SET Announcements

1600 / 036 / 2001 June 18 , 2001 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : News concerning the Logistic Co-operation between Bangchak and Thai Oil: News concerning Bangchak Petroleum Public Co., Ltd. had appeared in several newspapers during the period of June 14-15, 2001 with some of them bearing headlines that Bangchak and Thai Oil had merged their business. This news could create confusion among the public shareholders. A clarification of this issue was requested by SET, hence the Company wished to state the facts as follows:- 1. The co-operation agreement between Bangchak and Thai Oil, which is currently being discussed, is only in the area of logistic-co-operation. This deal in different from the joint operating agreement between Shell and the Caltex Refineries, which operates under the management of a new company being set-up. In the case of Bangchak, it is not a merger of two companies as appeared in the headlines of certain newspapers. 2. The logistic co-operation arrangement is common among the Refineries in Thailand in order that the parties concerned would benefit from the cost reduction. Bangchak, has in the past, entered into such an arrangement with almost all the oil companies in Thailand, such as: 2.1 Bangchak has joined Caltex, Shell and PTT in the swap of products between different location oil terminals belonging to the said companies. This includes sales and purchases of products between the oil companies so as to equalize the volume of supply and demand. 2.2 Bangchak has joined with TPI by sending Fuel Oil for cracking at TPI's Refinery in order to produce gasoline for sale in Bangchak's market. 3. The joint logistic co-operation agreement between Bangchak and Thai Oil, which is being developed, will cover two areas as follows :- 3.1 A share in the usage of ocean tankers in delivering crude from the Middle East. 3.2 The sending of fuel oil from Bangchak for cracking at Thai Oil refinery and in exchanging products. This above co-operation deal does not fall under a joint management arrangement or a combining of the two businesses as confirmed by the Deputy Prime Ministry, Pitak Intrawithayanunt and the Secretary-General of NEPO. The mentioned co-operation is a normal joint operation which both Bangchak and Thai Oil. will share the benefits equally. It is not a matter of one party helping the other as misunderstood from the news. . Please be informed of the above facts. Yours sincerely (Mr. Pisespong Sasanavin) Manager, Corporate Planning Office Corporate Planning Office Tel: 301-2842