SET Announcements

(Translation) 1600 / 007 / 1999 February 26, 1999 Subject : Report on the status of the year 2000 compliance project. Form 57 (Y2K) Attention : President of the Stock Exchange Thailand Attachment : 1. Report on the status of the year 2000 compliance project. Form 57 (Y2K) 2. Righting confirmation form (as attached) Dear sir , As SET informed Bangchak Petroleum Public Company Limited to submit a report on the status of the year 2000 compliance project together with annual financial statements, and have all directors signatures in in the righting confirmation form, also have authorized directors signed and sealed in each page for confirmation all information provided. The company would like to submit the report and the righting confirmation form that have the other directors signatures. (as attachment) Please be informed accordingly. Yours sincerely, (Mr. Rabil Pornpatkul) Senior Manager, Corporate Planning Office Corporate Planning Office Tel : 301-2842 Report of Year 2000 Compliance Project THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED Business: Energy Head Office: 38 Srinakarin Road, Prawet, Bangkok 10260 Telephone: 301-2700 Facsimile: 301-2859 Report on the status of the Year 2000 Compliance Project, the third report (as of December 31, 1998). Bangchaks Preparation for the Y2K Compliance: Fourth Quarter 1998 Progress I. Project Execution during the Last Quarter Progress as of the Fourth Quarter of 1998 comparing to the master plan can be summarized as follows: Step 2 : Risk Analysis and Impact Assessment / Implementation and Validation Planning Completed as planned Step 3 : Implementation Completed as planned except the Oil record system and Human resouce system would be rescheduled. Step 4 : Validation Completed as planned except the Oil record system and Human resouce system Step 5 : Contingency Plan During the past period, Bangchak concentrated its resources on the Implementation and Validation step. This results in less-than-planned progression in the Contingency plan preparation and are scheduled to complete by the second quarter of 1999. . II. Progression As of the Fourth Quarter of 1998, the project progression is 92% as shown below. WEIGHTING, % ACTUAL (OVERALL PLAN) PROGRESS, % 1 Overall Project 5 4.5 2 Risk Analysis and Impact Assessment 17 17 3 Implementation 60 57 4 Validation 12 10.5 5 Contingency Plan 6 3 100 92 III. Situation Analysis and Management View During the Fourth Quarter of 1998, the project execution for the Year 2000 Compliance was satisfactorily completed as scheduled. However, two supporting systems incompleted as planned , i. e., the Oil Record and Human Resource system, would be rescheduled and will complete by the first quarter of 1999. For the Contingency plan. it will be completed by the second quarter of 1999. YEAR 2000 COMPLIANCE PROJECT YEAR 1997 1998 1999 ACTION PLAN FOR COMPANY CRITICAL ITEMS QUARTER Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1. Overall Project Management - Establish Y2K committee / Assign managers and team members *** - Control plan and revise scheduling ****************************ooooo 2. Risk Analysis and Impact Assessment A. IT Group - APPLICATION SOFTWARE / DATABASE *** NETWORK / OS / HARDWARE **** B. Non-IT Group *** *** C. Supply Chain ***** 3. Implementation A. IT Group - APPLICATION SOFTWARE / DATABASE + MARKETING & SALES ********** + ACCOUNTING / FINANCIAL **************************** + OIL RECORD *************oo + HUMAN RESOURCE ***********oooo - NETWORK / OS / HARDWARE ******* B. Non-IT Group ** *** 4. Validation A. IT Group - APPLICATION SOFTWARE / DATABASE ****oooo - NETWORK / OS / HARDWARE ***** ***** B. Non-IT Group *** ** 5. Contingency Plan A. IT Group **** *****ooooooo B. Non-IT Group (Refinery completed, Other systems in progress) *************** C. Supply Chain *** oooo PLAN ***** ACTUAL