Financial Highlights

Chairman’s Statement

Penyata Pengerusi

Five-Year Summary Charts

Board of Directors /Lembaga Pengarah

Profile of Directors

Corporate Information

Corporate Governance

Board Audit Committee Report

Report of the Directors

Report of the Auditors

Financial Statements

Information on Stockholdings

List of Properties Owned

Notice of Annual General Meeting

Statement Accompanying Notice ofAnnual General Meeting

Notis Mesyuarat Agung Tahunan

Penyata Yang Dilampirkan BersamaNotis Mesyuarat Agung Tahunan

Cover Picture:In line with our tagline, “We’re Drivers Too”, Esso Malaysia Berhad continues to expand its service station network and introduce initiatives such as the Smiles loyalty card, Rebate Fleetcard and the Wash N Run car wash concept to meet our consumer needs.

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Contents

As a caring corporate citizen and neighbour, EMB continued to improve the quality of life in the communities where it operates. In 2005, EMB management, employees and family members implemented numerous community projects around the country to help the needy and underprivileged.

The Company’s safety performance continued to be recognised by the Malaysian Society of Occupational Safety and Health (MSOSH). Port Dickson Refinery was awarded a MSOSH Gold for the second consecutive year. All three of EMB’s distribution terminals won MSOSH Gold Awards, two of them for the fourth consecutive year. The distribution network reached eight consecutive years without any lost time injury, and two consecutive years without any incident, earning them the ExxonMobil Refining and Supply Asia Pacific Silver Award.

2005 2004 %RM Million RM Million Change

Revenues 8,269 6,198 33

Profit after taxation 20 11 82

Earnings per ordinary stock unit (sen) 7.3 4.0 83

Gross dividend per ordinary stock unit (sen) 12 12 -

Total assets employed 2,123 2,160 (2)

Total shareholders’ funds 650 654 (1)

Sales volume 97 98 (1)(thousands of barrels per calendar day)

FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

At the Annual General Meeting, shareholders take the opportunity to find out more about the Company’s operations and performance.

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Note : Comparative information has been restated in accordance with the adoption of the new/revised Financial Reporting Standards.

Chairman’s StatementChairman’s Statement

ESSO MALAYSIA BERHADA

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n behalf of the Board of Directors, I am pleased to report on the financial and operating Operformance of the Company for the year ended

December 31, 2005.

Summary of 2005 Financial Results

The Company recorded an after tax profit of RM20 million for 2005, an improvement of RM9 million over 2004. Revenues in 2005 were RM8.3 billion, an increase of RM2.1 billion or 33% over the previous year, reflecting higher product prices. Sales volumes of 97 thousand barrels per day (kbd) were unchanged year-on-year.

Over the year prices continued their upward trend, with crude costs increasing 50% to about US$60 per barrel by year-end 2005. Margins were squeezed across most of the year as supply costs continued to rise faster than product sales prices. This was compounded by unfavourable price lags associated with the Automatic Pricing Mechanism. However the price increases also generated partially offsetting holding gains on crude and product inventories.

The full year results referenced in this report have been restated in accordance with the adoption by the Company of several new and revised financial reporting standards, including a change in the inventory cost formula from last-in-first-out to first-in-first-out basis. The standards were issued by the Malaysian Accounting Standards Board during the year consistent with efforts towards alignment with international standards, and will become mandatory for financial periods starting in 2006. The Company has early-adopted these standards for the 2005 audited financial statements so as to provide a strong and audited foundation to the interim financial statements issued in 2006.

Dividends for Financial Year 2005

Management remains confident in the underlying performance of our business and in the Company's competitive position in a growing economy. In recognition of this and of our desire to continue to provide a steady return to shareholders, the Board proposes a dividend for the year ended December 31, 2005 of 12 sen less Malaysian income tax at 28% per ordinary stock unit. This matches the dividend paid for the 2004 financial year.

Review of Operations

The Port Dickson Refinery processed an average of 74 kbd, at about the same level as 2004. In spite of the

Robert FisherChairman

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absence of the 2004 planned refinery shutdown impact, 2005 crude runs remained low mainly driven by unfavourable crude economics. Refining margins continued to be under pressure given the relatively higher priced light crude that the refinery is configured to process. Continuing its margin improvement efforts, the refinery increased the use of alternative feedstocks and additives for motor gasoline production and blending. In addition, operations were further optimised to improve the recovery of high value petroleum products. A number of energy and maintenance cost mitigation measures were also implemented.

In the marketing business, retail sales increased during the year reflecting benefits realised from an expanded service station network and various retail initiatives including On the Run stations and loyalty cards. Six new service stations were opened in 2005. Five of these were On the Run stations incorporating the global ExxonMobil convenience store design projecting the Fast, Fresh and Friendly concept.

The Company introduced its new Smiles Driver Reward loyalty card in June 2005, replacing the Xchange loyalty card. This has helped improve the Company's competitive edge as the new card can be used for purchases as well as instant redemptions at both Esso and Mobil stations, thus capitalising on the larger combined service station network. The Company was amongst the first in the industry to enable the new security chip-based credit cards to be accepted at the pumps, providing an added convenience to customers who no longer have to go into the shop to pay for their petroleum purchases. In 2005, the Company also introduced a new car wash concept, Wash N Run, promoting Fast, Clean and Easy service. A total of seven Wash N Run outlets were in operation by year end.

In the industrial business, margins continued to be pressured by rising product costs and intense price competition. In response the Company continued to selectively restructure its diesel business. In the liquefied petroleum gas business, margins remained strong and competition intense as market players aggressively attracted dealers through various incentive schemes to grow volumes.

The Company's lubricants and specialties business turned in good operating performance during 2005. Commercial vehicle and marine lubricants sectors recorded strong growth from the continued economic expansion and activities in the offshore oil and gas sector.

However, margins were squeezed by escalating product costs. Several cost reduction initiatives were implemented, including switching to alternative delivery modes through the use of third party distribution terminals or direct delivery from suppliers, to help reduce distribution cost.

The Company remains focused on its efforts to reduce operating costs. Several measures were undertaken during the year including the dredging of the jetty front at the Bagan Luar terminal to accommodate larger ships thereby reducing the number of port calls and related costs. Although we incurred one time expenses for the various retail initiatives, these were offset by the absence of costs in the previous year for maintenance and repair activities during the planned refinery shutdown, and other one time expenses to streamline the organisation.

During the year the Company invested RM54 million, mainly for the acquisition of service station sites and the construction of service stations, as the Company continues to grow its service station network through selective investments in high growth areas.

Safety, health and environmental performance continue to be a priority for the Company. Safety performance at the Port Dickson Refinery was outstanding with zero total recordable injury rates for both employees and contractors. The refinery's goal in safety is to create a workplace where "Nobody Gets Hurt". By year-end 2005, the site had clocked 4 million man-hours over 10 years without any employee lost-time injuries and 0.9 million man-hours over 3 years without a contractor lost-time injury. Plant and terminal operations were also incident free throughout the year. The Company's distribution network reached 8 consecutive years without any lost time injury, and two consecutive years without any incident, earning them the ExxonMobil Refining and Supply Asia Pacific Silver Award. The Company's safety performance was again recognised by the Malaysian Society of Occupational Safety and Health (MSOSH) with all three of its distribution terminals winning MSOSH Gold Awards. Two of the terminals received the award for the fourth consecutive year.

As a caring corporate citizen and neighbour, the Company continued to improve the quality of life in the community, especially in the areas where it operates. Direct monetary contributions were made to assist organizations such as public libraries, hospitals and community groups. Scholarships were awarded to students through the Company-supported ExxonMobil

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Education and Scholarship Fund. The Company is proud of its employees who have continued our strong tradition of employee volunteerism. Together with family members, they have lent their time and skills through “gotong-royong” projects to help the underprivileged and the needy. These included improving facilities at welfare centres and taking orphans on educational outings. Several employees continued to be involved as student advisors in the ExxonMobil Young Entrepreneur (EYE) programme which teaches school children the value of business and free enterprise. We were deeply saddened by the devastation caused by the tsunami in December 2004. In response the Company donated assistance in-kind to victims in Penang and Kedah while employees carried out a community project to help displaced victims In addition, employees, retirees, dealers and distributors participated in ExxonMobil's worldwide donation matching programme to raise funds for tsunami relief and reconstruction in affected countries.

Business Outlook

The prospects for the Malaysian economy in 2006 remain strong, but there are many challenges ahead of us. We expect refining margins to remain affected by regional refining capacity and the spread between prices for light crudes and other grades. Crude price volatility has continued into the early parts of this year with prices rising to about US$70 per barrel in the first quarter of 2006 from about US$60 per barrel in the fourth quarter of 2005. Product margins are thus expected to continue to be under pressure. Over the long term, we anticipate that the country's robust economic growth will continue to support strong demand in petroleum products, but competition is likely to remain intense.

With the potential for earnings volatility and intense competition, we need to position ourselves to meet the challenges and participate in opportunities for growth. The Company's focus remains on expanding its strong business position through continued emphasis on strategic investments, product and service quality, the development of our human resources, and optimizing costs to strengthen the Company's financial position. At the same time, we must continue to look for improvement ideas to sustain our competitive position.

Board Matters

Encik Abu Hassan Seeni Abdul, Executive RetailBusiness Director, resigned from the Board on June 13,2005 and left the Company to pursue other interests. I

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would like to thank Encik Hassan for his many contributions to the Company during his tenure as a Director. The Board appointed Puan Faridah Ali as Executive Retail Business Director to succeed Encik Hassan effective the same date. The Board also appointed Mr. Lam Foo Keong as Executive Treasury Director effective April 1, 2006. I welcome Puan Faridah and Mr. Lam to the Board and look forward to working more closely with them.

Cik Rajabee Mohd Yusoff, Corporate Secretary, retired effective January 1, 2006 after 21 years of service with the Company. I would like to thank Cik Rajabee for her many contributions to the Company during her tenure as Corporate Secretary. The Board has since appointed Puan Sri Junaidah Mohd Said and Mr. Justin Chow as Joint Company Secretaries. I welcome Puan Sri Junaidah and Mr. Chow and look forward to working more closely with them in their new capacity.

On behalf of the Board, I would also like to thank our employees for their continued hard work and dedication. The petroleum refining and marketing business remains challenging and the Company's success is fully dependent on the skills, abilities and commitment of each employee to overcome these challenges. I also express my appreciation to our shareholders, dealers and customers for their continued support of Esso Malaysia Berhad.

Robert FisherChairman

April 18, 2006

agi pihak Lembaga Pengarah, dengan sukacitanya, saya melapurkan prestasi kewangan dan operasi BSyarikat bagi tahun berakhir 31 Disember 2005.

Ringkasan Keputusan Kewangan 2005

Syarikat telah mencatatkan keuntungan selepas cukai sebanyak RM20 juta, yang merupakan satu kenaikan sebanyak RM9 juta berbanding 2004. Hasil pendapatan dalam tahun 2005 berjumlah RM8.3 bilion, satu pertambahan sebanyak RM2.1 bilion atau 33% berbanding tahun sebelumnya, mencerminkan kenaikan harga produk. Purata jualan sebanyak 97 ribu tong sehari (kbd) tidak bertukar tahun ke tahun.

Harga terus meningkat sepanjang tahun, dengan harga minyak mentah bertambah 50% kepada lebih kurang US$60 se-tong pada akhir tahun 2005. Secara keseluruhannya, pada tahun ini margin tertekan memandangkan kos pembekalan terus meningkat dengan kadar lebih pantas berbanding harga jualan produk. Situasi ini menjadi lebih runcing berikutan kesan negatif harga susulan dari mekanismapengiraan di bawah Mekanisma Harga Automatik. Walaubagaimanapun, kenaikan harga telah juga menghasilkan kesan keseimbangan hasil keuntungan dari kenaikan nilai inventori minyak mentah dan produk.

Keputusan dalam lapuran ini bagi tahun sepenuhnya telah dinyatakan semula berikutan penerimaan beberapa piawaian (baru dan semakan) lapuran kewangan oleh Syarikat, termasuk penukaran dalam formula kos inventori dari "last-in-first-out" kepada "first-in-first-out". Piawaian tersebut telah dikeluarkan oleh Malaysian Accounting Standards Board pada tahun berkenaan sebagai usaha penyelarasan dengan piawaian antarabangsa. Piawaian tersebut akan berkuatkuasa dan perlu dipatuhi bagi tahun kewangan bermula 2006. Syarikat telah menerima piawaian tersebut lebih awal bagi penyata kewangan beraudit 2005, dan ini menyediakan satu asas yang kukuh dan beraudit untuk penyata kewangan interim yang dikeluarkan dalam tahun 2006.

