December 18, 2008, with the following detail :
1.PTTEP Bangladesh Co., Ltd. with a registered capital of $50,000 and PTTEP Holding Co., Ltd.

holding the entire share
2.PTTEP Myanmar Co., Ltd. with a registered capital of $50,000 and PTTEP Holding Co., Ltd.
3.PTTEP New Zealand Co., Ltd. with a registered capital of $50,000 and PTTEP Holding Co., Ltd.
4.PTTEP Semai II Co., Ltd. with a registered capital of $50,000 and PTTEP Indonesia Co., Ltd.
5.PTTEP Australia Perth Co., Pty Ltd. with a registered capital of $50,000 and PTTEP Holding Co.,
43
Ltd. holding the entire share
6.PTTEP Australia Browse Basin Co., Pty Ltd. with a registered capital of $50,000 and PTTEP
Australia Perth Co., Pty Ltd. holding the entire share.
PTTEP Projects
Southeast Asia
Myanmar
Laos
Thailand
Cambodia
Vietnam
Andaman Sea
Annual Report 2008
44
Malaysia
Indonesia
Indonesia
Oil Field
Indonesia
Gas Field
Oman Iran
Algeria Egypt
New Zealand Bangladesh

Barane Australia
Downstream Petroleum Business group
Oil Business
The Oil Business Unit is responsible for marketing of petroleum products and lubricants both in Thailand
and abroad. The responsibility includes an efficient operating system of receiving, storage, and distribution
of products through to the retail business in service stations, and investment in oil-related affiliates, both in
Thailand and abroad.
At the beginning of 2008, when the oil price climbed so high that the situation turned into oil price

crisis, the oil business had to delay the retail price increase of gasoline and diesel to alleviate the hardship of
consumers. As a consequence, the marketing margin during the first six months of the year averaged Baht
0.15 per liter, with higher sales volume, though. And following the launch of the government’s ‘six measures
six months policy’, in which excise tax exemption for gasohol 95 & 91 and diesel was included, coupled with
the economic crisis, consumption of gasoline and diesel in the transport sector has increased accordingly.
During 2008, the oil business achieved a total sales volume of 13,274 million liters (excluding sales at JET
stations), a decrease of 47 million liters, or 0.4%, when compared with 2007. This caused PTT’s market
share to expand to 33.8%. And if the volume of fuel oil sold to EGAT is excluded, PTT’s oil business would
have a market share of 33.2%, with an average marketing margin of Baht1.36 per liter, an increase of 0.86
45
Baht per liter, or 58% from that of 2007. Still, this is lower than the suitable marketing margin, which should be
Baht 1.50 - 2.00 per liter. As a result of the sharp decline of the oil price in the 4th quarter of the year, the oil
business had to suffer a stock loss, part of which occurred from the country’s strategic reserves.
In addition to helping alleviate consumers’ burden during a time of high oil prices, PTT led others in the
procurement of alternative energy. During 2008, PTT has launched E20 & E85 Gasohol while developing B5
biodiesel. The Company was the country’s first in developing diesel with Euro IV standards.
Sales Volume Drop 9%

Drop 0.4%
for Demestic
Oil Markets
Unit :Million Liters
2006 2007 2008
LPG Gasoline Jet/Kerosene Diesel Fuel Oil

Notes : Exclude LPG Using as Feed Stocks in Petrochemical
Domestic Market Shares Unit :%
2006 2007 2008
PTT Petronas Jet Bangchak Shell Chevron Esso Others

Notes : Exclude LPG Using as Feed Stocks in Petrochemical
As at the end of December 2008, PTT’s oil business had altogether 1,157 retail stations, accounting for
6.1% of the country’s total number, with 716 convenience stores. PTT also owns 14 aviation filling stations, 13
Annual Report 2008
oil depots, two LPG depots, six petroleum depots, and four gas bottling plants, all of which enhanced the
Company’s ability to adequately render service customers and also serve as a support for the PTT Group as
a whole.
Milestones of Oil Business Unit

Expansion of Oil Market
ë On April 11, 2008 : One Palang Thai Phua Thai Co., Ltd.’s service station was opened on Seri Thai
46
Road (Sukapiban 2 Road), and on September 15, 2008, another station was opened in the rest
area of inbound Chalerm Maha Nakhon Expressway. These two were premium stations under the
‘Pump in the Park’ concept with a focus on providing convenience while saving customer’s time by
offering integrated service in a ‘one stop service’ station. In addition to making all types of fuel
available, the stations were readily equipped with supporting businesses, e.g. Bank of Ayudhya,
Seven-Eleven store, Cafe Amazon, Fascino drug store, Chester’s Grill restaurant, Black Canyon
coffee shop, and Procheck lubricant service center.
Development of Products and Services

ë January 1, 2008 : PTT became the country’s leader in launching ‘PTT E20 Plus’ in response to the
government policy while encouraging more consumers to turn to alternative fuels in a bid to save
household expense and, at the same time, help the country save foreign currency. As at the end of
2008, the product was made available at over 100 retail outlets.
New Look of Service Stations: “Pump in the Park” Launching of New Product “PTT E20 Plus”
Launching of “PTT E85 Plus” Launching of “PTT B5 Plus”
ë January 15, 2008 : PTT, again, became the country’s first to sell B2 diesel, that is, high-speed
diesel with a 2% blend of biodiesel, at all PTT stations across the country. This is also another
attempt in promoting the use of alternative fuels while reducing oil imports.
ë February 14, 2008 : PTT launched ‘PTT B5 Plus’, an innovative diesel offered as an alternative fuel
in line with PTT’s policy regarding development of alternative energy with emphasis on clean and
quality fuels. As at the end of 2008, PTT B5 Plus was available at over 800 PTT stations around the
country.

ë March 17, 2008 : PTT piloted the sale of diesel with Euro IV standards, with less emission of sulphur
dioxide, thus, helping reduce air pollution. This is in line with PTT’s policy concerning the environment
and global warming under the concept of green marketing and sustainable development.
ë May 30, 2008 : PTT and Toyota Group joined hands in the research and development of a new
diesel technology called Bio-Hydrogenated Diesel or BHD, the first of its kind in Thailand. This was
an innovation of biomass fuels created from various raw materials, such as jatropha and algae,
which can reduce the risk of raw-material shortage from using agricultural products. Moreover,
BHD can be mixed into conventional diesel at the rate of over 10% without changing the quality of
47
diesel. The innovation could respond to the government policy and, more importantly, is environment
friendly through reduction of global warming.
ë August 29, 2008 : PTT E85 Plus was launched, also the country’s first, at the Ministry of Interior’s
welfare station on the Chalerm Maha Nakhon Expressway (outbound on Bangna). E85 gasohol,
with a higher ethanol content, will lead to less dependence on imported fuels. Every liter of PTT E85
Plus can save 0.85 liter of conventional gasoline.
ë December 12, 2008 : PTT established Business Services Alliance Co., Ltd., with a registered capital
of Baht 2,000,000 and PTT holding a 25% share, to provide PTT and companies in PTT Group with
services and labor.
PTT Petroleum, Oil, LPG Terminals, and Aviation Fuel Stations
Vietnam
Chiang Rai Laos
Myanmar Chiang Mai
Lampang
Den Chai
Udon Thani
Phitsanulok
Nakhon Sawan
Khon Kaen
Thailand
Saraburi
Annual Report 2008
Bang Pa-in Ubon Ratchathani

Lam Luk Ka
Suvarnbhumi
Bangchak
Don Mueang Phra Khanong
Si Racha
Samut Sakhon
Kao Boya
Ban Rong Po
48
Utapao Cambodia
Hua Hin
Surat Thani
Pak Phanang
Krabi
Phuket
Petroleum Terminal
Songkhla
Hat Yai
LPG Terminal
Oil Terminal
Aviation Fuel Station
Malaysia Note : Petroleum Terminal Comprises of Oil

and LPG Terminal
International Trading Business
The International Trading Business involves business operations over crude oil, condensate, petroleum
and petrochemical products, and all other related products. The business also covers management of risks
possibly occurring from oil trading as well as procurement and distribution of petroleum and petrochemical

products in international waters. In its role as a supporter for the various businesses under PTT umbrella,
international trading mainly deals with domestic procurement (in-in), import (out-in), export (in-out), and inter-
national trading (out-out). This business unit focused on cost reduction from crude oil procurement while
adding value and expanding channels for distribution of petroleum and petrochemical products from refining
and petrochemical businesses. This includes the ability to make profits from trading of petroleum and other
products.
In 2008, the business reported total physical trading of 53,991 million liters, an increase of 6,585
million liters or 14% over 2007. This comprised the trading of 39,097 million liters of crude oil, 4,855 million
49
liters of condensate, 7,937 million liters of fuel, and 2,102 million liters of petrochemical products. Most of the
increased trading volume came from the greater volume of crude and refined products, a result from the
attempt to increase the transactions of international trading, or out-out trading. This also included the
increase of crude imports for Thai Oil Public Co., Ltd. (TOP), which expanded its capacity, and IRPC Public
Co., Ltd., which agreed to have PTT as its crude importer in late 2007. In addition, import of LPG was
significantly increased to satisfy the higher domestic demand. In terms of risk management, a total of 18,947
million liters was accounted for, an increase of 60% over 2007, which came mainly from risk management for
oil price within PTT Group.
Sales Volume
for International Growth 14%
Trading %
th 34
Grow
Unit :Million Liters
2006 2007 2008
Crude Oil Condensate Refined Products and Others Petrochemicals

Help Relief Caused By Disastrous Cyclone Jasmine Crude Sale/ Purchase Agreement First LPG Import in 12 Years
Nargis
Milestones of International Trading Business Unit in 2008

ë January 7, 2008 : PTT entered into a sale-purchase agreement of acetone with PTT Phenol Co.,
Ltd. (PPCL) to add value to benzene and propylene products. These products could be sold do-
mestically, replacing imports. The deal, moreover, opened an opportunity for PTT to extend its
investment into downstream petroleum business.
ë February 8, 2008 : PTT signed a sale-purchase agreement of Jasmine Crude from the Gulf of
Thailand with Pearl Oil (Thailand) Ltd. for 13,000 - 20,000 barrels per day and for the period of one
year. During 2008, PTT would buy all the crude produced from the field and allocated it to domestic
refineries in response to the government’s attempt to reduce crude import. The purchased volume
Annual Report 2008
is worth over Baht 17,000 million.

ë April 29, 2008 : PTT imported 22,000 tons of LPG, the first import in 12 years, comprising 11,000
tons of propane and 11,000 tons of butane by using refrigerated large vessels (minus 40 degrees
celsius) in support of the government to solve LPG shortage resulting from the continuously in-
creasing demand.
ë May 14, 2008 : PTT and PTTEP Public Co., Ltd. jointly provided urgent support of 480,000 liters of
50
fuel worth Baht15 million to Myanmar as a relief for the disastrous cyclone Nargis. The supply,
reaching Thanlyin Port in Rangoon on May 15, 2008, was received by the Thai ambassador to
Rangoon, Mr. Banasarn Bunnag, who passed on the assistance to Myanmar Petrochemical Enter-
prise (MPE). The fuel was intended for use in the transport of necessities and for power generation.
Together with other forms of assistance, PTT’s total contribution was worth Baht 23.5 million. In this
regard, consumables and construction materials were presented via the Ministry of Energy to the
Myanmar embassy in Thailand, and delivery was arranged by Thai Air Force planes.
ë September 18, 2008 : PTT signed an agreement with Topship Chemical, a famous chemicals agent
in Huanan, to appoint it as an authorized representative selling acetone in Huanan, a major
acetone market. It was expected that market demand could exceed 100,000 tons per year. This
was the first time PTT had business presence in Huanan.
ë September 22, 2008 : PTT signed a sale-purchase agreement of Na Sanun Crude with Pan Orient
Energy (Thailand) Co., Ltd., an affiliate of the Canadian Pan Orient Company, which had an exten-
sive experience in onshore oil field. PTT agreed to buy all the crude produced during a five-year
period (2008-2013).
Na Sanun Crude Sale/Purchase Agreement Launching of Trading Control System : TCS Acetone Sale/Purchase Agreement
ë September 26, 2008 : PTT officially launched the Trading Control System (TCS), an international
standard system to manage international trading. The system, designed with three-dimensional
control, i.e. policy control, structure and role control, and technological control, could facilitate
checks and balances while controlling risks, and most of all, could be applied with SAP.

Petrochemical and Refining Business
PTT conducts petrochemical and refining business through affiliates. PTT Chemical Public Co., Ltd. is
in charge of the olefins petrochemical business involving mainly products from natural gas (gas-based value
chain). And the business that involves aromatics products (liquid-based value chain) is invested through
refineries invested by PTT, namely Thai Oil Public Co., Ltd., PTT Aromatics and Refining Public Co., Ltd.
Besides, PTT has shares in three refineries, namely Star Petroleum Refining Co., Ltd. (SPRC), Bangchak
Petroleum Public Co., Ltd. (BCP), and IRPC Public Co., Ltd. (IRPC). In 2008, the petrochemical business
continuously extended its investment to increase production lines and sales channels. The refining business
51
also completed its aromatics output expansion to strengthen its competitiveness.
PTT Chemical Public Co., Ltd., in 2008, had a total production of 2,242,000 tons, about the same level
as that of 2007. The prices of petrochemicals climbed with the world oil price. However, the fluctuation of
petrochemical product prices and the naphtha price, which increased during the first nine months of the year
and plummeted in the 4th quarter, resulting in a stock loss. This included the purchase of raw materials at a
time of high prices for sale when the market shrinks, or the physical loss. Besides, PTT made some cost
adjustment of raw materials, in which the pricing structure of raw materials was redesigned taking into
account profit- sharing in the current situation. The Company also shouldered higher income tax following the
expiration of BOI privileges for the I-4 processing unit in December 2008.
As for the refining business during 2008, five affiliates of PTT, namely TOP, PTTAR, IRPC, BCP, and
SPRC, had a combined refining volume of 778 Kbd, about the same level as that of 2007. The average gross
refining margin was $0.57 per barrel (the impact from the oil stock was taken into account), down from $8.4
per barrel in 2007. On average, the operation was run at 86% of the total refining capacity, down from 92% in
2007.
During the first seven months of 2008 when the demand and prices of refined products in the world
market went up, resulting in higher refining margins, PTT affiliates, namely TOP, PTTAR, IRPC, and BCP,
joined in hardship relief by offering a discounts of up to three Baht per liter for diesel sold to public bus
operators, the fishery group, and the agricultural group for up to six months (June - November 2008). This
was also made to stimulate the continuous consumption, which, if interrupted, might affect long-term
production. But after the financial and economic crises, which led to the sharp fall of the world oil price,
brought about losses to the refining business during the last quarter of the year, the business reported loss
for its overall annual performance, as opposed to profits in 2007.
Stone Laying Ceremony for the Construction of the Propylene Production Plant of HMC Stone Laying Ceremony for the Construction of
Polymers Co., Ltd. the Logistics Center of PTTPL Co., Ltd.
Milestones of Petrochemical Business in 2008

ë April 8, 2008 : The Board of Directors of PTT Chemical Public Co., Ltd. (PTTCH) agreed upon
investment in a Bis-Phenol-A (BPA) project under the operation of PTT Phenol Co., Ltd. Using
phenol and acetone from PPCL as raw materials, BPA project could strengthen the security and
reduce the fluctuation of phenol and acetone sales while adding value to downstream products.
ë March 26, 2008 : The Board of Directors of PTT Chemical Public Co., Ltd. (PTTCH) agreed PTT
Polyethelyne Co., Ltd. (PTTPE)’s acquisition of the assets of HMT Polystyrene Co., Ltd., later re-
named Thai Styrenics Co., Ltd. (TSCL). The assets acquired comprised a polystyrene plant with a
capacity of 90,000 tons per year as well as all buildings on the premises.
Annual Report 2008
ë June 20, 2008 : Board of Directors of PTT Chemical Public Co., Ltd. (PTTCH) agreed upon an
investment for the establishment of PTT Chemical International Pte. Co., Ltd. (PTTCH Inter.) in
Singapore on July 23, 2008, with a registered capital of S$200,000 and with all shares held PTTCH.
PTTCH Inter signed a share purchase agreement (SPA) with Cognis B.V. Co. (Cognis), who held a
50% share in Cognis Oleochemicals (M) Sdn. Bhd. (COM), and signed a joint-venture agreement
with Sime Darby Plantation Co., Sdn. Bhd. (Sime Darby), which holds a 50% share in Cognis
Oleochemicals (M) Co., Sdn. Bhd.
52
ë October 16, 2008 : PTT’s petrochemical and refining business announced its readiness to be the
country’s leader in the energy and petrochemical industry. The business vowed to support strate-
gies aiming for building an innovative industry and business in accordance with the country’s plan
for the development of bio-plastics industry during 2008-2012, and to become the Asian hub for
the production of renewable energy and bio-plastics. PTT is well prepared with knowledge and
technology to produce chemical products from natural raw materials as well as bio-plastics. This is
to enhance the capability to produce plastic polymers from non-petrochemical feedstocks but
direct raw materials from nature.
ë October 17, 2008 : Thai Oleochemicals Co., Ltd., wholly owned by PTT Chemical Public Co., Ltd.
(PTCH), acquired 2,100,000 common shares, worth Baht 175 million, of Thai Fatty Alcohol Co., Ltd.
(TFA) from Cognis Thai Co., Ltd., or 50% of the total common shares. As a result of the share
purchase, TOL became the holder of the entire shares in TFA.
Milestones of Refining Business Unit

ë February 20, 2008 : The Board of Directors of Bangchak Petroleum Public Co., Ltd. agreed upon a
joint investment in biodiesel production project, located in Amphoe Bang Pa-In, Ayutthaya Prov-
ince. BCP would co-invest in Bangchak Bio-fuel Co., Ltd. by holding a 70% share of the registered
capital.
ë Early March, 2008 : PTT Aromatics and Refining Public Co., Ltd. (PTTAR) completed the construc-
tion of three condensate storage tanks with a combined storage capacity of 194,000 tons, for the
reformer complex. The project required investment of $30 million.
ë May 16, 2008 : Bangchak Petroleum Public Co., Ltd. issued 10-year bonds, which are convertible,
subordinated, and unsecured with bearer’s name. The bonds can be converted into common
shares of the company, worth up to Baht 585.60 million in total. This was part of the investment in
Product Quality Improvement (PQI) project, which was exclusively offered to PTT.
ë May 26, 2008 : PTT Aromatics and Refining Public Co., Ltd. (PTTAR) signed a long-term revolving
A Joint-Venture Agreement with Sime Darby Plantation Co., Sdn.Bhd. An Agreement for the Maintenance of IPT Power Plant
loan contract, with nine-year maturity, for Baht 6,000 million with Siam Commercial Bank Plc. This
loan was intended to fund investment in operation expansion and a project to enhance the joint
productivity between refining and aromatics businesses and/or for use to support cash flow in the
operations. Moreover, the loan will be used for refinancing some loans to relieve their interest
burden while extending the repayment period, which will increase the flexibility in financial man-
agement.
ë June 26, 2008, Independent Power Producer (Thailand) Co., Ltd. (IPT), owned by Thai Oil Public

Co., Ltd. (TOP), signed an agreement with the Electricity Generating Authority of Thailand (EGAT)
for the maintenance of IPT power plant. The company is confident in EGAT’s international standard
of service and intends to support the Thai maintenance engineering work.
ë July 2, 2008 : Bangchak Petroleum Public Co., Ltd. (BCP) refinanced its loans by entering into loan
contracts with four local and two foreign banks. The total loan of Baht 23,734 million comprised: 1)
a long-term loan of Baht 16,500 million for repayment of existing loans with Krung Bank, for PQI
project, for partial use in the operation of the Euro IV project, and for other energy-related projects;
and 2) a short-term loan of Baht 7,234 million for cash flow in the operations.
ë In the 2nd quarter of 2008 : Thai Paraxylene Co., Ltd. (TPX), wholly owned by Thai Oil Public Co.,
53
Ltd. (TOP), completed the expansion of its aromatics production resulting in an increase of aromat-
ics production capacity from 420,000 tons to 900,000 million tons per year.
ë In 2008 : Thai Oil Marine Co., Ltd., wholly-owned by Thai Oil Public Co., Ltd. (TOP), was successful
in its 1st-phase fleet expansion with an acquisition of a 32,500-DWT petroleum product transport
vessel and three 7,000-DWT chemical transport vessels. With the expansion, the company could
efficiently satisfy the needs for vessels in Thai Oil and PTT groups.
ë October 13, 2008 : Thai Oil Public Co., Ltd. (TOP) signed a contract with Shell Overseas Invest-
ments B.V. and Patanakit Chemical Co., Ltd. for the acquisition of an 80.52% share in Sak Chaisiddhi
Co., Ltd (SAKC); another contract with The Shell Company of Thailand Co., Ltd. (SCOT) for the
acquisition of assets used in the distribution and marketing of solvent in Thailand; and a contract
with Shell Vietnam Co., Ltd. (SVL) for the acquisition of assets used in the distribution and market-
ing of solvent in Vietnam, respectively. The prime customer for solvent is the paint industry.
PTT Group Refineries
Bangchak Petroleum Plc. PTT Aromatics and Refining Plc.

Capacity 120,000 barrels/day (PTTAR)
10% share of refining capacity in Thailand Capacity 280,000 barrels/day
23% share of refining capacity in Thailand
Thai Oil Plc. IRPC Plc.

Capacity 275,000 barrels/day Capacity 215,000 barrels/day
22% share of refining capacity in Thailand 17% share of refining capacity in Thailand
Star Petroleum Refining Co., Ltd.

Capacity 150,000 barrels/day
12% share of refining capacity in Thailand
PTT Group’s Strategies and Business Direction
PTT Group has a vision for continuous and sustainable growth in parallel with expansion to foreign
countries with a strong intention to be a Thai premier multinational energy company. To keep the business
running amidst the current world economic crisis, PTT’s short-term strategy involves consolidation within the
group while increasing competitiveness as a self-protective measure. PTT Group’s efficient cash manage-
ment maintains its liquidity and prudently prioritizes investment projects. New projects must bear satisfactory
returns on investment. Existing projects will be carried on but investment might be scaled down to fit the
economic situation. In the long run, PTT has in store investment plans and always looks for new opportunities
to invest in related businesses, both in and outside Thailand. This is to grow its business constantly while
adding value to the business chain. Most of all, PTT strategies must strengthen the country’s energy security.
The strategies of each business unit are summarized below :

1. Petroleum Exploration and Production Business
- PTT Group will invest in building growth by expanding petroleum exploration and production in
the region and in targeted high-potential countries in various parts of the world. Mergers and acquisitions of
petroleum fields will also be taken into account amidst the economic downturn. The company aims to add the
highest value to current assets and expedite development and production from new deposits in Thailand.
2. Natural Gas Business
- PTT Group focuses on competitiveness through building up operational excellence and regu-
latory management. Investment in foreign countries and new business development will also be considered,
Annual Report 2008
using the company’s expertise in creating an integrated gas value chain in natural gas and LNG businesses.
Downstream Petroleum Business Group

1. Oil Business
- PTT Group will maintain its position as the country’s leader in renewable energy, retail
marketing, and lubricant marketing while increasing the ability to conduct a profitable business with focus
upon adding value through the development of quality products and excellence in depot and transport
56
management.
2. International Trading Business
- Presence in international trading for companies in PTT Group will be made more visible
while creating and expanding foreign business transactions.
3. Petrochemical and Refining Business
- PTT Group is well prepared for impacts from the shrinking demand resulting from the
economic crisis and the downturn business cycle by consolidation within the group, leveraging price
hedging management, and having a stringent cash management policy to get through the crisis.
Business Expansion Overseas

- PTT Group will seek every opportunity for investment, acquisition, or joint ventures in busi-
nesses considered to have some potential but might be encountering some financial crisis. In this regard, its
focus will be particularly placed upon investments that can add value to PTT Group.
Summary
In reviewing the performance of PTT and affiliates during 2008, growth could be seen in both revenue
and sales volume. However, the net profit declined when compared with that of 2007. This is due to the
world economic crisis during the last quarter of the year as well as the sharp and rapid fall of the world oil
price. As a result, stock loss was considerable.
PTT is still the largest listed company on the Stock Exchange of Thailand with a market capitalization
of approximately Baht 494,210 million as at the end of 2008, representing 13.9% of the SET value in market
price. If all listed companies in PTT Group were taken into consideration, the total market capitalization of the
group would become Baht 1,030,350 million, accounting for 28.9% of the total worth of SET value. Most of all,
PTT is still committed to efficient business and organization management aiming to be a high-performance
organization able to step up to the global competition arena using shared value as the foundation to build up
synergy within the PTT Group. PTT aims to strengthen its business potential in parallel with responsibility for
the society, the community, and the environment to make each and every unit of the society able to stand and
be self-reliant for Thailand’s sustainable development as the ultimate goal.
Compliance to Supreme
Administrative Court Verdicts
On August 31, 2006, the Foundation for Consumers and parties, totaling five (plaintiffs), filed a law suit
against the Cabinet, the Prime Minister, and the Minister of Energy (defendants) to the Supreme Administra-
tive Court. The filing aimed to revoke the two royal decrees issued under the State Enterprise Act B.E. 2542
regarding the process of the corporatization of the Petroleum Authority of Thailand into PTT Public Company
Limited (PTT) consisted of the royal decree defining the authority, rights, and benefits of PTT Public Company
Limited B.E. 2544 and the royal decree defining the timing for repealing the laws governing the Petroleum
Authority of Thailand B.E. 2544. The plaintiffs cited assorted issues:
ë The process of issuing these decrees was improperly conducted, particularly the format,
procedure, and content, which went against the provisions of the State Enterprise Act B.E. 2542 and the
Constitution B.E. 2540

ë Issuance of the two decrees caused the ownership transfer of land and real estate, which are public
domain properties, to PTT Plc, which is a private entity, thus entitling PTT Plc to gain unfair privileges over
other private entities
ë The fact that PTT Plc took transfer of the public authority, belonging to the state, particularly the right
over land expropriation, and the zoning and above-land right prejudice announcement authority over the
private sector which went against the principle intention of the Constitution
ë It was an improper exercise of discretion to issue the two decrees, which both harmed the public’s
interests and went against the true intention of the state enterprise privatization
57
On September 4, 2006, the Supreme Administrative Court acknowledged the litigation and, on Sep-
tember 6, 2006, called for the respondents to submit their testimony against the litigation within 30 days. This
was done on October 30, 2006, which was later objected to by the plaintiffs under the Administrative Court
procedure; the respondents came up with an additional testimony for the tribunal on January 22, 2007.
PTT Plc submitted its petition to become a fourth defendant, which was granted on November 28,
2006, and the Company was required to submit its testimony by December 29, 2006, which it duly did. Then
on August 31, 2007, the Supreme Administrative Court scheduled September 28, 2007, as the closing date
for fact-finding for the case and scheduled the first sitting on November 30, 2007. On December 14, 2007,
the tribunal read out the verdict, summarized as follows:
1. That the four defendants, consisting of the Cabinet, the Prime Minister, the Minister of Energy,
and PTT, jointly carry out the following action:
a. Surrender public domain properties and the rights to use land for petroleum transmission
pipelines
b. Segregate the authority and rights belonging to public authority from those of PTT Plc, to be
completed before the appointment of the Energy Regulator Commission under the Energy Business Act
2. That the petition of the five plaintiffs be rejected for revocation of the royal decree stipulating the
authority, rights, and benefits of PTT Plc B.E. 2544, amended by another decree of the same name (No. 2)
B.E. 2550, and another decree defining the timing for repealing the laws governing the Petroleum Authority of
Thailand B.E. 2544.
On December 18, 2007, the Cabinet acknowledged the verdict of the Supreme Administrative Court
and concurred with the principle of transferring assets, authority, and rights of the Petroleum Authority of
Thailand to the Ministry of Finance as required by the verdict. This was to be done by segregating the assets
received by PTT Plc on its registration date as a result of corporatization. The Ministry of Energy and the
Ministry of Finance were assigned to conduct the segregation under due principles, to be audited and
verified by the Office of the Auditor General. Should legal disputes arise on the interpretation of the verdict
concerning the segregation of properties, they were to be ruled by the Council of State. The Department of
Treasury, on behalf of the Ministry of Finance, was to define rent criteria for transmission pipelines to form the
basis of PTT Plc’s rental, which must be based on fair commercial principles to all - namely the Ministry of
Finance, PTT Plc and its shareholders, and natural gas users - while taking into account PTT Plc’s commit-
ment, including loans and loan interest burden, together with the public-utility nature of transmission
pipelines.
On December 25, 2007, the Administrative Court sent a letter to the defendants, requesting a
summary of action taken in line with the verdict, for its reporting to the Supreme Administrative Court.
Addressing this request, the Ministry of Energy and PTT Plc summarized the following action:
ë January 9, 2008: The Energy Ministry filed the first progress report under the verdict
ë January 11, 2008: PTT Plc filed its first progress report under the verdict and clarified to the
Administrative Court the segregation of public authority from that of PTT Plc, saying that the promulgation of
the Energy Business Act had already deprived PTT Plc of any public authority
ë January 31, 2008: PTT Plc filed its second progress report along with a summary of the value of the
assets of the Petroleum Authority of Thailand as of September 30, 2001, that were surrendered to the Ministry
of Finance
ë February 14, 2008: PTT Plc filed its third progress report along with additional clarification to the
Administrative Court about its letter to the Department of Treasury, delivering the segregated assets of the
Petroleum Authority of Thailand and the signing of a memorandum of understanding between the Depart-
Annual Report 2008
ment and the Company on the defining of rent criteria for such assets, as well as informing the court about a
reply from the Department of Land about the issuing of title deeds for the land obtained through expropria-
tion.
The process of segregating properties under the verdict was to be the discretion of the court, based
on PTT Plc’s periodical progress reports of action taken as mentioned above.
ë March 7, 2008: PTT Plc filed its fourth progress report about the deliberation of the Department of
58
Local Administration, Ministry of Interior, and Treasury Bureau of Bangkok Metropolitan Administration
concerning property taxes for the transmission pipelines. In essence, the property and land taxes under the
Property and Land Tax Act B.E. 2475 did not apply to the pipelines
ë April 25, 2008: PTT Plc filed its fifth progress report about the signing of the official segregation and
delivery of assets to the Ministry of Finance; this memorandum of understanding was agreed between the
Department of Treasury (with the concurrence of the Ministry of Finance) and PTT Plc on April 24, 2008.
Below is the essence of the submission:
1. The assets surrendered by PTT Plc to the Ministry of Finance under the verdict of the Supreme
Administrative Court - land, land rights, pipelines, and associated equipment forming petroleum transmission
pipelines - consisted of the following:
(1.1) Land obtained through the expropriation of real estate, reimbursed by state money and
expropriated by public authority by the Petroleum Authority of Thailand, totaling 32 rai, 74.1 square wa, in 106
plots, in the provinces of Samut Prakan, Chachoengsao, Chon Buri, and Rayong; as of September 30, 2001,
these plots were about Baht 1 million in net book value
(1.2) Over-land rights for private land needed as part of transmission pipelines, considered
public authority exercised by the Petroleum Authority of Thailand as a state entity on private properties and
reimbursed with state money, the net accounting value of which as of September 30, 2001, amounted to
some Baht 1,137 million
(1.3) Transmission pipelines, including associated equipment found installed in the land under
(1.1) and (1.2), the net accounting value of which as of September 30, 2001, amounted to some Baht 14,808
million
(1.4) Distribution pipelines found in the land under (1.2), the net accounting value of which as of
September 30, 2001, amounted to some Baht 229 million
2. PTT Plc was entitled to continue using state properties and public land previously under its
custodianship if it paid fees to Treasury as defined by the Ministry of Finance. To this end, the Department of
Memorandum Signing Over the Separating and Transferring Assets To Signing Agreement Over The Renting of State Property
the Ministry of Finance
Treasury and PTT Plc would agree the rent of such land by PTT Plc.
3. If a change should occur in the assets to be segregated and surrendered to the Ministry of
Finance as decided by the Supreme Administrative Court, the Department of Treasury and PTT Plc were to
ensure that such division of assets complied with the decision of the tribunal.
ë June 3, 2008: The Department of Treasury represented the Ministry of Finance in signing an agree-
ment with PTT Plc on the use of state properties surrendered to the Ministry of Finance under the verdict of

the Supreme Administrative Court in line with a memorandum on the segregation and surrendering of such
assets. The permission to use state properties was to be in effect from January 1, 2008, to December 31,
2037, upon which date the Ministry pledged to allow PTT Plc to continue using such assets for another 30
years.
In so doing, PTT Plc must pay an annual state property rent for the land, land rights, pipelines, and
associated equipment making up the petroleum transmission systems at a revenue-sharing rate of the pipe-
line throughput fees for each calendar year. These throughput fees mean the transmission service fees for
onshore gas transmission systems (for Area 3), which included the demand charge and commodity charge
59
under the criteria for fixing natural gas prices and transmission service fees, announced by the National
Energy Policy Council, No. 1, of 2001, or their future changes. The calculation was to be based on a sliding-
scale system, detailed as follows:
Unit: Million Baht

