SET Announcements

TRANSLATION AUDITORS+ REPORT TO THE SHAREHOLDERS OF THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED We have reviewed the balance sheets of The Bangchak Petroleum Public Company Limited as of June 30, 1998 and 1997 and the statements of income for the second quarter then ended in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of such interim financial statements consists principally of obtaining an understanding,by enquiries, of the system for preparation of the financial statements, making an analytical review of pertinent financial data and making enquiries of certain officials of the Company who have responsibility for financial and accounting matters. Our review is substantially less in scope than an audit in accordance with generally accepted auditing standards , the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Thus , we do not express such an opinion on the financial statements referred to above. As stated in note 1.9.2., the Company records the results of foreign exchange gains or losses on loan for construction project as project cost during construction and as income or expense after project completion. The full amount of the foreign exchange gains or losses is not reported as income or expense as in accordance with the generally accepted accounting principles. As such , the net loss for the second quarter 1998 was lower by 27.50 million Baht and the net profit for the first six months of 1998 , lower by 84.01 million Baht. Total assets was also lower by 84.01 million Baht. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the generally accepted accounting principles, except as mentioned above in the third paragraph. (Sign) Nontaphon Nimsomboon ( Mr. Nontaphon Nimsomboon ) Auditor-General (Sign) Duangta Jantong ( Ms.Duangta Jantong ) Auditor-in-charge Aug 5, 1998