Dividen bagi Tahun Kewangan 2005

Pihak Pengurusan terus yakin dengan prestasi asas perniagaan Syarikat dan daya saing Syarikat dalam ekonomi yang terus berkembang. Oleh itu dan mengambil kira hasrat Syarikat untuk memberi satu pulangan yang berterusan kepada pemegang saham, Lembaga Pengarah mencadangkan dividen sebanyak 12 sen (ditolak cukai pendapatan sebanyak 28% bagi setiapunit saham) bagi tahun berakhir 31 Disember 2005. Ini setanding dengan kadar dividen yang telah dibayar bagi tahun 2004. A

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Penyata PengerusiPenyata Pengerusi

Robert FisherPengerusi

Ulasan Operasi

Secara purata, Loji Penapisan Port Dickson (PDR) telah memproses sebanyak 74 kbd, iaitu lebih kurang setanding dengan tahun 2004. Walaupun tiada impak penutupan berjadual PDR seperti yang dialami pada tahun 2004, pemprosesan minyak mentah bagi tahun 2005 terus rendah, akibat dari ekonomi minyak mentah yang tidak menggalakkan. Margin penapisan juga terus tertekan memandangkan ketinggian harga minyak mentah "light crude" yang paling sesuai untuk diproses di PDR. Sebagai meneruskan langkah-langkah untuk meningkatkan margin, PDR menambahkan penggunaan feedstok alternatif dan bahan campuran bagi pengeluaran dan pencampuran minyak kenderaan motor. Selain dari itu, usaha juga diteruskan bagi mengoptimumkan operasi agar dapat meningkatkan penghasilan produk petroleum yang bernilai tinggi. Beberapa langkah bagi mengurangkan kos tenaga dan penyelenggaraan telah juga dilaksanakan.

Dalam urusniaga pemasaran, jualan runcit bertambah pada tahun ini, mencerminkan manfaat yang telah dicapai berikutan dari perkembangan rangkaian stesen servis dan beberapa inisiatif jualan runcit termasukstesen "On the Run" dan kad loyalty. Enam stesen servis baru telah dibuka dalam tahun 2005. Lima daripadanya adalah stesen "On the Run", yang menggabungkan

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perbelanjaan sekali bagi memperkemaskan organisasi.

Dalam tahun berkenaan juga, Syarikat telah melaburkan RM54 juta, dengan keutamaan diberi kepada pembelian tapak-tapak stesen servis dan pembinaan stesen servis, oleh kerana Syarikat terus mengembangkan rangkaian stesen servis melalui pelaburan terpilih di kawasan-kawasan pertumbuhan tinggi.

Prestasi keselamatan, kesihatan dan alam sekitar terus menjadi keutamaan Syarikat. Prestasi keselamatan di PDR adalah cemerlang, apabila mencatatkan jumlah kecederaan tercatat sifar bagi kakitangan dan pekerja kontraktor. Matlamat keselamatan PDR adalah untuk mewujudkan satu tempat kerja di mana tiada sesiapa tercedera - "Nobody Gets Hurt". Pada akhir tahun 2005, PDR telah mencatatkan masa bekerja sebanyak 4 juta “man-hours” dalam tempuh sepuluh tahun tanpa sebarang kehilangan waktu kecederaan kakitangan, dan 0.9 juta “man-hours” dalam tempuh tiga tahun tanpa sebarang kehilangan waktu kecederaan kontraktor. Operasi loji dan terminal juga tidak mengalami sebarang insiden sepanjang tahun. Rangkaian pengedaran Syarikat mencapai tahap operasi lapan tahun berturut-turut tanpa sebarang kehilangan waktu kecederaan, dan dua tahun berturut-turut tanpa sebarang insiden. Pencapaian ini telah melayakkan sektor ini menerima Anugerah "ExxonMobil Refining and Supply Asia Pacific Silver Award". Prestasi keselamatan Syarikat sekali lagi telah diberi pengiktirafan oleh Malaysian Society of Occupational Safety and Health (MSOSH) apabila kesemua tiga terminal pengedaran memenangi Anugerah Emas MSOSH. Dua daripada terminal tersebut menerima pengiktirafan tersebut bagi tahun keempat berturut-turut.

Sebagai ahli masyarakat korporat dan jiran yang berhemah, Syarikat terus mempertingkatkan kualiti kehidupan di dalam komuniti dimana Syarikat beroperasi. Sumbangan kewangan telah diberi bagimembantu organisasi-organisasi seperti perpustakaan awam, hospital dan kumpulan-kumpulan komuniti. Biasiswa telah dianugerahkan kepada pelajar-pelajar melalui "ExxonMobil Education and Scholarship Fund" yang dibiayai oleh Syarikat. Syarikat berbangga dengan kakitangan-kakitangannya yang telah meneruskan tradisi sukarelawan kakitangan. Bersama dengan ahli keluarga, kakitangan Syarikat telah meluangkan masadan kepakaran mereka melalui projek gotong-royongbagi membantu kumpulan yang kurang bernasib baik dan memerlukan. Projek-projek ini termasuk mempertingkatkan kemudahan-kemudahan di pusat-pusat kebajikan dan membawa anak-anak yatim ke lawatan berunsur pendidikan. Beberapa orang kakitangan terus melibatkan diri sebagai penasihat

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rekabentuk global kedai serbanika ExxonMobil yang menonjolkan konsep "Fast, Fresh and Friendly".

P a d a b u l a n J u n 2 0 0 5 , S y a r i k a t j u g a t e l a h memperkenalkan kad loyalty baru "Smiles Driver Reward", yang menggantikan kad loyalty "Xchange". Langkah ini telah membantu meningkatkan daya saingan Syarikat memandangkan kad baru tersebut boleh digunakan bagi pembelian barangan serta bagi penebusan segera di stesen Esso dan Mobil. Ini telah memanfaatkan kombinasi rangkaian stesen servis yang lebih besar. Syarikat juga adalah diantara yang terulung di dalam industri dalam penggunaan kad kredit bercip di pam minyak, sekaligus menyediakan kemudahan kepada pelanggan-pelanggan dimana mereka tidak lagi perlu untuk membuat bayaran didalam kedai. Pada tahun 2005, Syarikat juga telah memperkenalkan satu konsep mencuci kereta, "Wash N Run", mempromosikan khidmat "Fast, Clean and Easy". Sejumlah tujuh cawangan "Wash N Run" telah beroperasi pada akhir tahun.

Dalam urusniaga industrial, margin terus mengalami tekanan berikutan kenaikan kos produk dan saingan harga yang hebat. Sebagai usaha menangani keadaan tersebut, Syarikat terus menyusun semula beberapa bidang meliputi urusniaga disel. Di dalam urusniaga petroleum gas cecair pula, margin terus kukuh dan saingan semakin hebat oleh kerana pesaing dalam industri mengambil langkah agresif untuk menarik pengusaha melalui pelbagai skim insentif bagi meningkatkan tahap jualan.

Urusniaga minyak pelincir dan produk khas Syarikat memberi prestasi operasi yang menggalakkan pada tahun 2005. Sektor minyak pelincir kenderaan komersial dan marin mencatatkan pertumbuhan yang kukuh melalui perkembangan terus ekonomi dan aktiviti di sektor minyak dan gas luar pantai. Walaubagaimanapun, margin terus tertekan akibat kos produk yang meningkat. Beberapa inisiatif bagi mengurangkan kos pengedaran telah dilaksanakan, termasuk penghantaran melalui terminal pengedaran pihak ketiga atau penghantaran secara terus dari pembekal.

Syarikat terus menumpukan usaha-usaha dalam mengurangkan kos operasi. Beberapa langkah telah diambil dalam tahun berkenaan, termasuk mengorek jeti berhadapan terminal pengedaran Bagan Luar untuk kesesuaian kapal-kapal lebih besar, sekaligus mengurangkan bilangan pelabuhan yang disinggah dan kos yang berkaitan. Walaupun Syarikat terpaksamembuat perbelanjaan sekali bagi beberapa inisiatif runcit, hal ini telah diimbang semula dengan ketiadaan aktiviti penyelenggaraan dan pembaikan berkaitan dengan penutupan berjadual PDR dan lain-lain

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menamatkan perkhidmatan dengan Syarikat untuk mengikuti urusan sendiri. Saya mengucapkan terima kasih kepada Encik Hassan di atas sumbangan-sumbangan beliau kepada Syarikat dalam tempuh perkhidmatan sebagai Pengarah. Lembaga Pengarah telah melantik Puan Faridah Ali sebagai Pengarah Eksekutif Perniagaan Jualan Runcit berkuatkuasa pada tarikh yang sama. Lembaga Pengarah juga telah melantik Encik Lam Foo Keong sebagai Pengarah Eksekutif Perbendaharaan berkuatkuasa pada 1 April 2006. Saya mengalu-alukan perlantikan Puan Faridah dan Encik Lam dan berharap dapat bekerja dengan lebih rapat lagi dengan mereka dalam jawatan masing-masing.

Cik Rajabee Mohd Yusoff, Setiausaha Syarikat, bersara mulai 1 Januari 2006 setelah berkhidmat dengan Syarikat selama 21 tahun. Saya ingin merakamkan terima kasih kepada Cik Rajabee di atas sumbangan-sumbangan beliau kepada Syarikat dalam tempuh perkhidmatan beliau sebagai Setiausaha Syarikat. Lembaga Pengarah telah melantik Puan Sri Junaidah Mohd Said dan Encik Justin Chow sebagai Setiausaha Syarikat Bersama. Saya mengalu-alukan Puan Sri Junaidah dan Encik Chow dan berharap dapat bekerja dengan lebih rapat lagi dengan mereka dalam jawatan baru mereka.

Bagi pihak Lembaga Pengarah, saya juga ingin mengucapkan terima kasih kepada semua kakitangan kami diatas usaha gigih dan dedikasi mereka yang berterusan. Urusniaga penapisan dan pemasaran terus mencabar dan kejayaan Syarikat untuk terus menghadapi cabaran bergantung sepenuhnya kepada kemahiran, keupayaan dan komitmen setiap kakitangan. Saya juga ingin merakamkan penghargaan kepada pemegang-pemegang saham, pengedar dan pelanggan-pelanggan di atas sokongan yang berterusan kepada Esso Malaysia Berhad.

Robert FisherPengerusi

18 April 2006

pelajar dalam program “ExxonMobil Young Entrepreneur (EYE)”, di mana pelajar dilatih mengenai nilai-nilai urusniaga dan urusniaga bebas. Kami benar-benar bersedih dengan kemusnahan yang berlaku akibat tsunami pada bulan Disember 2004. Syarikat telah menderma dengan memberi bantuan barangan kepada mangsa-mangsa di Pulau Pinang dan Kedah, sementara kakitangan pula telah menjalankan beberapa projek komuniti bagi membantu mangsa-mangsa yang hilang tempat kediaman. Selain itu kakitangan, pesara, pengusaha dan pengedar-pengedar Syarikat menyertai program derma setanding sedunia ExxonMobil - "ExxonMobil 's worldwide donation matching programme" - untuk mengutip dana bagi bantuan tsunami dan pembinaan semula di negara-negara yang terlibat.

Prospek Perniagaan

Prospek ekonomi Malaysia bagi 2006 terus kukuh, tetapi akan terus berhadapan dengan pelbagai cabaran. Kami menjangka margin penapisan akan terus menerima kesan daripada kapasiti penapisan di kawasan Asia Pasifik dan perbezaaan harga di antara minyak mentah "light crudes" dan gred minyak mentah lain. Ketidaktentuan harga minyak mentah telah berterusan hingga awal tahun 2006 ini dengan harga terus meningkat ke paras lebih kurang US$70 se-tong dalam suku tahun pertama 2006 daripada lebih kurang US$60 se-tong pada suku tahun keempat 2005. Dengan itu, margin produk dijangka akan terus tertekan. Pada kadar jangka panjang, kami menjangka kadar pertumbuhan ekonomi negara yang teguh akan terus menyokong permintaan kukuh bagi produk petroleum, tetapi berkemungkinan tinggi persaingan akan terus sengit.

Memandangkan berkemungkinan pendapatan akan terus tidak menentu dan persaingan yang sengit, kami perlu terus bersedia untuk menghadapi cabaran-cabaran dan mengambil kesempatan dalam peluang untuk pertumbuhan. Tumpuan Syarikat terus kepada mengembangkan posisi kukuh urusniaga dengan terus memberi penekanan kepada pelaburan strategik, khidmat dan produk berkualiti, membangunkan sumber manusia Syarikat dan mengoptimumkan kos bagi mengukuhkan kedudukan kewangan Syarikat. Pada masa yang sama, Syarikat harus terus dengan usaha-usaha untuk mendapatkan idea bagi meningkatkan kedudukan persaingan Syarikat.

Perihal Lembaga Pengarah

Encik Abu Hassan Seeni Abdul, Pengarah Eksekutif Perniagaan Jualan Runcit, meletakkan jawatan sebagai ahli Lembaga Pengarah pada 13 Jun 2005 dan telah

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Five-Year Summary ChartsFive-Year Summary Charts

SALES VOLUMETHOUSANDS OF BARRELSPER CALENDAR DAY

2001 2002 2003 2004 20050

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THOUSANDS OF BARRELSPER CALENDAR DAY

REFINERY THROUGHPUT

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98100

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Profit after tax % of revenues

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2001 2002 2003 20052004

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REVENUES(NET OF GOVERNMENT DUTIES)RM MILLION

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PROFIT AFTER TAX

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57

1120

13

Note : Comparative information has been restated in accordance with the adoption of the new/revised Financial Reporting Standards.