Rate of fee as Percentage of Revenue
Revenue Annual
Minimum Increment
0 - 3,600 5% = 180 (minimum rent)
> 3,600 - 3,700 10% > 180 - 190
> 3,700 - 3,900 15% > 190 - 220
> 3,900 - 4,100 20% > 220 - 260
> 4,100 - 4,300 25% > 260 - 310
> 4,300 - 4,500 30% > 310 - 370
> 4,500 - 5,000 36% > 370 - 550
> 5,000 = 550 (maximum rent)
In short, the annual rent to be paid to the Ministry of Finance would range from Baht 180 to 550 million,
retroactive to between October 1, 2001, and December 31, 2007, at a simple interest rate of 7.5% per year to
be paid to the Department of Treasury, amounting to some Baht 1,597 million.
ë June 5, 2008: PTT Plc filed its sixth progress report about the agreement signing mentioned above
ë July 25, 2008: PTT Plc filed its seventh progress report about the registration, modification, and
transfer of property items divided by PTT Plc to the Ministry of Finance.
PTT Plc petitioned the Supreme Administrative Court on February 1, 2008, for a 30-day extension of
the action required by the verdict from the date of His Majesty the King’s appointment of the Energy Regulator
Commission, to which the Supreme Administrative Court, on February 4, 2008, gave its concurrence. PTT
Plc later petitioned for another 150-day extension from the last extension, which was again granted, thus
making this latter extension last until December 29, 2008.
ë October 13, 2008: PTT Plc filed its eighth progress report, together with an additional update on the
registration, modification, and transfer of assets segregated for the Ministry of Finance
ë December 4, 2008: PTT Plc filed its ninth progress report, saying that it had completed the
registration, modification, and transfer of items (that is, transfer of ownership) in the expropriated land for
segregation to the Ministry of Finance, and simultaneously filed a summary report of action in line with the
verdict of the Supreme Administrative Court, litigation number Red, Phaw 35/2550 (Black, Phaw 47/2549).
Note that PTT Plc filed the same summary report to the Supreme Administrative Court on December
25, 2008, beginning from the time the tribunal’s verdict was given, the Cabinet’s deliberation of the approach
to be taken, the Department of Treasury and PTT Plc jointly signing a memorandum governing the segrega-
tion and surrender of assets to the Ministry of Finance, to both mentioned parties’ registration of amendments
and modifications (transfer of ownership) in all expropriated land for segregation and transfer to the Ministry
of Finance, thus completing the process. Therefore, PTT and the defendants (1 to 3) had jointly and
thoroughly segregated public domain properties as required by the verdict, the right to use the land for its
Annual Report 2008
petroleum transmission pipelines, and the authority and rights belonging to public authority from those of PTT
Plc, as decided by the Supreme Administrative Court. On December 26, 2008, the tribunal recorded this
concerning PTT Plc’s petition: “....considered and ruled that litigated parties 1 through 4 and relevant
agencies had completely complied with the verdict...”
Legal Disputes
60
As of December 31, 2008, the ongoing dispute involving PTT as a party to litigation that may signifi-
cantly impact PTT’s business and did not result from PTT Plc’s ordinary business undertaking is detailed
below:
PTT Plc and Thai Petroleum Pipeline Co., Ltd., litigated for compensation for laying a pipeline through
private land.
This refers to the pipeline-laying project of PTT Plc and Thai Petroleum Pipeline Co., Ltd., from Si
Racha to Sara Buri, which needed to enter private land, for which the respondents compensated the land-
lords under the Petroleum Authority of Thailand Act B.E. 2521. A Susawas Limited Partnership and company,
dissatisfied with the Baht 2 million in compensation, forwarded the dispute to the Thai Arbitration Institute,
calling for payment of damages amounting to Baht 1,000 million (later amended to Baht 4,900 million), which
PTT Plc and Thai Petroleum Pipeline Co., Ltd., decided to contest. The plaintiffs withdrew their petition to the
institute on January 10, 2003, and instead filed a complaint to the Administrative Court, accusing PTT Plc and
its officers for illegally laying the Chon Buri - Sara Buri oil pipeline through their land. Citing abuse of admin-
istrative authority, the plaintiffs said their damages amounted to Baht 7,122.5 million. PTT Plc asked the
Office of the Attorney General to submit its testimony in contesting the case, which the public prosecutor duly
did in March 2003. The Central Administrative Court forwarded the case to the Constitutional Court in No-
vember 2004 for a decision whether the Petroleum Authority of Thailand Act B.E. 2551 (Section 29 and 30)
had violated the Constitution (Section 48 and 49). Since the Constitutional Court ruled that the above
mentioned act had not violated the constitution, the Administrative Court gave its verdict on November 2,
2007, rejecting this case. At any rate, the plaintiffs appealed to the Supreme Administrative Court, which is
currently deliberating the case.
Management’s Discussion
and Analysis of Financial Status
and Performance

61
PTT and its subsidiaries’ performance
Unit: Million Baht
Increase
2008 2007 %
(Decrease)
Sales and services 2,000,816 1,508,129 492,687 32.7
Earning before interest, tax, depreciation 156,133 145,971 10,162 7.0
and amortization (EBITDA)
Gain (loss) on disposal of investments (1) 8,428 (8,429) (100.0)
Share of net income (loss) from investments (6,251) 31,080 (37,331) (120.1)
under the equity method
Gain (loss) on foreign exchange (1,982) 5,392 (7,375) (136.8)
Earning before interest and tax (EBIT) 123,963 117,132 6,831 5.8
Income taxes 43,348 42,224 1,124 2.7
Net income 51,705 97,804 (46,099) (47.1)

PTT and its subsidiaries’ revenue in 2008 was Baht 2,000,816 million, increased by 32.7% from 2007.
Earning before interest, tax, depreciation and amortization (EBITDA) was Baht 156,133 million, increased by
7.0% from 2007 due to the increase in sales volume and sales prices of oil, natural gas and gas separation
plants’ products. However, share of net loss from investments under the equity method in 2008 was Baht
6,251 million, loss increased by 120.1% when compared to share of net income from investments under the
equity method in 2007 of Baht 31,081 million. Share of net loss from investments under the equity method in
2008 resulted mainly from the declining performance of refining affiliates due to the decrease in gross
refining margin, high stock loss and the increase in inventory loss from significant drop in feedstock and
product market prices when compared to cost but the increase in share of net income from Petrochemical
affiliates due mainly to the change of status of PTT Chemical Public Co., Ltd. (PTTCH) and PTT Phenol
(PPCL) from subsidiaries of PTT to associates since the forth quarter of 2007 while declining performance of
Olefins Associate due to the increase in feedstock costs, processing cost and selling and
administrative expenses, the report of inventory loss in the third and forth quarter of 2008 and the decrease
in production volume from its commercial and de-bottlenecking shutdowns. In addition, PTT and its
subsidiaries recorded loss on foreign exchange of Baht 1,982 million while there was gain on foreign
exchange of Baht 5,392 million in 2007 or loss increased by 137%. As a result, PTT and its subsidiaries’ net
income in 2008 was Baht 51,705 million, decreased by Baht 46,099 million or 47.1% from last year.
Unit: Million Baht
Increase
Annual Report 2008
2008 2007 %
(Decrease)
Sales and Services 2,000,816 1,508,129 492,687 32.7

: Gas 2/ 312,822 267,408 45,414 17.0
: PTTEP 136,752 94,059 42,693 45.4
62
: Oil 1/ 1,701,674 1,226,718 474,956 38.7

3/
: Petrochemical 36,255 70,749 (34,494) (48.8)
: Others 4/ - - - -
: Elimination (186,687) (150,805) 35,882 23.8
EBITDA 156,133 145,971 10,162 7.0
2/
: Gas 54,437 53,232 1,205 2.3
: PTTEP 97,760 66,849 30,911 46.2
1/
: Oil 5,040 8,181 (3,141) (38.4)
: Petrochemical 3/ 695 19,751 (19,056) (96.5)
4/
: Others (2,081) (2,044) (37) (1.8)
: Elimination 282 2 280 15,039.8
EBIT 123,963 117,132 6,831 5.8
: Gas 2/ 48,309 48,225 84 0.2
: PTTEP 74,643 50,490 24,153 47.8
: Oil 1/ 2,586 5,692 (3,106) (54.6)
3/
: Petrochemical 548 16,979 (16,431) (96.8)
: Others 4/ (2,406) (2,389) (17) (0.7)
: Elimination 283 (1,865) 2,148 115.2
Net income 51,705 97,804 (46,099) (47.1)
5/
EPS (Baht/share) 18.33 34.82 (16.49) (47.4)
Note: 1/ Including the consolidation of oil marketing business, international trading business, PTT International Trading Pte., Ltd.(PTTT),
PTT (Cambodia) Co., Ltd. (PTTCL), Retail Business Alliance Co., Ltd.(RBA) and Subic Bay Energy Co., Ltd. (SBECL) while PTT Retail
Business Co., Ltd. (PTTRB) and PTT Green Energy Pte. Ltd. (PTTGE) are consolidated since May 25, 2007 and November 9, 2007
respectively.
2/ Including the proportionate consolidation of Trans Thai-Malaysia (Thailand) Co., Ltd.(TTM (T)), Trans Thai-Malaysia (Malaysia)
Co., Ltd. (TTM (M)) and District Cooling System and Power Plant Co., Ltd. (DCAP) and consolidation of PTT Natural Gas Distribution
Co., Ltd. (PTT NGD) and PTT LNG Co., Ltd (PTT LNG) while consolidated PTT Utility Co., Ltd. (PTTUT) until November 9, 2007.
Moreover, Combined Heat and Power Producing Company Limited (CHPP) and PTT International Company Limited (PTT INTER) have
been included since August 27, 2007 and October 1, 2007 respectively.
3/ Including the consolidation of PTT Polymer Marketing Co., Ltd. (PTTPM), PTT Polymer Logistics Co., Ltd. (PTTPL) and proportionate
consolidation of PTT Asahi Chemical Co., Ltd. (PTTAC) and HMC Polymers Co.,Ltd. (HMC). PTT Chemical Public Co., Ltd. (PTTCH)
and PTT Phenol Co., Ltd. (PPCL) are consolidated until November 9, 2007.
4/ Including the consolidation of Energy Complex Co., Ltd. (EnCo) and Business Services Alliance Co., Ltd. (BSA) since December 12,
2008 while including PTT ICT Solutions Co., Ltd. (PTTICT) until November 9, 2007.
5/ Basic earnings per share is calculated by dividing net income attributable to ordinary shareholders by the weighted average number
of ordinary shares which are held by third parties during the period.

Natural Gas Business

For 2008, sales revenue from gas business was Baht 312,822 million, an increase by Baht 45,414
million or 17.0% from the year 2007 due to the followings:
- The increase in average natural gas sales volume (include natural gasoline derived from Dew Point
Control Units) by 171 MMcf/d or 5.2% from 3,272 MMcf/d to 3,444 MMcf/d (calculated at heating value 1,000
BTU per cubic feet) due to the increase in gas demand from all group of customers; the power producers, the
industrial customers and the gas separation plants (GSPs). This resulted from the increase in natural gas
demand and the increase in gas transmission’s capacity from the completion of the third pipeline system -
63
offshore from Arthit field to PTT Riser Platform (PRP) and from Arthit field to A-18 Block which started the
natural gas distribution in the first and the forth quarter of 2008, respectively.
- The increase in GSPs’ products (LPG, Ethane, Propane, and NGL) sales volume from 3,944,103 tons
in 2007 to 4,065,913 tons in 2008 or 3.1% resulted from the higher supply of gas feedstock to GSPs and
higher demand of GSPs’ products, especially the domestic demand of LPG from transportation sector. Hence,
there were GSP’ planned shut down and the commercial plant shutdown and the de-bottlenecking shutdown
of PTTCH, the GSP’s major customer. Details of all products sales from gas separation plants are as follows:
Difference
Units : Tons 2008 2007
Tons %
LPG 2,383,649 2,252,953 130,696 5.8
Ethane 968,335 928,917 39,418 4.2
Propane 179,909 241,296 (61,387) (25.4)
NGL 534,020 520,937 13,083 2.5
Total 4,065,913 3,944,103 121,810 3.1

The details of reference products prices for calculation of products from gas separation plants’ sales
prices in 2008 were higher than the 2007’s which resulted from the increase in oil price and demand/supply
situation of the industry.
Difference
Units : US$ / Tons 2008 2007
US$ / Tons %
LPG 1/ 777 608 169 27. 8
Ethylene 2/ 1,193 1,180 13 1.1
Propylene 2/ 1,320 1,154 166 14.4
High Density Polyethylene (HDPE) 2/ 1,476 1,352 124 9.2

2/
Polypropylene (PP) 1,471 1,331 140 10.5
Naphtha 3/ 740 625 115 18.3
Note: 1/ Domestic LPG price is being regulated by the government. Since March 2008, The Commitee on Energy Policy Administration had
fixed the LPG price at the refinery (the price level where GSP is allowed to sell) between $ 314-332 per ton (Baht 10.996 per kilogram)
at the exchange rate of Baht 33-35 per dollar.
2/ South East Asia Spot Price (spot)
3/ MOP Singapore (MOP’S)
Annual Report 2008
EBITDA of gas business in 2008 was Baht 54,437 million, an increase by Baht 1,205 million or 2.3%
due to the increase in sales prices and sales volume of natural gas and GSPs’ products.
Earning before interest and tax (EBIT) in 2008 was Baht 48,309 million, an increase by Baht 84 million
or 0.2% from the year 2007 due to the increase in EBITDA while the depreciation and amortization also
increased after the completion of the third pipeline, both onshore and offshore, and the SCADA system at the
64
end of 2007.
Petroleum Exploration and Production business:

PTT Exploration and Production Public Co., Ltd. (PTTEP)
In 2008, PTT Exploration and Production Public Co., Ltd. (PTTEP) net sales revenue was Baht 136,752
million, increased by Baht 42,693 million or 45.4% from last year due to
(1) The increase in the average sales price by 24.9% from US$ 39.8 per BOE in 2007 to US$ 49.7 BOE
in 2008 in accordance with the higher oil price in global market. However, the average exchange rate
decreased 4.4% from Baht 34.8 per US$ in 2007 to Baht 33.3 per US$ in 2008 as a result of Baht appreciation.
(2) The increase in the sales volume by 22.0% from 179,767 BOED in 2007 to 219,314 BOED in 2008.
The increasing sales volume mainly came from sales of natural gas and condensate from Arthit Project, sales
of natural gas and crude oil from G 4/43 Project and Vietnam 9-2 Project which started their commercial
production this year and sales volume of natural gas and condensate from Oman 44 Project although natural
gas sales from Yadana and Yetagun projects and natural gas and crude oil sales from B8/32&9A Project
decreased.
EBITDA in 2008 was Baht 97,760 million, increased by Baht 30,911 million or 46.2%. EBIT in 2008 was
Baht 74,643 million, increased from Baht 24,153 million or 47.8% from the same period of last year. This
resulted from the increase in selling price and sales volume as aforementioned although, in this period, there
was an increase in exploration expenses amounting to Baht 8,273 million, increased by Baht 4,730 million as
a result of the write-off of dry wells of Vietnam 16-1 Project, Algeria 433a&416b Project, and projects in
Myanmar as well as geology and geophysics study costs from the A4, 5 & 6/48, L21, 28 & 29/48 projects and
projects in Myanmar and write-off of B13/38 project. In addition, Petroleum royalties and remuneration
increased by Baht 4,799 million in according to the increase in sales revenue while depreciation and
amortization increased by Baht 6,758 million, resulted mainly from the Arthit, G4/43 projects and Vietnam
9-2 project, as well as, the increase in the ready-to-use assets of Pailin B8/32&9A and Bongkot Project.
Downstream Petroleum Business Group
Oil Business and International Trading Business
For the year 2008, sales revenue from oil and trading business units was Baht 1,701,674 million, an
increase by Baht 474,956 million or 38.7% due to the fact that an average oil price in 2008 is higher than that
in 2007. This resulted from the increase in global oil prices (2007 average Dubai price was US$ 68.3 per
barrel and 2008 average Dubai price was US$ 93.4 per barrel), however, there was a sharp decline in oil
prices starting from the middle of the third quarter of 2008 onwards (The Dubai price hit the highest level of
US$ 140.8 per barrel in the third quarter of 2008 and sharply drop to US$ 36.4 per barrel at the end of 2008).
Sales volume also increased by 8,106 million liters or 12.4% from 65,146 million liters or equivalent to 1,122,654
barrels per day in 2007 to 73,252 million liters or equivalent to 1,261,412 barrels per day in 2008 resulted from
both Oil Business and Trading Business Units.
EBITDA decreased by Baht 3,141 million from Baht 8,181 million in 2007 to Baht 5,040 million in 2008
or 38.4%. This was due primarily to the decrease in gross margin per unit of domestic sales mainly from high
stock loss.
EBIT in 2008 decreased by Baht 3,106 million from 2007 or 54.6% due to the decrease in EBITDA as
mentioned and the increase in depreciation.

Petrochemical and Refining Business
The Petrochemical Business Unit consists of PTT Polymer marketing Co., Ltd (PTTPM), PTT Asahi
Chemicals Co., Ltd (PTTAC), HMC Polymers CO., Ltd (HMC) and PTT Polymer Logistics Co., Ltd (PTTPL). In
2008, sales revenue was Baht 36,255 million, decreased by Baht 34,494 million or 48.8%. EBITDA was Baht
695 million, a decrease by Baht 19,056 million or 96.5% and EBIT was Baht 548 million, a decrease by Baht
16,431 million or 96.8%. These resulted mainly from the change of status of PTTCH and PPCL from
subsidiaries of PTT to associates since the forth quarter of 2007.
65
Net Income: 2008 net income decreased from 2007 net income
by Baht 46,099 million or 47.1%
Net income of PTT and its subsidiaries in 2008 was Baht 51,705 million or Baht 18.33 per share,
decreased from that of 2007 by Baht 46,099 million or 47.1% due to the performance of each business as
mentioned, including the following reasons:
: PTT had gain on disposal investments amounting to Baht 8,428 million in 2007 while recorded loss
on disposal investments amounting to Baht 1 million in 2008.
: In 2008 PTT recorded share of net loss from investments under the equity method amounting to
Baht 6,251 million, decreased from the year 2007 which had share of net income from investment under the
equity method of Baht 31,080 million by Baht 37,331 million or 120.1%, due mainly to:
- The declining performance of refining associates. Crude oil price increased in the first half of 2008
while crude oil prices continuously decreased in the second half of 2008 due to the economic slow down
resulted from Sub Prime Mortgage crisis and led to high inventory loss from a significant drop in feedstock
and product market price when compared to the cost. Moreover, aromatic’s product-to-feed margin also
decreased significantly due to the slight increase in average product prices, while the large increase in
average feedstock prices due to global economic crisis which caused a dramatic decrease in demand of the
refined products in the aromatics business. In addition, in the year 2008, Thai Paraxylene Co., Ltd. (TPX),
TOP’s subsidiary, had shutdown its Paraxylene unit for major turnaround maintenance and capacity expan-
sion, TOP had shutdown its Crude Distillation Unit#1 (CDU-1) in the third quarter of 2008 and TPX’s Tatoray
unit, the conversion of the aromatics to mixed-Xylene and Benzene, had shutdown in the forth quarter of 2008
as the product prices dropped sharply according to oil prices and sluggish demands from polyester sector.
For PTTAR, it had a mini shutdown for maintenance and replace the catalyst for 32 days as well as
emergency shutdown of maintenance of the heat exchanger at the Hydrocracking Unit (HCU) and catalyst
change in the Hydrodesulferizer Unit for 29 days and ran as the simple refinery for 50 days. SPRC also had
planned shutdown for maintenance for 49 days as aforementioned.
- The increase in the share of net income from investments under equity method of the petrochemical
associates. This resulted mainly from the change of status of PTTCH and PPCL from subsidiaries of PTT to
associates since the forth quarter of 2007 while their performance decreased due mainly to the decrease in
Product-to-Feed margin from the increase in feedstock costs, processing cost and selling and administrative
expenses. In addition, there was high stock loss from sharp declining of crude and refined product prices
and plant shutdown. There were commercial plant shutdowns of PTTCH’s Oleflex Unit of Olefins I1 Plant for
42 days, Olefins I4-1 plant for 12 days, HDPE (Olefins I-1’s plant) for 10 days in the first quarter of 2008, BPE,
PTTCH’s subsidiary, planned shutdown for 30 days in the third quarter of 2008 and PTTCH’s commercial
shutdowns and De-bottlenecking shutdown in the forth quarter of 2008 as aforementioned.
Details of share of net income from investments under equity method are as follows:
Difference
Units : Tons 2008 2007
Inc./decrease %
Refining associates (11,695) 28,006* (39,701) (141.8)
Petrochemical associates 5,661 2,651 3,010 113.5
Oil associates 363 55 308 560.0

Annual Report 2008
Gas associates - - -
Other associates (580) 368 (948) (257.6)
Total (6,251) 31,080 (37,331) (120.1)
Note: *Share of net income from Aromatics (Thailand) Public Co., Ltd. in 2007 is re-categorized under Refining associates
66
: Gain on foreign exchange decreased by Baht 7,375 million or 136.8% from gain on foreign exchange
amounting to Baht 5,392 million in 2007 to loss on foreign exchange amounting to Baht 1,982 million in 2008,
resulted from the weaken of Thai Baht.
: Income taxes increased from Baht 42,224 million in 2007 to Baht 43,348 million in 2008 due to the
increase in PTT and its subsidiaries’ operating income.
The Analysis of PTT and its subsidiaries’ consolidated Financial status

at the end of the year 2008 compared to the end of the year 2007
During 2008 there were changes in PTT’s affiliates’ structure, the acquisition and the establishment of
subsidiaries, therefore, balance sheets of PTT and its subsidiaries for the year ended Decebmer 31, 2008 in
PTTEP, PTTCL, SBECL, RBA, PTTT, PTTNGD, PTTLNG, PTTPM, Enco, PTTPL, PTTRB, CHPP, PTT INTER,
PTTGE, and BSA as the subsidiaries and included TTM(T), TTM(M), DCAP, PTTAC and HMC as the joint
ventures under the proportionate consolidated method.
Financial position of PTT and its subsidiaries as at December 31, 2008, compared with December 31,
2007, is as follows:
Unit: Million Baht
Consolidated Financial Statement
Dec. 31, 2008 Dec. 31, 2007 Inc./ (Dec.) %

Assets
Currently assets 243,196 314,818 (71,622) (22.7)
Investments in subsidiaries, jointly 187,071 193,122 (6,051) (3.1)
controlled entities and associates,
and long-term investments
Property, plant and equipment, net 375,755 315,143 60,612 19.2
Non-current assets 79,183 68,441 10,742 15.7
Total Assets 885,205 891,524 (6,319) (0.7%)

Liabilities
Current liabilities 169,271 235,160 (65,889) (28.0)
Loans and current portion of long term loans 239,138 220,999 18,139 8.2
Non-current liabilities 46,260 36,713 9,547 26.0
Total Liabilities 454,669 492,872 (38,203) (7.7)
Shareholders’ equity
67
Shareholder’s equity 383,579 361,497 22,082 6.1
Minority interests 46,957 37,155 9,802 26.4
Total shareholders’ equity 430,536 398,652 31,884 8.0
Total liabilities and shareholders’ equity 885,205 891,524 (6,319) (0.7)
Assets
Total assets as at December 31, 2008, were Baht 885,205 million, decreased by Baht 6,319 million or
0.7% from the end of 2007. Current assets decreased by Baht 71,622 million or 22.7% resulted mainly from
the decrease in trade accounts and notes receivable by Baht 95,779 million. However, there was an increase
in cash and cash equivalents by Baht 15,860 million and the increase in refund receivable from the Oil
Stabilization Fund (Other current assets) by Baht 7,107 million from the government due to spread between
LPG imported price and the controlled domestic selling price.
Investments in subsidiaries, jointly controlled entities, associates, and long-term investments decreased
by Baht 6,051 million or 3.1% resulted from share of net loss from its associates amounting to Baht 6,251
million adjusted by dividends from its subsidiaries, jointly controlled entities and associates amounting to
Baht 17,356 million, the recognition of outstanding negative goodwill of Baht 5,802 million remaining from
December 31, 2007 amounting to Baht 5,345 million in accordance with the Thai Accounting Standard No. 43
(revised 2007) “Business Combinations”. In 2008, PTT recognized negative goodwill of IRPC amounting to
Baht 457 million from the purchase of IRPC shares from third parties in the Stock Exchange of Thailand in an
amount of Baht 5,489 million which resulted in PTT’s shareholding percentage in IRPC increased from 31.50%
to 36.77%, and the capital increase in PPCL amounting to Baht 1,476 million. In addition, PTT invested in
Finansa Asset Management - Energy and Petrochemical Index Fund (FAM-EPIF) in an amount of Baht 5,050
million in 2008.
Property, plant and equipment increased by Baht 60,612 million or 19.2% resulted mainly from the
transfer of land in Maptaphut for the construction of petrochemical industry, the increase in assets under
construction from the gas separation plant unit#6 project, the Arthit-north gas pipeline project, the natural
gas for vehicle (NGV) project and the Ethane separation plant project and the increase in petroleum
exploration and production assets (oil and gas properties for production) by Baht 24,321 million, mainly from
Malaysia-Thailand Joint Development Area, Arthit, Pailin, Bongkot B8/32&9A projects.
Non-current assets increased by Baht 10,742 million or 15.7% due to the increase in the advance
payment for gas purchased amounting to Baht 11,354 million. In 2008, there was an advance payment for
gas purchased from Malaysia-Thailand Joint Development Area (JDA) Block A-18 in Malaysia in an amount
of Baht 13,716 million for irrespective of take-up gas during 2007-2008. Meanwhile, PTT had make-up right
from Yadana and Yetagun gas field amounting to Baht 2,362 million.
Liabilities
Total liabilities were Baht 454,669 million, decreased by Baht 38,203 million or 7.7% from the end of
the year 2007, resulted from the decrease in current liabilities by Baht 65,889 million or 28.0% due mainly to
the decrease in trade accounts payable by Baht 73,571 million from the payment of the imported crude oil
payable due in this period while short-term loans increased by Baht 3,192 million due mainly to PTTEP’s bills
of exchange issuance for offering to general investors and financial institutional investors, the increase in
bank overdrafts and short-term loans from financial institution by Baht 1,267 million for using as working
Annual Report 2008
capital.
Non-current liabilities increased by Baht 9,547 million due mainly to the increase in the estimation in
decommissioning cost of production equipment and deferred tax liabilities.
Shareholders’ Equity
Total shareholders’ equity as at December 31, 2008 were Baht 430,536 million, increased from the
68
2007 by Baht 31,884 million or 8.0% due to the following:

: Un-appropriated retained earnings increased by Baht 21,765 million which resulted from PTT and its
subsidiaries’ net profit of Baht 51,705 million and accumulated effect of the changes in accounting policy in
accordance with the Thai Accounting Standard No. 43 (revised 2007) “Business Combinations” in an amount
of Baht 5,345 million resulted from the adoption of the Thai Accounting Standard No. 43 (revised 2007)
“Business Combinations” that is effective for accounting periods beginning on or after January 1, 2008. For
the negative goodwill, in accordance with this standard, PTT, the buyer, must assess the seller’s
identification and measurement of assets and liabilities and identifiable contingent liabilities including the
exceed reassessment of carrying value in business combination, when buyer’s equity net fair value of the
cost at acquisition date, the differences will be recognized as revenue in statement of income. Therefore, PTT
has adopted this standard since January 1, 2008, with the prospective requirements. The carry forward of
retained earnings as at January 1, 2008 was adjusted. However, shareholders’ equity decreased form
dividend payment Baht 35,250 million.
: PTT increased its share capital from the exercise of warrants under Employee Stock Option Program
(ESOP) of directors, management, its employees and its affiliates’ employees causing an increase in issued
and paid-up share capital in an amount of Baht 66.685 million (6,668,500 shares) and increase in premium
on ordinary shares of Baht 1,177.72 million. As a results, as at December 31, 2008, the number of
unexercised warrants is 33.19 million units, which consists of Warrant-1 issued and offered on September 1,
2005 of 16.54 million units (last exercise date: August 31, 2010) and Warrant-2 issued and offered on Sep-
tember 29, 2006 of 16.65 million units (last exercise date: September 28, 2011).
: Surplus on dilution of investments in subsidiaries and associates increased by Baht 11 million while
there was currency translation differences increased by Baht 96 million and unrealized loss on available-for-
sale securities decreased by Baht 274 million.
Minority interests increased Baht 9,802 million or 26.4% due mainly to better performance in 2008.
Liquidity
For twelve-month period ended December 31, 2008, net increase in cash and cash equivalents of PTT
and its subsidiaries was Baht 15,861 million while cash and cash equivalents at the beginning of the period
was Baht 74,958 million, which resulted in cash and cash equivalents at the end of the period was Baht
90,819 million. Details of cash flow by activities are as follows:
Amount (Million Baht)

Net cash provided by operating activities 126,060
Net cash used in investing activities (74,748)
Net cash used in financing activities (35,462)
Effects of exchange rates on cash and cash equivalents 211
Currency translation differences (200)
Net decrease in cash and cash equivalents in 2008 15,861
Cash and cash equivalents at beginning of the period 74,958

Cash and cash equivalents at end of the period 90,819
In summary, PTT and its subsidiaries’ financial status are strong, evidenced through liquidities, debt to
equity ratios, returns on equity, etc.
Major Future Projects

PTT investment and joint venting plans on upstream petroleum and natural gas business have been
aligned with the demand growth for gas, economic expansion, and power generation development plant.
69
As natural gas is largely used for the power generation, industrial production, and transportation sec-
tors, including GSPs, PTT had to secure more gas sources from both domestic and international to feed the
increasing demand. PTT has invested in the construction of natural gas infrastructure to support more gas
procurement and imports. The following is undergoing projects:
1. The investment in the LNG receiving terminal construction in Rayong to receive LNG import
2. The investment in expanded natural gas pipeline network which are- the forth onshore pipeline - the
connecting offshore pipeline.
PTT has also invested in increasing the number of NGV service stations. It will also construct an ethane
cracker plant, 6 GSP, and a Phenol production plant, which is the co-investment project with Asahi Kasei
Chemicals Co., and Marubeni Co., Ltd. to produce AN and MA.
These projects will increase more values in Natural gas resource, maximize its usefulness, and create
more benefits throughout business value chain.
To be able to compete in a must more competitive market in the future, when petroleum business will
have reached its peak and the market will move toward other alternative energy supplies in power generating;
therefore, PTT has expanded its domestic and oversea investment in alternative fuels. For example, PTT has
invested in power generation business, palm oil business, and other related business in Asia in accordance
with PTT business strategies and directions focusing on a continuous and sustained growth for the energy
security of country and supporting PTT s vision of being Thai Premier Multinational Energy Company.
Line
Connected Transactions
Annual Report 2008
72
PTT’s connected transactions resulted from the following contractual agreements:
(1) Transactions between PTT and state enterprises

Transaction
By the resolution of the Cabinet dated November 26, 2002, government agencies and state enter-
prises buying 10,000 liters of fuel and more must do so from either PTT or Bangchak Petroleum Plc only. PTT
sold fuels to the following state enterprises: Electricity Generating Authority of Thailand, Bangkok Mass
Transit Authority, and State Railway of Thailand. Should a state enterprise owe PTT outstanding payments,
the Company can levy interests.
(2) Transactions between PTT and subsidiary PTTEP Plc

Transaction
PTTEP and The 4 products that were produced and sold by subsidiaries consist of crude oil, natural
gas, LPG, and condensate. For 2008, PTT was the virtual sole buyer of these, accounting for 87.30% by
volume. As regards natural gas, the two reached a long-term (25-30 years) deal, stipulating annual contrac-
tual quantities. Both companies were engaged in crude oil and condensate agreements, based on the world
market prices of crude oil grades with comparable qualities to best reflect the values of its products against
the market.
(3) Transactions between PTT and affiliated refining companies
Transaction
PTT signed crude oil and product supply agreements with its affiliated refining companies at rates
corresponding to its own equity interests, summarized below.
Agreement with Thai Oil Plc (TOP)

PTT contractually takes delivery of crude oil and products equivalent to 49.99% of TOP’s refining
capacity at market prices. Through a written notice sent at least 12 months in advance, either party may
revoke this agreement from the 13th year from the date of completion of its refinancing (from April 19, 2013).
Alternatively, either party may revoke the contract if it deems the contract violated. Under the contract, PTT
may buy more than 49.99% at market prices.
PTT secures crude oil for TOP under the Phet crude sales agreement, in effect since 1985, which
spans the life of the field, and that from other domestic sources under one-year agreements with possible
annual extensions.
Agreement with PTT Aromatics and Refining Plc (PTTAR)

Listed on the Stock Exchange of Thailand (SET) on December 27, 2007, PTTAR resulted from the

amalgamation between Aromatics (Thailand) Plc (ATC) and Rayong Refinery Plc (RRC). By law, as of
December 31, 2007, PTTAR inherited the properties, liabilities, privileges, obligations, and responsibilities of
both companies. The contracts between PTT and PTTAR consisted of the following:
Refining business:
PTT secures crude oil for PTTAR under an interim crude supply agreement, effective from February 9,
2006, to the effective termination date of the operating alliance on February 9, 2009, and an 18-year
feedstock supply agreement effective from the termination date of the agreement to February 9, 2024.
73
Under these agreements, PTT would secure crude oil and all other feedstock for PTTAR for the grades and
volumes needed by PTTAR at market prices.
PTT buys refined products from RRC at no less than 70% of the latter’s refined products at domestic
market prices under an 18-year agreement from February 9, 2006, beyond which the contract is assumed to
remain valid unless otherwise notified in advance.
The Company signed a New Complex Product Offtake Agreement with PTTAR, effective from
February 9, 2006, whereby PTT would buy from PTTAR all the products derived from the Upgrading
Complex. At least half of these products will be based on domestic market prices.
PTT signed a gas supply agreement with PTTAR for use in refined-product processing and another
one for use in power generation, which is due to expire in 2018.
PTT supplies condensate for PTTAR’s production process under a 20-year agreement, effective from
1997, whereby the annual volume was 4.6-6.1 million tons/year.
Aromatics business:
PTT also signed a 10-year gas supply agreement with PTTAR for use in fueling the latter’s aromatics
processes. The 10-year agreement to supply natural gas to Aromatics Plant Unit 1 (AR2) is due to expire in
June 2015; the agreement to supply the gas to Unit 2 (AR3), in June 2018.
PTT concluded long-term supply agreements for all the core products of PTTAR, which directly
supplies such products to customers. These agreements are take-or-pay, whereby PTT guarantees
minimum sales volumes for products and obtains marketing fees from PTTAR. Note that these agreements
specify the offtake volumes guaranteed by PTT, but not to guarantee distribution for the surplus volumes
beyond take-or-pay. PTT has another product distribution agreement with PTTAR, namely that for
condensate residue, light naphtha, and LPG, whereby PTTAR would directly supply these to PTT’s
customers. For the first two products, the agreement covered 15 years, and for LPG, 10 years, effective from
1997 under an evergreen condition after 2007, that is, the agreement would be regarded as automatically
extended unless otherwise notified in advance.
Agreement with Star Petroleum Refining Co., Ltd. (SPRC)
Shareholders of SPRC are required to secure crude oil and take delivery of products from SPRC at no
less than 70% of its 126,000-bbl/d capacity (or 88,200 bbl/d) at domestic market prices. For any surplus
volume, PTT and Chevron (Thai) Co., Ltd. as shareholders have the first right of refusal to buy at domestic
market prices before any sale to a third party.
Agreement with Bangchak Petroleum Plc (BCP)

PTT secures crude oil for BCP under a feedstock supply agreement, effective May 16, 2006, for a
period of 12 years from the commercial operation date of the Product Quality Improvement Project. PTT
procures all the crude oil for BCP at market prices.
On May 16, 2003, PTT concluded a 12-year product offtake agreement with BCP, with effect from the
commercial operation date of the Product Quality Improvement project, after which PTT would buy at least
30% of BCP’s monthly output of gasoline and diesel at market prices.
On February 25, 2008, both companies signed a power purchase agreement, whereby PTT agreed to
invest in a steam and electricity plant with 90 tons per hour and 19.7 megawatts in capacity for sale to BCP.
This power plant is due for commercial operation in the middle of 2009.
(4) Transactions between PTT and affiliates in the petrochemical business group
Transactions and agreement with PTT Chemical Plc (PTTCH)
Annual Report 2008
PTT Chemical resulted from the merger on December 7, 2005 between Thai Olefins Plc (TOC) and
National Petrochemical Plc (NPC) under the Public Company Limited Act B.E. 2535 of 1992. The new com-
pany assumed all the assets, liabilities, privileges, obligations, and responsibilities of the two, and all con-
tractual obligations binding TOC and NPC with PTT.
PTT secures feedstock for PTTCH’s production processes, namely natural gas and LPG under a 15-
year agreement, effective from 1995, extendable for five years.
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In 1999, ATC transferred to PTT its privileges and obligations under a 15-year light naphtha and
raffinate supply agreement with PTTCH.
PTT concluded another supply agreement with PTTCH for feedstock and natural gas, effective from
1999 for 12 years (extendable for five years) for the feedstock, and for 20 years (extendable for four years) for
the gas.
In 2001, PTT signed a 15-year ethane supply agreement with PTTCH, effective from August 1, 2005
(extendable for five years).
In 2004, PTT concluded an LPG and NGL supply agreement with PTTCH, whereby PTT would supply
an additional 13,000 tons/month of LPG and 380,000-470,000 tons/year of NGL as feedstock for the olefins
capacity expansion project managed by PTTCH, which was due to complete the upgrading in 2007.
Also, in 2006, PTT entered into a 15-year ethane feedstock supply agreement with PTT Polyethylene
Co., Ltd., a subsidiary of PTTCH, effective from its start-up date projected for the third quarter of 2009 whereby
the price of ethane varies with that of film-grade HDPE in Southeast Asian markets.
In 2008, PTT amended its agreement for supplying ethane, propane, and LPG with PTTCH, with effect
from August 1, 2009, for a period of 15 years with each extension of five years. Under the agreement, the
price structure of the ethane feedstock varies with that of film-grade HDPE in Southeast Asian markets
reflecting the entire petrochemical chain and the HDPE market, produced by PTTCH since 2004. Similarly,
the price structures of propane and LPG vary with that of film-grade PP.
Transactions and agreement with HMC Polymers Co., Ltd. (HMC)
PTT concluded a feedstock supply agreement with HMC. A long-term propane feedstock supply
agreement spans 15 years from 2009, with five-year extension at a time, under which the price of propane
varies with that of PP (film grade) in Southeast Asian markets.
Transactions and agreement with PTT Asahi Co., Ltd. (PTTAC)

PTT signed a 15-year propane supply agreement with PTTAC for its feedstock, with effect from the
plant commissioning date planned for the fourth quarter of 2010, with five-year extension each time. The
price structure varies with that of film-grade PP in Southeast Asian markets.
Policy on future connected transactions
These will be conducted as part of the normal course of business with no special favors and no
transfer of benefits between PTT, its subsidiaries, related associated companies, or shareholders. Pricing
will continue to be on an arm’s length basis, and the prices of products supplied by PTT’s subsidiaries
will be market-based.

Disclosure of connected transactions will follow the announcement of the Securities and
Exchange Commission (SEC) and the Stock Exchange of Thailand (SET), and the accounting standard
on disclosure of information on related parties or businesses, announced by the Federation of
Accounting Profession.
Review Business Assets
75
As of December 31, 2008, the core assets used by PTT and its subsidiaries in conducting their
businesses consisted of properties, plants, and equipment with a net value after depreciation and allowance
for impairment of Baht 375.755 million and intangible assets with a net value after deduction of accumulated
depreciation of Baht 20.481 million. Details appear in the notes to financial statements for PTT and its
subsidiaries, year ended December 31, 2008, item 13 (net property, plant and equipment) and item 14 (net
intangible assets). These included the land, land rights, pipelines, and associated equipment making
up transmission pipeline systems surrendered to the Ministry of Finance in the wake of the Supreme
Administrative Court Verdict. (Details appear in Compliance with the Supreme Administrative Court Verdict)
Risk Factors
Annual Report 2008
Implementing its continued risk management efforts, PTT managed its risk factors reasonably well in
76
the past year. New risk factors have been identified and managed under the current year’s risk management
plan. Therefore, PTT continues to improve this Risk Factors section to better reflect risks apparent to
investors. The main risk factors are described below.
1. Strategic Risks
1.1. Business strategy implementation
To preserve continuous business growth while fostering energy security, PTT has set a goal of becoming
a leading energy company among the top 100 companies in sales worldwide by the year 2012 as ranked by
Fortune Magazine, as well as its international-business goals. Therefore, strategic plans have been defined
by each business unit with a focus on preserving its competitiveness, investment expansion to supplement
business value, internationalization of business through investment in properties, mergers and acquisitions
of entities that are capable to competing but are faced with problems during the ongoing crisis, and
investment in new, related businesses.
The fierce competition and repercussions of the global economic slowdown could produce the risk
that PTT would be unable to attain these goals and business strategies resulting from the likes of energy
demand uncertainty, product price fluctuation, investment risks resulting from overseas investment and in
new businesses. These could impact PTT’s overall performance and return on investment alike.
To cope with this, the Company has initiated a so-called Strategic Thinking Session among Senior
Executives of PTT Group to define and review the vision, direction, and business strategies in line with
economic and energy circumstances, and a business plan in the form of scenario planning, in which
assumptions were made for different economic growth figures and oil prices and for PTT to have plans for
future changes and uncertainty. In addition, at least every quarter, Senior Executives of the Group meet to
monitor Group performance and exchange views on adjusting business plans and short-term strategies to
ensure confidence in reaching such goals.
1.2. Management of PTT Group
To date, PTT has undertaken business group management restructuring, mergers and acquisitions,
joint venturing in companies, domestic and international business expansion, and foster competitive
advantages and the synergy of PTT Group. As a result, the management of PTT affiliates has become so
complicated that, without effective and efficient management, the Company and its affiliates might apply
inconsistent strategies and end up competing among themselves because of conflicts of interest, thus
compromising its own overall business performance.
The Company has therefore focused on the management of PTT Group while being committed to
good corporate governance; PTT executives have been appointed Presidents or Senior Executives of
affiliates for consistency in policies, business directions, and strategies, and closer supervision of business
expansion. Further, executives of PTT Group have jointly taken part in drafting a master strategic plan as a
framework for developing individual business plans. And to this end, CEO meetings have been regularly held
for Senior Executives of PTT Group to supervise overall management and monitor overall results to ensure
compliance with the policy of PTT Group.
1.3. Personnel management system in support of business operation under
economic uncertainty and business growth opportunities
Likened to a chain, PTT’s business diversity and international investment expansion produce consi-
derable complexity for the management of the Group. Compounded by the downturn in the global economy,

which has an effect to market demand and related products’ prices. This could disrupt its business unless its
personnel are adequately prepared to cope with the economic crisis and business base expansion.
To mitigate such personnel risks, PTT has relied on two career management mechanisms. First, for the
management group, the PTT Group format is applied under the care of an executive and management
development committee; this committee supports the needs of senior executives in both quantity and quality.
Second, for other employees, it takes the form of line management with a similar approach as the first, which
is supervised by a career advisory panel; here, a career management consultation committee ensures that,
for each career path, a manpower requirement plan is prepared, in which key positions are stated, and
77
individual development plans are both prepared and implemented. Both of these ensure that PTT will
consistently command an adequate supply of quality executives and employees.
2. Business Risks
2.1. Risks associated with sourcing of natural gas
During the past year, PTT kept up its sourcing negotiation efforts for additional gas supplies from
domestic sources and Myanmar, as well as negotiations for supply of LNG (liquefied natural gas) from sellers
in assorted regions to meet the projected gas demand. These contracts are made in advance. This included
the demand to sustain the expansion of its petrochemical plants, which rely on feedstock from gas
separation plants.
Each gas sales agreement (GSA) specifies a minimum annual contractual quantity to be taken by PTT
as the buyer; otherwise, PTT is required to pay in advance for the volume not taken during that contract year
under the so-called ‘take or pay’ condition. The Company may take this pre-paid gas in later years as ‘make
up’ gas if it has already paid the minimum contracted amount for the year in question. As of year-end 2008,
such take-or-pay sums were paid out by PTT under the terms of the Yadana and Yetagun GSAs of Myanmar
and Block A18 GSA of the Malaysia-Thailand Joint Development Area (JDA).
As a result of the current global economic downturn, the demand for natural gas has fallen across the
board, oil prices have plummeted, with considerable volatility in future. Risks therefore arise from such
factors as the current and future demand for natural gas, the completion dates of transmission pipelines or
new gas-fired power plants, the inability to receive the gas for which pre-payment has been made, and the
fluctuation in oil price that could affect the price of natural gas. These could put the competitiveness of
natural gas against competing fuels into jeopardy. These risks could affect PTT’s financial bottom line and
performance.
To address these risks, PTT monitors movement concerning the supply and demand for natural gas
while closely coordinating with the sellers and buyers on preparing efficient gas supply plans for the long
term, and regularly reviews them to identify solutions to possible crises. To date, gas demand has exceeded
minimum contract quantities, thus enabling PTT to accumulate volumes for instant use if it cannot take deli-
very of the so-called ‘carry forward’ gas, specified in certain GSAs. As for the ‘make up’ gas volume from
Yadana and Yetagun, for which PTT has paid, this portion of gas cost less than the current prices; such price
margin has alleviated the interest burden that has arisen.
2.2. Fee changes for gas supply procurement, distribution, and throughput tariffs
The prices of gas sold to power generators, which represent major customers, are supervised by the
Energy Business Regulators, by virtue of the Energy Business Act. Each price consists of the price of physi-
cal gas and the throughput tariff. The former is a sum of the average price paid by PTT to the sellers and a
business return for supply and distribution. The latter consists of a fixed-cost demand charge, which comes
from the capital investment in the gas transmission system, fixed operating costs, and gas demand through-
out a given project. Returns on investment are decided, as is a commodity charge, which is based on the
variable costs of transmission. Today, such tariffs and returns follow the guidelines set by the National Energy
Policy Office.
With the completion of the Third Gas Pipeline, PTT sent letters to the Energy Business Regulators to
seek approval for gas throughput tariffs under fixed costs for the offshore transmission pipeline at Rayong
(Area 1), the onshore transmission pipeline (Area 3), the onshore transmission pipeline at Chana (Area 4),
and the onshore transmission pipeline at Nam Phong (Area 5), along with the tariffs under variable costs for
Fiscal Year 2008. Yet, PTT cannot guarantee when the switch in the tariffs will take place; if it cannot levy
these new tariffs, its financial and operating performance may suffer.
Annual Report 2008
2.3. Feedstock and product price fluctuation

Reflecting world market prices, the prices of feedstock and products of PTT and its affiliates in domes-
tic and foreign markets - namely natural gas, condensate, crude oil, refined petroleum products, and
petrochemicals - have recently proved highly volatile because of diverse factors beyond the Company’s
control, including gross refining margins (GRMs) and petrochemical prices entering down-cycles, thus
78
inevitably affecting PTT’s business, financial standing, planning, investment, and operating performance.
To alleviate such risks and bring about maximum benefit, PTT has focused on optimizing risk
management for PTT Group as a whole by appointing a Price Risk Management team within the group.
Today, to manage price risks, the group is engaged in hedging, including both short-term and long-term
derivative contracts with its business partners, with target for suitable risk management in line with PTT
Group business plans. To minimize risks from price fluctuation on PTT Group’s performance, each instance
of such engagement is supported by the physical volume of PTT Group’s raw materials and products
to management the costs of buying and selling.
2.4. Government action creating potential conflicts of interest with shareholders

In line with the Cabinet resolution on September 25, 2001 that decided the Ministry of Finance should
retain its shareholding in PTT at no less than 51% of all voting shares after the sale of recapitalization shares,
the Company retained its state enterprise status, with the Ministry of Finance serving as its major share-
holder. As long as the public sector still holds its majority shares, it will not only designate the majority of
Directors and senior management that are accountable for PTT’s day-to-day business, but will also ensure
that the Company takes actions in line with the country’s economic and social policies. This could not only
cause conflicts of interest with other shareholders, but affect PTT’s management for maximum profitability as
well, particularly the price caps on LPG and NGV.
2.5 The abolishment and limitation of the State Enterprise Corporatization Act of
former authority, privileges, and benefits of PTT Plc, provided under the law
on the Petroleum Authority of Thailand, in favor of the PTT Plc Authority
Regulation Board
With the publication of a decree on the authority, privileges, and benefits of PTT Plc (No. 2) B.E. 2550
(2007) in the Royal Gazette on February 16, 2007 with effect from March 18, 2007, below were the essences
of this decree:
1. Revoke the authority, privileges, and benefits formerly provided to PTT Plc, namely the privileges
and benefits as a virtual concessionaire under the Petroleum Authority of Thailand Act B.E. 2521 (1978)
(Section 8); the privileges of PTT Plc properties not subject to liability under execution (Section 5, Royal
Decree on the Authority, Privileges, and Benefits B.E. 2544 (2001)); and the authority to expropriate proper-
ties under the law on real-estate expropriation (Section 38, Petroleum Authority of Thailand Act B.E. 2521
(1978)).
2. Transfer the authority, privileges, and benefits of PTT Plc under the Petroleum Authority of Thailand
Act, including the survey and designation of petroleum transmission pipeline rights of way, and pipeline
laying under, over, or through individuals’ properties, to the PTT Plc Authority Regulation Board, who will
define the criteria and terms and conditions for implementation in the Royal Gazette.
3. The PTT Plc Authority Regulation Board is chaired by the Permanent Secretary of Energy along
with a representative of the Ministry of Interior, a representative of the Council of State, up to three experts
appointed by the Minister of Energy, and the Director-General of the Energy Policy and Planning Office
serving as Secretary to the Board.
The Regulators has posted four announcements regarding the authority of PTT Plc in the Royal
Gazette, namely:
ë Criteria and conditions for the construction and maintenance of petroleum transmission
pipeline systems

ë Their own identification cards and Board-appointed subcommittee members’ identification cards
ë Deliberation of the compensation for operating in the petroleum transmission pipeline rights
of way
ë Other conditions for survey leading to the construction of petroleum transmission pipeline
systems.
On December 11, 2007, the Energy Business Act B.E. 2550 (2007) was promulgated, under which the
nation’s natural gas business included PTT’s former gas transmission pipeline network. Once this law came
into effect, an Energy Business Regulatory Board was appointed by His Majesty the King to provide oversight
79
of the energy business, mainly electricity and natural gas, and ensure that they comply with the spirit of the
law, which included the authority to define the criteria for service fees by authorized parties and their
application of land and other real estates. The interim clause also said that to allow PTT’s energy business to
proceed, the royal decree defining the authority, privileges, and benefits of PTT Plc of 2007, amended
by another royal decree (No. 2), would be enforceable until PTT acquired a license under the Energy
Business Act. On February 19, 2009, PTT already acquires a Natural Gas Business Operating License
under the Energy Business Act., and currently is acquiring for a Power Business Operating License.
3. Project Execution Risks

3.1. Development of gas transmission system, gas separation plants, and
petrochemical plants
The key factors for PTT’s successful business expansion include a continuous rise in natural gas
consumption, the ability to expand its gas transmission system and to cover all comsumption areas, the
ability to expand its gas separation capacity, and the success in building PTT Group’s petrochemical plants,
which rely on natural gas for their processes. Projects may experience delays for various reasons, including
delays in naming construction contractors, procurement of long-lead equipment items, getting construction
approvals from government agencies, and getting approvals for environmental impact assessment (EIA)
reports. Delays in project completion could compromise PTT’s financial and operating performance.
The Company pays close attention to critical path management, thus, accelerated hiring of
construction contractors; close monitoring of the procurement of construction materials; development of
measures to alleviate environmental impacts; monitoring and analysis of impacts on project management;
appointment of acommunity relations task group to develop plans for public participation; and preparation of
plans and measures to minimize the potential impacts of project delays, to minimize the possible effect of
project’s delay.
Activity for Bond Holder
4. Operation Risks
4.1. Risks associated with operations
Hazards are inherent to the exploration for production, transportation, and storage of natural gas,
crude oil, petroleum and petrochemical products, and refined products; they include fires, explosions, oil
spills, well blowouts, gas pipeline leaks, dispersion of hazardous gases, terrorist activities, natural disasters,
actions of external parties, and other unforeseeable events. These could prove detrimental to PTT’s personnel,
assets, environment, business operation, reputation, financial standing, and business opportunities.
The Company therefore takes risk management seriously by adopting preventive maintenance
measures for its production facilities and instituting emergency and crisis response preparedness measures,
Annual Report 2008
together with the formulation of strategic and operating plans to support business continuity management.
Like other companies in the petroleum and petrochemical industries, it has taken out insurance policies to
protect its major operating assets against risks and business interruption.
4.2. Environmental and safety regulations

PTT’s business operations must comply with relevant laws and regulations concerning impacts on the
80
environment and safety, which are bound to get increasingly tough. If such new laws are promulgated or if
changes are made to the policy on their enforcement, they may limit the Company’s operation or significantly
raise operating costs. Besides, approval delays for EIAs and HIAs (Health Impact Assessments), and that for
community participation, in any operation could harm its future business.
To address these risks, PTT monitors and analyzes the impacts of changes in environmental and
safety laws and regulations on its operation. It also closely coordinates with government agencies, applies
available information to develop work plans and response measures, and ensures ongoing community
relations activities in operating areas with a constant focus on community participation.
5. Financial Risks
5.1. Fluctuation of the Baht
Since PTT and its affiliates have outstanding foreign loans, changes in the exchange rate between the
Baht and the US dollar directly and indirectly affect the majority of PTT’s revenue, consequently affecting its
bottom line. Therefore, the fluctuation of the Baht and the government’s economic, financial, and treasury
policies affect its consolidated financial and operating performance.
To alleviate this, PTT has balanced its foreign loans in proportion to its revenue from foreign currencies
(in short, taking a natural hedge) and leveraged financial derivatives in converting foreign-currency loans,
while managing its foreign-currency deposits and purchasing foreign currencies forward to match the
quantity of foreign currencies required for foreign-loan repayment and for commercial transactions. PTT has
also developed a treasury and credit policy for use as a common guideline for PTT Group.
5.2. Financial support to affiliated companies

In the past and during the recent Asian economic crisis, the Company provided financial support to its
affiliates under a shareholder support agreement and coordinated with their executives, creditors, and other
major shareholders on debt restructuring. It is the Company’s policy not to incur new financial burdens
unless necessary or for its benefit. In the long term, it will consider extending financial support in the form of
PTT Group Join ‘Set in the City 2008’
loans or commercial credit, or both, to individual affiliates in the belief that such a policy and action would
foster sustainable strength for members of PTT Group.
In extending such financial support to these affiliates, whether in the form of subordinated loans,
capital, or commercial credit, PTT cannot guarantee that these companies will repay such loans or credit, or
that they will not need financial support from PTT again - all these could harm PTT’s performance and
financial status. Besides, if PTT or any member of PTT Group becomes a default party under any agreement
on shareholder support, some creditors may accelerate debt repayment. Therefore, we cannot guarantee

that PTT will not raise its shareholding, raise its shareholding to more than half, or take over such a company
if such action is considered more beneficial. If this should happen, the Thai accounting standards require
that PTT consolidate the financial statements of the company in question with those of PTT, effective from the
date of such control onward; such consolidation may affect PTT’s overall financial status.
5.3. Acquisition of funds for plan execution

The businesses of PTT - in particular, petroleum exploration and production, natural gas transmission,
and the petrochemical business - require huge capital investments that are paid in advance. Although the
Company closely monitors and manages business risks, the actual investment capital required may deviate
81
from project plans due to factors beyond its control, thus potentially affecting the success and project capital
costs.
Thanks to PTT’s business conduct that focuses on fostering long-term growth and good corporate
governance, the Company has continuously grown and plans to invest in prudent business expansion, with
consideration for sources of capital, particularly capital structuring that will enable it to maintain essential
financial ratios at suitable levels comparable to companies in the same industry. Continuous monitoring of
factors concerning the sourcing of investment capital has assured PTT that it can secure sufficient and
suitable funds for future business expansion.
Sales
Revenues
Unit :US$/bbl
Organization Chart
Auditors Shareholders
Board of Directors
Audit Committee Nomination Committee
Corporate Governance Committee Remuneration Committee
Chief Executive Officer & President

Managed through 14 committees
EVP, Corporate Communications EVP, PTT Research & Technology Institute

Annual Report 2008
& Social Responsibility (PTT R & T)

EVP, Office of Corporate Audit VP, Office of the President
and Corporate Secretary
SEVP, Corporate Strategy

Chief Financial Officer
& Development
82
EVP, Corporate EVP, Corporate EVP, Corporate EVP, Corporate

Strategy & Planning Business Development Finance Accounting
SEVP, Corporate Support
EVP, Corporate Office of

Human Resources Corporate Legal
Chief Operating Officer, Upstream Petroleum Chief Operating Officer, Downstream Petroleum
& Gas Business Group Business Group
SEVP, SEVP, SEVP, SEVP,

Gas Business Oil Business Petrochemicals International
Unit Unit & Refining Trading Business
Business Unit Unit
1. EVP, Strategic Planning 1. EVP, Strategic 1. EVP, Business

Planning Development
2. EVP, Project Management & Project
2. EVP, Retail Management
3. EVP, Natural Gas Supply & Trading Marketing
4. EVP, Natural Gas Transmission 2. EVP, Subsidiary
3. EVP, Commercial Planning &
5. EVP, Natural Gas Processing & International Management
Marketing
6. EVP, Natural Gas Vehicle
4. EVP, Terminal
Operations
5. EVP, Supply &

Logistics
Remark : EVP = Executive Vice President

Shareholding Structure
PTT Securities
Common shares
As of December 31, 2008, PTT’s registered capital stood at Baht 28,572,457,250, made up of
2,857,245,725 common shares valued at Baht 10 each. These consisted of Baht 28,240,566,250 in paid-up
capital or 2,824,056,652 common shares.
PTT Warrants
(1) On April 12, 2005, the 2005 Annual General Meeting of Shareholders (AGM) acknowledged
the issuance and offer of 60,000,000 warrants to the President, the management, PTT employees, and
employees of Companies in PTT Group, seconded to PTT. The warrants consisted of 2 batches:
ë PTT-W1, numbering 40,000,000 units, offered in 2005

ë PTT-W2, numbering 20,000,000 units, offered in 2006.
The AGM approved the issuance and offer of all PTT-W1 units covering the purchase of 40,000,000
common shares. The warrant contained 4 portions, each exercisable on the last operating day of a three-
month period throughout the life of the warrant. Here is a detailed summary of the allocation:
Ratio of
Warrants
Portion Units Life (Years) Value (Baht) Exercised Exercisable Period Details
(Common Shares)
83
1. 10,000,000 5 183 1:1 First exercisable date was August 31, 2006,
then every last operating date of every three
months from the above-mentioned date
through the life of the warrants. The last
exercise date is August 31, 2010.
PTT Shareholders Visited Operation Sites
From the issuance date to December 31, 2008, warrant exercises for PTT-W1 covering 23,461,100
units were recorded.
Note: ë The issued warrants, bearing holders names, were non-transferable except when transferred to a legitimate heir or
representative
ë Eligible under this scheme were the President, the management, all PTT employees, and employees of companies in
PTT Group, seconded to PTT. No other directors of the Board received these warrants.
(2) On April 11, 2006, the 2006 AGM approved the issuance and offer of all PTT-W2 units covering
the purchase of 20,000,000 common shares for the President, the management, PTT employees, and
employees of companies in PTT Group, seconded to PTT. The warrant contained four portions, each
Annual Report 2008
exercisable on the last operating day of a three-month period throughout the life of the warrant. Here is a
detailed summary of the allocation:
Ratio of
Warrants
Portion Units Life (Years) Value (Baht) Exercised Exercisable Period Details
84
(Common Shares)
1. 5,000,000 5 234 1:1 First exercisable date was September 28,

2007, then every last operating date of every
three months from the above-mentioned date