ESSO MALAYSIA BERHAD

CAPITAL EXPENDITURERM MILLION

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200

SHAREHOLDERS’ INFORMATION

2001 2002 2003 2004 2005

Earnings per ordinary stock unit (sen) 39.9 22.2 21.0 4.0 7.3

Gross dividend per ordinary stock unit (sen) 10 10 12 12 12

Dividend yield (%) 5.9 4.2 5.6 4.6 4.7

Share price (RM) - Highest 2.29 2.89 2.52 2.93 2.82- Lowest 1.39 1.90 1.78 2.33 2.32- Average 1.70 2.37 2.14 2.59 2.56

Number of employees at year-end 529 500 488 422 352

RM MILLIONFinanced by:

TOTAL ASSETS EMPLOYED

500

02001 2002 2003 2004 2005

Shareholders’ funds

1000

Taxes payable, provisions and others

2500

Trade payables

Notes payable and bank borrowings

1500

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CAPITAL EXPENDITURERM MILLION

2001 2002 2003 2004 20050

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2000 1,936 1,9762,123

1,890

2,160

Note : Comparative information has been restated in accordance with the adoption of the new/revised Financial Reporting Standards.

Mr. Lam Foo KeongExecutive Treasury Director /Pengarah Eksekutif PerbendaharaanAppointed w.e.f. April 1, 2006Dilantik berkuatkuasa 1 April 2006

SEATED FROM LEFT TO RIGHTDUDUK DARI KIRI KE KANANY. Bhg. Tan Sri Dato’ Dr. Syed JalaludinSyed SalimMr. Robert FisherChairman / PengerusiY. Bhg. Tan Sri Abdul Halim AliY. Bhg. Dato’ Zainal Abidin Putih

STANDING FROM LEFT TO RIGHTBERDIRI DARI KIRI KE KANANEncik Abu Bakar Siddik Che EmbiExecutive Refinery Director / Pengarah Eksekutif PenapisanEncik Zain C. WilloughbyExecutive Financial Director / Pengarah Eksekutif KewanganPuan Faridah AliExecutive Retail Business Director /Pengarah Eksekutif Perniagaan Jualan Runcit

Puan Sri Junaidah Mohd SaidMr. Justin ChowJoint Secretaries/Setiausaha Bersama

Board of Directors / Lembaga PengarahBoard of Directors / Lembaga Pengarah

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Encik Abu Hassan Seeni AbdulResigned w.e.f. June 13, 2005Meletak jawatan berkuatkuasa 13 Jun 2005

Cik Rajabee Mohd YusoffRetired w.e.f. January 1, 2006Bersara berkuatkuasa 1 Januari 2006

Profile of DirectorsProfile of Directors

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Robert FisherChairmanB.Sc. (Hons.) Chemical Engineering, Birmingham University, United Kingdom

Mr. Robert Fisher, aged 52, a British citizen, was appointed Director and Chairman of the Company on January 1, 2003. He started his career at the Esso Refinery, Fawley, in the United Kingdom in 1976 and held various technical and operational positions there, until 1982 when he was assigned to the Supply business in the United Kingdom, and later, in Europe. In 1989, he was assigned to Exxon Company U.S.A., in the Offshore Division of the Production Department in New Orleans. He returned to the United Kingdom in 1992 as Operations Manager in Esso Exploration and Production, U.K. Ltd. In 1993, he joined Esso Production Malaysia Inc., initially as Operations Manager within the Offshore Division of the Production Department, and subsequently as Natural Gas Manager. In 1998, he was appointed Executive Assistant to the Chairman of the former Exxon Corporation, before he became Vice President, New Business Development in the ExxonMobil Gas Marketing Company in December 1999. Prior to this assignment in Malaysia, he was the Executive Vice President, Upstream, ExxonMobil Saudi Arabia (Southern Ghawar) Limited.

Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed SalimIndependent Non- Executive Director and Alternate Member to Y.Bhg. Tan Sri Abdul Halim Ali and Y.Bhg. Dato' Zainal Abidin Putih on the Board Audit CommitteeP.S.M., D.S.S.A., D.P.M.P., J.S.M. F.A. Sc., B.V.Sc., University of Punjab, M.Phil. and Ph.D., University of London D.Sc.,Honoris Causa, University of Hull, U. K., Honoris Causa, Soka University, Japan

Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, aged 62, a Malaysian and a national science laureate, as well as a founder fellow of the Academy of Sciences Malaysia, was appointed Director of the Company on February 15, 2000. He had a long illustrious academic carrier in both University Malaya and University Putra Malaysia (UPM)before retiring as Vice Chancellor of UPM in 2001. He was responsible for transforming UPM to become one of the leading centres of higher education. As an accomplished academician, he has helped found many academic societies and associations, and has published over 350 papers in journals and proceedings in the fields of animal science, university management and education. For his meritorious career and services, he has received numerous awards, decorations and honours nationally as well as internationally. He retired from UPM in April 2001. He is the Chairman of Bank Kerjasama Rakyat Malaysia Berhad, Kejuteraan Samudra Timur Berhad and Ecofirst Consolidated Berhad, and a Director of TAFI Industries Berhad.

Y. Bhg. Tan Sri Abdul Halim AliIndependent Non-Executive Director and Member of the Board Audit CommitteeP.M.N., P.J.N., S.P.M.S., S.I.M.P., D.G.S.M., D.H.M.S., D.S.D.K., J.S.M., K.M.N.B.A. (Hons.), University of Malaya

Y. Bhg. Tan Sri Abdul Halim Ali, aged 62, a Malaysian, was appointed Director of the Company on May 22, 2001. Upon graduation from University of Malaya, he joined the Ministry of Foreign Affairs in 1966. After several domestic and foreign postings, he was appointed the Malaysian Deputy Permanent Representative to the United Nations in 1979. He was appointed Ambassador to Vietnam in 1982 and returned to Malaysia in 1985 to be Deputy Secretary General in the Ministry of Foreign Affairs before being appointed Ambassador to Austria. In 1991, he again returned to Malaysia to be Deputy Secretary General I in the Ministry of Foreign Affairs and in 1996 he was promoted to Secretary General. In July 1998, he was appointed Chief Secretary to the Government, the highest ranking civil service post in the country and was responsible for overseeing and coordinating the policies of the government and their implementation. He retired in March 2001, at which time he was made Chairman of the Employees Provident Fund, a position he currently holds. He is also a Director of Cycle & Carriage Bintang Berhad, Malaysia Building Society Berhad, Malakoff Berhad, and LCL Corporation Berhad and Chairman of the Multimedia Development Corporation.

Y. Bhg. Dato' Zainal Abidin PutihIndependent Non-Executive Director and Chairman of the Board Audit CommitteeD.S.N.S., FCA (ICAEW), CA (M), CPA (M)

Y. Bhg. Dato' Zainal Abidin Putih, aged 60, a Malaysian, was appointed Director of the Company on March 6, 2003. Upon qualifying from the Institute of Chartered Accountants in England and Wales, he joined the firm of Hanafiah Raslan & Mohamad, which merged with Ernst & Young in July 2002. He has extensive experience in audit having worked as a practicing accountant throughout his career covering many principal industries including banks, insurance, energy, transport, manufacturing, government agencies, plantations, properties, hotels, investment companies and unit trusts. He also has a good working knowledge of taxation matters and management consultancy, especially in the areas of acquisitions, takeovers, amalgamations, restructuring and public listing of companies. He plays an active role in the community and the corporate world being the Past President of the Malaysian Institute of Certified Public Accountants. He was also a member of the Malaysian Communication & Multimedia Commission, a body set up by the Malaysian government to oversee the orderly development of the Multimedia and Telecommunication industry in Malaysia. He was the Chairman of Pengurusan Danaharta Nasional Berhad and the Chairman of Malaysian Accounting Standards Board (MASB). He is currently a director of a number of other public listed companies, namely, Tenaga Nasional Berhad, CIMB Berhad and Commerce International Merchant Bankers Berhad. He is a member of the Investment Panel of the Employees Provident Fund and acts as a Trustee of the National Heart Institute Foundation.

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Zain C. WilloughbyExecutive Financial Director and Member of the Board Audit CommitteeB.Sc. (Hons.) Physics, King's College, University of London

Encik Zain C. Willoughby, aged 46, a Malaysian, was appointed Financial Director of the Company on August 10, 2004. He started his career in ExxonMobil when he joined Esso Malaysia Berhad as a Systems Analyst in 1985. During his career, he has held a number of staff and managerial positions within ExxonMobil's Information Services, Exploration, Controller's, Audit, Treasurer's and Tax organizations. In 1996, he was assigned to Exxon Mobil Corporation's headquarters in Irving, Texas, as Senior Financial Analyst. His last assignment in the U.S.A. prior to returning to Malaysia as Treasurer, was as Financial Advisor to ExxonMobil affiliates in several countries in the Asia-Pacific. He is also presently the Tax Manager of the ExxonMobil Subsidiaries in Malaysia.

Abu Bakar Siddik Che EmbiExecutive Refinery DirectorB.Sc. (Hons.) Chemical Engineering, Leeds University, United Kingdom

Encik Abu Bakar Siddik Che Embi, aged 53, a Malaysian, was appointed Refinery Director of the Company on September 1, 2003. He started his career with Port Dickson Refinery in 1976 and held various technical, operational and supervisory positions in the Refinery until 1990, when he was assigned to the Baytown Refinery, Exxon U.S.A., for about three years. In this assignment, he held the position of Technical Advisor and a number of leadership roles in the Process Department. Following that, he spent six months with Exxon Company International’s Refinery Dept. in Florham Park, New Jersey as Refinery Advisor. In 1994, he returned to Malaysia and assumed the position of Deputy Manufacturing Manager of the Port Dickson Refinery. In 1995, he was promoted to Manufacturing Manager and held this position until 2003, when he was appointed Refinery Director.

Faridah AliExecutive Retail Business Director and alternate to Encik Zain C. Willoughby on the Board Audit CommitteeB.Sc. (Hons) Accounting, University of East Anglia, NorwichACA (England & Wales)

Puan Faridah Ali, aged 41, a Malaysian, was appointed Retail Business Director of the Company on June 13, 2005. She began her career in ExxonMobil Malaysia Sdn. Bhd., and over a period of 14 years, held supervisory roles in various functions including financial accounting, costing, planning, financial analysis, human resources and retail business. In 2000, after the merger of Exxon Corporation and Mobil Corporation in the United States of America, she assumed the position of Marketing Support Manager and subsequently South East Asia Business Analysis and Reporting Manager before assuming her current position.

Lam Foo KeongExecutive Treasury DirectorB. Econs. (Hons.), University of Malaya

Mr. Lam Foo Keong, aged 55, a Malaysian, was appointed Treasury Director of the Company on April 1, 2006. Upon graduation from the University of Malaya he joined Kassim Chan/Deloitte as an auditor in 1974. He started his career with Esso Malaysia Berhad in 1975 in Controller's. During his career he has held a number of supervisory and managerial positions of increasing responsibility in various departments including Downstream Financial Reporting Manager, Downstream Controller, Offshore Accounting Manager, Corporate Finance Manager, Finance & Planning Manager, and Area Business Support Centre Manager. Lam has also completed overseas assignments with Esso Eastern Inc and Exxon Company, USA Controller's in Houston and New Orleans and with ExxonMobil Asia Pacific Pte. Ltd.’s Chemical Complex Project in Singapore. He was appointed Treasurer of the ExxonMobil Subsidiaries in Malaysia on April 1, 2006.

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Directors Mr. Robert Fisher(Chairman)

Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim(Independent Non-Executive Director)

Y. Bhg. Tan Sri Abdul Halim Ali(Independent Non-Executive Director)

Y. Bhg. Dato' Zainal Abidin Putih(Independent Non-Executive Director)

Encik Zain C. Willoughby(Executive Financial Director)

Encik Abu Bakar Siddik Che Embi(Executive Refinery Director)

Puan Faridah Ali(Executive Retail Business Director)

Mr. Lam Foo Keong(Executive Treasury Director)

Joint SecretariesPuan Sri Junaidah Mohd Said(LS 0008614)

Mr. Justin Chow Kum Keong(LS 0009011)

Share RegistrarTenaga Koperat Sdn. Bhd. (118401-V)

th20 Floor, Plaza PermataJalan Kampar, off Jalan Tun Razak50400 Kuala LumpurTel: 03-40416522 Fax: 03-40426352

AuditorsPricewaterhouseCoopers (No. AF-1146)Chartered AccountantsKuala Lumpur

Stock Exchange ListingMain Board of Bursa Malaysia Securities Berhad

SolicitorsMessrs. Raja, Darryl & Loh, Kuala LumpurMessrs. Azman, Davidson & Co, Kuala LumpurMessrs. Ng Yook Woon, Andrew T.C. Saw & Co, Kuala LumpurMessrs. Skrine, Kuala LumpurMessrs. Lee Hishammuddin Allen & Gledhill, Kuala LumpurMessrs. Shearn Delamore & Co, Kuala LumpurMessrs. Zaid Ibrahim & Co, Kuala Lumpur

Registered OfficeEMB Company Secretary's OfficeLevel 29, Menara ExxonMobilKuala Lumpur City Centre50088 Kuala LumpurTel: 03-20533000 Fax: 03-23803473

Corporate InformationCorporate Information

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The Board of Directors of Esso Malaysia Berhad is committed to ensuring that the highest standards of corporate governance are practised throughout the Company. The Board views this as a fundamental part of its responsibilities to protect and enhance shareholder value. Accordingly, the Board fully supports the principles laid out in the Malaysian Code on Corporate Governance.