PTT Ordinary Shareholders Meeting
From the issuance date to December 31, 2008, warrant exercises for PTT-W2 covering 3,349,800 units
were recorded.
Note: ë The issued warrants, bearing holders names, were non-transferable except when transferred to a legitimate heir or
representative
ë Eligible under this scheme were the President, the management, all PTT employees, and employees of PTT Group
companies seconded to PTT. No other directors of the Board received these warrants.
Shareholders

PTT’s shareholder structure as of March 10, 2009 was as follows:
Item Shares Value %

(in millions) (Baht millions)
Registered Capital 2,857 28,572 -

Paid-Up Capital (as of March 10, 2009) 2,824 28,240 100.00
ë Ministry of Finance 1,460 14,598 51.695
ë Vayupak Fund 1 by MFC Asset Management Plc 218 2,179 7.716
85
ë Vayupak Fund 1 by Krung Thai Asset Management Plc 218 2,179 7.716
ë Institutional and Public Investors 946 9,284 32.873
Unpaid Capital 33 332
PTT’s top 15 shareholders (according to the share registration book as of March 10, 2009) were as
follows:
No. Name Shares %
1. Ministry of Finance 1,459,885,575 51.695
2. Vayupak Fund 1 by MFC Asset Management Plc 217,900,000 7.716
3. Vayupak Fund 1 by Krung Thai Asset Management Plc 217,900,000 7.716
4. Nortrust Nominees Ltd. 52,794,180 1.869
5. State Street Bank and Trust Company 52,073,168 1.844
6. HSBC (Singapore) Nominees Pte. Ltd. 45,974,789 1.628
7. Chase Nominees Limited 42 44,626,400 1.580
8. Thai NVDR Co., Ltd. 34,143,662 1.209
9. Mellon Bank, N.A. 29,453,165 1.043
10. Social Security Office (2 accounts) 25,238,800 0.894

No. Name Shares %
11. Government of Singapore Investment Corporation C 19,508,000 0.691
12. HSBC Bank Plc - Clients General A/C 17,439,400 0.618
13. Government Pension Fund 16,200,350 0.574
14. The Bank of New York (Nominees) Limited 15,683,197 0.555
15. Mellon Nominess (UK) Limited 11,989,000 0.425
Total 2,260,809,686 80.057
Note: ë Numbers 4, 6, 7, 14, and 15 were nominee accounts. PTT’s investigation at Thailand Securities Depository Co., Ltd., (TSD)
found that the ultimate shareholders, names could not be disclosed. However, the Ministry of Finance remained the single
majority shareholder on behalf of the state, which in part dictated PTT’s management policy. The ministry nominated
directors to the Board for approval by shareholders. Other substantial shareholders, including the five above-mentioned
ones, did not exercise any influence over PTT’s management policy formulation, for example, nominating the directors.
ë Shareholders of Thai NVDR Co., Ltd., who held non-voting depository receipts in item 8 were ineligible for voting at
shareholders, meetings except when exercising their voting rights on delisting the shares from SET.
Annual Report 2008
Dividend Policy
PTT’s policy is to pay out dividends at no less than 25% of the net income after deducting all
provisional sums required by law and by PTT; the net income is to be based on the consolidated financial
statements. Dividend payment is subject to future investment plans, necessity, and suitability. Once the
Board of Directors has decided on the annual dividend payment, it is to seek approval from the meeting of
the shareholders; an exception is for interim dividend payment, in which case the Board is authorized to
86
approve such payment and report to the next meeting of the shareholders.
As for the dividend policy for subsidiaries, it is up to each subsidiary to deliberate payment by taking
into account its remaining cash flow compared with the investment capital. If the cash flow is substantial
enough, with legal provisions set aside, the subsidiary may proceed with dividend payment on a case-by-
case basis.
Management Structure
PTT Board of Director

At the top of PTT’s organizational structure is PTT Board of Directors (the Board), which consists of four
committees: Audit Committee, Nominating Committee, Remuneration Committee, and Corporate Governance
Committee. The President & CEO, who is the top executive, manages PTT through 11 committees.
As of December 31, 2008, the Board consisted of:
No. Name Position Appointed
December 21, 20071.1

1. Dr. Norkun Sittiphong Chairman (in place of Dr. Pornchai Rujiprapa)

April 11, 20081.2
2. Mr. Chulayuth Hirunyavasit Independent Director (in place of Gen. Apichart Penkitti)
3. Mr. Chakramon Phasukavanich Independent Director April 30, 2007
4. Gen. Somdhat Attanand Independent Director April 11, 2006
5. M.L. Panasarn Hasdin Independent Director April 11, 2006
6. Dr. Ampon Kittiampon Independent Director April 11, 2008
87
7. Khun Pornthip Jala Independent Director April 30, 2007
January 1, 20081.3
8. Dr. Panich Pongpirodom Director (in place of Mr. Metta Bunturngsuk)
9. Khunying Jada Wattanasiritham Independent Director April 30, 2007
April 11, 20081.4

10. Dr. Naris Chaiyasoot Director (in place of Ms. Puntip Surathin)
September 22, 20081.5

11. Mr. Chaikasem Nitisiri Independent Director (in place of Mr. Nonthigorn Kanchanachitra)
November 21, 20081.6
12. Mr. Anuwat Mayteewibulwut Independent Director (in place of Dr. Suchart Thada-Thamrongvech)
13. Mrs. Pannee Sathavarodom Director April 30, 2007
14. Mr. Prasert Bunsumpun Director and Secretary - First term expired and left
office on August 10, 2007
(President & CEO) - Second term began on
September 10, 20072
Note : 1. The Board appointed new directors in place of the retired and resigned ones:
1.1 Dr. Norkun Sittiphong, in place of Dr. Pornchai Rujiprapa, who resigned on December 18, 2007
1.2 Mr. Chulayuth Hirunyavasit, in place of Gen. Apichart Penkitti, who retired on April 11, 2008
1.3 Dr. Panich Pongpirodom, in place of Mr. Metta Bunturngsuk, who resigned on January 1, 2008
1.4 Dr. Naris Chaiyasoot, in place of Ms. Puntip Surathin, who resigned on April 11, 2008
1.5 Mr. Chaikasem Nitisiri, in place of Mr. Nonthigorn Kanchanachitra, who resigned on July 15, 2008
1.6 Mr. Anuwat Mayteewibulwut, in place of Dr. Suchart Thada-Thamrongvech, who resigned on August 1, 2008.
2. At Meeting No. 8/2550 of August 31, 2007, the Board appointed Mr. Prasert Bunsumpun to another term as President, effective from
September 10, 2007 onward.
3. Dr. Olarn Chaipravat resigned, effective from September 22, 2008 onward.
1) Report on Directors’ securities portfolio in 2007 and 2008
Shares Change
No. Name during the Note
Dec 31, 2007 Dec 31, 2008 Year
1. Dr. Norkun Sittiphong - - -
2. Mr. Chulayuth Hirunyavasit - - -
3. Mr. Chakramon Phasukavanich - - -
4. Gen. Somdhat Attanand - - -
5. M.L. Panasarn Hasdin - - -
6. Dr. Ampon Kittiampon - - -
7. Khun Pornthip Jala - - -
8. Dr. Panich Pongpirodom - - -
9. Khunying Jada Wattanasiritham - - -
10. Dr. Naris Chaiyasoot - - -

Annual Report 2008
11. Mr. Chaikasem Nitisiri - - -
12. Mr. Anuwat Mayteewibulwut - - -
13. Mrs. Pannee Sathavarodom - - -
14. Mr. Prasert Bunsumpun - - -

88
Directors who completed their terms and resigned during 2007 and 2008
Shares Change
No. Name during the Note
Dec 31, 2007 Dec 31, 2008 Year
1. Mr. Cherdpong Siriwit - - - Completed his term on April 30, 2007
2. Mr. Phadhadej Dhamcharee - - - Resigned on May 1, 2007
3. Mr. Pisanu Sunthraraks - - - Completed his term on April 30, 2007
4. Mr. Pornchai Rujiprapa - - - Resigned on December 18, 2007
5. Mr. Metta Bunturngsuk - - - Resigned on January 1, 2008
6. Gen. Apichart Penkitti - - - Completed his term on April 11, 2008
7. Ms. Puntip Surathin - - - Completed his term on April 11, 2008
8. Mr. Praipol Koomsup - - - Completed his term on April 11, 2008
9. Dr. Suchart Thada-Thamrongvech - - - Resigned on August 1, 2008
10. Mr. Nonthigorn Kanchanachitra - - - Resigned on July 15, 2008
11. Dr. Olarn Chaipravat - - - Resigned on September 22, 2008*
Note: *Dr. Olarn Chaipravat’s resignation was effective on September 22, 2008 onward.
2) Directors Authorized to Sign and Bind for the Company
According to Company regulations, the directors whose signatures are recognized as binding
PTT consist of either (1) Mr. Prasert Bunsumpun, President & CEO, authorized to sign and affix the Company’s
seal, or (2) two other Directors, authorized to jointly sign and affix the Company’s seal.
3) Authority of the Board

ë The Board is authorized to supervise and manage PTT under relevant laws, objectives,
regulations, and resolutions of shareholders’ meetings.
ë The Board is to elect one director to serve as Chairman. If suitable, one Vice Chairman or
more may be elected.
ë The Board is to elect one director to serve as President and Secretary to the Board if
suitable.
4) Duties and Responsibilities of the Board

The Board is to:
ë Carry out its duties under relevant laws, objectives, regulations, and resolutions of
shareholders’ meetings.

ë Define the Company’s vision, directions, and strategies.
ë Endorse major Company strategies and policies, including objectives, financial targets,
and operating plans; monitor and ensure plan implementation.
ë Institute proper systems for corporate accounting, financial reporting, and financial
auditing; institute efficient and effective internal control and internal audit systems.
ë Supervise and remedy problems arising from conflicts of interest and connected
transactions.
ë Define comprehensive risk management guidelines; and ensure an efficient risk
89
management system or process.
ë Ensure a suitable compensation system or mechanism for senior management, to induce
short-term and long-term motivation.
ë Assess the performance of the President and determine suitable compensation.
ë Ensure suitable communicating channels with each group of shareholders and
stakeholders.
ë Ensure accurate, clear, transparent, credible, and high-quality disclosure of information.
ë Show leadership and lead by example.
5) Appointment and Dismissal of Directors

1. The Board consists of at least five and no more than 15 persons elected at shareholders’
meetings. It consists of a minimum of 3 independent directors, at least half of the directors are to reside in
Thailand, and at least one director must be qualified in finance and accounting. All directors must be
qualified by law and Company regulations.
Since 2004, the Board has had a resolution that independent directors must make up at least
half of the Board, such resolution remains effective today. As of December 31, 2008, it had 9 independent
directors, all of whom were domiciled in Thailand; Khunying Jada Wattanasiritham and Dr. Naris Chaiyasoot
served as directors with expertise in accounting and finance.
2. The shareholders’ meetings are to elect qualified directors who have previously been
selected and nominated by the Nominating Committee under the following criteria:
(1) Each shareholder has one vote per share held.
(2) Each shareholder exercises all votes applicable under (1) in electing one or more persons
as directors, but cannot allocate only part of his or her votes to any candidate
(3) Candidates with the most votes are to be appointed directors up to the number open at a
given meeting.
(4) If more candidates receive equal votes than the number of directors required, the chairman
of the meeting must cast a deciding vote.
3. At every AGM, one-third of the directors or if this number is not a multiple of three, then the
number nearest to one-third must retire. The names of the directors to retire during the first and second year
after PTT was listed are to be drawn by lots. For subsequent years, those with the longest terms must retire.
4. Any director wishing to resign may submit a resignation letter to PTT, and the resignation is to
be effective on the date that PTT receives the letter.
5. In voting for the dismissal of directors from office before the expiry of their terms, a
three-quarter (3/4) vote of eligible shareholders present at the meeting is required, provided that the number
of shares represented by the three-quarters vote is at least half of the total number of shares represented by
the total number of eligible shareholders present at the meeting.
Since 2006, the Board has concurred with a proposal to allow minor shareholders to nominate
directors under the recruitment criteria. To date (including in 2008), however, no such nomination has been
made. Details appear under the topic of Corporate Governance (Equitable Treatment of Shareholders).
The Committees
1) The Audit Committee
The Board approved the appointment of an Audit Committee on October1, 2001, which consisted
of directors with the qualifications specified by securities and exchange laws and SET. The committee must
Annual Report 2008
consist of at least 3 independent directors, at least one of whom must be qualified in accounting and finance.
As of December 31, 2008, the committee consists of 3 directors, all of whom are independent directors.
Name Position Remark
1. Khunying Jada Wattanasiritham1 Chairman Independent Director with expertise in accounting and finance
90
2. Khun Pornthip Jala Member Independent Director
3. Mr. Chulayuth Hirunyavasit2 Member Independent Director
Ms. Nitaya Direksathaporn, Executive Vice President, Office of Corporate Audit, served as the Committee’s secretary
Note: 1 In place of Dr. Suchart Thada-Thamrongvech, who resigned on August 1, 2008

2 In place of Dr. Olarn Chaipravat, who resigned on September 22, 2008
Duties and Responsibilities of the Audit Committee

ë Review PTT’s financial reporting process to ensure accuracy and adequacy.
ë Ensure the suitability and effectiveness of internal control and internal audit procedures.
ë Ensure compliance with securities and exchange laws, SET regulations, and relevant laws.
ë Select, nominate, and recommend the fees for the external auditor.
ë Deliberate accurate and complete disclosure of PTT’s information for connected
transactions or potential conflicts of interest.
ë Prepare a report on its own performance for disclosure in the annual report, signed by
Chairman.
ë Perform other tasks assigned by the Board and with the approval of the Committee.
ë Perform duties under PTT’s regulations.
The Committee held 9 meetings in 2008, 6 were general meetings and 3 were special meetings.
The Committee duly reported its findings to the Board. In addition, it participated in quarterly
financial audits along with the external auditor and the Corporate Finance and Accounting Department. It
also held one meeting with senior management.
2.) The Nominating Committee
The Board appointed a Nominating Committee on October 1, 2001. As of December 31, 2008, the
Committee consisted of 3 directors:
1. Mr. Chakramon Phasukvanich Chairman Independent Director
2. Dr. Ampon Kittiampon Member Independent Director
3. Mr. Chulayuth Hirunyavasit1 Member Independent Director
Note: 1 In place of Ms. Puntip Surathin, who completed her term on April 11, 2008
Duties and Responsibilities of the Nominating Committee

ë Select qualified candidates for directors or President.
ë Define the recruitment procedures and criteria for directors or President to ensure
transparency.
The recruitment procedure for directors is as follows:

1. The Committee defines the qualifications needed for the replacement to ensure that the new
directors meet the criteria and qualifications as required by related laws and regulations, and also defines
the procedures for nominating qualified candidates.
2. The Committee summarizes its recruitment results and presents to the Board a shortlist of
qualified candidates along with supporting rationale.
3. The Board appoints the qualified candidates from the field prepared by the Committee and
submits their names to the shareholders’ meeting for approval.
In 2008, the Committee held five meetings and duly reported its findings to the Board.
91
3) The Remuneration Committee
The Board appointed a Remuneration Committee on October 1, 2001. As of December 31, 2008,
it consisted of 3 directors:
1. Dr. Ampon Kittiampon Chairman Independent Director
2. Khunying Jada Wattanasiritham Member Independent Director
3. Mrs. Pannee Sathavarodom Member Non-management Director
Duties and Responsibilities of the Remuneration Committee

ë Define compensation guidelines for directors and the President.
ë Define procedures and criteria for fair and reasonable compensation paid to directors and
the President for approval at shareholders’ meetings or at the meetings of the Board of Directors.
The Committee held one meeting in 2008 and duly reported its findings to the Board.
4) The Corporate Governance Committee

The Board appointed a Corporate Governance Committee on June 24, 2004. As of December 31,
2008, the Committee consisted of 3 independent directors as follows:
1. Gen. Somthad Attanand Chairman Independent Director
2. M.L. Panasarn Hasdin Member Independent Director
3. Mr. Chaikasem Nitisiri Member Independent Director
The Vice President, Office of the President and Corporate Secretary, served as the secretary to the Committee
Duties and Responsibilities of the Corporate Governance Committee

ë Propose corporate governance guidelines to the Board.
ë Advise the Board on corporate governance matters.
ë Ensures that the duties and responsibilities of directors and the management comply with
corporate governance principles.
ë Revise guidelines for PTT’s corporate governance against those of international
organizations, and present its recommendations to the Board.
ë Delegate corporate governance policies to the Corporate Governance Task Force.
The Committee held 3 meetings in 2008, during the second of which it assigned a policy on the
monitoring of corporate social responsibility (CSR) matters. It duly reported its findings to the Board.
Annual Report 2008
Directors
Directors’ Attendance Record for the Board and Committee Meetings in 2008 (January 1 - December 31)
Unit: Times
Meeting Attendance in 2008 as of December 31, 2008

Name Appointment during the Year
92
Corporate
Board of Audit Nominating Remuneration
Governance
Directors Comm. Comm. Comm.
Comm.
(Total 14) (Total 9) (Total 5) (Total 1)
(Total 3)
1. Dr. Norkun Sittiphong 14/14 - - - - -
April 11, 2008

2. Mr. Chulayuth Hirunyavasit 9/10 1/3 3/3 - - in place of Gen. Apichart Penkitti
3. Mr. Chakramon Phasukavanich 13/14 - - 5/5 - -
4. Gen. Somdhat Attanand 14/14 - 3/3 - -
5. M.L. Panasarn Hasdin 13/14 - 3/3 - - -
6. Dr. Ampon Kittiampon 13/14 - - 5/5 1/1 -
7. Khun Pornthip Jala 14/14 6/6 - - -
January 1, 2008
8. Dr. Panich Pongpirodom 14/14 - - - - in place of Mr. Metta Bunturngsuk
9. Khunying Jada Wattanasiritham 13/14 9/9 - - 1/1
April 11, 2008

10. Dr. Naris Chaiyasoot 10/10 - - - - in place of Ms. Puntip Surathin
September 22, 2008
11. Mr. Chaikasem Nitisiri 3/3 - 1/1 - - in place of Mr. Nonthigorn Kanchanachitra
November 21, 2008

12. Mr. Anuwat Mayteewibulwut 1/1 - - - - in place of Dr. Suchart Thada-Thamrongvech
13. Mrs. Pannee Sathavarodom 14/14 - - - 1/1
14. Mr. Prasert Bunsumpun 14/14 - - - - -

Directors Completed Their Terms or Resigned during 2008 (January 1 - December 31)
Unit: Times
Meeting Attendance in 2008 as of December 31, 2008

Completion of Terms or
Name Corporate
Board of Audit Nominating Remuneration Resignation during the Year
Governance
Directors Comm. Comm. Comm.
Comm.
(Total 14) (Total 9) (Total 5) (Total 1)
(Total 3)
1. Ms. Puntip Surathin 3/4 - - 1/1 - Completed term on April 11, 2008
2. Gen. Apichart Penkitti 4/4 - - - - Completed term on April 11, 2008
3. Mr. Praiphol Koomsup 3/4 - - - - Completed term on April 11, 2008
4. Mr. Nonthigorn Kanchanachitra 3/3 - - - - Resigned on July 15, 2008
5. Dr. Olarn Chaipravat 10/11 5/6 - - - Resigned on September 22, 2008
6. Dr. Suchart Thada-Thamrongvech 7/7 4/4 2/2 - - Resigned on August 1, 2008

Corporate Secretary
To comply with the good corporate governance principles of listed companies, under the
category of directors’ responsibility and the terms of the Securities and Exchange Act, PTT has appointed the
Vice President of the Office of the President and Corporate Secretary, Mr. Attapol Rerkphiboon, as Corporate
Secretary to provide the Board with legal advice and remind them of assorted regulations that they need to
know and comply with; hold meetings; and supervise assorted Board activities to enable them to perform
efficiently and effectively for the maximum benefit to PTT; prepare and maintain critical documents, including
directors registration, Board meeting notices and minutes, annual reports; shareholders meeting notices
93
and minutes; and filing of reports on connected transactions reported by directors or the management.
Management
Duties and Responsibilities of the President & CEO
Under PTT’s Articles of Association, the President has full authority and duties to manage the
Company’s business as assigned by the Board. Business is to be managed strictly, prudently, and with
integrity under the plans or budgets approved by the Board, and must be in the best interests of PTT and its
shareholders. The President’s authority and duties include the following matters and activities:
ë Operate and/or manage day-to-day business
ë Hire, appoint, remove, transfer, promote, demote, reduce the salary or wages of, take
disciplinary action against employees and contractors, and dismiss any employee or
contractor under the Board’s regulations. For vice presidents or equivalent upward, prior
approval of the Board is required.
ë Ensure the preparation and submission of business policies, including operating plans and
budget estimates, to the Board for approval, and report performance against them to the
Board every three months.
ë Ensure the implementation of the policies, plans, and budgets approved by the Board.
PTT Board of Directors authorizes the President to manage under scope of authority as follows:
ë Manage business under all objectives, regulations, policies, rules, specifications,
directives, and resolutions of the Board and/or shareholders’ meetings.
ë Order, contact, command, implement, and sign juristic acts, agreements, orders,
announcements, or any correspondence with government agencies, state enterprises, or
other parties; and engage in any necessary and suitable action to facilitate this duty.
ë Command each employee and contractor and hire, appoint, remove, promote, demote, cut
the salary or wages of, take disciplinary action against, and dismiss any employee or
contractor under the rules, regulations, or directives of the Board. For employees or
contractors serving as advisors, experts, senior executive vice presidents or equivalent
and upward, prior approval of the Board is required. The President is also authorized to
specify the employment conditions for employees and contractors, and issue rules
governing PTT’s operations, provided that they do not conflict with rules, regulations, or
directives of the Board.
ë Assign the power of attorney and/or delegate specific tasks to other persons, provided that
it complies with the document concerning the power of attorney and/or rules, regulations, or
directives of the Board and/or the Company.
The authority and duties of the President are invalid for conflicts of interest with PTT in any form
resulting from the President’s exercise of the authority.
Management Committee
A Management Committee (also referred to as senior management) was appointed on October 1,
2001, currently (as of December 31, 2008) consisting of 9 members:
Name Position
Annual Report 2008
1. President & Chief Executive Officer (CEO) Chairman
2. Chief Financial Officer (CFO) Member
3. Chief Operating Officer, Upstream Petroleum & Gas Business Group Member
4. Chief Operating Officer, Downstream Petroleum Business Group Member
5. Senior Executive Vice President, Corporate Support Member

94
6. Senior Executive Vice President, Gas Business Unit Member
7. Senior Executive Vice President, International Trading Business Unit Member
8. Senior Executive Vice President, Petrochemicals and Refining Business Unit Member
9. Senior Executive Vice President, Corporate Strategy and Development Member and Secretary
The Vice President, Office of the President & Corporate Secretary, served as the Assistant Secretary
The Management Committee held weekly meetings in 2008, totaling 31 during the year, and duly reported its
findings to the Board.
Duties and Responsibilities of the Management Committee
ë Provide advice and recommendations to the President on significant issues on corporate
strategy and business direction, investment plans, budgeting, allocation of resources for
PTT and its affiliates; and ensure that PTT affiliates have reasonably compatible business
processes.
ë Rank decisions made by the Board to ensure effective implementation.
ë Screen meeting agendas before presentation to the Board.
ë Rank significant matters concerning the allocation of human and financial resources for
PTT and its affiliates.
ë Jointly decide significant issues about PTT affiliates before the meeting of the Board of
each affiliated company.
ë Establish standards for business administration, human resource, and information
procedures, and the organizational structure for PTT and its affiliates.
ë Establish a policy for human resource management.
In addition, the Company appointed 13 ad hoc internal committees to oversee specific internal
areas of work for accurate, suitable, efficient, and effective implementation:
1. Oil Business Strategic Plan Committee
2. Gas Business Strategic Plan Committee
3. Petrochemicals and Refining Strategic Plan Committee
4. Enterprise Plan Committee
5. Corporate Finance & Accounting Committee
6. Corporate Human Resources Committee
7. PTT Credit Committee
8. Research and Technology Institute Management Committee
9. International Trading Business Unit Risk Management Committee
10. Petroleum Procurement Committee
11. Upstream Petroleum and Gas Business Group Synergy Management Committee
12. Downstream Petroleum Business Group Synergy Management Committee
13. Risk Management Committee.

Management Team Members as of December 31, 2008
No. Name Position
1. Mr. Prasert Bunsumpun President & Chief Executive Officer (CEO)
2. Mr. Pichai Chunhavajira Chief Financial Officer (CFO)
3. Dr. Chitrapongse Kwangsukstith Chief Operating Officer (COO),
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Upstream Petroleum & Gas Business Group
4. Dr. Prajya Phinyawat Chief Operating Officer (COO), Downstream Petroleum Business Group
5. Mr. Tevin Vongvanich Senior Executive Vice President, Corporate Strategy and Development
6. Mr. Songwut Chinnawat Senior Executive Vice President, Corporate Support
7. Mr. Permsak Shevawattananon Senior Executive Vice President, Gas Business Unit
8. Mr. Surong Bulakul Senior Executive Vice President, International Trading Business Unit
9. Dr. Pailin Chuchottaworn Senior Executive Vice President, Petrochemicals and Refining Business Unit,
and concurrently President of PTT Polymer Marketing Co., Ltd.,
and Managing Director of PTT Asahi Chemical Co., Ltd.
10. Mr. Anon Sirisaengtaksin Senior Executive Vice President, seconded to CEO, PTT Exploration and
Production Public Company Limited
11. Dr. Viroj Mavichak Senior Executive Vice President, seconded to Managing Director,
Thai Oil Public Company Limited
12. Mr. Veerasak Kositpaisal Senior Executive Vice President, seconded to President & CEO,
PTT Chemical Public Company Limited

No. Name Position
13. Mr. Maroot Mrigadat Senior Executive Vice President, seconded to President,
PTT Exploration and Production Public Company Limited
14. Mr. Chainoi Puankosoom Senior Executive Vice President, seconded to CEO &
President, PTT Aromatics and Refining Public Company Limited
15. Ms. Penchun Jarikasem Executive Vice President, Corporate Finance
16. Mrs. Prisana Praharnkhasuk Executive Vice President, Corporate Accounting
Management’s Ownership of Shares
Shares Warrant # 1 Warrant # 2
No. Name
Annual Report 2008
Allocated Current Allocated Current

in 2005 Holding in 2006 Holding Remark
Dec.31,2007 Dec.31,2008 Increment
1. Mr. Prasert Bunsumpun 0 0 0 243,000 121,500 119,000 89,300 -
and spouse
96
2. Mr. Pichai Chunhavajira 55,400 0 (55,400) 88,000 22,000 45,800 34,400 -
3. Dr. Chitrapongse Kwangsukstith 175,830 178,730 2,900 108,700 37,400 56,900 42,800 -
and spouse
4. Dr. Prajya Phinyawat 117,480 51,380 (66,100) 88,300 22,100 45,900 34,500 -
Appointed on
5. Mr. Tevin Vongvanich N/A 20,000 20,000 40,300 20,200 21,000 15,800 February 18, 2008
6. Mr. Songwut Chinnawat 12,676 10,000 (2,676) 61,000 20,500 32,400 24,300 -
7. Mr. Permsak Shevawattananon 24,300 40,300 16,000 64,000 16,000 33,300 25,000 -
Appointed on
8. Mr. Surong Bulakul N/A 65,483 65,483 63,300 31,700 33,000 24,800 February 1, 2008
Appointed on
9. Dr. Pailin Chuchottaworn and spouse N/A 28,100 28,100 52,600 13,200 27,600 20,700 February 1, 2008
10. Mr. Anon Sirisaengtaksin 100,330 120,230 19,900 79,800 20,000 41,900 31,500 -
11. Dr. Viroj Mavichak 157,080 178,980 21,900 87,800 22,000 45,100 33,900 -
Shares Warrant # 1 Warrant # 2
No. Name
Allocated Current Allocated Current
in 2005 Holding in 2006 Holding Remark
Dec.31,2007 Dec.31,2008 Increment
Appointed on
12. Mr. Veerasak Kositpaisal N/A 8,000 0 0 0 26,400 26,400 October 1, 2008
13. Mr. Maroot Mrigadat 8,700 16,800 8,100 67,300 16,900 35,100 26,400 -
Appointed on
14. Mr. Chainoi Puankosoom 41,400 49,700 8,300 43,100 21,700 33,200 24,900 August 1, 2007
15. Ms. Penchun Jarikasem 10,000 10,000 0 34,000 17,000 18,300 18,300 -
16. Mrs. Prisana Praharnkhasuk 51,463 60,263 8,800 35,100 8,800 18,400 13,800 -
Additional Information on the Board and Management

Records have shown no violation of the law within the past 10 years regarding:
(1) Being sentenced for criminal charges, except for violation of traffic law, minor charges, or

similar charges
(2) Being sentenced to bankruptcy or having assets controlled
(3) Serving as an executive or a person with authority in a company or partnership sentenced to
bankruptcy or whose assets are controlled.
Policy on Serving as Directors of PTT Directors and Management in Other Companies

PTT has 45 affiliated companies, seven of which are listed on the Stock Exchange of Thailand
(SET), in which it invested and held shares. As a rule, about 60% its current net income is derived from these
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companies. PTT has adopted the PTT Group management structure for synergy and alignment of policies. To
achieve this, it appoints directors or management team members to serve as directors in these companies to
supervise policies and business management aligning with PTT’s policy for the benefit and value addition for
all stakeholders. It is, therefore, very likely that some directors or management team members will be serving
in more than five companies. Below are the criteria for such appointment:
1. To ensure that the management of a given company aligns with the policy of PTT Group
companies; to monitor its overall business performance to align with PTT’s policy and institute comparable
standards
2. To forge synergy for the business of PTT Group companies and supplement value to all
related parties, including Thailand as a whole
3. To apply specific expertise in support of business, including financial knowhow to improve
accounting and financial processes to enable a given company to grow robustly; this includes assistance to
companies outside PTT Group and the resulting application of the knowledge and experience gained from
serving in such leading companies, which enrich the benefit for PTT and foster cordial relations and business
alliance for PTT
4. This is part and parcel of the responsibility of the Directors and Management of PTT.
Compensation Paid to Directors
Unit: Baht
Days of Board Committee Total Total

No. Name Service Bonus Meeting Meeting Meeting Compensation
Allowance Allowance Allowance
1 Dr. Norkun Sittiphong 366 2,212,851.20 770,887.10 - 770,887.10 2,983,738.30
2 Mr. Chulayuth Hirunyavasit 265 1,293,779.52 420,000.00 124,258.06 544,258.06 1,838,037.58
3 Mr. Chakramon Phasukavanich 366 1,786,880.40 600,000.00 150,000.00 750,000.00 2,536,880.40
4 Gen. Somdhat Attanand 366 1,786,880.40 620,000.00 78,000.00 698,000.00 2,484,880.40
5 M.L. Panasarn Hasdin 366 1,786,880.40 600,000.00 72,000.00 672,000.00 2,458,880.40
6 Dr. Ampon Kittiampon 366 1,786,880.40 600,000.00 150,000.00 750,000.00 2,536,880.40
7 Khun Pornthip Jala 366 1,786,880.40 620,000.00 202,500.00 822,500.00 2,609,380.40
8 Dr. Panich Pongpirodom 366 1,786,880.40 600,000.00 - 600,000.00 2,386,880.40
9 Khunying Jada Wattanasiritham 366 1,786,880.40 600,000.00 359,564.52 959,564.52 2,746,444.92
10 Dr. Naris Chaiyasoot 265 1,293,779.52 440,000.00 - 440,000.00 1,733,779.52