Exxon Mobil Corporation, as the Company's ultimate holding company, has developed a series of policies and management systems that are designed to create and support a strong system of corporate governance. The policies and management systems have been adopted by the Board and are communicated to the Company's employees, contractors and vendors, so that each has a clear understanding of the Company's expectations.

The policies, which are set out in a Standards of Business Conduct booklet, and the management systems are strictly enforced. The core policies include Business Ethics, Conflicts of Interest, Antitrust, Alcohol and Drug Use, Gifts and Entertainment, Harassment in the Workplace and Outside Directorships. The management systems are designed to achieve high standards of performance in the areas of safety, operations integrity, internal control and legal and environmental compliance.

The Board and the Board Audit Committee ensure that the policies and the management systems are fully implemented and consistently enforced. They are supported in these regards by an internal Management Committee and an Audit and Controls Committee, both led by the Chairman.

The Board

The Board leads and controls the Company. The Board meets at least four times a year, with additional matters resolved by way of Circular Resolutions as and when necessary. Each Non-Executive Director is independent and brings invaluable judgement to bear on issues of strategy, performance, resource allocation, risk management and standards of conduct.

For the year ended December 31, 2005 four Board and four Board Audit Committee meetings were held. Details of the Directors' attendance at these meetings are summarised below:

Directors Number of Board Number of BoardMeetings Audit Committee Meetings

Held Attended Held Attended

Mr. Robert Fisher 4 4 Non- Non-member member

Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaluddin Syed Salim 4 4 - -(Alternate member to Y. Bhg. Tan Sri Abdul Halim Aliand Y. Bhg. Dato’ Zainal Abidin Putih on the Board Audit Committee)

Y. Bhg. Tan Sri Abdul Halim Ali 4 4 4 4

Y. Bhg. Dato’ Zainal Abidin Putih 4 4 4 4

Encik Zain C. Willoughby 4 4 4 4

Encik Abu Hassan Seeni Abdul 2* 2* - -(Alternate member to Encik Zain C. Willoughbyon the Board Audit Committee)(Resigned on June 13, 2005)

Encik Abu Bakar Siddik Che Embi 4 4 Non- Non-member member

Puan Faridah Ali 2* 2* - -(Alternate member to Encik Zain C. Willoughbyon the Board Audit Committee)(Appointed on June 13, 2005)

* Reflects the number of meetings held during the time the Director held office.

Corporate GovernanceCorporate Governance

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Board Membership

The Board had 7 members in 2005, with 3 Independent Non-Executive Directors and 4 Executive Directors (including the Chairman). Encik Abu Hassan Seeni Abdul resigned from the Board effective June 13, 2005. The Board appointed Puan Faridah Ali as Executive Retail Business Director to succeed Encik Abu Hassan Seeni Abdul effective the same date. In 2006, the Board appointed Lam Foo Keong as Executive Treasury Director.

Together, the Directors form the mind and management of the Company.

The functional organisation of the Company provides a system and structure of checks and balances in the decision making process. There is a clear division of responsibilities between the Chairman and each of the other Executive Directors namely the Financial Director, the Retail Business Director, the Refinery Director and the Treasury Director.

Balance in the Board is achieved and maintained with the composition of both Executive and Independent Non-Executive Directors. In recognition that the Independent Non-Executive Directors have a primary role in providing unbiased and independent views, the Company has selectively appointed highly qualified individuals of integrity and character, with broad experience and proven business and management expertise.

Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim is the longest serving Independent Non-Executive Director of the Company. Shareholders are at liberty to approach Y.Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, or any of the other Independent Non-Executive Directors, should there be any concerns relating to the Company and its Management.

Supply of Information

Information regarding the Company's business and affairs is normally provided to the Board by the Company's management and staff and by the Company's independent auditors. Towards meeting this objective, Board meetings are structured with a pre-determined agenda. Board papers covering the Company's operational and financial performance, strategic plans on any significant matters and developments, together with the minutes of the previous Board and Board Audit Committee meetings, are circulated to the Directors in advance of each meeting. This allows the Directors time to deliberate on the issues to be raised and discussed at each meeting. The Board, in addition to having full access to the advice and services of the Company Secretary, has the authority to retain such outside advisors, including accountants, legal counsel, and other experts, as it deems appropriate. The fees and expenses of any such advisors will be paid by the Company.

Appointment and Re-election of Directors

In accordance with the Company's Articles of Association, the Board can appoint any person to be a Director as and when it is deemed necessary. Any person so appointed shall hold office until the next Annual General Meeting at which time he will be subject to election by the shareholders. An election of Directors takes place every year, with each Director retiring from office at least once every three years. Directors retiring by rotation are eligible for re-election by the shareholders at the Annual General Meeting.

Remuneration Committee

The Remuneration Committee is responsible for the recommendation of the remuneration of the Executive and the Non-Executive Directors, for the Board's consideration and decision.

The current members of the Remuneration Committee are as follows:1. Mr. Robert Fisher (Executive Director) - Chairman

* Encik Zain C. Willoughby (Executive Director) - Alternate Chairman2. Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim (Independent Non-Executive Director) 3. Y. Bhg. Dato' Zainal Abidin Putih (Independent Non-Executive Director)

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Directors' Remuneration

With the recommendation of the Remuneration Committee, the Board has adopted Exxon Mobil Corporation's compensation system to set the remuneration of Executive Directors. The compensation system took into account the performance of each director and the competitive environment in which the Company operates. The Executive Directors took no part in deciding their own remuneration.

The remuneration received by the Non-Executive Directors in 2005 was recommended by the Board as a whole and was benchmarked against the competitive environment. The Non-Executive Directors took no part in deciding their own remuneration.

An analysis of the aggregate Directors' remuneration incurred by the Company for the year endedDecember 31, 2005 as prescribed under Appendix 9C Part A Item 10(a) of the Listing Requirements of the Bursa Malaysia Securities Berhad (BMSB) is set out below:

FEES VALUE OF REMUNERATION TOTAL(RM) AND OTHERS (RM) (RM)

EXECUTIVE DIRECTORS - 1,334,800 1,334,800NON-EXECUTIVE DIRECTORS 90,000 12,000 102,000

An analysis of the number of Directors whose remuneration, incurred by the Company, falls in successive bands of RM50,000 as prescribed under Appendix 9C Part A Item 10(b) of the Listing Requirements of the BMSB is set out below.

REMUNERATION (RM) NUMBER OF EXECUTIVE NUMBER OF NON-DIRECTORS EXECUTIVE DIRECTORS

Less than 50,000 350,001 -100,000 1100,001-150,000150,001-200,000 2200,001-250,000250,001-300,000300,001-350,000 1350,001-400,000400,001-450,000450,001-500,000500,001-550,000550,001-600,000 1

The Company has opted not to disclose each Director's remuneration as the Board considers the information to be sensitive and proprietary.

Nominating Committee

The Nominating Committee is responsible for the recommendation of candidates for Non-Executive Directors and Executive Directors and the recommendation of Directors for committees, for the Board's consideration and decision. The Committee is also responsible for the assessment of the effectiveness of individual Directors and the overall Board on an ongoing basis.

The current members of the Committee are as follows:1. Mr. Robert Fisher (Executive Director) - Chairman

* Encik Zain C. Willoughby (Executive Director) - Alternate Chairman 2. Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim (Independent Non-Executive Director) 3. Y. Bhg. Tan Sri Abdul Halim Ali (Independent Non-Executive Director)

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Nominating Committee (Continued)

The Nominating Committee recommended the appointment of Puan Faridah Ali as Executive Retail Business Director to succeed Encik Abu Hassan Seeni Abdul in 2005, and recommended the appointment of Mr. Lam Foo Keong as Executive Treasury Director in 2006.

Directors' Training

As required under the Listing Requirements of the BMSB, the Directors have attended the Mandatory Accreditation Programme and participated in the Continuous Education Programme (CEP) organised by the Research Institute of Investment Analysts Malaysia and other relevant regulatory authorities and professional bodies. The Company reimbursed the Directors for the cost of attending the CEP training.

The status of each Director's compliance with the CEP requirements was monitored and reviewed at each quarterly Board meeting. The directors who had gained the required number of CEP points by year end 2004 were viewed as having obtained adequate training and the Board considered that further training in year 2005 for those directors would be more appropriate in year 2006. Accordingly these directors did not undergo formal training in 2005. By year end 2005, all the Directors had attended various accredited courses and trainings through which they accumulated sufficient CEP points within the stipulated timeframes. While Practice Note 15 of 2003, which set out the requirements of the CEP, has been repealed with effect from January 1, 2005 the Board will continue to evaluate and determine the training needs of each director to enable them to effectively discharge their duties.

In addition to the training, the Directors are also briefed at quarterly board meetings by Company staff on any significant changes in laws and regulations that are relevant to the Company's operations.

Dialogue between the Company and Investors

The Board values and encourages dialogue with the shareholders to establish better understanding of the Company's objectives and performance. The Annual General Meeting provides an appropriate forum for the shareholders to dialogue with the Board. Additionally, the Company has a Public Affairs Department, which deals with queries from investors and potential investors. The Company also holds open discussions with investors and analysts upon request. In this regard, the Company disseminates information in strict adherence to the disclosure requirements of the Listing Requirements of the BMSB. Material information relating to the Company is disclosed to the public by way of announcements to the BMSB, as required by the Listing Requirements of the BMSB.

Annual General Meeting

At the Annual General Meeting, the Chairman of the Board reviews the progress and performance of the Company with the shareholders. A question and answer session is also conducted to allow shareholders the opportunity to question Management on the Company's business and the proposed resolutions. The Chairman, the Board members and the external auditors are available at the Annual General Meeting to respond to questions.

Accountability and Audit

In announcing the quarterly, semi-annual and annual financial statements to the shareholders and the public, the Board endeavours to present a balanced and understandable assessment of the Company's financial position and prospects. The Board Audit Committee assists the Board by ensuring the accuracy and adequacy of the information announced.

Internal Control

The Directors are responsible for the Company's system of internal controls. The system applies to all financial and operating activities with the objective of safeguarding the shareholders' investment and the Company's assets. The internal control system has clear management support, including the involvement of the Board, and is designed to meet the risks to which the Company is exposed. The Board is satisfied with the design of the control system and believes that there is compliance with all of the requirements.

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Internal Control (Continued)

Key elements of the Company's internal control system include:

1. a comprehensive and clearly documented System of Management Control Standards Manual that establishes the core requirements for good controls within the Company. The Manual not only identifies the principal risks faced by the Company, but also prescribes the appropriate systems to manage these risks. The Manual also specifies the overall control framework, the required control checks and the required checks on the system's effectiveness,

2. a clearly defined organizational structure with clear lines of accountability and delegation of authority for each level,

3. annual reviews of the control system, including internal and external audits. The results are reviewed with various levels of management and any major concerns are raised to senior management and the Board Audit Committee,

4. key policies covering Business Ethics, Conflict of Interest, Antitrust, Alcohol and Drug Use, Gift and Business Entertainment, Harassment in the Workplace and Outside Directorships. They include requirements to comply with all applicable laws and regulations. These policies are communicated to and acknowledged by employees on an annual basis,

5. a Controls Integrity Management System to assess and sustain the effectiveness of the organisation's system of controls,

6. a yearly representation of compliance to the internal control system and key policies by the managers of each business unit in the Company. Managers are required to document any outstanding control concerns and the planned corrective action steps.

It should be noted that systems of internal control and risk management are designed to manage rather than eliminate the risk of failure to achieve business objectives, and any system can only provide reasonable and not absolute assurance against material misstatement or loss.

Statement of Directors' Responsibility for Preparing the Financial Statements

The Directors are required by the Companies Act, 1965 and the Listing Requirements of the BMSB to confirm that the financial statements for each financial year have been made out in accordance with the applicable approved accounting standards and that they give a true and fair view of the results of the business and state of affairs of the Company for the financial year.

The Directors have carried out their responsibilities by:! selecting suitable accounting policies and applying them consistently;! making judgements and estimates that are reasonable and prudent;! ensuring that all applicable accounting standards have been adhered to; and! basing the financial statements on a going-concern basis, as the Directors have a reasonable expectation,

after having made due enquiries, that the Company has adequate resources to continue in operational existence for the foreseeable future.

The Directors are responsible for ensuring that the Company keeps accounting records which disclose with reasonable accuracy, the financial position of the Company, enabling the Directors to ensure that the financial statements comply with the Companies Act, 1965 and to safeguard the assets of the Company.