Annual Report 2008
11 Mr. Chaikasem Nitisiri 101 493,100.88 159,000.00 24,000.00 183,000.00 676,100.88
12 Mr. Anuwat Maytheewibulwut 41 200,169.66 60,000.00 - 60,000.00 260,169.66
13 Mr. Prasert Bunsumpun 366 1,786,880.40 620,000.00 - 620,000.00 2,406,880.40
14 Mrs. Pannee Sathavarodom 366 1,786,880.40 620,000.00 24,000.00 644,000.00 2,430,880.40
Total 21,575,604.38 7,329,887.10 1,184,322.58 8,514,209.68 30,089,814.06

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Retired and Resigned Directors in 2008

Unit: Baht
Days of Board Committee Total Total

No. Name Service Bonus Meeting Meeting Meeting Compensation
Allowance Allowance Allowance
1 Mr. Olarn Chaipravat 265 1,293,779.52 441,000.00 262,500.00 703,500.00 1,997,279.52
2 Dr. Praipol Koomsup 101 493,100.88 160,000.00 - 160,000.00 653,100.88
3 Mr. Nonthigorn Kanchanachitra 95 463,807.75 153,548.39 - 153,548.39 617,356.14
4 Dr. Suchart Thada-Thamrongvech 213 1,039,905.80 350,000.00 225,000.00 575,000.00 1,614,905.80
5 Ms. Puntip Surathin 101 493,100.88 160,000.00 24,000.00 184,000.00 677,100.88
6 Gen. Apichart Penkitti 101 493,100.88 180,000.00 - 180,000.00 673,100.88
Total 4,276,795.71 1,444,548.39 511,500.00 1,956,048.39 6,232,844.10

Director’s Compensation in 2005-2008
Unit: Baht
2005 2006 2007 2008

Compensation
Persons Baht Persons Baht Persons Baht Persons Baht
Meeting Allowance 15 10,707,750.00 15 10,920,500.00 15 11,764,919.36 15 10,470,258.07
Total Bonus 15 17,777,260.27 15 29,409,589.04 15 30,294,520.55 15 25,852,400.09
Total 28,485,010.27 40,330,089.04 42,059,439.91 36,322,658.16
Compensation Paid to Management

PTT’s compensation paid to management team members complies with the policies and principles
defined by the Ministry of Finance, which is then jointly defined as key performance indicators (KPIs) by the
CEO/President and his management team for framing PTT’s business each year. It is also a part of the
assessment criteria used by the Remuneration Committee in assessing the performance of the CEO/President
and his team. Each person’s compensation is measured against the performance of leading industry peers’

practices and standards. The Remuneration Committee then proposes the compensation along with
compensation guidelines to the Board for review and approval.
As of December 31, 2008, the CEO/President and seven management team members received
88,843,800 Baht in compensation (excluding acting Senior Executives and Senior Executives seconded to
and paid by PTT affiliates and obtained compensation where such companies were responsible for paying
the entire amounts), detailed as follows:
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Total Compensation Paid to Management
Unit: Baht
2005 2006 2007 2008

Compensation
Salary 8 45,135,600 7 45,145,600 7 51,815,390 8 57,755,520
Bonus 8 22,170,695 7 31,668,840 7 22,572,960 8 27,024,420
Total 67,306,295 76,814,760 74,388,350 84,779,940
Provident Fund Contribution for Management

Unit: Baht
2005 2006 2007 2008

Compensation
Provident Fund 7 3,062,216 6 3,005,232 6 3,659,601 7 4,063,860
Total 7 3,062,216 6 3,005,232 6 3,659,601 7 4,063,860

Personnel
Convinced that the quality of its people is the key to its high performance, throughout its three
decades of existence PTT has been committed to the development of a human resource management
system compatible with technological advancement and industry standards. It not only promotes both
conscientious merit and business competence for its employees, but also encourages them to actively take
part in public service activities. It is indeed on employees that PTT focuses in its development toward a
high-performance organization to compete better and respond to prevailing circumstances.
The PTT employee head count as of December 31, 2008 stood at 3,636. Throughout the year, PTT
carefully managed its manpower to align with its operation under business uncertainty, with a focus on
allocating resources where significant value supplementation was likely or where continuing investment was
needed. Besides formulating human resource plans to suit business circumstances, PTT has undertaken a
plan to earnestly develop the potential of all its employees and streamline its business procedures.
Number of Personnel and Compensation

The head counts for major business groups for the past four years were as follows:
Unit: Persons
2005 2006 2007 As December 31, 2008

Business
PTT PTT PTT PTT
PTT PTT PTT PTT
Group Group Group Group
Annual Report 2008
1. Gas 963 - 1,057 - 1,108 - 1,162 -
2. Oil 1,302 - 1,239 - 1,254 - 1,234 -
3. Petrochemicals and Refining 51 - 64 - 75 - 70 -
4. Support Staff / 840 1/ 92 2/ 824 1/ 251 2/ 851 1/ 2562/ 899 1/ 2712/

100
Secondees to PTT Affiliates
5. Subsidiaries and - 4,687 - 4,768 - 7,086 3/ - 7,718
Jointly Controlled Entities
Total 3,156 4,779 3,184 5,019 3,288 7,342 3,365 7,989
Notes: 1/ Excludes PTT secondees

2/ Includes PTT secondees
3/ Includes PTTRB employees, with company formation of May 25, 2007
Compensation for Personnel (excluding the CEO/President and Management)

Unit: Baht
2005 2006 2007 2008
Salary 2,020,836,159.33 2,313,239,842.61 2,523,442,073.58 2,771,381,311.34
Bonus 996,368,672.00 1,138,238,033.75 1,263,194,610.38 1,255,817,206.62
Provident Fund Contribution 199,951,973.02 228,214,687.17 249,207,450.79 273,843,959.44
Others (if Applicable) 800,492,308.37 993,909,544.34 1,104,896,055.73 329,822,939.92
Total 4,017,649,112.72 4,673,602,107.87 5,140,740,190.38 4,630,864,417.32

PTT Group CG Day 2008 PTT Group Knowledge Sharing 2008
Other Compensation
PTT has instituted employee welfare and other compensation apart from salary, bonus, and provident
fund contribution for management and all employees to reflect domestic economic conditions, cost of living,
and other standards for peer companies, and include rent allowance, relocation, and overtime pay. In 2005
and 2006, PTT allocated 60 million units of warrants, or the rights to purchase common shares, to the President,
the Management, employees, and employees from affiliated companies serving PTT, as an incentive for their
total and consistent dedication. This incentive was designed to create a sense of ownership and encourage

participation in the management and development of PTT, benefiting its performance and
business operations. They would each receive warrants; four portions of Warrant 1 and four of Warrant 2
each equivalent to 25% of the total units received by each person, who can exercise their first warrant by
purchasing common shares one year after the warrant was issued at one unit of warrant per share. Similarly,
the second, third, and fourth warrants can be exercised two, three, and four years respectively after the date
of issue. Expiring five years after the date of issue, the warrants can be exercised every three months on the
last day of each period until their expiry.
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Human Resource System Development and Improvement
To become a high-performance organization, during the year PTT improved the process and mechanism
for human resource management to ensure higher efficiency and realize the full potential of its people. Thanks
to these improvements, PTT employees would be able to fully demonstrate their competence,
advance in their careers, and continue to grow with PTT. The elements of PTT’s success include:
ë Implementing Learning Organization Mechanisms for Sustainable Organization

PTT evolved its knowledge management system for essential, relevant information while encouraging
everyone to do the same and update this regularly. It makes this system available to all to facilitate learning
and efficient problem-solving while actively promoting employees’ own development of their
potential for this is the cornerstone to a high-performance organization. Below is an excerpt of the CEO/
President’s views on the Learning Organization:
“To become a Learning Organization, we rely on human intelligence. Learning is an ongoing, lifetime process.”
ë Building Competent and Righteous Members of PTT and Society

Besides a human resource management system focusing on making employees both smart and
responsive to Company expectations, PTT values its role of turning out conscientious people who are ready
to participate in social development and public services while observing corporate governance principles.
PTT is convinced that achievement of competence and righteousness will nurture sustainable growth.
TQA for Sustainable HPO
ë Participating in Decision-making on Corporate Goals and Directions

PTT has focused on participation across the board in designing business plans to suit its direction and
targets, as this will efficiently align all components of the Company. To this end, it has instituted an annual
process to draw up its vision and corporate direction, whereby senior management of PTT and its affiliates
along with support staff jointly define such vision and direction before communicating the agreed items for
other units to use in defining business strategies and business plans, and to come up with budget plans in
broad alignment.
In 2008, all PTT employees defined individual objectives and KPIs cascaded through the ranks, from
the corporate, department, and down to the individual level. The goals and indices defined by employees
Annual Report 2008
serve as performance framework and assessment tools for each person.
ë Developing Employees’ Career Paths in Line with Corporate Business

At the heart of human resource management is human resource development. PTT has developed
career management processes for greater efficiency by dividing employees into two groups with clear and
efficient linkage: senior management and staff.
102
- Senior management (from vice presidents upward): Also known as group leader development, this
development sustains the needs for high-level executives in both quantity and quality, with a recruitment,
assessment, and development system in place. This is under the auspices of the PTT Group Human Re-
sources Management and Development Committee (PTTGMC).
- Staff: This internal management is specific to PTT or a PTT Group company. At PTT, a Career
Management Counseling Committee (CMCC) and 14 Career Counseling Teams are appointed to take charge
of defining and developing individuals to be properly knowledgeable and competent to sustain future busi-
ness directions. Career management is designed for individuals to accumulate maximum knowledge and
skills for their career paths and prepare them for future senior management roles. Management and staff
jointly set the approach for staff development through proper training by competency and career profile. Job
rotation provides staff with new responsibilities to enable them to develop skills in their new positions, as do
suitable appointments and promotions for their responsibilities and potential. Finally, development of staff to
suit their competency and needs of both staff and the organization would in time lead PTT to its goals.
ë Fostering Positive Relations between Management and Staff in Search of the Same Goal
Communication between the management and staff at PTT comes in various forms. Needing to be
aware of corporate business, obstacles, and potential repercussions, all employees should be allowed to
share their views and take part in business efficiency improvement. In 2008, besides the monthly labor
relations committee meetings, PTT held Joint Consultative Committee (JCC) meetings between its
management team and staff of regional offices nationwide. In addition, there is not only the President & CEO
continually held regular meetings with employees and attended meetings among management and staff
(both in and outside PTT), but the Company also surveyed employees’satisfaction for views and suggestions
for improvement. PTT is convinced that proper communication and informationexchange among all will lead
to positive relations among all, which will lead the organization toward the same goals.
ë PTT Group Core Value:
In 2008, S P I R I T, PTT Group Core Value, was refined and it consists of :
S = Synergy
P = Performance Excellence
I = Innovation
R = Responsibility
I = Integrity & Ethics
T = Trust & Respect
The intent of these values is to forge belief, decision-making, and behavior that align with the vision of
PTT Group and promote a quality of working life for employees.
Corporate Governance
The Board of Directors is committed to conducting its business in compliance with corporate gover-
nance principles and the practical guidelines laid down by the Securities and Exchange Commission (SEC)
and SET. Ever since the privatization and distribution of Company shares in late 2001, it has been determined
to apply corporate governance as its guiding principle for efficient business management in tandem with
sustainable business growth. PTT regulations state: ‘The Company must have and implement a policy on its

business ethics, including the ethics of its Board of Directors, Management, and employees in compliance
with good corporate governance practices as its code of conduct for the proper conduct of the organization
with high standard’. So, PTT subsequently issued rules on good corporate governance in 2001 and
published them as a handbook for each director, management team member, and the rank and file to sign,
acknowledge, and comply with until 2005.
In 2005, the Corporate Governance Committee not only came up with a code of practice and
recommended practices for the Board, but also updated the handbook to be more comprehensive and more
in line with international practices, with topic rearrangement and content addition. To illustrate, the publication
103
now covers the rights of shareholders and promotion of their exercise of these rights, in particular fundamental
rights, including sharing of profits, purchase or transfer of shares, acquiring adequate business information,
attendance at shareholders’ meetings and voting and appointing or removing directors, deciding Board
compensation, appointing the external auditor and its fees, and matters affecting the Company. By and
large, the contents align with the above-mentioned policy, and the publication is known as the Corporate
Governance Handbook (Revision 1/2548) for the Board and all employees to acknowledge and comply with
until 2008.
Then in 2008, the Corporate Governance Committee made it a policy to revise the handbook
mentioned above by modifying the contents to comply with the SET principles of good corporate
governance, 2006 version, for listed companies. The stock exchange categorized five sections, namely the
rights of shareholders, equitable treatment of shareholders, roles of stakeholders, information disclosure and
transparency, and the responsibility of the Board. The revised publication is currently under the printing
process before delivery in 2009 to each Director, Management, and staff to sign and comply with.
Below are the essences of PTT’s corporate governance practices in 2008 :
Shareholders’ Rights and Equitability

PTT constantly recognizes that all shareholders are the owners of PTT and that investors will put trust
and confidence in PTT’s business only if they can be assured of its fair policy and respect for shareholders
fundamental rights and equitability under the law, as well as business management that proves suitable,
efficient, effective, and accepted by investors and stakeholders as one with good corporate governance.
1. Shareholders’ Meetings
As a rule, PTT schedules an annual general meeting of the shareholders (AGM) within four months
of the annual closing date of its accounting books. For urgent matters of shareholders’ interest or requiring
shareholders’ approval, it will call an extraordinary meeting of the shareholders. In 2008, the AGM fell on April
11, with the venue being the Bangkok Convention Center, Central Plaza Ladprao Shopping Complex, Bangkok;
no extraordinary meeting was held this year. A total of 14 directors attended the AGM, with only one missing
on an oversea business. These consisted of the Chairman of the Board, the Chairmen of all committees, and
the President & CEO together with senior management members and the external auditor. Three legal
advisors served as moderators in auditing and voting matters in cases of disagreements. The chairman
performed his role thoroughly as defined by law and the meetings also gave their unanimous approval on
each agenda item.
2. Delivering Meeting Notices

PTT assigned Thailand Securities Depository Co., Ltd., its securities registrar, to mail meeting
notices together with details of the agenda and accompanying documents’ supplementary and supporting
information for decision-making / opinions of the Board / complete minutes of the past meeting / annual report
/ meeting documents / proxy forms with complete instruction to shareholders at least 14 days ahead of each
meeting date. Similarly, at least three days ahead of each meeting, the invitation was announced through one
Thai and one English newspaper.
Annual Report 2008
The AGM meeting notices were made available at PTT website (http://www.pttplc.com) at least
30 days ahead of the meeting date.
3. Facilitating Shareholders
PTT facilitated all shareholders in a fair manner by arranging for officers to welcome them and
provided all shareholders with security arrangement and emergency response plans. Registration through a
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barcode system begins at least two hours ahead of the meeting. A suitable reception is also extended to
them.
4. Conduct of Shareholders’ Meetings

After explaining the Company’s rules on voting and vote counting for individual agenda items, the
chairman of the meeting must clearly address how to vote on each agenda item. Once information has been
provided for each item, the chairman gives the floor to all attendants to express opinions or recommenda-
tions and ask questions, giving adequate time for debate. The chairman and the management are to address
and answer all questions clearly and precisely.
The chairman ensures that the meeting proceeds according to the order of the agenda and does
not add an item without notifying shareholders in advance. For the election of directors, individual votes are
required, and the minutes of the meeting must be completely and accurately recorded with a written sum-
mary of voting results on each matter. As a rule, shareholders meetings last three hours. The AGM of 2008
began at 9.30 a.m., with registration beginning at 7.30 a.m., and was adjourned at about 12.30 p.m.
5. Practical Guidelines for Reporting Conflicts of Interest

As specified by the Corporate Governance Handbook, all Directors, Management, and staff must
prepare reports on conflicts of interest, consisting of annual reporting forms and a new annual format in case
of changes during the year. At a given meeting, people with vested interests or conflicts of interest with PTT
must inform the meeting to excuse themselves and abstain from voting on each connected matter.
Similarly, at shareholders’ meetings, Directors are supposed to behave likewise in case they are
connected with any agenda item.
6. After the Shareholders’ Meeting
After each meeting, PTT duly submits the minutes, with voting records and every question raised
by shareholders to SET and the SET board. Meeting information, videotapes, and audiotapes are accessible
through http://www.pttplc.com.
Equitable Treatment to Shareholders

Different shareholding proportions and thus different voting proportions do not necessarily mean dif-
ferent treatment of shareholders. PTT treats all shareholders fairly without regard to their gender, age, origin,
nationality, religious belief, political inclinations, or physical impairment. Should shareholders be unable to
take part in their meetings, they always have their proxy rights.
1. Proposing Additional Meeting Agenda Items and Nominating Directors

To enable minor shareholders to earnestly take part in business operation and auditing, PTT has
defined criteria for entitling them to propose meeting agenda items and/or nominate directors in advance to
deliberate agenda items that could be useful to PTT, including the selection of qualified directors to perform
their duties efficiently in the best interests of PTT and all stakeholders alike. In practice, shareholders with a
combined holding of at least 100,000 shares could propose agenda items or nominate qualified directors

before the AGM of 2008, which exceeded the privileges provided by law.
PTT posted such criteria on its website from November 21 to December 31, 2008, and posted an
announcement on the website of SET, which attracted no recommendation of such agenda items and no
nomination of directors.
2. Meeting Languages
Since most of the shareholders attending the AGM are Thais, the meetings are conducted in Thai.
However, for the communication benefit of foreign shareholders, PTT has commissioned the translation of
105
shareholders’ meeting supplementary documents and other relevant documents in English. Its website is
also bilingual. It also provides officers skilled in English on hand at meetings to facilitate foreign sharehold-
ers.
3. Appointing Proxies
To maintain the rights of those shareholders who cannot attend in person, they can appoint prox-
ies or delegate their votes to any PTT’s independent director in attendance. To this end, PTT has specified
these independent directors’ names in proxy forms defined by the Ministry of Commerce for voting on behalf
of shareholders without conditions.
Thirty days ahead of each meeting, PTT disclosed the proxy form which is attached along with
details and procedures on its website. Shareholders may inquire about this by phone or other channels.
4. Access to PTT Information
PTT favors no particular group of shareholders, giving all equal access to its public information
through assorted channels. Shareholders are supposed to receive proper treatment and gain as much
information as can be disclosed by PTT. Below are the channels:
ë Telephone: Call Center 1365, 66 (0)-2537-2000
ë Website: http://www.pttplc.com
- Customer Service Center: orc@pttplc.com
- Corporate Communication Department: corporate@pttplc.com
- Office of the President and Corporate Secretary: corporatesecretary@pttplc.com
- Capital Market and Investor Relations Department: ir@pttplc.com.
Roles of Stakeholders
PTT accounts for stakeholders’ rights and interests by establishing guidelines for addressing the needs
of each group inside and outside the Company, including the nation, society, communities, shareholders,
customers, business partners, and employees, as well as its own responsibility to society and the environ-
ment. These spell out PTT Group’s missions:
To the country Ensuring long-term energy security by providing sufficient high quality
energy supply at fair prices
To society and Being a good corporate citizen to protect environment and improve quality of
community life of the communities
To shareholders Conducting a profitable business leading to sustainable growth while providing
optimum returns to stakeholders
To customers Ensuring customer satisfaction by delivering high quality products and
services at fair prices
To business partners Conducting business with partners at fair and arm’s length basis promoting
synergy and coordination, creating capability and efficiency in long-term
business partnership
To employees Providing supporting capability building in professional conduct, ensuring
employee’s well-being to be comparable to other leading companies
Annual Report 2008
1. Treatment to Main Stakeholders

- The nation, society, communities, and the environment
PTT strictly obeys laws and regulations enforced by regulatory agencies; institutes professional
petroleum management; makes the best use of natural resources, commands emergency response and
106
crisis management systems; values quality, safety, health, and the environment of relevant stakeholders; and
promotes social activities designed to conserve the environment and improve the quality of life for community
members under sustainable development. The actions taken in 2008 appear under the topics of Social and
Environmental Responsibility and Quality, Safety, Health, and Environmental (QSHE) Performance.
PTT’s units in charge of social, community, and environmental affairs consist of the Corporate
Social Responsibility and QSHE Departments.
- Customers
PTT takes customers satisfaction seriously, as they buy our products and services. It offers fair
prices, quality, and accountability to customers and consumers, and is committed to developing its products
and provides safe, integrated, prompt, and quality services in response to customers’ and consumers’ need
in a continual way.
- Business partners
PTT values procurement processes, as they are vital to the determination of expenses and the
quality of PTT products and services. For transparency, a clear procedure is therefore essential for openness
to scrutiny and maximum benefits. PTT values its business partners because they are key to business
success through mutual support, ranging from sourcing to further business details. Therefore, PTT must treat
business partners on the same footing and on the basis of fair competition and mutual respect.
- Employees
All PTT employees are the most crucial components of our business success. All employees
wherever they work must be treated without prejudice. Unity, trust, impartiality, polite manners, and respect
for human dignity are stressed. A good and safe work environment, with suitable compensation, welfare, and
innovations, is essential. Sexual harassment is not tolerated. Besides, PTT promotes the exercising of wage
earners rights under the law governing labor unions and state enterprise relations. PTT will not obstruct labor
union’s activities unless they are in serious violation of the law and business ethics, or will seriously harm
PTT’s interests.
2. Filing of Complaints / Requests for Information
Stakeholders may use any mechanism to request information from PTT or inform PTT about their
questions, complaints, or recommendations either through the intranet webboard, the Company’s website,
by phone, or by e-mail to the Capital Market and Investor Relations, the Office of the President and Corporate
Secretary, Corporate Communications Department, or the Customer Relations Center.
ë Telephone: Call Center 1365, 66 (0)-2537-2000
ë Website: http://www.pttplc.com
- Customer Service Center: orc@pttplc.com
- Corporate Communication Department: corporate@pttplc.com
- Office of the President and Corporate Secretary: corporatesecretary@pttplc.com
- Capital Market and Investor Relations Department: ir@pttplc.com.
Directly relevant agencies are to address these, take corrective steps, and come up with proper
responses to all. An internal control committee is to supervise and review, and the Office of Corporate Audit
is to assess the efficiency and adequacy of the internal control system and audit performance of the Company,
while receiving complaints, ensuring improvement, and summarizing actions for the attention of the Audit
Committee and, eventually, the Board.
In 2008, the Company was engaged in no dispute with stakeholders.

Disclosure of Information and Transparency
1. Corporate Governance Activities
The Corporate Governance Committee is assigned to promote and screen corporate governance
matters so that the Company may actively campaign for compliance with corporate governance principles. A
working group on corporate governance, headed by an Executive Vice President, has implemented assorted
matters under the policy and conducted campaigns to cultivate awareness in directors, the management,
and employees. Periodic promotional campaigns were conducted through various media within the
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Company, including exhibitions, a CG Website packed with information, and two-way communication
channels. Internal news broadcast, video shows, a CG column in the PTT Spirit magazine, and a CG-Digest
via email-newsletters are among the publicity and awareness tools, with positive responses from all. In
addition, the Corporate Governance Committee distributed the Thai and English versions of the Corporate
Governance Handbook (1st Revision) to investors, international interested parties, and stakeholders for their
reference. This will also be posted at PTT’s website.
In 2008, PTT organized three Company visits for a total of 480 minor shareholders to the Rayong
GSP and Rayong herb garden, each trip with 160 shareholders. It asked all current shareholders as of the
closing date of the share registration took to notify PTT of their interest in joining the activity. To bolster
shareholders’ confidence, names were drawn under a fair and transparent process.
PTT values accurate, complete, timely, and transparent disclosure of information through the
notification channels of SET, its own website, briefings of quarterly performance at PTT’s own auditorium, and
a PTT Research and Technology Institute visit for analysts and institutional investors (for 80 visitors).
In addition, PTT focused on corporate governance among companies in the PTT Group to align
with PTT’s corporate governance management standards. To this end, they agreed to jointly study and
develop corporate governance guidelines based on international best practices to establish a standard
suitable for PTT Group as a step toward future ranking. Implementation plans and proactive promotional
strategies for corporate governance were also established.
Below are some activities in promotion of corporate governance for PTT Group.
1. Establishing a committee to oversee corporate governance policies for PTT Group
2. Organizing seminars to foster awareness of corporate governance and social responsibility,
with experts as guest speakers, to encourage the sharing of experience. The target audience was the staff of
PTT and PTT Group with corporate governance roles.
3. Organizing the ‘PTT Group CG Day’ to disseminate PTT Group’s corporate governance
activities
4. Planning a contest of the implementation of corporate governance principles in operating
entities
5. Sharing comments and ideas within PTT Group on each company’s corporate governance
handbook based on international standards.
2. Board and Management Compensation

The Board-appointed Remuneration Committee oversees the compensation for directors and the
management. As a rule, the compensation of directors follows shareholders’ resolutions and approvals. The
compensation for directors and the management is disclosed under the section of the same name.
3. Financial and Other Reports

Each quarter, together with the Accounting Department and the Office of the Auditor-General, the
Audit Committee reviews PTT’s financial reports and presents its findings to the Board. The Board is accountable
for PTT Group’s consolidated financial statements, as well as other financial information (Report on the Board’s
Responsibility to Financial Reports’) presented in the annual report. The financial statements are prepared
under generally accepted accounting principles, examined, and certified by the Office of the Auditor-General.
Essential information, financial and others, is completely and consistently disclosed.
4. Investor Relations Department

Annual Report 2008
Ever since PTT’s privatization and shares were traded on SET in October 2001, the Capital Market
& Investor Relations Department was established as a clearing house for disclosing essential information to
investors and financial reporting, which includes performance reports, financial statements, and information
reported to SET, together with quarterly management discussion and analysis reports. These are disclosed
to both domestic and international shareholders fairly, regularly, and thoroughly. Investors may contact the
Department directly or through the PTT website, which is regularly updated, for information in Thai and
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English, which includes:

ë Annual report/Form 56-1
ë Major investment project information
ë Corporate governance policies and promotional activities
ë Financial performance.
Through the years, PTT has valued the disclosure of information that is accurate, complete,
transparent, and comprehensive, as well as direct and indirect presentation of performance and keeping
investors, business proprietors, and relevant parties informed of its information. A summary of our activities
appears below:
ë Direct: PTT regularly presents information to analysts, investors, and employees at analysts’
meetings, road shows, conference calls, and conferences. Analysts, investors, and interested parties also
pay visits to meet our management and inquire about our updates.
Summary of Key Activities of Capital Market and Investor Relations in 2008
Activities in 2008 Times
International Roadshow 12
Domestic Roadshow 7
Analyst Meeting (Quarterly) 4
Company Visit/Conference Call 151
E-mail/Phone Calls 4 - 6 times/day
Participation in SET excursions 2
Trips for institutional investors to visit and meet management team members 1
Trips for minor investors to visit and meet management team members 1
ë Indirect: Information about the Company, its performance, financial statements, and reports
filed with SET are found at www.set.or.th and www.pttplc.com.
ë Investors and interested parties can also post inquiries through www.pttplc.com or through
email at ir@pttplc.com.
ë In addition, PTT has constantly publicized news, business activities, and project updates,
apart from addressing questions and facilitating contacts for the media and the public. The activities of 2008
appear below:
Activities in 2008 Amount
E-mails 3,042
News/photo releases 381
Press conferences 56
Media visits (domestic and international operation sites) 6
General visitors 140 groups = 7,516 people

Responsibilities of the Board
1. Composition
- A minimum of five and a maximum of 15 directors
- Independent directors exceed half of the directors
- The Board should have at least three knowledgeable people in petroleum, one in legal affairs,
and one in accounting and finance.
According to a certifying letter of the Ministry of Commerce dated December 3, 2008, the Board
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numbered 14 directors, of whom:
ë Thirteen were non-management; nine were independent directors, which exceeded half of the
Board
ë One was a management team member.
2. Qualifications
ë All directors are qualified and had no forbidden characteristics under the Public Company
Limited Act and Section 5 of the Standard Qualifications for Directors and State Enterprise Officers Act (No.
6) of 2007, including:
- Age not exceeding 65
- Maximum of three state enterprise directorships
- Independent directors must be qualified under the announcement of SET governing the char-
acteristics and scope of operation of audit committees
- Have never received a jail sentence, except for violations of the law by negligence or petty
crimes
- Do not hold a political position, except for a director position required by law
- Do not belong to a political party nor work for one
- Have never been expelled, dismissed, or made to leave a position because of malfeasance
- Do not hold shares of the state enterprise in question or a shareholder of a juristic person
where the state enterprise in question holds shares. Exceptions apply for directors of state
enterprises who are not government officials, government employees, or wage earners with
positions or position salaries for centralized governments, provincial governments, local
governments, or other government units. Also, such state-enterprise directors hold no more
than 0.5% of the paid-up capital of the state enterprise in which they serve as directors or
juristic persons where such state enterprise holds shares
- Are not position holders in the juristic person where such state enterprise holds shares.
Exceptions apply when the board of directors of that state enterprise appoints them as directors
or other positions in the juristic person
- Are not directors, management team members, or authorized managers or hold vested
interests in a juristic person that serves as a concessionaire, a joint venture, or ones with vested
interests in the affairs of such state enterprise. Exceptions apply for the board chairman, director,
or manager assigned by that state enterprise.
3. Independent Directors
As recommended by the Corporate Governance Committee, the Board defined the independence
of its independent directors in line with the criteria of SEC and SET as follows:
ë Hold up to 0.5% of the voting shares of PTT, its subsidiaries, associates, or related companies
(including the shares held by connected parties under Section 258 of Securities and Exchange
laws)
ë Have not been or are not involved in the management, or employees, wage earners including
an audit advisors, legal or other advisors employed by PTT, or have control over PTT, its
subsidiaries, associates, or juristic persons that could pose conflicts of interest, except when
such qualifications have ended for more than two years
ë Have absolutely no vested interests in PTT, its subsidiaries, associates, or related companies,
Annual Report 2008
or juristic persons with possible conflicts of interest hampering independent exercise of

discretion including customers, business partners, trade or loan creditors/debtors
ë Are not close relatives or have other relations that could deprive independence with the
management, major shareholders of PTT, PTT Group companies, associated companies, or
juristic persons that could pose conflicts of interest; this includes not being appointed as an
agent to preserve the interests of directors or major shareholders.
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4. Segregation of the Power of the Chairman and the President & CEO
To segregate policy-making duties from those of day-to-day management and enable directors to
oversee, look after, and assess performance effectively, PTT has required that the Chairman and the
President & CEO are always two distinct persons. This is because the Chairman needs to oversee the
management’s performance to guide and to assist, but not to take part in or interfere with day-to-day
management, which is the duty of the President & CEO under the frame of authority delegated by the Board.
In addition, the Chairman must exercise leadership and ensures that directors do not fall under the
influence of the management, partly by chairing Board meetings and shareholders’ meetings fairly and
efficiently while encouraging participants to exercise their voting rights and strictly comply with good
corporate governance principles.
5. Independence of the Chairman

PTT highly values the independence of the Board; however, since it is a listed company on SET
while remaining a state enterprise under the Ministry of Energy, most of the elected Chairmen have come
from the management of the ministry. Yet, they have consistently displayed strong independence.
6. Corporate Secretary
Details have been stated previously.
7. The Committees
The Board highly values corporate governance by initially appointing three committees, namely
the Audit Committee, the Nominating Committee, and the Remuneration Committee. For a period, the Audit
Committee also looked after corporate governance. In 2004, the Board set up a Corporate Governance
Committee, charged with promotion and screening of corporate governance and promotion of excellence in
such areas. PTT has four committees investigating critical matters under the corporate governance
principles to create maximum benefit for shareholders, taking into account stakeholders’ concerns and
interests, business ethics, and transparency. Each of these committees consists of qualified directors as
required by SET, with clearly written roles and responsibilities in a charter.
8) Roles and Responsibilities of the Board

(1) Corporate Governance Policy
The Board’s policy on corporate governance is as follows:
1. In their conduct of business, the Board, the management, and all employees are committed to
the six elements of corporate governance, namely Accountability, Responsibility, Equitable
Treatment, Transparency, Vision to Create Long-Term Value, and Ethics. An organizational
structure effectively balances the roles of the Board, the management, and shareholders.
2. Directors must perform their duties independently with full commitment and responsibility. There
is a clear division of responsibilities between the Chairman and the President.
3. Playing a key role in the formulation of corporate vision, strategies, policies, and critical plans
with due regard for risk factors and suitable risk management, the Board must also ensure the
credibility of the accounting system, financial statements, and accounting audits.