Relationship with Auditors

The Board has established a formal and transparent relationship with the auditors of the Company. The role of the Board Audit Committee in relation to the internal and external auditors is described on page 21 of this Annual Report.

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Material Contracts

The Company is not and was not a party to any material contracts involving the Directors' or its major shareholder's interests during the year.

Non-Audit Fees

The amount of non-audit fees paid or payable to the external auditors, PricewaterhouseCoopers, by the Company for the financial year ended December 31, 2005 is RM 2,966. Other Information

i) Family Relationship

None of the Directors have any family relationship with any other Director and/or major shareholder of the Company.

ii) Conflict of Interest

None of the Directors have any conflicts of interest with the Company.

iii) Conviction for offences (excluding traffic offences)

None of the Directors have been convicted for any offences within the past 10 years.

iv) Sanctions and/or penalties

No sanction or penalty has been imposed on the Company, or the Directors or the Management, by the relevant regulatory bodies.

This Statement is made in accordance with the Board of Directors' resolution dated February 23, 2006.

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MEMBERSHIP AND MEETINGS

The Committee comprises two Independent Non-Executive Directors, and one Executive Director. The following are the Committee members:

1. Y. Bhg. Dato' Zainal Abidin Putih, an Independent Non-Executive Director, who has been elected as the Chairman of the Committee. His alternate is Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, an Independent Non-Executive Director.

2. Y. Bhg. Tan Sri Abdul Halim Ali, an Independent Non-Executive Director, whose alternate is Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, an Independent Non-Executive Director.

3. Encik Zain C. Willoughby, an Executive Director, whose alternate is Puan Faridah Ali, who is also an Executive Director.

A detailed profile of the Committee members can be found on pages 12 and 13.

The Secretary to the Committee is the Controller of the Company.

The Committee had 4 meetings during the last financial year. The details of attendance of each Committee member have been tabulated under the Corporate Governance Statements section, which can be found on page 15. Other Directors of the Company and relevant personnel attended some of the Committee meetings by invitation.

SUMMARY OF ACTIVITIES

During the last financial year, the Committee discharged its functions and carried out its duties as set out in the Terms of Reference below.

INTERNAL AUDIT

The Company is subject to independent regular and systematic audit reviews of its system of internal controls. This is to provide reasonable assurance that such systems are operating effectively. The basic framework of the Company's system of internal controls is described under the Corporate Governance Statements section, which can be found on pages 18 and 19. The internal audit process covers the audit of all the Company's units and operations and the annual review with the Committee of audit results and audit plans for the subsequent year.

The internal audit function is undertaken by a regional internal audit group, ultimately taking functional guidance from Exxon Mobil Corporation. This structure allows the Company to benefit from the application of global audit best practices and assures the Company of internal audit independence.

TERMS OF REFERENCE OF THE BOARD AUDIT COMMITTEE

Membership

The Committee members shall:

! be appointed from members of the Board of Directors (the Board);! consist of not less than three in number;! comprise, in the majority, Independent Directors;! elect a Chairman from among their number, who is an Independent Director; and! not be an alternate Director.

Meetings and Minutes

Meetings of the Committee shall be held regularly, and as often as necessary. Other Directors of the Company and relevant personnel may only attend the meetings at the invitation of the Committee. If required, the presence of the external auditors at the meetings of the Committee may be requested. The auditors, both internal and external, may request the Committee to convene a meeting if one is necessary, to consider any matter which any of the auditors believe should be brought to the attention of the Directors and/or shareholders of the Company.

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Meetings and Minutes (Continued)

The Secretary to the Committee shall be appointed by the Committee. The Secretary shall be responsible for the timely issuance of meeting notices together with meeting agenda and any supporting documents in advance of such meeting, for recording, keeping and distributing the minutes of meetings and any other duties ordinarily discharged by a Secretary of such Committee.

Authority

The Committee is authorised by the Board:

! to investigate any matter within its terms of reference;! to have the resources which are required to perform its duties;! to have full and unrestricted access to any information pertaining to the Company;! to have unrestricted access to and communication with the external auditors of the Company and internal

auditors;! to obtain external legal or other independent professional advice as necessary; and! to convene meetings with the external auditors of the Company, without the attendance of the executive

members of the Committee, whenever deemed necessary.

Duties

The Committee is charged with the following duties:

! to review with the external auditors of the Company and internal auditors, the audit plan of the Company, the respective auditors' evaluation of the Company's system of internal accounting controls and the audit report, the external auditors' management letter and management's response to such letter, and report the same to the Board;

! to review and report to the Board the assistance given by the Company's employees to the external auditors of the Company and internal auditors;

! to review and report to the Board the adequacy of the scope, functions and resources of the internal audit function and that it has the necessary authority to carry out its work;

! to review and report to the Board the internal audit programme, processes, the results of the internal audit programme, processes, or investigation undertaken, and whether or not appropriate action has been taken on the recommendations of the internal audit ;

! to review and report to the Board the quarterly results and year end financial statements, including the balance sheet and profit and loss statement, prior to submission of the statements to the Board for approval, focusing particularly on:- changes in existing accounting policies or implementation of new accounting policies;- significant and unusual events;- compliance with accounting standards and other legal requirements; and- the going concern assumption;

! to review and report to the Board any related party transaction and conflict of interest situation that may arise within the Company;

! to review and report to the Board any removal, resignation, appointment and audit fee of the Company's external auditors;

! to review and report to the Board whether there is reason (supported by grounds) to believe that the Company's external auditors are not suitable for reappointment;

! to recommend the nomination of a person or persons as external auditors of the Company;

! to report promptly to Bursa Malaysia Securities Berhad (BMSB) matters reported by the Committee to the Board which have not been satisfactorily resolved resulting in a breach of the Listing Requirements of BMSB ; and,

! to perform such other functions as may be agreed to by the Committee and the Board.

This Statement is made in accordance with the Board of Directors' resolution dated February 23, 2006.

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The Directors are pleased to submit the annual report together with the audited financial statements of the Company for the year ended December 31, 2005.

PRINCIPAL ACTIVITIES

The Company is a public company incorporated in Malaysia under the Companies Act, 1965 and is listed on the Bursa Malaysia Securities Berhad. The Company's principal activities are the manufacturing and marketing of petroleum products in Peninsular Malaysia. There has been no significant change in the nature of the Company's activities during the year.

FINANCIAL RESULTS

RM'000

Net profit attributable to shareholders 19,728Retained profits brought forward 510,672Profits available for appropriation 530,400Dividend paid less income tax at 28% (23,328)Retained profits carried forward 507,072

DIVIDENDS

The amount of dividends paid since December 31, 2004 are as follows: RM'000

In respect of the year ended December 31, 2004: Final dividend per stock unit, paid on June 22, 2005:Ordinary - 12 sen gross less income tax at 28% 23,328

The Directors propose that a final dividend of 12 sen less income tax at 28% per ordinary stock unit, amounting to RM23,328,000 be paid for the year ended December 31, 2005.

RESERVES AND PROVISIONS

All material transfers to or from reserves and provisions during the year are shown in the financial statements.

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS

Before the income statement and balance sheet were completed, the Directors took reasonable steps:

1. to satisfy themselves that all receivables had been properly analysed, that bad debts had been written off where appropriate and that adequate provision for impairment of receivables had been established; and

2. to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, were written down to the expected realisable amount.

At the date of this report, the Directors are not aware of any circumstances:

1. which would make the amounts written off for bad debts or the provision for impairment of receivables in the financial statements of the Company inadequate to any substantial extent; or

2. which would make the values attributed to current assets in the financial statements of the Company misleading; or

3. which would make adherence to the existing method of valuation of assets or liabilities of the Company misleading or inappropriate.

Report of the DirectorsReport of the Directors

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No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the year which, in the opinion of the Directors, will or may affect the ability of the Company to meet its obligations when they fall due.

At the date of this report, there does not exist:

1. any charge on the assets of the Company which has arisen since the end of the year which secures theliability of any other person; or

2. any contingent liability of the Company which has arisen since the end of the year.

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would make any amount stated in the financial statements misleading.

In their opinion:

1. the results of the Company's operations during the year were not substantially affected by any item, transaction or event of a material and unusual nature; and

2. there has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Company for the year in which this report is made.

DIRECTORS

The Directors who have held office during the period since the date of the last report are as follows:

Mr. Robert FisherY. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed SalimY. Bhg. Tan Sri Abdul Halim AliY. Bhg. Dato' Zainal Abidin PutihEncik Zain C. WilloughbyEncik Abu Bakar Siddik Che EmbiPuan Faridah Ali (appointed w.e.f. June 13, 2005)Encik Abu Hassan Seeni Abdul (resigned w.e.f. June 13, 2005)

DIRECTORS' BENEFITS

Since the end of the previous year, no Director has entered into or received or become entitled to receive a benefit (other than benefits disclosed in notes 7 and 8 to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest. All transactions between the Company or a related corporation and companies in which Directors have interests are conducted on an arms-length, commercial basis in the ordinary course of business.

The Company was not a party to any contract or arrangement during the year and at the end of the year, as envisaged by section 169(6)(f) of the Companies Act, 1965, which would have enabled any of the Directors to acquire benefits through the acquisition of shares in or debentures of the Company or any other body corporate.

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DIRECTORS' INTERESTS IN SHARES

According to the register of Directors' shareholdings, the interests of Directors who held office at the end of the year in the share capital of the Company and its related corporations are as follows:

As at 01.01.05

or date of As atappointment Acquired Sold 31.12.05

Exxon Mobil Corporation (Ultimate holding company) - Number of common stock without par value held by the following Directors:

Mr. Robert Fisher 18,080 * 40,877 (44,657) 14,300 Encik Zain C. Willoughby 200 1,350 - 1,550

Puan Faridah Ali - 70 - 70

* Adjusted to exclude options previously disclosed as shares

No other Director in office at the end of the year held any interest in the share capital of the Company or its related corporations during the year.

DIRECTORATE

In accordance with Article 104 and Article 105 of the Company's Articles of Association, Mr. Robert Fisher and Y.Bhg. Dato' Zainal Abidin Putih retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.

In accordance with Article 109 of the Company's Articles of Association, Puan Faridah Ali retires at the forthcoming Annual General Meeting and, being eligible, offers herself for re-election.

ULTIMATE HOLDING COMPANY

The Directors regard Exxon Mobil Corporation, a corporation incorporated in the state of New Jersey, United States of America, as the ultimate holding company of the Company.

AUDITORS

The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.

In accordance with a resolution of the Board of Directors dated February 23, 2006.

.............................Robert FisherChairman

............................Zain C. Willoughby

Financial Director

Kuala Lumpur,

February 23, 2006

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TO THE MEMBERS OF ESSO MALAYSIA BERHAD (Company Number 3927V)

We have audited the financial statements set out on pages 27 to 47. These financial statements are the responsibility of the Company's Directors. It is our responsibility to form an independent opinion, based on our audit, on these financial statements and to report our opinion to you, as a body, in accordance with section 174 of the Companies Act 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report.

We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Directors, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements have been prepared in accordance with the provisions of the Companies Act, 1965 and MASB approved accounting standards in Malaysia so as to give a true and fair view of:

(i) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and

(ii) the state of affairs of the Company as at December 31, 2005 and of the results and cash flows of the Company for the year ended on that date;

and

(b) the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

PRICEWATERHOUSECOOPERS(No. AF-1146)Chartered Accountants

DATO' AHMAD JOHAN BIN MOHAMMAD RASLANNo.1867/09/06(J)Partner of the firm

Kuala LumpurFebruary 23, 2006

Report of the AuditorsReport of the Auditors

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FOR THE YEAR ENDED DECEMBER 31, 2005

Note 2005 2004

RM'000 RM'000

REVENUES 5 8,269,287 6,198,140

COST OF SALES (7,873,459) (5,818,356)

GROSS PROFIT 395,828 379,784

OTHER INCOME 22,192 26,844

OPERATING EXPENSES (295,538) (305,650)

ADMINISTRATIVE AND OTHER EXPENSES (64,137) (62,429)

FINANCE COST 6 (24,195) (19,200)

PROFIT BEFORE TAX 7 34,150 19,349

TAX EXPENSE 9 (14,422) (8,425)

NET PROFIT ATTRIBUTABLE TO

SHAREHOLDERS 19,728 10,924

Earnings per ordinary stock unit (sen) 10 7.3 4.0

Proposed final gross dividend less income tax

at 28% per ordinary stock unit (sen) 12.0 12.0

Income StatementIncome Statement

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AS AT DECEMBER 31, 2005

Note 2005 2004

RM'000 RM'000

NON CURRENT ASSETS

Property, plant and equipment 11 1,048,559 1,090,092 Long term assets and receivables 12 208,100 207,596