4. Leading the rest of the Company on ethics and corporate governance, the Board must
supervise the management and solution to any conflict of interest or connected transactions.
5. The Board may appoint committees to help screen and deliberate critical issues.
6. The Board must undergo annual self-assessment to obtain a framework for its performance
assessment.
7. The Board must establish a Code of Conduct for itself, the management, employees, and all
contract employees to follow in addition to PTT’s rules and regulations.
8. Disclosure of financial and non-financial information must be carried out adequately, credibly,
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promptly, and fairly for all shareholders and stakeholders. To investors and the general public,
the Capital Market & Investor Relations Department is responsible for such disclosure.
9. To receive fair treatment, PTT shareholders have the right to access information through
suitable communication channels with PTT.
10. A proper selection procedure must be in place for the appointment of key management
personnel under a fair and transparent nomination process.
(2) Code of Business Conduct

To show PTT’s intention to conduct its business with transparency, ethics, responsibility to
stakeholders, society, and the environment, the Company has issued a code of conduct for its Board,
management, and all employees to strictly follow together with Company rules and regulations. Section 3 of
the Corporate Governance Handbook (Version 1/2548), entitled Code of Conduct for Board, Management,
and Employees , is summarized below:
ë The Board must properly represent shareholders by ensuring sustainable and profitable Company
growth, performing their duties to the best of their ability with integrity and prudence. They
must be politically neutral, decide and act independently without any vested interest in
businesses related to or in competition with PTT, and be committed to the prevention and
elimination of all dishonest practices.
ë The management and employees must be committed to developing a team culture, creating
customers’ satisfaction, and giving due consideration to fairness and integrity in conducting
PTT’s business. They must not only recognize and be concerned about safety for society, the
environment, and the quality of life of the public, but also perform with responsibility, integrity,
commitment, and determination for the benefit of PTT.
Along this line, PTT has provided educational media, including articles, radio scripts, and video-scripts
illustrating the proper roles of the Board, the management, and employees to cultivate discretion and
judgment in their decision-making. Yet, a simple test is by asking oneself whether a certain decision would
lead to an action that is improper or socially unacceptable to the public or detrimental to PTT’s reputation as
an ethical company. PTT continues to monitor the implementation of such compliance.
(3) Conflicts of Interest
Under the Board’s policy on conflicts of interest, business decisions made by the management
and employees must be solely for PTT’s best interests. They must not only avoid engaging in financial and
other relationships with external parties that would lead to financial losses for PTT or a conflict in loyalty or
interest, but also must not compromise the efficiency of business operation. Those with interests or related
businesses to a matter requiring PTT’s review and decisions must report their relationships and connection
with a possible conflict of interest. PTT is to disallow such connected persons from exercising their authority
for and involvement in such transactions.
ë Reporting connected transactions with PTT

PTT has required directors, the management, and all employees to disclose potential conflicts
of interest with it through a disclosure form. In addition, any approval of such items must not contain special
conditions or specifications that are out of the ordinary. PTT’s Office of Corporate Audit and the Audit
Committee have been entrusted with the monitoring and resolution of issues related to conflicts of interest. To
date, however, no such case has arisen.
Annual Report 2008
At each Board meeting, the Chairman reminds directors of this policy, asks them to declare a
possible conflict of interest on each agenda item, and asks them to refrain from expressing views or voting on
that item.
The Audit Committee regularly presents to the Board its findings on connected transactions
and conflicts of interest, carefully prepared in line with the regulations of SET, which specify that these issues
must be disclosed every quarter. PTT has strictly observed this practice.
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All PTT directors and management, including their spouses and children not yet of legal age,
must report any changes in their PTT share ownership to SEC under Section 59 of the Securities and
Exchange Act B.E. 2535 (1992) within three days from the date of sale, purchase, disposal, or receipt of such
shares. To prevent abuse of inside information, the executives or agencies that are aware of such inside
information may not disclose it to outsiders or unrelated persons and may not buy or sell PTT shares within 45
days from the last effective date of the financial statements to the notification date of the financial statements
to SET, ahead of the public dissemination of the statements. During the past year, all directors and
management have strictly observed this.
(4) Internal Control and Internal Audit

Each year, the Board monitors the management’s performance through its approval of operating
plans, budgets, and goals. The management is encouraged to recognize the criticality of an internal control
system that is efficient, compatible with acceptable risk levels, and suitable for Company circumstances.
ë Internal Control
The Board has instituted efficient internal control and risk management processes to
acceptable levels while regularly monitoring and evaluating their efficiency. It has appointed a committee in
charge of managing internal control to formulate standard practical guidelines for internal control, review,
assessment, and reporting on internal control as a whole. Serving as secretary to this committee is the Office
of the President and Corporate Secretary, which is in charge of internal control to ensure compliance,
incorporating three aspects, namely:
1. Management control: Ensuring that relevant units comply with their missions; ensuring that the
management formulates plans to achieve its objectives and goals; and monitoring implementation.
2. Operational control: Ensuring comprehensive control, for instance, in procurement and hiring
through E-procurement and other means, including price bargaining, open contests, and preferred bidding
from the vendor list.
3. Financial control: Ensuring that PTT applies result-based budgeting and SAP (Systems
Applications and Products); ensuring adequacy of internal control, for instance, through a control
environment, suitable risk assessment procedures, control activities, information and communication
systems, and proper monitoring and assessment.
Internal control plays a key role in helping the management lower business risks, enhancing
business efficiency through proper allocation of resources, and attaining goals. It also protects Company
assets from losses and frauds, reinforces the credibility of financial statements, ensures compliance of all
personnel with laws and regulations, and protects shareholders capital.
The Board of PTT has instituted a process for internal control based on The Committee of
Sponsoring Organizations of the Treadway Commisssion (COSO), which concurs with the internal control
principles defined by the Office of the Auditor General, with the five following components:
1. Control Environment
This implies overall suitability and contribution to the adequacy and effectiveness of internal
control, including:
- PTT has instituted a clear and suitable organizational structure and lines of command.
Delegation of authority and responsibilities is done in writing. All employees recognize their

roles, authority, duties, and responsibility
- PTT has analyzed educational background, required skills for performance, and assessed
competency so that its people may be knowledgeable, skilled, and competent for the
delegated jobs and suit job descriptions
- PTT has defined the policy and procedures for human resource management in writing,
including recruitment, training, promotion, and compensation procedures
- PTT Group companies have defined their policies and procedures concerning integrity and
ethics in writing, basing them on corporate governance on international standards. The
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Corporate Governance Committee has held meetings to ensure that all employees comply
with the defined policies
- The management commands work philosophy and formats, including a sound attitude and
support for performance concerning accounting, information management system, human
resource management system, assessment of internal control and external audit, and
commands risk management for significant business matters.
2. Risk Assessment
PTT has instituted a corporate risk management policy, with a Risk Management Committee
overseeing and framing risks to manage the organization as a whole. It also has assorted management
committees performing risk management under their respective responsibility. The scope entails risks for
financial management, business conduct, operation, management, safety/health/environment, and other
significant risks having to do with PTT’s businesses.
PTT has clearly defined organizational objectives, embracing desirable items, levels of activities
related to major business processes and in line with the organizational objectives and strategies. The man-
agement has identified corporate risks which cover all significant activities.
In 2008, risk management was undertaken to address the annual corporate risk profile. Analysis of
worldwide and domestic economic trends and situations affecting PTT’s core businesses has shown a total
of 26 risk areas for the year 2009, the major ones being PTT Group human resource management, natural
gas supply and management, NGV business, operation risks for the oil business unit and gas business unit,
project risks for the gas business unit and the petrochemical and refining business unit, international trading
business development, and financial and credit risks for PTT Group. For the year 2009, these have been
supported by a risk management plan.
3. Management Control Activities
PTT has defined policies and procedures in writing, identifying actions where major risks exist
and defining control mechanisms to prevent and reduce errors. The Company reviews management
performance and requires performance indices for all employees across the organization to make
management control suitable and adequate. Internal control for accounting and finance deals with saving
and retention of cash, disbursement, bank deposits. Advanced money follows the rules. Accounting entries
have been complete, accurate, and regular. Internal control for procurement and hiring follows the rules and
regulations concerning materials, which clearly define procurement responsibilities, including approval
authority, material need specification, delivery inspection, material control and storage. In human resource
management, one finds in place a human resource management process and adequate monitoring and
assessment for recruitment, compensation, responsibility, personnel development, performance, and
communication so that employees may be knowledgeable and competent for efficient and proper
management. In 2008, a bonus payment process was instituted, based on the performance bonus system for
vice presidents and higher.
In case that PTT has had business deals with its major shareholders, the
directors, the management, or persons who has relationship with them, PTT will pose a strict measure to
monitor such deals of which each transaction need to undergo a set approval process. Related major share-
holders, directors, management and their associates must not take part in the process but must take a close
monitor and oversee such business activity.
Annual Report 2008
In a business which PTT is a major shareholder, PTT will appoint a trusted personnel to take part in
monitoring its management and administration to be incompliance with PTT’s policy.
PTT strictly follow the laws, with the assistance of its Office of Corporate Legal and its consultants,
PTT has been seriously conducting businesses following Human Right principles.
4. Information & Communication

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Valuing information and communication processes, PTT has instituted efficient and effective
information systems and communication channels (internal and external) which are complete, accurate, and
timely for decision-making. In 2008, its actions in this area are captured below:
- Business Continuity Planning (BCP) was instituted to prepare and prevent interruption of
business units; to achieve this, a list of software & hardware and a location where non-computerized
work can take place without interruption were identified
- As regards the preparation for enforcement of the act governing computer crimes, PTT
communicated to employees and wage earners the awareness of compliance and punishment
under this act. In addition, PTT compiled computerized traffic information according to an
announcement of the Ministry of Information and Communication Technology
- The Company further tightened its access to the Data Center through restricting entry access
to the network room
- The Company controlled the use of improper images as screen savers on its computer sets
and made it mandatory for employees and wage earners to use only PTT’s emblem as screen
savers.
- To propose an agenda for the Directors’ approval, PTT will prepare a complete detail and
information adequate and neccessary for consideraton. Directors will receive meetings invitation
and enclosed document within 7 days prior to the meeting date. In this regard, Directors will
have enough time to study the detail before the meeting. Approved Minutes, records of
Directors’ suggestions are documented and filed for the Directors and related parties to examine.
5. Monitoring & Evaluation

PTT has required monitoring of internal control by basing practices on the internal control
assessment approach. This is defined in the recommendation document: report preparation in compliance
with Auditor Commissioners Rule 6, with good assessment findings. In addition, each business unit
commanded a monthly performance report and regularly measures its KPIs. In 2008, the Audit Committee
advised relevant units to implement 25 matters, of which 21 have been acted upon (about 84%). The Office
of Corporate Audit regularly followed up remedial actions in response to the recommendations made.
ë Internal Audit
The Office of Corporate Audit observes the highest standards of internal audit by examining
financial accounts, information technology, safety, health, and environment, including those of subsidiaries
and associated companies. The office audits annual operating plans, which are consistent with the findings
of the corporate risk assessment, and reports them to the Audit Committee every quarter.
ë Risk Management
A Risk Management Committee manages risks for the entire company, assesses risks, and
defines a structure for risk management to manage risks to acceptable levels. Risks generally include financial,
operation, business, and event risks. The committee is responsible for preparing an analysis and assessment
of risks, their potential effects on PTT, both internal and external, and a risk management report for the Board.
An early warning system is now in place with critical risk indicators defined, for instance, the debt-to-equity
ratio is to be under 1.
PTT takes risk management seriously. To illustrate, the President & CEO has issued a Corporate
Risk Management Policy, and the Risk Management Committee has prepared a corporate risk management

handbook for all to use as a framework in their assessment and management of risks. To this end, a Risk
Management Information System (RMIS) has been developed.
In 2008, PTT upgraded the unit in charge of risk management to one led by a vice president.
(5) The Board Meetings

The Board meetings are planned for the entire year, for instance, in 2008 the third Friday of
each month, with additional meetings called to discuss special agenda items as necessary. Seven days
ahead of the meeting, the Office of the President and Corporate Secretary issues a meeting notice along with
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the meeting agenda and relevant supplementary documents contained in a compact disc (CD) to each
director. Since April 2004, Board meetings have been made electronic to provide speed and convenience in
information access and management while reducing the accompanying documents.
At each meeting, directors openly and freely express their views. Particularly in connected
cases or potential conflicts of interest with PTT, they are required to abstain and refrain from attending that
portion of the meeting. The minutes of each meeting are properly documented and, after adoption from the
Board is given, are filed for auditing purposes and reference by directors and related persons. By and large,
each Board meeting lasts three hours. In 2008, the Board held 12 regular meetings along with four special
meetings of Directors:
ë Special meeting 1/2551, held on February 13, on compliance with the verdict of the Supreme
Tribunal
ë Special meeting 2/2551, held on August 2, on the 2009-2013 business direction and strategies
for PTT Group
ë Non-management Board meeting, held on October 17, on directors’ perspectives on PTT’s
foreign investment expansion and meetings of independent directors
ë Independent directors’ meeting, held on November 21, on the performance of PTT’s independent
directors.
Details about directors’ meeting attendance appear under the Committees.
(6) Roles of the Board on IT

Thanks to the vision of the Board, PTT and its companies in the group have jointly established
PTT ICT Solutions (PTTICT) to centralize IT services for PTT Group, a cost-saving idea that cuts down on
infrastructural spending and IT redundancies for each company while adding bargaining power for PTT
Group. To date, PTTICT has performed its role consistently well and is PTT Group’s major force in IT.
The Board has shown its interest by following up on this branch of work apart from providing a
policy and regular advice. PTT will be transferring the Board s policy and advice to PTTICT for further action.
In 2008, through the Audit Committee, the Board gave priority to IT system security and the
safety of electronic information storage. Preparation has been in place for a draft act on electronic security
and for application of the ISO 27001 in the Company.
(7) Roles of the Board on Human Resources

The Board looks after, monitors, and provides its recommendations in this area through the
Management Committee, headed by the President & CEO; the Human Resources Committee does the initial
screening.
In 2008, the Board endorsed the improvement of rules and regulations governing discipline,
punishment, appeal, petitioning (new version), salary increase approval, and bonus payment to employees.
In addition, PTT instituted a relations committee under an act on enterprise relations, consisting
of representatives of wage earners and PTT, chaired by the CEO/President. This committee carries out the
coordination between the employer and employees, and forwards complaints and petitions to PTT during the
monthly meetings of the relations committee.
(8) Roles of the Board on Social Responsibility and QSHE

The Board looks after, monitors, and provides its recommendations in corporate social re-
sponsibility (CSR) and QSHE through the Management Committee, headed by the President & CEO. The
Annual Report 2008
responsible units consist of the Corporate Social Responsibility department and the QSHE department;
another CSR policy committee was appointed for PTT Group as well as another QSHE committee to align all
companies within PTT Group.
In addition, the Board looks after and follows up on social responsibility matters through the
Corporate Governance Committee; on QSHE matters, through the Audit Committee, including accidents and
security matters.
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In 2008, PTT undertook CSR and QSHE activities, including compliance with a policy on
energy saving and the environment, a promotional campaign on NGV application in cars, a project on
developing the Sirinart Rajini Ecosystem learning center on mangrove forest ecology, the investment/
research on recycled energy and alternative energy, a project called 84 Tambons on a Sufficient Path, and
institution of the approach for climate change management for PTT Group.
Self-Assessment of the Board

By the resolution of Board meeting No. 11/2551 of 21 November 2008, it approved self-assessment
forms proposed by the Corporate Governance Committee, relying on the same approach as the one used in
2006. The form was to be used to conduct self-assessment of the Board s performance in 2008, a vital tool for
improving its performance and reference data for corporate governance rating. Three types of self-assessment
were applied, whereby the percentages corresponded to the following levels of performance achieved in
each area detailed below. These are the assessment criteria for the entire board, individual self-assessment
forms, and cross self-assessments:
Over 85% Excellent
Over 75% Very good
Over 65% Good
Over 50% Fair
Below 50% Need improvement.
The findings from the self-assessment were as follows:
1. Self-Assessment of the Board consisted of four categories: Board policy, composition,
practices, and meeting.
The results indicated excellent/most suitable overall performance with an average score of
93.46%.
2. Self-Assessment of Individual Directors consisted of six categories: accountability for
decisions and actions; responsibility in performing the job with full ability and efficiency; equitable treatment
of all stakeholders; transparency in job performance and information disclosure; vision to create long-term
value; and business ethics.
Overall results were excellent for most directors, with an average score at 97.36%.
3. Individual Assessment of Other Directors (Cross-Assessments) consisted of six identical
categories as above for direct comparison
Cross-assessment results in these six categories indicated excellent performance by most
Directors, with an average score of 97.73%.
Compensation Paid to Directors and the Management

With the oversight of the Remuneration Committee, PTT fairly and logically specifies the compensation
paid to directors, taking into account each director s responsibility, its financial performance, and compatibil-
ity with industry peers. Compensation consists of meeting allowances and bonuses. Directors appointed to
specific committees receive additional allowances for additional responsibilities. Directors’ compensation
rates have been approved by shareholders as follows:
The Board of Directors and management’s Compensation

The following compensation structure was approved at the AGM of April 11, 2008, for the
Board:
Meeting Allowances (no change from 2007)
1. Board Meeting compensation consisted of:
- Monthly (retainer) allowance of 30,000 Baht each
- Meeting allowance of 20,000 Baht each time (for those in attendance only).
2. Compensation for meetings of Committees consisted of:
2.1 Audit Committee
117
- Monthly allowance of 15,000 Baht each
- Meeting allowance of 15,000 Baht each time (for those in attendance only)
The Secretary received a monthly allowance of 7,500 Baht.
2.2 Compensation for the three remaining committees (Nominating, Remuneration,
and Corporate Governance Committees) consisted of:
- Meeting allowance of 24,000 Baht each time (for those in attendance only).
2.3 Compensation for the Chairman of each committee was 25% higher.
Directors’ Bonuses in 2008

The same criteria as 2007 were adopted. The bonus payout to each director, at 0.05% of the net
income for 2008, corresponded to PTT’s performance and net income and up to 2,000,000 Baht per person
was paid. The bonus was prorated to each director’s term, with the Chairman receiving 25% more than other
Directors.
Note that a summary of payment for individual directors appears under Compensation Paid to
Directors and the Management.
Board Development
The Board and the management values regular participation in development training relevant to their
performance, as seen in each of their profiles. More than 85% of the directors have undergone training with
the Thai Institute of Directors (IOD), with eight enrolled in seven training sessions in 2008 as detailed below:
Name Course
1. Khunying Jada Wattanasiritham - Monitoring of the Quality of Function (MFR6/2008)
- Monitoring the Internal Audit Function (MIA2/2008)
- Role of the Chairman Program (RCP19/2008)
2. Mr. Chakramon Phasukavanich - Current Issue Seminar (R-CIS 1/2008)
- Role of the Chairman Program (RCP20/2008)
3. Gen. Somdhat Attanand - Role of the Chairman Program (RCP20/2008)
4. Khun Pornthip Jala - Financial Statements for Director s(FSD3/2008)
5. Mr. Chulayuth Hirunyavasit - Directors Certification Program (DCP111/2008)
- Current Issue Seminar (R-CIS1/2008)

Annual Report 2008
6. M.L. Panasarn Hasdin - Current Issue Seminar (R-CIS1/2008)
7. Dr. Naris Chaiyasoot - Chartered Director Class (R-CDC3/2008)
Resigned Directors during the Year

118
Name Course
1. Dr. Olarn Chaipravat - Monitoring the Internal Audit Function (MIA2/2008)
- Current Issue Seminar (R-CIS1/2008)
PTT not only supports directors’ participation in training programs organized by IOD and other
institutions through the year, but also encourages the Board to visit other agencies to accumulate experience
applicable to PTT’s business.
Directors’ Orientation
For new directors, PTT arranges an orientation program to inform them of its business policies, capital
structure, shareholding structure, business performance, information systems, and related laws and
regulations. Moreover, each director receives a Director’s Handbook, which includes the following topics:
Director’s Handbook
1. The Public Company Act
2. Securities and Exchange Act
3. Standard Qualifications of Directors and State Enterprise Officer Act
4. Company Registration Certificate
5. Company Certificate
6. Company Objectives
7. Company Regulations
8. Company Rules (13 Rules)
9. PTT Good Corporate Governance Handbook
10. Guidelines for Directors of Listed Companies.
Information
1. Overview business presentation of PTT by the President & CEO
2. List of directors and management structure
3. Information on the roles of the Board
4. PTT Plc Company Profile
5. Annual Sustainable Development Report
6. Annual Report (Thai Version) in hard copy and CD
7. ‘PTT Group Moving Forward to HPO’ information kit
8. Business Enablement Program (BEP)
9. Brochure on the privatization of PTT
10. ‘PTT Spirit’ monthly newsletters issued in 2008
11. Director Fiduciary Duty Checklist
12. Good corporate governance principles for listed companies
13. Connected transactions of listed companies
14. Guidance on providing information for listed company management
15. Suggestions on the disclosure of information for the management of listed companies

So that new directors may have a clear view, the President & CEO presents information about PTT in
his briefing to them about the policy, relevant information, including the capital structure, shareholders,
performance, processes in use at PTT, laws, regulations, a business overview, and update on performance.
At the same time, the above-mentioned documents and handbook for new directors are handed over
together with a personal computer for use in studying the information before Board meetings.
It is PTT’s policy to organize periodic visits to field operations for the Board to bolster their appreciation
of the Company. In 2008, the Board organized a trip to Canada and the US, a region with one-quarter of
worldwide energy consumption and countries with the largest oil sand reserves of the world; the trip was
119
made to learn about the policies for energy management and development of energy resources in both
countries.
Succession Planning
To prepare for the retirement of senior management team members in 2007-2012, PTT has conducted
succession planning under PTT Group’s policy/guidelines. A management pool has been developed,
consisting of 350 management executives, and another potential pool for key areas.
The Board has assigned the formulation of a group leader development project (GLDP) to lay down a
succession plan for personnel when the time comes for assuming higher positions that become vacant,
namely:
ë President
ë Senior Executive Vice President (SEVP) or equivalent
ë Executive Vice President (EVP) or equivalent
ë Vice President (VP) or equivalent.
Core responsible management parties and units are as follows:
ë PTT Group Human Resources Management and Development Committee (PTTGMC)
ë SEVP, Corporate Support
ë EVP, Corporate Human Resources
ë Human Resources Process Development Department.
Systems and policies have been defined for guidance, including these aspects:
ë Principles and rationales
ë Performance management
ë Approaches
ë Roles and duties of involved parties
ë System processes.
Main procedures:
1. Defining for each position the business driver and success profiles
2. Selection of pool members
3. Individual assessment of potential against the profiles of promoted positions, resulting in
aspects needing development
4. Individual development planning and implementation, with a mentoring system designed to
enable the plans to achieve targets.
Performance in 2008
ë Selection of SEVP pool members from EVPs
- 47 pool members
- 26 members with individual development plans and mentors assigned
- 4 pool members already promoted.
ë Selection of EVP pool members
- 30 high-potential individuals selected and personnel assessment against EVP profiles.
Annual Report 2008
120
PTT Board of Directors
Educations
ë B.Eng. (Mechanical Engineering), Chulalongkorn University, Thailand
ë M.Sc. (Mechanical Engineering), Oregon State University, U.S.A.
ë Ph.D. (Mechanical Engineering), Oregon State University, U.S.A.
Certifications
ë Diploma, The National Defense Course, National Defense College
(Class of 47th)
ë Leadership Program, Capital Market Academy (Class of 4th), Thailand
Work Experiences
1998 - 2000 : Vice President, Research and Assets Affairs,
Chiang Mai University
2001 - 2003 : Vice President, Academic Affairs, Chiang Mai University
2003 - 2005 : Deputy Permanent Secretary, Ministry of Energy
Relevant Important Positions
None

Dr. Norkun Sittiphong
Age 55
Chairman
(%) Share Possession None
121
Educations
ë B.A. (Natural Sciences & Economics), Cambridge University, U.K.
ë M.A. (Natural Sciences & Economics), Cambridge University, U.K.
ë M.A. (Economic Development), Williams College, U.S.A.
Certifications
ë Thai Institute of Directors Association (IOD) DAP 2/2002, RCP 19/2008,
MFR 6/2008 and MIA 2/2008
Work Experiences
1999 : Director and Senior Executive Vice President,
Siam Commercial Bank Public Company Limited
1999 - 2007 : President & Chief Executive Officer, Siam Commercial Bank
Public Company Limited
2006 - Mar 2008 : Member of the National Legislative Assembly
2007 - Present : Director and Executive Director, Siam Commercial Bank
None
Khunying Jada Wattanasiritham

Age 63
Independent Director, Chairman of the

Audit Committee and Remuneration
Committee Member
Educations
ë B.A. (Economics), Chulalongkorn University, Thailand
ë M.A. (Economics), California State University in Northridge, U.S.A.
Certifications
ë Certificate of Senior Executive Development Program (Class of 12th)
(Class of 39th)
ë Thai Institute of Directors Association (IOD) DAP 20/2004, FND 13/2004,
ACP 14/2006, DCP 71/2006 and RCP 20/2008
Work Experiences
2001 - 2002 : Secretary General, Board of Investment
2002 - 2004 : Secretary General, National Economic and Social
Development Board
2006 - 2008 : Member of the National Legislative Assembly
2004 - Present : Permanent Secretary, Ministry of Industry
ë Director, Thai Oil Public Company Limited
Mr. Chakramon Phasukavanich

Age 60
Independent Director and Chairman of

the Nominating Committee
Annual Report 2008
122
Educations
ë B.Sc., Chulachomklao Royal Military Academy Class of 14th
Certifications
ë Diploma, The Joint State-Private Sector Course, National Defense College
(Class of 10th)
ë Thai Institute of Directors Association (IOD) DAP 53/2006, FND 29/2006,
ACP 14/2006, DCP 90/2007 and RCP 20/2008
Work Experiences
2001 - 2002 : Commander in Chief of the Royal Thai Armed Forced,
Ministry of Defence
2002 - 2006 : Supreme Commander, The Supreme Command
Headquarters, Ministry of Defence
Relevant Important Position
None
Gen. Somdhat Attanand

Age 64
Independent Director and Chairman of

the Corporate Governance Committee
Educations
ë B.A., Kasetsart University, Thailand
ë M.S. (Economics), Northeastern University, U.S.A.
ë Ph.D. (Applied Economics), Clemson University, South Carolina,
U.S.A.
Certifications
ë Certificate of Senior Information Technology Officer (Class of 3rd )
(Class of 45th)
ë Thai Institute of Directors Association (IOD) DCP 80/2006
Work Experiences
2002 - 2003 : Deputy Permanent Secretary of the Ministry of Agriculture
and Cooperatives
2003 - 2006 : Director of the National Bureau of Agriculture Commodity
and Food Standards (ACFS)
2004 - Present : Secretary General, Office of National Economic and
Social Development Board
ë Director, PTT Aromatics and Refining Public Company Limited
Dr. Ampon Kittiampon

Age 53
Independent Director, Chairman of the

Remuneration Committee and
Nominating Committee Member
123
Educations
ë LL.B. (Hons.), Thammasat University, Thailand
ë LL.M., University of Michigan,U.S.A.
Certifications
(Class of 43rd)
ë Thai Institute of Directors Association (IOD) FSD 3/2008
Work Experiences
2000 - 2004 : Deputy Secretary-General of the Council of State
2004 - Present : Secretary-General of the Council of State
None
Khun Pornthip Jala

Age 59
Independent Director
Educations
ë LL.B. (Hons.), Chulalongkorn University, Thailand
ë Thai Barrister-at-Law
ë LL.M., Columbia University, U.S.A.
ë Honorary Doctor of Laws, Ramkhamhaeng University, Thailand
Certifications
ë Certificate of International Procurement Program, Georgetown University,
U.S.A.
(Class of 38th)
ë High Certificate of Democratic Politics and Governance for Senior Executive
Program, King Prajadhipok’s Institute, Thailand
ë Leadership Program, Capital Market Academy, Thailand
ë Thai Institute of Directors Association (IOD) DCP 8/2001 and RCP 16/2007
Work Experiences
2000 - 2001 : Director General, Dept. of Intellectual Property and
International Trade Litigation
2001 - 2002 : Director General, Dept. of Litigation of the Attorney
General
2002 - 2003 : Director General, Dept. of Legal Counsel, Office of the
Attorney General
Mr. Chaikasem Nitisiri 2003 - 2007 : Deputy Attorney General
2007 - Present : Attorney General
Age 60
Independent Director, Corporate ë Director, Thai Oil Public Company Limited
Governance Committee Member

Annual Report 2008
124
Educations
ë LL.B, Thammasat University, Thailand
ë M.A. (Public Administration), Kasetsart University, Thailand
Certifications
(Class of 40th)
Work Experiences
2004 - 2006 : Deputy Permanent Secretary, Office of the Permanent
Secretary, Office of the Prime Minister
2006 - 2008 : Permanent Secretary, Officer of the Permanent Secretary,
Office of the Prime Minister
None
Mr. Chulayuth Hirunyavasit

Age 60
Educations
ë LL.B. (Hons.), Chulalongkorn University, Thailand
ë M.A. (Public Administration), Chulalongkorn University, Thailand
Certifications
(Class of 45th)
ë Certificate of Senior Administrator Program, Ministry of Interior
(Class 36/2007)
Work Experiences
2004 - 2005 : Governor of Phang-nga Province
2005 - 2006 : Governor of Samutsongkhram Province
2006 - 2008 : Governor of Samutprakan Province
2008 - Present : Director General of Department of Lands,
Ministry of Interior
None
Mr. Anuwat Maytheewibulwut

Age 56

125
Educations
ë B.Eng. (Civil Engineering), Chulalongkorn University, Thailand
ë M.Eng. (Sanitary Engineering), Chulalongkorn University, Thailand
ë M.Eng. (Coastal Engineering), Asian Institute of Technology, Thailand
ë Ph.D.Eng. (Coastal Engineering), Asian Institute of Technology, Thailand
Certifications
(Class of 15th)
ë Thai Institute of Directors Association (IOD) UFS 1/2006
Work Experiences
2002 - 2003 : Deputy Director General, Department of Alternative Energy
Development and Efficiency, Ministry of Energy
2003 - 2005 : Inspector General, Ministry of Energy
2005 - 2006 : Director General, Department of Energy Business,
Ministry of Energy
2006 - Present : Director General, Department of Alternative Energy
Development and Efficiency, Ministry of Energy
None
Dr. Panich Pongpirodom

Age 59
Director
Educations
ë B.A. (Economics) (Hons.), Thammasat University, Thailand
ë M.A. (Economics, English Program), Thammasat University, Thailand
ë Ph.D. (Economics), University of Hawaii, U.S.A.
Certifications
ë Capital Market Academy Leadership Program, Capital Market Academy
(Class of 4th)
(Class of 39th)
ë Thai Institute of Directors Association (IOD) DAP 32/2005, FND 19/2005
and DCP 82/2006
Work Experiences
1998 - 2004 : The President, Thammasat University
2004 - 2006 : Director General, The Fiscal Policy Office, Ministry of
Finance
2008 - Present : Inspector Chief General, Ministry of Finance
None
Dr. Naris Chaiyasoot

Age 53
Annual Report 2008
126
Educations
ë B.A. (Economics) (Hons.), Thammasat University, Thailand
ë M.A. (Economics), Thammasat University, Thailand
Certifications
(Class of 44th)
ë Bond Markets : Fixed Income Analysis, Economic Development Institute of
the World Bank
ë Advanced Executive Program, 2004, Kellogg School of Management,
Northwestern University, U.S.A.
ë Thai Institute of Directors Association (IOD) DAP 42/2005, FND 22/2005
and DCP 72/2006
Work Experiences
2001 - 2002 : Deputy Director-General, Fiscal Policy Office and
Director-General, Public Debt Management Office,
Ministry of Finance
2002 - 2006 : Director-General, Public Debt Management Office,
Ministry of Finance
2006 - 2007 : Director-General, Fiscal Policy Office, Ministry of Finance
ë Director, PTT Aromatics and Refining Public Company Limited
Mrs. Pannee Sathavarodom
Age 60
Director and Remuneration Committee

Member
Educations
ë Bachelor of Architecture (Hons.), Chulalongkorn University, Thailand
ë Master of Architecture, University of Pennsylvania, U.S.A.
Certifications
(Class of 37th)
ë The Psychological Operation Staff Course (Class of 33rd)
ë Thai Institute of Directors Association (IOD) Developing CG, Setting the CEO
Performance Plan & Evaluation and UFS 2/2006
Work Experiences
1997 - 2003 : Deputy Secretary-General to the Prime Minister for
Administration Affairs
2003 - 2005 : Deputy Permanent Secretary to the Prime Minister
None
M.L. Panasarn Hasdin

Age 63

Independent Director and Corporate
Governance Committee Member
127
Educations
ë M.B.A., Utah State University, U.S.A.
ë Honorary Doctor of Engineering, Chulalongkorn University, Thailand
ë Honorary Doctor of Management, National Institute of Development
Administration (NIDA), Thailand
ë Honorary Doctor of Management Science, Petchaburi Rajabhat University,
Thailand
Certifications
(Class of 10th)
ë Certificate in Advanced Management Program, Harvard Business School,
U.S.A.
ë High Certificate of Democratic Politics and Governance for High-Level
Administrators Program (Class of 6th), King Prajadhipok’s Institute, Thailand
ë Leadership Program, Capital Market Academy (Class of 3rd), Thailand
ë Thai Institute of Directors Association (IOD) DAP 26/2004
Work Experiences
Oct 2001 - 2003 : Senior Executive Vice President, Gas Business Group,
Aug 2003 - 2007 : President, PTT Public Company Limited
2007 - Mar 2008 : Member of National Legistrative Assembly
Mr. Prasert Bunsumpun 2007 - Present : President and Chief Executive Officer,
Age 56 PTT Public Company Limited
President and Chief Executive Officer ë Director of the Board and Secretary to the Board, PTT Public Company
(%) Share Possession None Limited
ë Chairman, PTT Exploration and Production Public Company Limited
ë Director of the Board, Thai Oil Public Company Limited
ë Director of the Board, PTT Chemical Public Company Limited
ë Director of the Board, PTT Aromatics and Refining Public Company Limited
ë Director of the Board, IRPC Public Company Limited
PTT Executives
Educations
ë M.B.A. Utah State University, U.S.A.
ë Honorary Doctor of Engineering, Chulalongkorn University, Thailand
ë Honorary Doctor of Management, National Institute of Development
Administration (NIDA), Thailand
ë Honorary Doctor of Management Science, Petchaburi Rajabhat University,
Thailand
Certifications
(Class of 10th)
ë Certificate in Advanced Management Program, Harvard Business School,
U.S.A.
ë Leadership Program, Capital Market Academy (Class of 3rd), Thailand
Work Experiences
Oct 2001 - 2003 : Senior Executive Vice President, Gas Business Group,
Annual Report 2008

Mr. Prasert Bunsumpun Aug 2003 - 2007 : President, PTT Public Company Limited
Age 56 2007 - Mar 2008 : Member of National Legistrative Assembly
2007 - Present : President and Chief Executive Officer,
President & CEO PTT Public Company Limited
(%) Share Possession None Relevant Important Positions
ë Director of the Board, Secretary to the Board, PTT Public Company Limited
ë Chairman, PTT Exploration and Production Public Company Limited
128

ë Director of the Board, IRPC Public Company Limited
Educations
ë B.A. (Accounting), Thammasat University, Thailand
ë M.B.A. (Business Administration),
Indiana University of Pennsylvania, U.S.A.
ë Honorary Degree Doctor of Philosophy (Accounting),
Thammasat University, Thailand
Certifications
ë Certified Auditor No. 2918
(Class of 13th)
Work Experiences
2001 : Deputy Governor, Corporate Finance & Accounting,
Oct 2001 - 2007 : Senior Executive Vice President,
Corporate Finance and Accounting,
Sep 2003 - Dec 2004 : Senior Executive Vice President, Corporate
Finance and Accounting, Acting President,
Bangchak Petroleum Public Company Limited
Mr. Pichai Chunhavajira
2008 - Present : Chief Financial Officer, PTT Public Company Limited
Age 59 Relevant Important Positions
Chief Financial Officer ë Director of the Board, PTT Exploration and Production Public Company
(%) Share Possession None Limited
ë Director of the Board, Dhipaya Insurance Public Company Limited
ë Director of the Board, Bangchak Petroleum Public Company Limited
ë Director of the Board, Thai Lube Base Public Company Limited
Educations
ë B.Eng. (Mechanical Engineering), Chulalongkorn University, Thailand
ë M.Eng. (Industrial Engineering), Lamar University, Texas, U.S.A.
ë Ph.D. (Industrial Engineering), Lamar University, Texas, U.S.A.
Certifications
ë Stanford Executive Program, Stanford University, U.S.A.
ë Diploma, The Joint State-Private Sector Course,
National Defense College (Class of 12th)
ë Thai Institute of Directors Association (IOD) DCP 42/2004 and FND 9/2004
Work Experiences
2000 - 2003 : Senior Executive Vice President, working as President,
PTT Exploration & Production Public Company Limited
2003 - 2007 : Senior Executive Vice President, Gas Business Group,
2008 - Present : Chief Operations Officer, Upstream Petroleum and
Gas Business Group, PTT Public Company Limited

ë Director of the Board, PTT Exploration & Production Public Company Limited
ë Director of the Board, PTT Aromatics and Refining Company Limited
Dr. Chitrapongse Kwangsukstith

ë Chairman, PTT Natural Gas Distribution Company Limited
ë Chairman, Energy Complex Company Limited
Age 59 ë Chairman, PTT Utility Company Limited
ë Chairman, PTT LNG Company Limited
Chief Operations Officer, Upstream ë Director of the Board, Trans Thai-Malaysia (Thailand) Company Limited
Petroleum and Gas Business Group ë Director of the Board, Trans Thai-Malaysia (Malaysia) Sdn. Bhd.
(%) Share Possession 0.000633
129
Educations
ë M.S. (Civil Engineering), Stanford University, U.S.A.
ë Ph.D. (Civil Engineering), University of Texas at Austin, U.S.A.
Certifications
ë Diploma, The Joint State-Private Sector Course,
National Defense College (Class of 15th)
Work Experiences
2001 - 2002 : Senior Executive Vice President, Corporate Strategy
and Development, PTT Public Company Limited
2002 - 2003 : Senior Executive Vice President, Corporate Support,
2004 - 2007 : Senior Executive Vice President,
Petrochemicals & Refining Business Group,
2008 - Present : Chief Operations Officer, Downstream Petroleum
Business Group, Senior Executive Vice President,
Oil Business Unit, PTT Public Company Limited
Dr. Prajya Phinyawat Relevant Important Positions
ë Director of the Board, PTT Aromatics and Refinering Public Company
Age 57 Limited
Chief Operations Officer, Downstream ë Director of the Board, Thai Oil Public Company Limited
Petroleum Business Group, Senior ë Director of the Board, IRPC Public Company Limited
Executive Vice President, Oil Business Unit ë Director of the Board, Bangkok Polyethylene Public Company Limited
(%) Share Possession 0.000182 ë Director of the Board, Thai Lube Base Public Company Limited
Educations
ë B.Eng. (Chemical Engineering) (Hons.), Chulalongkorn University, Thailand
ë M.S. (Chemical Engineering), Rice University, U.S.A.
ë M.S. (Petroleum Engineering), University of Houston, U.S.A.
Certifications
ë Certificate of Senior Executive Program, Sasin Graduate Institute of Business
Administration, Chulalongkorn University, Thailand
ë Program for Global Leadership (PGL), Harvard Business School, U.S.A.
Administrators Program (Class of 10th), King Prajadhipok’s Institute,
Thailand
Work Experiences
2002 - 2003 : Senior Vice President, Operations, PTT Exploration &
2003 - 2004 : Senior Vice President, Regional Assets Division,
PTT Exploration & Production Public Company Limited
2004 - 2007 : Senior Vice President, PTT Exploration & Production
Public Company Limited, working as Executive
Mr. Tevin Vongvanich Vice President, Corporate Business Development,
Age 50
2008 - Present : Senior Vice President, PTT Exploration & Production
Senior Executive Vice President, Public Company Limited, working as Senior Executive
Vice President, Corporate Strategy & Development,
Corporate Strategy & Development
(%) Share Possession 0.000071 Relevant Important Positions
ë Director of the Board, Bangchak Petroleum Public Company Limited
ë Director of the Board, PTT International Company Limited
Annual Report 2008
130
Educations
ë B.Eng. (Civil Engineering), Kasetsart University, Thailand
ë M.Eng. (Civil Engineering), Lamar University, Beaumont, Texas, U.S.A.
Certifications
ë Certificate of Advanced Management Program, Harvard Business School,
U.S.A.
ë Certificate of Advanced Management Program, Banff School, Canada
(Class of 16th)
Work Experiences
1998 - 2002 : Executive Vice President, PTT, working as General
Manager, PTT Natural Gas Distribution Company Limited
2003 - Present : Senior Executive Vice President, Corporate Support,
ë Director of the Board, Natural Gas Distribution Company Limited
ë Director of the Board, Energy Complex Company Limited
ë Director of the Board, PTT ICT Solutions Company Limited
Mr. Songwut Chinnawat
Age 58
Senior Executive Vice President,

Corporate Support
Educations
ë B.Eng. (Mechanical), University of Santo Tomas Manila, Philippines
Certifications
ë Certificate of Asian Executive Program (AEP), GE Management Development
Institute
ë Certificate of Senior Executive Program (SEP), Sasin Graduate Institute of
Business Administration, Chulalongkorn University
Work Experiences
2001 - 2002 : Executive Vice President, Natural Gas Processing, PTT
2002 - 2004 : Executive Vice President, PTT, working as President,
Trans Thai-Malaysia (Thailand) Company Limited
The Aromatics (Thailand) Public Company Limited
2006 - 2007 : Senior Executive Vice President, PTT, working as President,
The Aromatics (Thailand) Public Company Limited
2007 - 2008 : Senior Executive Vice President, PTT, working Chief
Executive Officer, PTT Aromatics and Refining Public
Company Limited
Mr. Permsak Shevawattananon 2008 - Present : Senior Executive Vice President, Gas Business Unit,
Age 58
Senior Executive Vice President, None
Gas Business Unit

Educations
ë B.Sc. (Industrial Engineering and Operations Research), 131
Syracuse University, New York, U.S.A.
ë M.Eng. (Operations Research and Industrial Engineering),
Cornell, University, U.S.A.
ë M.B.A., Cornell University, U.S.A.
Certifications
ë PMD, Harvard University, U.S.A.
(Class of 19th)
Work Experiences
2002 - 2005 : Executive Vice President, Natural Gas Supply & Trading,
Gas Business Group
2005 - 2008 : Executive Vice President, International Trading,
2008 - Present : Senior Executive Vice President, International Trading,
Mr. Surong Bulakul Relevant Important Positions
ë Chairman, PTT International Trading Pte.
Age 53 ë Director of the Board, PTT Green Energy Pte. Ltd.
Senior Executive Vice President,

ë Director of the Board, PTT Polymer Marketing Company Limited
International Trading Business Unit

Educations
ë B.Eng. (Chemical Engineering) (Hons.), Chulalongkorn University, Thailand
ë M.Eng. (Chemical Engineering), Tokyo Institute of Technology, Japan
ë Doctor of Engineering in Chemical Engineering, Tokyo Institute of
Technology, Japan
Certifications
ë PTT Executive Leadership Program, GE Crotonville, U.S.A.
ë NIDA Executive Leadership Program 2007, Wharton University of
Pennsylvania, U.S.A.
ë Industrial Liaison Program 2005, Massachusetts Institute Technology, U.S.A.
ë Thai Institute of Directors Association (IOD) DAP 24/2004 and DCP 51/2004
Work Experiences
1989 - 2005 : President, Bangkok Polyethelene Company Limited
2005 - 2008 : Executive Vice President, PTT, working as Managing
Director of PTT Polymer Marketing Company Limited
2006 - 2008 : Executive Vice President, PTT, working as President of
PTT Asahi Chemical Company Limited
2008 : Senior Executive Vice President, Petrochemicals &
Refining Business Unit, PTT, working as Managing
Dr. Pailin Chuchottaworn Director of PTT Polymer Marketing Company Limited
Age 52 and President of PTT Asahi Chemical Company
Limited
Senior Executive Vice President, Remark : Jan1, 2009 : Senior Executive Vice President, Petrochemicals &
Petrochemicals & Refining Refining Business Unit, PTT, working as President of
IRPC Public Company Limited
Business Unit Relevant Important Positions
(%) Share Possession 0.000100 ë Director of the Board, PTT Polymer Marketing Company Limited
ë Director of the Board, PTT Asahi Chemical Company Limited
Annual Report 2008
ë Director of the Board, HMC Polymer Company Limited

ë Director of the Board, Bangkok Polyethylene Public Company Limited
ë Director of the Board, PTT Polymer Logistics Company Limited
ë Director of the Board, PTT Phenol Company Limited
ë Director of the Board, Star Petroleum Refining Company Limited
132
Educations
ë B.Sc. (Geology), Chulalongkorn University, Thailand
ë M.B.A., Thammasat University, Thailand
Certifications
ë Certificates in Project Investment Appraisal and Management,
Global Leadership, Harvard University, U.S.A.
ë Certificate of Leadership Program (Class of 1st), Capital Market Academy,
Thailand
Work Experiences
2001 - 2002 : Executive Vice President Natural Gas Supply and Trading,
Gas Business Group, PTT Public Company Limited
2002 - 2008 : Senior Executive Vice President Corporate Strategy and
Development, PTT Public Company Limited
2008 - Present : Senior Executive Vice President, PTT, working as
Chief Executive Officer, PTT Exploration & Production
ë Director of the Board, PTT Exploration and Production Public Company
Mr. Anon Sirisaengtaksin Limited
Age 56
ë Director of the Board, Bangkok Polyethylene Public Company Limited
Chief Executive Officer, ë Director of the Board, Independent Power (Thailand) Company Limited
PTT Exploration and Production

ë Director of the Board, PTT Natural Gas Distribution Company Limited
ë Director of the Board, Star Petroleum Refining Company Limited
Public Company Limited ë Chairman, PTT ICT Solutions Company Limited
Educations
ë B.S. (Petroleum Engineering), University of Texas at Austin, U.S.A.
ë M.S. (Petroleum Engineering), University of Texas at Austin, U.S.A.
Certifications
ë Certificate of Advance Management Program, Insead Institute, France
(Class of 17th)
Work Experiences
2002 - 2003 : Senior Vice President, Business Development,
2003 - 2006 : Executive Vice President, PTT, working as President of
2006 - Present : Senior Executive Vice President, PTT, working as President
of PTT Exploration and Production Public Company
Limited
ë Director of the Board, Carigali - PTTPEI Operating Company Sdn. Bhd.
Mr. Maroot Mrigadat

Age 56
President, PTT Exploration and


Educations
ë B.Eng. (Civil Engineering) (Hons.), Chulalongkorn University, Thailand
133
ë M.S.C.E. (Civil Engineering), University of Texas at Austin, U.S.A.
ë Ph.D. (Civil Engineering), University of Texas at Austin, U.S.A.
Certifications
ë Certificate in Advanced Management Program, Harvard University, U.S.A.
Work Experiences
1999 - 2004 : Senior Executive Vice President, PTT, working as President
of National Petrochemical Public Company Limited
Managing Director of Thai Oil Public Company Limited
ë Director of the Board and Secretary to the Board, Thai Oil Public Company
Limited
ë Director of the Board, Independent Power (Thailand) Company Limited
ë Director of the Board, Thai Oil Power Company Limited
ë Director of the Board, Thai Paraxylene Company Limited
Dr. Viroj Mavichak ë Director of the Board, Thai Oil Marine Company Limited
ë Director of the Board, Petroleum Institute of Thailand
Age 60
Managing Director,
Thai Oil Public Company Limited
Educations
ë Bachelor Degree in Higher Accounting, California College of Commerce,
U.S.A.
ë Master of Management (MM), Sasin Graduate Institute of Business
Administration, Chulalongkorn University, Thailand
Certifications
Work Experience
2000 - 2005 : Chief Executive Officer, Independent Power
(Thailand) Company Limited
Rayong Refinery Public Company Limited
2007 - 2008 : Senior Executive Vice President, PTT, working as
President of PTT Aromatics and Refining Public
Company Limited
President & CEO of PTT Aromatics and Refining Public
Mr. Chainoi Puankosoom Company Limited
Age 58 Relevant Important Positions
ë Director of the Board and Secretary to the Board , PTT Aromatics and
President & CEO, PTT Aromatics and Refining Public Company Limited
Refining Public Company Limited ë Director of the Board, PTT Phenol Company Limited
(%) Share Possession 0.000176 ë Director of the Board, PTT Utility Company Limited
ë Director of the Board, The Refinery Industry Club, The Federation of
Thai Industries
Annual Report 2008
134
Educations
ë B.Eng. (Mechanical), Chulalongkorn University, Thailand
ë M.S. (Mechanical Engineering), Texas A&I University, U.S.A.
Certifications
ë Thai Institute of Directors Association (IOD) DCP 82/2006 and FND 30/2006
Work Experience
2002 - 2005 : Lubes Country Manager, Esso Thailand and Exxon
Mobile Thailand
2005 - 2006 : Director and Public Relation Manager, Exxon Mobile
Company Limited
2006 - 2008 : Executive Vice President, PTT, working as Senior
Executive Vice President, Trading Business of
PTT Chemical Pubilc Company Limited and Managing
Director of Bangkok Polyethylene Public Company
Limited
2008 - Oct 1, 2008 : Executive Vice President, PTT, working as Executive
Vice President, Polymer Product Business Unit,
PTT Chemical Public Company Limited
Oct 1, 2008 - Present : Senior Executive Vice President, working as President
Mr. Veerasak Kositpaisal & CEO of PTT Chemical Public Company Limited and
Managing Director of Bangkok Polyethylene Public
Age 54 Company Limited
President & CEO, PTT Chemical Public Relevant Important Positions
ë Director of the Board and Secretary to the Board, PTT Chemical Public
Company Limited Company Limited
(%) Share Possession 0.000028 ë Director of the Board and Secretary to the Board, Bangkok Polyethylene
ë Director of the Board, PTT Polymer Marketing Company Limited
ë Director of the Board, PTT Polyethylene Company Limited
ë Director of the Board, PTT Polymer Logistics Company Limited
ë Director of the Board, Vinythai Public Company Limited
ë Chairman, the Plastic Industry Club, The Federation of Thai Industries
Power for Sustainable Future
Annual Report 2008
136
It was a clear goal for us even when we embarked on our first mission to secure Thai
Energy for Thais three decades ago. In other words, our business has always been rooted on
“How to truly maximize the benefit for Thais?” Consequently, PTT has consistently valued
energy security in tandem with the stewardship of society, communities, and the environment.
Spelled out in our sustainable organizational development guideline which are: High
Performance Organization (HPO), Corporate Governance (CG), and Corporate Social
Responsibility (CSR). One also finds the principles inscribed among our missions which is to
show responsibility to all stakeholders from the national level to the community level. Our
policy has cascaded into CSR strategies for PTT Group, which take into account internal
practices of sound standards, leading to external practices with due regard for society,
communities, and the environment.
137
In 2008, PTT conducted a thorough investigation on how to improve organizational CSR strategies for
even greater efficiency. To this end, management and business structures have undergone changes; in
place now is a Corporate Communications and Social Responsibility working structure devoting to CSR as well as
other communication tasks, headed by an executive vice president. Apart from this, a social responsibility
policy committee has been set up at both PTT and PTT Group levels, charged with formulating policies along
with clear goals and approaches for social responsibility. To elaborate, implementation of the required activi-
ties is framed, as are corporate social responsibility approaches aligning with international standards. These
embrace good corporate governance, human rights, workers rights, environmental management, fair business
conduct, social undertaking and community development, supply chain management, product stewardship,
and stakeholder engagement so that all relevant units may implement their tasks in a harmonious way. Finally,
improvement of reporting the effectiveness of social responsibility activities is made to conform to the Global
Reporting Initiative (GRI) and reporting standards of peer industries.
Quality, Safety, Health, and Environmental Performance
Annual Report 2008
PTT has a clear goal over Quality, Safety, Health and Environment (QSHE). Regarded as the core
component of sustainable development, QSHE has been analyzed and assessed with the needs of the
stakeholders in mind. The findings have found application in the formulation of policies and systematic
management direction for risks. In 2008, notable moves to improve performance efficiency are summarized
below.
138
PTT Group QSHE management

Under the PTT Group management approach, QSHE is regarded as essential for petroleum and
petrochemical businesses and seriously needs efficient management to forge synergy and alignment. This
would supplement the competitiveness of PTT Group while encouraging sustainable development of
communities, society, and the Kingdom alike. To date, a QSHE Policy Committee has been set up for the
group, for which the roadmap, vision, missions, and QSHE performance direction were clearly defined. This
year, significant joint actions included
ë Compilation of SHE performance indicators
ë Renewal of the Oil Spill Response & East Asia Response Limited (OSRL) membership
ë Technical-exchange seminar organization
ë Exchange of lessons learned
ë Reconciliation and linkage of each company’s preventive and emergency mitigation plan and
PTT’s own emergency and crisis management plan.
PTT Group’s QSHE Policy Committee Meeting

Preventive and Emergency Handling During Fire Drill
Management in compliance with Thailand Quality Award (TQA) criteria

In 2008, the Natural Gas Transmission group constantly upgraded its performance under the TQA
criteria and won the Thailand Quality Class (TQC) for the second consecutive year. In addition, PTT has been
named one of the state enterprises under a pilot project for the so-called State Enterprise Performance
Appraisal by the State Enterprise Policy Office. The year therefore saw the preparation of a TQA Framework
& Roadmap for PTT as a whole along with training for PTT officers on the guidelines for TQA compliance for

division chiefs and higher.
Systematic control and prevention of occupational health and safety losses

A fundamental management system for all PTT sites, the TIS 18001/BS OHSAS 18001 occupational
health and safety management system is a prerequisite, to be tested by a certification body. This system was
also expanded to new target sites during the year: Pathum Thani - Nimit Mai NGV Mother Stations and PTT
Research and Technology Institute. The Natural Gas Transmission group also initiated the upgrading of an
occupational health and safety management system tailored to its own processes, based on international
139
and best practices of the petroleum industry.
As regards preventive actions and the cultivation of awareness of safety and occupational health to
control and monitor risks for employees and contractor employees, the year saw
ë A constant push for reporting near-misses and substandard conditions/acts
ë Auto-accident control through the issuance of the PTT Defensive Driving Manual
ë Defensive Driving Training for employees who regularly used company vehicles
ë Auto-accident investigation to systematically identify causes and define preventive measures
ë Supervision of safety and occupational health for contract employees by urging contractors to
institute physical examinations and occupational health examinations as required by law
ë Procurement of personal protective equipment
ë Appointment of safety officers at various levels of work
ë Systematic safety-related data compilation and performance measurement. Apart from drills on fire
prevention and mitigation at all sites and additional drills on earthquakes at PTT Head Office, PTT
envisions the high skills and potential of its QSHE units and personnel in this area and therefore
registered with the Department of Labour Protection and Welfare a primary firefighting training unit,
Earthquake Drill Visual Examination

Emergency Drill Against Terrorism Bomb Detecting Procedure Access Control with Finger Scan
a firefighting drill and evacuation unit, and a safety officer training unit. All these contributed to SHE
achieving a world-class standard against peer companies of the same industry, as seen in the 0.27
lost-time injury frequency (LTIF) rate and 0.27 total recordable injuries rate (TRIR) for employees.
Security management
The recent domestic unrest has reminded PTT of the criticality of security, the threats of which could
be detrimental to PTT. As a result, the Company defined the following measures for systematic management.
ë Additional security measures included the detection of explosives in all vehicles entering or leaving
sites or plants; close monitoring of intelligence from relevant agencies; installation of high-efficiency
access control, including the accuracy of headcounts of those entering or leaving sites during
Annual Report 2008
ordinary and emergency periods. At the Rayong gas separation plant (GSP), an Access Control
with Finger Scan system is now in use for process plants by plant personnel and external parties
alike; institution of control plans in case of protestors blocking the entrance to GSP; and installation
of efficient closed-circuit TVs to cover all areas.
ë Policy announcement and security management requirements to frame clear work performance
140
and name relevant officers (executives, the rank and file, and wage earners) to jointly take care of
security of lives and PTT assets.
ë Preparation of security alert levels and security guidelines for use by all to communicate, assess,
and apply in accordance with security alert levels appropriately and efficiently. Recognizing the
criticality of the cooperation of all executives and the rank and file to efficient security management,
the Company stressed the cultivation of security awareness through the issuance of a personal
security manual for use as basic information in warding off personal threats.
ë Emergency drills for acts of sabotage and bomb retrieval at PTT Head Office and installations
nationwide through close coordination with public agencies and relevant agencies in each area.
Management to control environmental impacts

Along with its business conduct, PTT values the management of environmental aspects resulting from
its activities, processes, products, and services. The year continued to see proactive environmental
management together with PTT’s value attached to the business value chain as a whole (including within PTT
Group). Particularly in Map Ta Phut and Rayong province as a whole, where PTT Group had assorted plants
Environmental Impact Control

Water pollution Control Testing Anti-Global Warming Networks Pressure Control Room for NGV Stations
and sites, the Company not only monitored and measured water and air pollutants and industrial waste as
required by law, but also paid attention and was committed to applying pollution management technology for
maximum efficiency and minimum environmental impacts. These would enable PTT Group to grow along
with a decent quality of life for society and surrounding communities. The year also saw detailed inspection
of plant pollution removal and investment plans made for machinery upgrading, with installation of pollution-
treating instruments equipped with the best available technology, including
ë Investment in adding the height of emission stacks at GSP Unit 3

ë Installation of the Dry Low Emission (DLE) process to optimize the temperature in the combustion
chamber, which yields the lowest resulting nitrogen-oxide and carbon-monoxide concentrations
ë Installation of the Selective Catalytic Reduction (SCR) system, regarded as highly efficient in
nitrogen-oxide treatment.
As for suppliers and contractors engaging in PTT’s businesses, the Green Procurement principle has
been introduced, as seen in the announcement of the policy and the PTT Environmentally Friendly Procure-
ment Manual, with pilot procurement of six items, namely fluorescent lamps, brown envelopes, business
cards, correction fluids, black paper files, and computer printout paper.
141
And as for energy conservation, PTT signed a memorandum of understanding on its collaboration with
the Ministry of Energy and the Electricity Generating Authority of Thailand under the so-called Anti-Global
Warming Network Project using compact fluorescent lamps No. 5. In all, 38,000 such lamps were procured
along with their fixtures for installation at all PTT sites, namely office buildings, PTT Research and Technology
Institute, GSPs, depots (petroleum, oil, and LPG), and the Natural Gas Transmission System.
QSHE Achievements of 2008

2008 Thailand Quality Class (TQC), conferred by the National Quality Award Committee (May 12):
Natural Gas Transmission Department, Exploration & Production and Gas Business Group
TPM Awards for Excellence in Consistent TPM Commitment, conferred by Japan Institute of Plant
Maintenance (JIPM)
Rayong GSP, Khanom GSP, Region V Pipeline Operations Division (Ratchaburi)
TPM Awards for Excellence, Category A, conferred by Japan Institute of Plant Maintenance (JIPM)
Chonburi Operations Center; Region II Pipeline Operations Division (Ayutthaya); Region III Pipeline
Thailand Quality Class Award

Outstanding Business Operator Awards Outstanding QC Groups
Operations Division (Rayong); Region IV Pipeline Operations Division (Khon Kaen)