Intangible assets - software 13 5,680 5,428

TOTAL NON CURRENT ASSETS 1,262,339 1,303,116

CURRENT ASSETS

Inventories 14 459,863 309,163

Assets held for sale 15 3,033 -

Receivables 16 112,666 279,868

Amounts due from related corporations 20 262,902 218,395

Deposit, cash and bank balances 19,740 43,884

Taxation 2,815 5,613 TOTAL CURRENT ASSETS 861,019 856,923

CURRENT LIABILITIES

Payables 17 162,318 247,998

Provision 18 2,402 3,012

Retirement benefits obligations 19 1,198 2,238

Amounts due to related corporations 20 404,740 322,081

Borrowings (unsecured) 21 743,545 766,000

TOTAL CURRENT LIABILITIES 1,314,203 1,341,329

NET CURRENT LIABILITIES (453,184) (484,406)

LESS: NON CURRENT LIABILITIES

Retirement benefits obligations 19 49,510 53,270

Deferred taxation 22 109,573 111,768

159,083 165,038

TOTAL NET ASSETS EMPLOYED 650,072 653,672

FINANCED BY:

SHARE CAPITAL 23 135,000 135,000

RESERVES 24 8,000 8,000

RETAINED PROFITS 24 507,072 510,672

SHAREHOLDERS' EQUITY 650,072 653,672

Balance SheetBalance Sheet

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FOR THE YEAR ENDED DECEMBER 31, 2005

Issued and fully paid

ordinary stock of

RM0.50 each Non-distributable

Number of capital Distributable

ordinary Nominal redemption retained

Note stock unit value reserves profits Total

'000 RM'000 RM'000 RM'000 RM'000

At January 1, 2004

As previously reported 270,000 135,000 8,000 424,560 567,560

Effects of change in

accounting policy 4 - - - 98,516 98,516

As restated 270,000 135,000 8,000 523,076 666,076

Net profit as restated 4 - - - 10,924 10,924

Dividends for the year ended

December 31, 2003 (final) - - - (23,328) (23,328)

At December 31, 2004 270,000 135,000 8,000 510,672 653,672

At January 1, 2005 270,000 135,000 8,000 510,672 653,672

Net profit - - - 19,728 19,728

Dividends for the year ended

December 31, 2004 (final) - - - (23,328) (23,328)

At December 31, 2005 270,000 135,000 8,000 507,072 650,072

Statement of Changes in EquityStatement of Changes in Equity

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FOR THE YEAR ENDED DECEMBER 31, 2005

Note 2005 2004

RM'000 RM'000

CASH FLOWS FROM OPERATING ACTIVITIES

Net profit attributable to shareholders 19,728 10,924

Adjustments for:

Depreciation on property, plant and equipment 70,782 70,180

Amortisation of intangible assets 1,652 2,147

Taxation 14,422 8,425

Interest income (144) (303)

Interest expense / commercial papers profit elements incurred 24,195 19,200

Retirement /separation benefits cost 10,696 11,761

Loss on disposal of property, plant and equipment 2,328 4,205

Write-off of property, plant and equipment, and intangible assets 8,303 4,705

Unrealised foreign exchange (gain) / loss (647) 77

Changes in:

(Increase) / decrease in inventories (150,700) (80,239)

(Increase) / decrease in receivables 167,432 (78,578)

(Increase) / decrease in amounts due from related corporations (44,507) (13,419)

Increase / (decrease) in amounts due to related corporations 82,361 11,755

Increase / (decrease) in payables and provisions (84,496) 6,580

Cash generated from / (used in) operations 121,405 (22,580)

Interest / commercial papers profit elements paid (24,429) (19,348)

Interest received 144 303

Income taxes paid (25,446) (29,953)

Income taxes refund 11,627 4,570

Retirement / separation benefits paid (16,468) (15,084)

Net cash from / (used in) operating activities 66,833 (82,092)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (51,667) (53,950)

Purchase of intangible assets (1,904) (620)

Increase in long term assets and receivables (504) (19,858)

Proceeds from disposal of property, plant and equipment 8,711 12,215

Proceeds from disposal of intangible assets - 11,177

Net cash used in investing activities (45,364) (51,036)

CASH FLOWS FROM FINANCING ACTIVITIES

(Repayment of) /proceeds from borrowings - net (22,455) 194,000

Dividends paid to shareholders (23,328) (23,328)

Net cash (used in) / from financing activities (45,783) 170,672

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (24,314) 37,544

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 37,244 (300)

CASH AND CASH EQUIVALENTS AT END OF YEAR 25 12,930 37,244

Statement of Cash FlowsStatement of Cash Flows

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1. BASIS OF PREPARATION

FRS 3 Business Combinations FRS 5 Non-current Assets Held for Sale and Discontinued Operations FRS 101 Presentation of Financial StatementsFRS 102 Inventories FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors FRS 110 Events after the Balance Sheet DateFRS 116 Property, Plant and EquipmentFRS 121 The Effects of Changes in Foreign Exchange RatesFRS 131 Interests in Joint VenturesFRS 132 Financial Instruments: Disclosure and PresentationFRS 133 Earnings per ShareFRS 136 Impairment of AssetsFRS 138 Intangible Assets

The early adoption has resulted in changes in the accounting policies from the adoption of FRS 5 and FRS 102. These are disclosed in Note 4 to the financial statements.

The Company has not applied the following FRS that have been issued by MASB but are not yet effective:

FRS 2 Share-based PaymentFRS 117 Leases FRS 124 Related Party Disclosures FRS 139 Financial Instruments: Recognition and Measurement

Upon adoption of FRS 117, the Company is required to reclassify leasehold land which at the end of 2005 amounted to RM116,830,000, from Property, Plant and Equipment to Prepaid Rentals. The other standards above which have been issued by MASB but not yet effective, are not expected to have a material impact on the financial statements of the Company in the period of initial application.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unless otherwise stated, the following accounting policies adopted by the Company are consistent with those adopted in previous years:

(a) Property, plant and equipment

Property, plant and equipment are stated at cost or 1982 valuation less accumulated depreciation and impairment. No valuation has been conducted since 1982.

The financial statements of the Company are prepared under the historical cost convention except as disclosed in the summary of significant accounting policies in Note 2. The financial statements comply with the Financial Reporting Standards (FRS) approved by the Malaysian Accounting Standards Board (MASB) and the provisions of the Companies Act, 1965.

The preparation of financial statements in conformity with the MASB approved accounting standards in

Malaysia and the provisions of the Companies Act, 1965 requires the Directors to make judgements,estimates and assumptions that affect the application of policies and reported amounts of assets and

liabilities, income and expenses. These are disclosed in Note 2.

The Company has elected to adopt the following FRS that are relevant to its operations, in advance of theireffective date of January 1, 2006 :

Notes to the Financial StatementsNotes to the Financial Statements

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(a) Property, plant and equipment (Continued)

The Directors have applied the transitional provisions of FRS 116 on Property, Plant and Equipment when MASB first issued the standard in 2000, which allowed property, plant and equipment to be stated at their prevailing valuations less depreciation. The valuations were determined by independent professional valuers on the following bases:

Land - Open market value based on existing useBuildings - Depreciated replacement cost

No depreciation is provided on freehold land and capital projects that are in progress. Leasehold land is amortised in equal instalments over the period of the respective leases that range from 30 to 99 years.

Buildings and improvements and plant and equipment are depreciated on a straight-line basis to write off the cost or valuation of the assets to their residual values, over the term of their estimated service lives. The residual values and service lives are reviewed at each balance sheet date.

The principal annual rates of depreciation used are as follows:

Buildings and improvements 3% - 5%Plant and equipment 4% - 10%

Maintenance and repairs are charged to the income statement as incurred. Major renewals and improvements are capitalised.

Included in the respective property, plant and equipment classifications, is the Company's proportionate share of its interest in the joint venture assets of the Multi Product Pipeline System and related distribution terminal facilities (MPP). The Company has a 20% participating interest in these facilities. The accounting policy adopted for these jointly controlled assets is consistent with those adopted for the Company's 100% owned property, plant and equipment.

(b) Intangible assets - software

Intangible assets are stated at cost less accumulated amortisation. Computer software costs are amortised on a straight-line basis over the estimated useful life of the software, which normally falls within a range of 10 to 15 years.

(c) Impairment of assets

The carrying amounts of assets, are reviewed annually to determine whether there is any indication that the carrying amounts may not be recoverable. If such an indication of impairment exists, the carrying amount of the asset is assessed and written down immediately to its recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use and is determined for the cash generating unit to which the asset belongs. Impairment is measured by the amount the carrying value exceeds the recoverable amount. Impairment loss and its subsequent reversal are taken to the income statement.

(d) Assets held for sale

Non-current assets or disposal group are classified as being held for sale if their carrying amount is recovered principally through a sale transaction rather than through continuing use. These assets are measured at the lower of carrying amount and fair value less costs to sell upon execution of a binding sale agreement.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Operating leases

Leases of assets under which a significant portion of risks and benefits of ownership is effectively retained by the lessor are classified as operating leases. Prepaid lease rentals on service station sites made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Payments for all other operating leases are charged to the income statement in the year to which they relate.

(f) Inventories

Crude oil and petroleum product inventories are valued at the lower of cost and net realisable value. Cost includes all applicable purchase costs and production overheads and is determined on the first-

in first-out (FIFO) basis. Materials and supplies are valued at cost, determined on a weighted average basis, and a deduction is made for obsolete and slow moving stocks.

(g) Trade receivables

Trade receivables are carried at anticipated realisable value less provision for impairment. Bad debts are written off in the year in which they are identified. A provision for impairment of trade receivables is made based on a review of all outstanding amounts at year end.

(h) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include bank balances, deposits held at call with banks and cash in hand less bank overdrafts. To be included, these items must be readily convertible to cash and must not be subject to a significant risk of a change in value.

(i) Provisions

Provisions are recognised when it is probable that an outflow of resources will be required to settle a present obligation, and when a reliable estimate of the amount can be made. The provisions are reviewed at year end and adjusted to reflect the current best estimate.

(j) Employee benefits

(i) Short-term employee benefitsWages, salaries, bonuses, and non-monetary benefits are accrued in the year in which the associated services are rendered by employees of the Company.

(ii) Post employment benefits

(a) Defined contribution retirement planThe Company's contribution to the national defined contribution plan, the Employees Provident Fund, is recognised in the income statement as incurred.

(b) Retirement benefitsThe Company operates an unfunded defined benefit retirement plan for its regular national employees. The liability for employees' retirement benefits is determined by a periodic independent actuarial valuation that is based on the schedule of benefits stipulated in the Company's retirement benefits plan. The most recent valuation was carried out in November 2003. The projected unit credit method is used to calculate the actuarial plan benefits based on the estimated years of service and employees' projected compensation during their last year of employment. The liability recognised in the balance sheet represents the present value of the defined benefit obligations adjusted for unrecognised actuarial gains or losses and past service cost. Actuarial gains or losses are amortised on a straight-line basis over the average remaining service life of employees expected to receive the plan benefits.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(j) Employee benefits (Continued)

(iii) Separation benefitsSeparation benefits are payments due to employees as a result of the separation of employment before the normal retirement age. The liability for separation benefits is recognised when the Company's commitment is confirmed without any realistic possibility of withdrawal.

(k) Share capital

Ordinary stock units with discretionary dividends are classified as equity.

(l) Dividends

Dividends on ordinary stock units are recognised as liabilities when the dividends are approved for payment.

(m) Borrowings

Borrowings are recognised based on the principal amounts expected to be repaid upon maturity. All interest, profit elements on Islamic Commercial Papers (ICP) Programme and other costs incurred in connection with borrowings are expensed as incurred, except that up-front costs incurred in establishing long term facilities are amortised over the facility period.

(n) Taxation

The taxation charge in the income statement comprises current and deferred taxes. Current taxes are calculated by applying current tax rates to the chargeable income for the year.

Deferred taxes are calculated at the balance sheet date on all material temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available to absorb the deductible temporary differences. Tax rates enacted or substantively enacted by the balance sheet date are used to calculate deferred taxes.

(o) Revenue recognition

Income from the sale of goods is recognised upon delivery of goods and acceptance by customers net of returns, discounts and allowances, in accordance with the terms of sale. Interest and other income on land and buildings are recognised on an accrual basis.

(p) Research and development

Expenditures on research and development are recognised as expense except when there is sufficient certainty that the development efforts will result in future economic benefits for the Company, in which case these costs are capitalised.

(q) Foreign currencies

The functional currency of the Company is Ringgit Malaysia. Transactions arising in foreign currencies are translated into Ringgit Malaysia at the approximate rates of exchange on the transaction dates. Transactions uncompleted at the balance sheet date are translated at the closing exchange rates. Foreign currency exchange gains and losses resulting from the translation and settlement of foreign currency transactions are included in the income statement.

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3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's financial results can be significantly affected from time to time by volatility in the market prices for crude oil and petroleum products. Since international crude oil and petroleum product prices are denominated in US Dollars, the Company's results can also be affected by fluctuations in foreign exchange rates. In addition, the Company can be affected by fluctuations in market interest rates as the Company's operations are financed through a mixture of retained profits and borrowings. The borrowings are generally based on floating interest rates unless opportunities arise for competitive fixed

rate financing.