National Outstanding Business Operator in Safety, Occupational Health, and Work Environment Awards,
conferred by the Ministry of Labour during the 22nd National Safety Week to promote standard and compliant
practices of management and safety, health, and environment in workplaces (May 8), a total of 25 sites:
ë Surat Thani Petroleum Terminal (12 consecutive years)
ë Songkhla Petroleum Terminal (12 consecutive years)
ë Lampang Petroleum Terminal (9 consecutive years)
ë Nakhon Sawan Petroleum Terminal, Phitsanulok Oil Terminal (8 consecutive years)
ë Chiang Mai, Phuket, Pak Phanang, and Lam Luk Ka Oil Terminals, Chonburi Operations Center (7
consecutive years)
Annual Report 2008
ë Phra Khanong and Udon Thani Oil Terminals, Region IV Pipeline Operations Division (Khon Kaen),
Region V Pipeline Operations Division (Ratchaburi) (6 consecutive years)
ë Den Chai Oil Terminal (6 years)
ë Khon Kaen Petroleum Terminal, Ubon Ratchathani Oil Terminal (5 consecutive years)
ë Sri Racha Oil Terminal, Khao Bo Ya and Ban Rong Po LPG Terminals, PTT Head Office (4 consecutive
years)
142
ë Bangchak Petroleum Terminal, Khanom GSP (Nakhon Si Thammarat), Region III Pipeline Operations
Division (Rayong) (3 consecutive years)
ë Phra Khanong Office Building
Zero Accident Campaign Awards, conferred by the Ministry of Labour, for workplaces that campaigned
on work safety to the point of zero lost-time injury (August 27):
ë Rayong GSP (silver award, for 3,000,000 - 9,999,999 total man-hours)
ë Chonburi Operations Center (bronze award, for 1,000,000 - 2,999,999 total man-hours)
ë Nakhon Sawan and Songkhla Petroleum Terminals, Chiang Mai Oil Terminal, Region III Pipeline
Operations Division (Rayong), Region IV Pipeline Operations Division (Khon Kaen) (special-
mention award, for zero accident during the year and up to 1,000,000 total man-hours)
EIA Monitoring Awards 2008, conferred by the Ministry of Natural Resources and Environment, for
outstanding compliance with measures stated in environmental impact assessment reports and outstanding
environmental management practice :
Khanom GSP, Surat Thani and Songkhla Petroleum Terminals
Good Laboratory Practice Awards under a project on the upgrading of private analytical laboratories
registered with industrial works, conferred by the Department of Industrial Works, Ministry of Industry
Product Quality Analysis Unit-Eastern Terminal, Khao Bo Ya LPG Terminal, and Quality Control
Section, Rayong GSP.
Outstanding QC Groups based on presentations at the Thailand State Enterprise QC Fair,
representing Thailand at the 14th International Symposium on Quality Function Deployment (ISQFD 2008),
Beijing, People’s Republic of China (September 23-26):
ë Operation Category
Pla Muek Yak Group, Logistic Evaluation and system Division, Products Transportation Department,
Oil Business Unit
ë Office Category
SCADAMAX Group, Automatic Control and Operation System Division, Transportation Management &
Technical Services Department, Upstream Petroleum & Gas Business Group.
QSHE Management Standard Certification in 2007
(bar graph)
ë During the year, all major business processes and 95 sites maintained their QSHE management
standard certification (ISO/TIS 9001, ISO/TIS 14001, and TIS/OSHAS 18001) according to the
Management System Certification Institute (Thailand)(MASCI).
ë In 2008, one new target site achieved health and safety certification under TIS/OHSAS 18001 by
MASCI, namely the Pathum Thani-Nimit Mai NGV Mother Station.
and
% of target sites

143
Responsibilities for Society, Community, and Environment
2008 was a year in which social, community, and environmental projects were continued with
Annual Report 2008
improvements and expansions to make those projects better reach the diverse target groups in order to build
up “Power for Sustainable Future”, the foundation for the growth and prosperity of the Thai society.
Sustainable Power for Society and Community.....to foster happiness

ë Urgent Assistance to Alleviate Hardship Caused by Natural Disasters: As a result of the changing
144
climate, Thailand weathered natural disasters in various forms and many times, which left behind
the hardship among people in many parts of the country. PTT has mobilized assistance in the form
of fuel and in kind to alleviate the hardship and helped return the situation to normal as fast as
possible. Throughout the year, PTT made contributions worth around Baht 20 million in total to the
‘Private and Public Sectors Fighting against the Drought Program’, in collaboration with the army
and many other public and private organizations for the 8th year, and in the ‘Royal Rainmaking
Project’, to which 500 tons of dry ice was contributed. Moreover, contribution of 110,000 disaster
relief bags and cash was made to assist flood victims in various parts of the country, including the
three southernmost provinces. We also donated 8,200 blankets through various organizations,
including Green Globe Network, PTT’s own offices in the affected areas to make sure that our
contributions reach needy people.
Following Cyclone Nargis, which ravaged neighbouring Myanmar, resulting in severe losses
and damage, PTT made a contribution of consumables and 480,000 liters of fuel for transporta-
tions and power generation. Forecourt uniforms were also given away as urgent clothing assis-
tance to those affected people.
ë Traffic Problem Relief Program: In order to create road safety while promoting discipline and
thoughtfulness among motorist, PTT contributed 17,500 traffic cones through National Police
Urgent Reliefs to Alleviate Natural Disasters Relief Bags for Nargis Victims The launch of Traffic Relief Program
Safe Songkran Caravan Drive Safely Program PTT Engine Tune-Up
Office and PTT offices in various areas for allocation to police stations and related units, both in
Bangkok and the provinces. Moreover, the Company granted support to ‘Don’t Drive Drunk’
Foundation as well as many other public and private units in the organization of “Safe Songkran-
Arrive Alive Caravan” to 27 provinces around the country, and ‘Wheelchair for Safe New Year- Arrive
Alive Caravan’ organized by those people made disabled by drunk driving, in which ‘wheelchair
people formed a caravan’ from PTT Head Office to Laos Government House in Vientiane, Laos
PDR. PTT contributed fuels and facilitated the caravan throughout the route by providing rest areas

and toilets at PTT stations along the route.
ë Drive Safely with PTT Program: It was the 12th year that PTT and Land Transport Department jointly
provided altogether five traffic training courses for approximately 600 participants, both in Bangkok
and the provinces, with an objective to produce a new generation of quality drivers with thoughtful-
ness to other road users and equipped with traffic knowledge while being able to properly maintain
their vehicles and good at energy saving.
ë PTT Engine Tune-up Program to Provide Free Engine Check-ups, Reduce Pollution, and Save
Energy : Under the cooperation with the Office of Vocational Education Commission, it was an
145
opportunity provided for vocational students to render free engine check-ups for all vehicles
during April 10-17, 2008, at 50 PTT stations across the country. PTT, in addition, offered free
engine tune-ups at 120 PROCheck centers around the country from April 10, 2008, until the end of
the year.
ë Sharing with Communities Program: PTT opened a clinic at Rayong Gas Separation Plant to
provide free medical service for communities. Mobile medical service was initiated not only to
provide medical service but to provide basic health knowledge for communities in the vicinity of
provincial PTT offices.
ë Upgrading Service for the Disabled Program: PTT was given an Outstanding Workplace with
Facilities for the Disabled Award from the Ministry of Social Development and Human Security
following the renovation of toilets in retail stations along major roads to particularly facilitate the
elderly, pregnant women, and the disabled. In addition, the Company cooperated with Bangkok
Metropolitan Administration in expanding the pedestrian bridge accessing the Vachira Benjathat
Park (Railway Park) with ramps to facilitate the general public and the disabled.
ë Community Enterprise Institute (CEI) Foundation: PTT is a co-founder and operator of this founda-
tion since 2002. In 2008, the foundation initiated a “Life University” Project in collaboration with
Present Pedestrian Bridge to BMA Support to CEI

One Decade of Green Globe Award
eight campuses of Rajabhat University and expanded the learning center from 81 branches in 23
provinces to 117 in 30 provinces. The project produced more interdisciplinary graduates for rural
development while adding programs involving science and technology for community at the
bachelor’s degree level as well as community health programs at both bachelor’s and master’s
degree levels. This support to “Learning Institute for Everyone” will be established in Samut
Songkhram Province in 2009. Moreover, the foundation, in an attempt to reduce people’s debt
burden in accordance with the sufficiency economy philosophy, joined the Bank for Agriculture
and Agricultural Cooperatives and Local Administration in providing training for agriculturalists,
BAAC debtors, and representatives of local administrations to equip them with proper understand-
ing of the philosophy so that they may map out their own community development strategies.
Annual Report 2008
Sustainable Power for the Environment.....to build the world

ë Following the PTT’s Reforestation Project in Honor of HM the King on the occasion of the 50th
anniversary of the accession to the throne, in which one million rai of land was targeted, PTT
realized the value and significance of plantation, which does not mean just to plant trees. Even
though the project was already presented to HM the King in 2002, PTT has still followed up the
146
program through PTT Development Village Project and three types of training to ensure forest
existence, i.e. PTT Youth Loves Forest Training, Forest Fire Fighting Volunteer Training, and Forest
Protection Volunteer Training.
ë Green Globe Award: PTT has received good cooperation from professionals in various branches of
knowledge in granting support and encouragement to natural and environmental conservation
projects run by individuals or communities with strong commitment. PTT also organized a “Green
Globe Network” both in Bangkok and the provinces for people to exchange knowledge. ‘Friends of
Green Globe’, a mobile project, was initiated to provide knowledge of forest conservation. On the
10th anniversary of the Green Globe Award, PTT thus viewed this as a special opportunity to
publicize the achievement of the young generation, individuals, communities, educational
institutes, and other organizations who had been awarded through the past ten years. A total of 49
awarded projects were honored in the ‘One Decade of Green Globe Award’ event.
ë Sirinat Rajini Ecosystem Learning Center: Plots FPT 29 and FPT 29/3 in the reforestation Project in
Honor of HM the King at Tambon Pak Nam Pran, Amphoe Pran Buri, Prachuap Khiri Khan Province,
which used to be deserted shrimp farmland, was turned into a rich mangrove area. The area was
PTT Village Development 84 Tambons on a Sufficient Path Sirinat Rajini Learning Center
School Building Presentalian 5S School Generation P
opened for youths and the public to study mangrove ecology along the nature trail and from the
learning center and exhibition with community guides provided.
ë 84 Tambons on a Sufficient Path Project: HM the King’s sufficiency economy philosophy was adopted
and integrated into the community’s way of life for sustainable happiness. This project aimed to
apply his sufficiency economy philosophy in the community development process. PTT started this
project in late 2007, and nine communities were selected to pilot the project. In 2008, PTT has
recruited communities around the country as project members. More communities were selected
in addition to the existing 42, thus bringing the total number to 51. PTT is targeting 84 tambon to

honor HM the King on his 84th birthday anniversary in 2011.
ë Vetiver Grass Plantation Project under the Royal Initiative: PTT joined hands with Chaipattana
Foundation, Office of the Royal Development Projects Board, and Land Development Department
in the planting, planting promotion, dissemination of vetiver planting knowledge, and providing
training for design of products made from vetiver. The Company also arranged a contest of three
categories, namely planting, planting promotion, and design of products made from vetiver. The
activity was well received by youths, the general public, educational institutes, and government
offices with 379 entries contesting for 49 awards.
147
ë HRH Princess Maha Chakri Sirindhorn Herb Garden: A center for the study of over 260 herbal
plants, in Rayong Province was opened as a tourist attraction. It can also be a park for community
activities, equipped with restaurants, a souvenir shop, a herbal massage room, and a community
market. During 2008, a total of around 250,000 visitors were registered, thus creating an income of
over Baht 9 million for the community.
ë Bio-diversity Research Project: This cooperation with Biodiversity Research and Training Program
and the community for research into the ecology and biodiversity of the neighborhood of Khanom
Gas Separation Plant started from the seashore to cloud forest on the peak of Nun Mountain. The
land was found fertile and worthwhile for both conservation and study. It was an opportunity to
work with the community in Tambon Huay Khayeng, Amphoe Thong Pha Phum, Kanchana Buri
Province, in developing the Nong Pling swamp as a community center for nature study and
eco-tourism, which is expected to open in 2009.
Sustainable Power for Thai Youth Education.....to build the nation’s future
ë Dream School Project: This project was aimed at maximizing the potential of three schools under
the supervision of PTT since 2004 until the project ended in 2008, namely Sadet Wana Chayangkoon
Wittaya School in Lampang, Baw Rai Withayakhom School in Trat, and Bang Node School in Nakhon
Si Thammarat Province. These schools were developed into true dream schools which were
successful in the assessment by Ministry of Education. They were announced as ‘Pilot Schools’ for
the development of other schools in the project. In the past year, school management manual was
developed while training was provided for leading teachers, who were required to pass on the
knowledge to all other teachers for quality improvement.
ë Schools and Libraries Building Program : During 2008, 16th school building and 23rd PTT’s “Phalang
Thai Phuea Thai” Library were presented to Ban Khon Khwang Community School in Prachin Buri
Province. The 17th school building was also presented to Suwan Khiri School in Chachoengsao
Province. The Company also funded the construction of a kindergarten building at Ban Muang
PTT Idea Maker Award Gassy Camp 2nd Innovation Contest
Phrong, Tambon Khao Hin Chai, Chachoengsao. Moreover, 830 scholarships were allocated for
13 consecutive years for students ranging from primary to university level in educational institutes
located around PTT branch offices across the country and along the natural gas transmission
pipeline.
ë The PTT 5S Schools Project: This program provided training and guidelines on the 5S principles
for 19 schools along PTT gas transmission pipeline routes. This included review and organization
of 5S activities for 40 schools in ‘PTT Brings Quality of Life to the Youth Project’ (5S school) located
around PTT oil terminals across the country. After the project assessment in 2008, Sadet Wana
Chayangkoon Wittaya School in Lampang, Samakkhi Rot Fai School in Nakhon Ratchasima, Wat
Bang Bai Mai School in Surat Thani, and Ban Kat Mek School in Lampang were given the winning
Annual Report 2008
prizes. The 5th and 6th PTT 5S School Promotion Centers were established at Ban Kat Mek School
and Wat Bang Bai Mai School under the precondition for schools receiving the winning prizes for
three consecutive years.
ë Youth Camp: This program was aimed for enhancing non-formal education and skill development
for the youth. This includes Generation P Energy Conservation Youth Camp, in its 11th consecutive
year. A total of 80 children from various schools were accepted to the camp. These students were
148
required to apply the knowledge received from the camp in the development of their 20 projects
under the concept of ‘New Energy, Sufficient Energy from School to Community’ during a six-month
period. The winning project was ‘Changing wind into alternative energy’ belonging to Mueang
Phon Phittayakhom of Khon Kaen Province, with students given scholarships and entitlement to
further their studies at the Faculty of Engineering, Khon Kaen University.
The 5th Gassy Camp: The Wonder of Natural Gas: PTT allowed 40 upper-secondary
students from schools in 12 provinces along gas transmission pipeline routes to participate in this
activity, in which students could learn about the origin and applications of natural gas at Chonburi
Operation Center and Rayong Gas Separation Plant.
Petro Camp to Champ Petro: A total of 56 students from schools in the industrial area of
Rayong were brought to an activity in which they can learn about energy and petrochemical
knowledge. Seven selected students also won scholarships for their studies at the undergraduate
level at King Mongkut’s Institute of Technology Thonburi. This project aimed to develop
chemical engineers from whiz kids in the province. The Children Understand Chemical Substances
Project was also initiated to equip local children in the industrial zone of Rayong with knowledge
and understanding of chemical substances and know what to do when an accident occurs.
Poo-cha Drum Beating PTT Art Contest for Youths LPGA Thailand 2009
ATP Thailand Open 2008 PTT Group Mini-Half Marathon Return Beautiful Sea at Chang Island
ë The 2nd Innovation Contest: Under the project name of ‘PTT Hub of Inventors for Community’, this
encouraged university students and the public to send their innovations to a contest under the
concept of ‘Sufficiency Way of Life’ to win a trophy from Princess HRH Maha Chakri Sirindhorn.
Their innovations must be both relevant and practical. A student from Nang Rong Vocational
College and an instructor from King Mongkut’s Institute of Technology Ladkrabang won the prizes
for ‘a rice harvest machine made from a rotary lawn mower’ and ‘an automatic shrimp peeler
machine’ respectively.

ë PTT Idea Maker Award: This program welcomed entries of three-minute documentaries entitled
‘Energy for Future Sustainability’ to a contest for a trophy from HRH Princess Soam Sawalee. It
provided an opportunity for students at the university level to work alongside advertising
professionals. Students from the Faculty of Mass Communication of Rangsit University won the
documentary prize while those from the Faculty of Mass Communication of Bangkok University
won the copy writing prize.
Sustainable Power for the Arts and Culture.....to promote the nation’s beauty
149
ë PTT Art Contest: It was the 23rd year in which PTT joined Silpakorn University in organizing an art
contest for the youth under the theme ‘Stop Global Warming for the Future’.. It was also the 8th year
of cooperation with Chiang Mai University, 5th year with Thaksin University, and 3rd year with Khon
Kaen University in organizing an art contest for the youth in the regions. Many youths showed their
interest in the activity.
ë Conserve Lanna Culture through PTT Youth Camp for the Conservation of Poo-cha drum beatings:
For the 6th consecutive year, PTT in collaboration with Lampang Province, welcomed over 130
children from 13 districts in Lampang to a camp where children can learn about the Poo-cha drum
beating tradition from a local drum master in an attempt to conserve the local culture.
Sustainable Power for Sports.....to build the nation’s athletes

ë Support the National Sports Development Fund: To raise national sports standards, PTT granted
support for various sports events at both local to international levels. The support was made for five
consecutive years for Tennis Association of Thailand and Lawn Tennis Association of Thailand,
both under the Royal Patronage. Such support was also granted to Thailand Amateur Wrestling
Association and Thailand Amateur Weightlifting Association.
ë Support Royal Trophy Golf Competition: This sponsorship of a golf competition at the international
level sees golfers from Asia and Europe participate in a competition in Thailand to win a trophy
from HM the King. This was an opportunity to promote the standards of Thai sports and golf courses
in Thailand.
ë Support National Tennis Competition: This was designed to raise the potential and internationalize
the standards of young tennis players. Support was granted to Men’s ATP Thailand Open 2008,
Professional PTT Junior Championship 2008, PTT Championship 2008, PTT Tennis Junior Master
Cup, and PTT Tennis Master Cup.
ë Support PTT Thailand Premier League 2008 Football: As a major supporter for the 2nd consecutive
year, PTT internationalized the standards of Thai professional football players while developing the
national football standards. The winning team will represent Thailand in international matches.
Mangrove Forest Conservation
ë Support Khon Kaen International Marathon: PTT was the major supporter in its 6th successive year
to internationalize the standards of local sports while searching for athletes of the new generation.
This was also an opportunity to make Thailand known as a venue for international sports
competition.
ë 2nd PTT Group Mini-Half Marathon: Organized at HRH Princess Maha Chakri Sirindhorn Herb Gar-
den in Tambon Mab Kha, Rayong Province, as the venue for the marathon, this event was aimed at
promoting the health of local people. Proceeds from the event were turned into scholarships for
local students as well.
Besides all programs and projects mentioned above, PTT opened opportunities for PTT
Annual Report 2008
staff and their families to share the responsibility for the society through various activities as
follows:
ë Return the Beautiful Sea to Koh Chang and its Surrounding Areas under the Sustainable Tourism
Project: This collaboration with Special Area Administration for Sustainable Tourism Organization
brought staff to clean the sea off Koh Chang to conserve its ecosystem and nature.
150
ë PTT Family Conserves Mangrove Forest Activity: This encouraged PTT staff and families to create
more green areas for the country in a mangrove planting project at the Sirinart Rajini Ecosystem
Learning Center.
ë Green Area Activity: This encouraged PTT staff in the provinces to plant more trees in their office
premises to join the world in reducing global warming.
ë Ruam Chai Phak Rak Sing Wat Lom Activity (all Thai subjects help conserve the environment): This
opportunity was opened for PTT staff and the general public to jointly plant trees and repair check
dams at the FPT special plantation plot along the Thai-Myanmar gas transmission pipeline, Pilok
Mine Village, Amphoe Thong Pha Phum, Kanchanaburi Province.
PTT wishes to be a ‘force’ generated by cooperation and togetherness of all parties to solve problems
while uniting all hearts thoughtful to others to create the ‘Power for Sustainable Future’.
Recognitions
In 2008, PTT garnered 36 awards and prestigious ranking from 22 institutions:
ë Thirteen domestic organizations, for a total of 18 awards
ë Nine international organizations, for a total of 18 awards.
National (13 organizations, 18 awards)
Best Investor ë Conferred at the Thai BMA Best Presented by

Relations Issuer Award Bond Awards 2007 Thai Bond Market Association
ë Recognizing bond issuers with Date
outstanding information disclo- March 26, 2008

sure and efficient, continual
investor relations activities
151
National Outstanding Business
Operator in Safety, Occupational ë 25 operation sites Presented by
Health, and Work Environment ë Conferred during the 22 nd
Ministry of Labour
Award
annual National Safety Week Date
ë Awarded to workplaces with May 8, 2008
international standards for
management and operation of
safety, occupational health, and
work environment, and compli-
ance with legal requirements
Trusted Brands 2008:

ë Thailand’s Top Brand (service 6. Innovation
stations, for the eighth con- ë Based on a questionnaire of
secutive year since 2001) Asian members in Hong Kong,
ë Six criteria : India, Malaysia, Singapore,
1. Trust Taiwan, the Philippines, China,
2. Image and Thailand
3. Quality
4. Value Presented by
5. Appreciation of consumers’ Reader’s Digest
needs Date
May 9, 2008
Thailand Quality Class : TQC ë Gas Transmission, 6. Process management
2007 Gas Business Unit 7. Business performance
ë Seven criteria : ë Same criteria as those used
1. Organizational leadership for world-class awards in the
2. Strategic planning US
3. Customer and Presented by
market-oriented National Quality Award
4. Knowledge testing, analysis, Committee
and management Date
5. Human resource-oriented May 12, 2008
Special CSR Annual Award

ë Conferred at the Boss of the Presented by
Year 2007 event Boss Request Magazine
ë Recognizing PTT’s corporate Date
social responsibility and its key May 12, 2008
continual role in contributing to
the preservation of nature and
the environment
Annual Report 2008
152
Outstanding State 1. Honorary Outstanding Perfor- ë Conferred at the SOE Award

Enterprise Awards 2008 mance (fourth consecutive year event to recognize efforts and
since 2005) achievements of state enter-
2. Outstanding Board of Directors prises
(2006 and 2008) ë A total of 58 entries
3. Outstanding Organizational
Management (second con-
secutive year since 2007) Presented by
4. Outstanding Social and Envi- Ministry of Finance
ronmental Programs (third con- Date
secutive year since 2006) August 20, 2008
1. Overall Corporate Excellence Presented by

Three awards bestowed by HRH
Princess Maha Chakri 2. Corporate Social Responsibility, Thailand Management
Sirindhorn: Thailand Corporate for the fifth year Association (TMA), with Sasin
Excellence Awards 2007 3. Leadership Excellence, for the Graduate Institute of Business
second consecutive year Administration
ë Based on an opinion survey Date
among 520 senior executives of September 3, 2008
1,000 leading companies in
Thailand
Outstanding Workplace with
ë Based on a selection of agen- Presented by
Handicapped-Friendly
cies with international-standard Ministry of Social Development
Facilities
facilities for the handicapped and Human Security, with the
House Committee on Social
Development and Child, Youth,
Female, Elderly, Handicapped,
and Underprivileged Affairs
Date
September 23, 2008
CSR-DIW (Corporate Social

Responsibility, Department
ë Rayong GSP Presented by
of Industrial Works)
ë Based on social responsibility Department of Industrial Works,
terms: with the Management System
1. Corporate supervision Certification Institute (Thailand)

2. Human rights Date
3. Treatment of labor September 26, 2008
4. Surroundings
5. Fair business conduct
6. Consumers’ issues
7. Social development
153
SET Awards 2008
ë Corporate Social Responsibility Presented by
Awards Stock Exchange of Thailand
ë Based on a compilation of listed (SET), with Finance & Banking
companies under given criteria, Magazine
including business performance Date
and qualitative practices November 21, 2008
Shareholder Awards 2008 ë Best Shareholder Treatment Presented by

Award Thailand Securities Depository
ë Based on the treatment of Co., Ltd., with Thai Investors
shareholders with due regard Association, Listed Companies
for good corporate governance Association, Thai Investor
and facilitating shareholders in Relations Club
their exercise of rights and privi- Date
leges November 21, 2008
Excellent ranking in the 2008
Survey of Good Corporate
ë Ranked among 22 companies 4. Disclosure and transparency
with excellent scores 5. Responsibility of the Board of
Governance of Listed Companies
ë A total of 448 listed companies Directors
joined the survey under 132
items of five OECD criteria on
corporate governance:
1. Shareholders’ rights Presented by
2. Equitable treatment of Thai Institute of Directors
shareholders Association (IOD)
3. Regard for stakeholders’
roles
ASEAN Outstanding
Engineering Achievement
ë Conferred at the 26th Confer- business strength and expan-
ence of ASEAN Federation of sion for regional competition
Project Award
Engineering Organizations
ë Recognized as the core state Presented by
agency for petrochemical Engineering Institute of Thailand
industrial business development Date
on the Eastern Seaboard and November 28, 2008
Annual Report 2008
management of the mergers

and acquisitions of affiliates for
154
International (9 institutions, 18 awards)
Forbes Global 2000 ë Ranked 205th among the top on revenue, net income, as-
500 public companies world- sets, and market capitalization
wide ë Based on an analysis of 2,000
ë No. 354 in 2007 major companies worldwide
ë No. 372 in 2006
ë No. 425 in 2005 Presented by
ë No. 461 in 2004 Forbes Global Magazine
ë Strong business performance Date
and financial standing, based April 21, 2008, issue
Recognition Awards 2008, ë Out of 62 Asian recipients, PTT of CG practices over the
The Best of Asia was among the four Thai-com- past 12 months
pany recipients, along with AIS, 3. Significant actions to
K-Bank, and SCB improve CG over the past
ë Based on: 12 months
1. Recognition of CG Presented by
performance Hong Kong-based Corporate
2. Participation in activities Governance Asia Magazine
directly related to the Date
promotion and improvement Vol. 5, No. 2, April-June 2008
Best Managed Company in ë First-ranked in these categories ë Chosen from widely accepted
Thailand 1. Best Managed Company companies in each country and
2. Best CFO based on an opinion survey among
(Mr. Pichai Chunhavajira) Asia’s fund managers, analysts,
3. Best Investor Relations and leading financial experts
ë Runner-up in these categories Presented by
1. Best Corporate Governance FinanceAsia Magazine
2. Most Committed to a Strong Date
Dividend Policy June, 2008
Fortune Global 500

ë Ranked 135th among the 500 ë PTT ranked 20th in the world s
major companies worldwide petroleum refining business
ë No. 207 in 2007
ë No. 265 in 2006
ë

No. 373 in 2005
ë No. 456 in 2004 Presented by
ë Based on revenue and income Fortune Magazine No. 34,
generated in 2007 Date
ë PTT remained the sole Thai July 21, 2008
company among the top 500
155
ë Long-term domestic credit, Presented by
Fitch Ratings
from AA+ (tha) to AAA (tha) Fitch Ratings
ë Reflecting national energy lead- Date
ership in meeting government September 2008
policy, participation in defining
energy business direction,
healthy cash flow from operat-
ing activities, and capable man-
agement team
Platts Top 250 Global Energy ë Fastest-Growing Integrated Oil

Company Rankings and Asia and Gas in Asia (No. 1)
Leadership Awards 2008 ë Fastest-Growing Energy Com-
pany in Asia (No. 4)
ë Overall Performance in Asia
(No. 5)
ë A ranking of leading energy
businesses Presented by
ë Based on assets, revenue/ Platts
sales, net income, and return on Date
investment in the past year October 2008
Platts Global Energy Awards ë One of the most prestigious and Presented by
2008 : CEO of the Year best-known awards worldwide Platts
(Mr. Prasert Bunsumpun) ë PTT was the first in Thailand to Date
win this top-management award, December 3, 2008
a testament to the dedication to
working for excellence in the
international arena
Asia’s Best Managed ë Most Convincing and Coherent Presented by

Companies Strategy (Thailand), ranked first Euromoney Magazine
ë Best Corporate Governance Date
(Thailand), ranked first December 2008
ë Based on a survey of Asia’s
leading financial institution ana-
Annual Report 2008
lysts
156
The Asset Triple A Awards

2008 : Best in Corporate
ë Based on an opinion survey of Presented by
leading worldwide institutions The Asset Magazine
Governance, Thailand
with Asia-based stock market Date
portfolios Vol. 10, No. 11, December 2008
TPM Award for ë Rayong GSP ë Based on JIPM’ s assessment,

Excellence in Consistent ë Khanom GSP in which PTT obtained a
TPM Commitment ë Region V Pipeline Operation superior score to a given
Division (Ratchaburi) hurdle for implementing TPM
in machinery maintenance for
ë Operation Center, Chonburi maximum processing efficiency
TPM Award for ë Region II Pipeline Operation
Excellence, Category A Division (Ayutthaya) Presented by
ë Region III Pipeline Operation Japan Institute of Plant
Division (Rayong) Maintenance (JIPM)
ë Region IV Pipeline Operation Date
Division (Khon Kaen) 2008

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2 Annual Report 2008

PTT Public Company Limited 3

President & CEO, PTT Plc

ident & CEO, PTT Plc

Name PTT Public Company Limited

Location 555 Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900, Thailand

PTT Public Company Limited

Corporate Communications Telephone : 66 (0)-2537-2150-1

Capital Market & Investor Relations Telephone : 66 (0)-2537-2792-3

ë Auditor Office of the Auditor General

ë Registrar Siam Commercial Bank PLC.

the collective efforts for greater self-reliance.

the much lower world prices at year-end therefore

PTT Public Company Limited

and reliable; and that adequate and timely

PTT Public Company Limited

Khunying Jada Wattanasiritham

Group; instances of these were the

PTT Public Company Limited

General Somdhat Attanand

Mr. Ampon Kittiampon

PTT Public Company Limited

Mr. Chakramon Phasukavanich

Estimates of Economic Growth Rate for Various Clusters

PTT Public Company Limited

Developed Countries 2.6 1.3 -0.1

US 2.0 1.4 -0.5

Europe 2.6 1.1 -0.6

Developing Countries 7.9 6.3 4.5

East Asia and Pacific 10.5 8.5 6.7

China 11.9 9.4 7.5

Thailand 4.9 2.6 (-1) - 0

World Demand for Energy and Energy Price

World Oil Demand and Supply in 2008

Africa 3.1 3.1 3.2 3.0 3.2 3.1

North America 31.1 30.5 30.4 29.7 30.0 30.2

Asia-Pacific 25.1 26.3 25.4 24.7 24.7 25.3

Europe 16.0 16.0 15.7 16.1 16.0 15.9

Russia 4.1 4.1 4.1 4.3 4.3 4.2

Middle East 6.5 6.7 7.0 7.3 6.8 7.0

Total 86.0 86.8 85.7 85.2 85.0 85.7

OPEC 34.9 37.3 37.1 36.2 35.3 35.9

Non-OPEC 50.7 49.8 49.7 50.0 50.6 50.6

Total 85.6 87.1 86.8 86.2 85.9 86.4

Source : International Energy Agency (IEA as of February 11, 2009)

Fuel Oil Crude Gasoline Diesel

PTT Public Company Limited

Crude 61.5 68.4 91.2 116.7 113.4 52.6 93.5

Source: PLATTS Oilgram News

Naphtha Benzene Ethylene Propylene High Density Polyethylene

Ethylene 1,168 1,189 1,247 1,386 1,378 565 1,144

Domestic Demand for Energy and Energy Price

Economic and Energy Outlook for 2009

PTT Public Company Limited

Thailand's Petroleum Balance in 2008 Unit : Kbd

Refined Products LPG Domestic Export

Source: PTIT, February 24, 2009

PTT Public Company Limited

Natural Gas Distribution