Given its large size and the long-term nature of its business, we expect that the Company's exposure to these risks will be moderated over time. As such, the Company discourages the use of financial derivative instruments to manage these risks. The Company believes that the administrative and financial costs to execute and control the use of derivatives typically outweigh the potential benefits. Any derivative transaction would require senior management approval and periodic review. Speculative derivative activity is strictly prohibited.

As a result of the above policies, the Company's purchase and sales transactions and foreign exchangetransactions are generally based on market prices and exchange rates in effect on the day of each

transaction. Interest rates on Company borrowings generally move with daily changes in the applicable market interest rates.

In addition to the above, the Company is also exposed to credit risk from its trade receivables from customers. The Company manages this risk by strict adherence to a set of credit policies and procedures whereby customers are thoroughly assessed and risk rated. Daily credit monitoring is an integral part of the credit management process that is administered within the Company's financial and operating computer system.

The Company is consistently in a net current liability position as retail sales to service stations are on cash terms whilst purchases, which are mostly intercompany in nature, are on credit terms. This improves the Company's return on capital employed by effectively reducing its exposure to uncollected trade receivables.

In addition, the Company continues to optimise the mix in its borrowing facilities to maximize financing flexibility whilst reducing financing cost. These facilities are short term in nature unless opportunities arise to secure favourable longer term borrowing facilities. A significant component of these short term borrowings are available to the Company on a long term basis as described in Note 21.

4. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENTS

(a) Changes in Accounting Policies

The following changes in accounting policies result from the early adoption of the FRS highlighted in Note 1:

(i) FRS 5: Non-current Assets Held for Sale and Discontinued Operations

Under FRS 5, non-current assets or disposal group are classified as being held for sale if their carrying amount is recovered principally through a sale transaction rather than through continuing use. These assets are reclassified as current and are measured at the lower of carrying amount and fair value less costs to sell. Once the assets are so classified, depreciation ceases. Previously, the non-current assets were classified or presented as part of Property, Plant and Equipment and measured at cost less accumulated depreciation and impairment, with depreciation continuing until the assets are sold.

The Company has adopted this standard prospectively in accordance with the standard's transitional provision.

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4. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENTS (Continued)

(a) Changes in Accounting Policies (continued)

(ii) FRS 102 : Inventories

Previously, the cost of crude oil and petroleum products were determined on the last-in-first-out (LIFO) basis. On early adoption of FRS 102, the Company changed the method of determining cost of crude oil and petroleum products from LIFO to FIFO. The retrospective application of this standard has resulted in an increase in the inventory carrying values by RM136,827,000 and RM185,577,000 at year-end 2003 and 2004, respectively.

(b) Prior Year Adjustments

The change in accounting policy from the early adoption of FRS 102 has been applied retrospectively and the comparative financial statements have been restated as follows:

As previously Effects ofreported FRS 102 As restated

RM'000 RM'000 RM'000

Balance Sheet as at 31 December 2003Deferred taxation 78,613 38,311 116,924Inventories 92,097 136,827 228,924Retained earnings 424,560 98,516 523,076

Income statement for the year ended31 December 2004Cost of sales 5,867,106 (48,750) 5,818,356Tax expense / (credit) (5,226) 13,651 8,425

Balance Sheet as at 31 December 2004Deferred taxation 59,677 52,091 111,768Inventories 123,586 185,577 309,163Taxation 5,484 129 5,613Retained earnings 377,057 133,615 510,672

Effects on earnings per ordinarystock unit (sen) for the year ended31 December 2004 (9.0) 13.0 4.0

5 . REVENUES

2005 2004RM'000 RM'000

Related corporations sales 4,227,421 3,222,414Third party sales 4,027,468 2,965,666Turnover 8,254,889 6,188,080

Interest income 144 303Licence fees on land and buildings 14,254 9,757

8,269,287 6,198,140

Turnover represents the value of goods sold net of Government duties and taxes of RM6,212,000 (2004: RM32,924,000).

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6. FINANCE COST

2005 2004RM'000 RM'000

Interest and profit elements on borrowings (Note 21) 18,080 13,386Interest on borrowings from related parties 6,115 5,814

24,195 19,200

7. PROFIT BEFORE TAX

2005 2004RM'000 RM'000

The profit before tax is arrived at aftercharging/(crediting) the following items:

Depreciation on property, plant and equipment 70,782 70,180Amortisation of intangible assets 1,652 2,147Directors' remuneration:

Fees (Non-Executive Directors) 90 90Auditors' remuneration 117 117Provision/(write-back) for customer loyalty programmes (610) 289Inventory write-down to net realisable value 4,983 463Cost of inventories recognised as an expense 7,873,459 5,818,356Provision for impairment and write-off of receivables 1,662 224Bad debts recovered (99) (207)Foreign exchange (other than on borrowings)

Realised foreign exchange gain (212) (48)Unrealised foreign exchange (gain)/loss (647) 77

Rental expense for land and buildings 22,407 19,269Hire of plant and machinery 270 317Research and development expense 3,532 3,558Loss on disposal of property, plant and equipment 2,328 4,205

8. EMPLOYEE BENEFITS EXPENSE

2005 2004RM'000 RM'000

Wages, salaries and bonus 38,914 42,650Defined contribution retirement plan - Employees Provident Fund 4,708 5,352Provision for retirement benefits - Defined benefit retirement plan (Note 19) 2,860 4,828Separation benefits 7,836 6,933Other employee benefits

58,363 63,420

Employee benefits expense includes the remuneration of Executive Directors amounting to RM1,173,000 (2004: RM1,291,000), which are paid to a related corporation.

The provision for retirement benefits is made for all regular national employees under the Company's retirement benefits plan. The charge to income includes Directors benefits provision of RM127,000 (2004: RM146,000).

The estimated monetary value of benefits provided to Directors during the year by way of usage of the Company's assets and the provision of accommodation and other benefits amounted to RM34,000 (2004: RM25,000).

4,045 3,657

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9. TAX EXPENSE

2005 2004RM'000 RM'000

Current taxation 16,750 13,343(Over) / under accrual in prior years (133) 238

Deferred taxation (Note 22)Origination and reversal of temporary differences (2,195) (5,156)

14,422 8,425

The Company's effective tax rate differs from the statutory tax rate and is reconciled as follows:

2005 2004% %

Statutory tax rate 28 28Expenses not deductible for tax purposes 16 35Reversal of temporary differences no longer required (1) (21)

43 42Impact from settling prior year taxes that were under provided (1) 1Effective tax rate 42 43

Effective tax rates on non-deductible expenses primarily reflect the varying relationship of the non-deductible expenses (which are relatively fixed over time) to changing levels of profit or loss from period to period.

10. EARNINGS PER ORDINARY STOCK UNIT

Earnings per ordinary stock unit is calculated by dividing the net profit or loss attributable to shareholders by the number of ordinary stock units in issue during the year.

2005 2004

Net profit attributable to shareholders (RM'000) 19,728 10,924Number of ordinary stock units in issue ('000) 270,000 270,000Basic earnings per stock unit (sen) 7.3 4.0

11. PROPERTY, PLANT AND EQUIPMENT

Buildings Plant CapitalFreehold Leasehold and and project

land land improvements equipment in-progress TotalRM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Net book valueAt January 1, 2005 213,975 118,375 161,177 548,757 47,808 1,090,092Additions - 2,469 - - 48,998 51,467Transfers from affiliated

companies - - - 200 - 200Disposals (7,056) (2,193) - (1,636) - (10,885)Write-offs (70) - (912) (7,225) (96) (8,303)Transfers to affiliated companies - - - (197) - (197)Reclassify to assets held for sale (902) (2,131) - - - (3,033)Reclassifications - 2,000 10,734 60,794 (73,528) -Depreciation charged to

income statement - (1,690) (13,265) (55,827) - (70,782)

Net book valueAt December 31, 2005 205,947 116,830 157,734 544,866 23,182 1,048,559

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11. PROPERTY, PLANT AND EQUIPMENT (continued)

Buildings Plant CapitalFreehold Leasehold and and project

land land improvements equipment in-progress TotalRM'000 RM'000 RM'000 RM'000 RM'000 RM'000

At December 31, 2005Valuation-1982 57,994 2,600 16,289 - - 76,883Cost-Post 1982 net additions 147,953 129,375 275,309 1,209,389 23,182 1,785,208Accumulated depreciation - (15,145) (133,864) (664,523) - (813,532)

Net book value 205,947 116,830 157,734 544,866 23,182 1,048,559

Net book value atDecember 31, 2005 if assets

had been carried at cost less depreciation: 155,254 114,658 157,725 544,866 23,182 995,685

At December 31, 2004Valuation-1982 60,448 3,894 16,505 - - 80,847Cost-Post 1982 net additions 153,527 129,797 266,824 1,181,048 47,808 1,779,004Accumulated depreciation - (15,316) (122,152) (632,291) - (769,759)

Net book value 213,975 118,375 161,177 548,757 47,808 1,090,092

Net book value atDecember 31, 2004 if assets

had been carried at cost less depreciation: 166,169 115,903 161,167 548,757 47,808 1,039,804

Included in the above Property, Plant and Equipment is the net book value for the Company's 20% participating interest in the joint venture assets of MPP amounting to RM76,748,000 (2004: RM80,571,000).

2005 2004RM'000 RM'000

Leasehold land (Net book value)Long leasehold (unexpired period of fifty years or more) 104,512 105,236Short leasehold 12,318 13,139

116,830 118,375

12. LONG TERM ASSETS AND RECEIVABLES

2005 2004RM'000 RM'000

Prepaid rentals and deposits 193,034 190,955Loans to dealers 4,657 6,256Employee receivables 1,491 2,128Others 8,918 8,257

208,100 207,596

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13. INTANGIBLE ASSETS - SOFTWARE

2005 2004RM'000 RM'000

Net book value at January 1 5,428 18,132Additions 1,904 620Sales to an affiliated company - (11,177)Amortisation charged to income statement (1,652) (2,147) Net book value at December 31 5,680 5,428

At December 31Cost 10,112 8,208Accumulated amortisation (4,432) (2,780)Net book value 5,680 5,428 The Company has undertaken major projects to upgrade and integrate its computer systems. The development and software costs for completed projects have been capitalised.

14. INVENTORIES

2005 2004RM'000 RM'000

Crude oil 209,806 110,065Petroleum products 241,911 191,959Materials and supplies 8,146 7,139

459,863 309,163

15. ASSETS HELD FOR SALE

2005 2004RM'000 RM'000

Freehold land 902 -Leasehold land 2,131 - 3,033 -

16. RECEIVABLES

2005 2004RM'000 RM'000

Trade receivables 81,051 60,397Less: Provision for impairment of receivables (4,223) (2,802)

76,828 57,595Others 35,838 222,273

112,666 279,868

Credit terms of trade receivables range from payment in advance to 90 days. All the receivables are in Ringgit Malaysia.

At the balance sheet date, the concentration of credit risk with respect to trade receivables is mainly from Industrial and Lubricants customers. The provision for impairment is considered sufficient to cover collection losses.

Other receivables are generally those of a non-trade nature. Included in the current year balance is an amount of RM18,913,000 (2004: RM207,121,000) for subsidies receivable from the Government of Malaysiaunder the Automatic Pricing Mechanism.

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17. PAYABLES

2005 2004RM'000 RM'000

Trade payables 118,480 189,025Other payables 43,838 58,973

162,318 247,998

The currency exposure profile of trade payables is as follows:

Ringgit Malaysia 118,372 188,325US Dollar 108 700

118,480 189,025

The credit terms for the Company's trade and other payables are generally 30 days.

Other payables are generally those of a non-trade nature that arose from other than the purchase of crude and petroleum products. Included in other payables is an amount of RM1,115,000 (2004: RM2,617,000) for payroll liabilities.

18. PROVISION

This comprises customer loyalty programme liability as follows:

2005 2004RM'000 RM'000

At January 1 3,012 2,723Net (credit) / charge to the income statement (610) 289At December 31 2,402 3,012

Customers participating in the programme are awarded points for purchases at participating service stations and these points are redeemable for the Company's products or gift vouchers. A provision has been made for the unredeemed and unexpired loyalty points based on past redemption experience.

The Company introduced a new loyalty programme called Smiles Driver Rewards in June 2005. This new programme is operated by a related corporation and enables participating customers to earn and redeemloyalty points at both the Esso and Mobil service stations. The cost of the programme is charged to the Company as intercompany charges whilst the outstanding amount relating to unredeemed and unexpired loyalty points is included in the amount due to related corporations.

19. RETIREMENT BENEFITS OBLIGATIONS

The Company operates an unfunded defined benefit retirement plan for its regular national employees. The plan is valued by an independent actuary every three years using the projected unit credit method. The latest actuarial valuation was carried out in November 2003 and this valuation showed that the bookprovision is sufficient to meet the actuarially determined value of plan benefits.

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19. RETIREMENT BENEFITS OBLIGATIONS (Continued)

The changes in the provision for retirement benefits under the defined benefit plan during the year were asfollows:

2005 2004RM'000 RM'000

At January 1 55,508 63,138Net expense charged to the income statement 2,860 4,828Payments to separating employees and retirees (7,362) (8,233)Employees transferred to affiliated companies (298) (4,225)At December 31 50,708 55,508

The amounts recognised in the balance sheet are reconciled as follows:

Present value of unfunded obligations 34,869 39,250Unrecognised actuarial gains 15,839 16,258Net liability 50,708 55,508

Reflected on the balance sheet as:Current 1,198 2,238Non-current 49,510 53,270

50,708 55,508

The expense recognised in the income statement is as follows:

Current service cost 1,722 2,232Interest cost 2,501 3,542Net actuarial gains recognised (1,363) (910)Past service cost - (36)Total, included in employee benefits expense (Note 8) 2,860 4,828

The charge to the income statement was included in operating expenses and administrative and other expenses.

The principal actuarial assumptions used were as follows:

2005 2004% %

Discount rate 6.3 6.3Expected rate of salary increases 4.7 4.7

The discount rate used is based on investment grade private debt securities with tenure approximating the tenure of the pension liability. The salary growth rate takes into account market factors such as inflation rate.

A 1% higher (lower) discount rate would decrease (increase) the pension liability by RM200,000 (RM300,000).

A 1% higher (lower) salary growth rate would increase (decrease) the pension liability by RM800,000 (RM700,000).

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20. AMOUNTS DUE FROM / (TO) RELATED CORPORATIONS

The currency exposure profile of amounts due from related corporations is as follows:

2005 2004RM'000 RM'000

Ringgit Malaysia 262,475 150,960US Dollar 427 67,435

262,902 218,395

The currency exposure profile of amounts due to related corporations is as follows:

Ringgit Malaysia (4,574) (16,510)US Dollar (400,166) (305,571)

(404,740) (322,081)

These balances are unsecured and are generally settled within one month.

21. BORROWINGS (UNSECURED)

2005 2004RM'000 RM'000

Floating interest rate loans from related corporations 323,545 190,000Short-term notes 300,000 300,000Bankers acceptances 120,000 173,000Revolving credits - 103,000

743,545 766,000

The floating interest rate loans from related corporations comprise the following :

(i) A US$100 Million facility secured with ExxonMobil Services (Labuan) Limited. This is a one-year facility with an option for annual rollover at each year-end that could extend the facility until 2011. The Company has rolled-over the US$50 Million drawndown on this loan for another year to December 31, 2006. The principal outstanding in Ringgit Malaysia is fixed at the time of loan draw down thereby insulating the Company against foreign currency fluctuations.

(ii) A RM185 Million loan/deposit facility secured in 2005 with ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI). The facility allows the Company to borrow short-term loans or place short-term deposits with EMEPMI to better manage cash surpluses and shortages. It is available until December 31, 2006 with an option for annual renewal of the facility at each year-end.

The short-term notes were issued under a RM300 Million 7-year Islamic Commercial Papers (ICP) Programme based on the principles of Bai' Inah. The ICP Programme which is available until May 2011, allows for the Company to issue short-term notes of between 14 days and 12 months tenure through competitive tender by the tender panel members or through private placement.

Interest rates and profit elements for the Company's borrowings and deposit placements depend on the lenders' cost of funds, and generally vary with the Kuala Lumpur interbank rates. The interest rates/profit elements ranged from 2.7% to 4.1% per annum during the year (2004: 2.7% to 3.8%).

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22. DEFERRED TAXATION

2005 2004RM'000 RM'000

At January 1 111,768 116,924Credited to the income statement (Note 9) (2,195) (5,156)At December 31 109,573 111,768

The components of deferred tax amounts after appropriate offsetting are as follows:

Deferred tax liabilities:subject to income tax 107,038 109,378subject to real property gains tax 2,535 2,390

109,573 111,768

The components of deferred tax assets and liabilities prior to offsetting are as follows:

Subject to income taxDeferred tax assets:Provision for retirement benefits (8,964) (8,481)Others (862) (1,036)

(9,826) (9,517)

Deferred tax liabilities:Excess of capital allowances over depreciation 116,683 118,310Others 181 585

116,864 118,895

Subject to real property gains taxDeferred tax liabilities:Property, plant and equipment 2,535 2,390

23. SHARE CAPITAL

2005 2004RM'000 RM'000

Authorised:300,000,000 ordinary shares of RM0.50 each 150,000 150,000

Issued and fully paid:270,000,000 ordinary stock units of RM0.50 each 135,000 135,000

24. RESERVES

2005 2004RM'000 RM'000

Capital redemption reserve (non-distributable) 8,000 8,000Retained profits (distributable) 507,072 510,672

515,072 518,672

The Company has sufficient tax credits under Section 108 of the Income Tax Act, 1967 to frank up toapproximately RM335,767,000 (2004: RM323,562,000) of the retained profits as at December 31, 2005 if paidout as dividends. Additionally, subject to the approval of the tax authorities, the Company has a tax exemptaccount available to frank tax exempt dividends up to approximately RM207,000,000 (2004:RM206,000,000).

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25. CASH AND CASH EQUIVALENTS

2005 2004RM'000 RM'000

Deposit, cash and bank balances 19,740 43,884Less: Deposit with a licensed bank included in the above (6,810) (6,640)

12,930 37,244

Deposit with a licensed bank represents monies held in accordance with the sale and purchase agreement relating to the Company's purchase of a participating interest in the MPP. The amount will be utilised for payment to the Inland Revenue Board in respect of the vendors' real property gains taxes.

26. SIGNIFICANT RELATED PARTY DISCLOSURES

The Company is a subsidiary of ExxonMobil International Holdings Incorporated, whose ultimate holdingcompany is Exxon Mobil Corporation. Both corporations are incorporated in the United States of America. Exxon Mobil Corporation is regarded by the Directors as the ultimate holding company of the Company. Therefore, Exxon Mobil Corporation and its other subsidiaries are considered as related parties to the Company.

In the normal course of business, the Company undertakes, on an arms-length basis, a variety of transactions with these related parties. Such transactions include the sales and purchases of products, and the sharing of services and facilities at cost apportioned on a mutually agreed basis.

In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant related party transactions.

2005 2004RM'000 RM'000

Purchases of crude oil from ExxonMobil Exploration and Production Malaysia Inc. 5,862,083 4,248,515

Purchases of petroleum products from: ExxonMobil Asia Pacific Pte. Ltd. 1,318,219 1,028,395ExxonMobil Malaysia Sdn. Bhd. 581,664 407,821

Sales of petroleum products to:ExxonMobil Asia Pacific Pte. Ltd. 1,936,348 1,504,575ExxonMobil Malaysia Sdn. Bhd. 1,804,725 1,355,834ExxonMobil Borneo Sdn. Bhd. 482,746 362,005

Central management, shared facilities and services costsmainly between ExxonMobil Asia Pacific Pte. Ltd., ExxonMobil Global Services Company andExxonMobil Exploration and Production Malaysia Inc.

Charged from: 81,127 63,848Charged to: (16,746) (18,113)

64,381 45,735Sales of assets to ExxonMobil Business Support Centre Malaysia Sdn. Bhd. - 15,285

Retirement benefits paid on the net transfers of employees mainly to ExxonMobil Exploration and Production Malaysia Inc. and ExxonMobil Business Support Centre Malaysia Sdn. Bhd. 298 4,225

At year end 2005 and 2004 respectively, the amounts due to and from related corporations are mainly in relation to the above described transactions.

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27. COMMITMENTS FOR CAPITAL EXPENDITURES

2005 2004RM'000 RM'000

Commitments for the purchase of property, plantand equipment authorised by the Directors butnot provided for in the financial statements:

Contracted 12,522 14,698Not contracted 2,407 5,712

14,929 20,410

Included in the above are contracted commitments for the joint venture assets of the MPP amounting to RM8,008,000 (2004: Nil).

28. CONTINGENT LIABILITIES (UNSECURED)

2005 2004RM'000 RM'000

Guarantees to third parties to secure housing andcar loans for employees under the Company'sbenefits plan 1 18

Litigation and other claims against the Company 150 150151 168

Litigation and other claims against the Company included a court case filed by a haulage contractor for alleged damages in relation to a contract termination.

In addition to the above, EMB's sister affiliate, ExxonMobil Exploration and Production Malaysia Inc (EMEPMI), has been in litigation with the Malaysian Inland Revenue Board (MIRB) since 1999. Thelitigation primarily involves disallowed income tax deductions for withholding tax payments on services provided to EMEPMI by other Exxon Mobil affiliates during the tax years 1983 to 1991. The Companyagreed in 1999 with the MIRB to be bound by the final outcome of the litigation between EMEPMI and MIRB as the issues and facts are similar. In 2003, the High Court, sitting as an appeal court, dismissed EMEPMI's appeal on the matters. EMEPMI subsequently filed a notice of appeal and is currently awaiting a hearing before the Court of Appeal. The amount of the contingent liability in relation to this case is not disclosed as it is still a subject to be determined by the Court and such disclosure may be prejudicial to the Company's dispute on the subject matter. In the event that the Court of Appeal were to rule against EMEPMI, such ruling is not expected to have a materially adverse effect on the Company's operations or financial condition.

Litigation and other claims are reviewed by legal experts to assess the likelihood of the Company's liability.

29. LEASING COMMITMENTS

2005 2004RM'000 RM'000

As at balance sheet date, leasing commitments under non-cancellable operating leases are as follows:

Within 1 year 10,034 11,761After 1 year but within 5 years 24,304 26,392After 5 years 7,950 14,259

42,288 52,412

Leasing commitments where milestone payments are dependent upon approvals from relevant authorities or the occurrence of events as specified under the said

lease agreements 40,690 28,323

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30. COMPARATIVE FIGURES

The 2004 financial statements have been restated for prior year adjustments indicated in Note 4 to ensure comparability with the 2005 financial year.

31. APPROVAL OF FINANCIAL STATEMENTS

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on February 23, 2006.

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STATEMENT BY DIRECTORS PURSUANT TOSECTION 169(15) OF THE COMPANIES ACT, 1965

We, Robert Fisher and Dato' Zainal Abidin Putih, two of the Directors of Esso Malaysia Berhad, state that in the opinion of the Directors, the financial statements set out on pages 27 to 47 are drawn up so as to give a true and fair view of the state of affairs of the Company as at December 31, 2005 and of the results of the Company and its cash flows for the year ended on that date in accordance with MASB approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.

In accordance with a resolution of the Board of Directors dated February 23, 2006.

...............................Robert Fisher

.........................................................Y.Bhg. Dato' Zainal Abidin Putih

Kuala Lumpur,February 23, 2006

STATUTORY DECLARATION PURSUANT TOSECTION 169(16) OF THE COMPANIES ACT, 1965

I, Zain C. Willoughby, the Director primarily responsible for the financial management of Esso Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 27 to 47, are to the best of my knowledge and belief correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

.......................................Zain C. Willoughby

Subscribed and solemnly declared by the above named Zain C. Willoughby at Kuala Lumpur in Malaysia on February 23, 2006 before me.

.......................................Commissioner for OathsKuala Lumpur

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As at March 15, 2006

Class of stocks: Ordinary stock unit (RM0.50)Voting right: One vote per stock unit

Size of No. of % of Number of % of Issued Holdings Stockholders Stockholders Units Held Capital

Less than 100 292 2.5700 15,410 0.006100 - 1,000 3,960 34.8530 3,748,147 1.3881,001 - 10,000 6,009 52.8868 23,730,290 8.78910,001 - 100,000 1,033 9.0917 26,888,551 9.959100,001 - 13,499,999 67 0.5897 40,117,602 14.85813,500,000 and above 1 0.0088 175,500,000 65.000

TOTAL 11,362 100.00 270,000,000 100.000

THIRTY LARGEST STOCKHOLDERSAs at March 15, 2006

Name No. of % of IssuedUnits Held Capital

1. ExxonMobil International Holdings Inc. 175,500,000 65.00002. Employees Provident Fund Board 10,838,700 4.01433. Amanah Raya Nominees (Tempatan) Sdn Bhd 2,312,000 0.8563

(Skim Amanah Saham Bumiputera)

4. Mayban Securities Nominees (Tempatan) Sdn Bhd 2,257,400 0.8361(UOB-Kay Hian Pte Ltd for Deva Dassan Solomon)

5. Kumpulan Wang Amanah Pencen 1,817,200 0.67306. Johan Enterprise Sdn Bhd 1,517,000 0.56187. Universiti Malaya 1,330,000 0.49268. Lembaga Tabung Haji 1,315,300 0.48719. Cimsec Nominees (Asing) Sdn Bhd 1,218,924 0.4514

(exempt an for CIMB-GK Securities Pte Ltd (Retail Clients))

10. Amanah Raya Nominees (Tempatan) Sdn Bhd 1,097,300 0.4064(Amanah Saham Wawasan 2020)

11. Permodalan Nasional Berhad 1,075,000 0.398112. Menteri Kewangan Malaysia 1,031,222 0.3819

(Section 29 (SICDA))

13. Quarry Lane Sdn Bhd 800,000 0.296314. RHB Nominees (Tempatan) Sdn Bhd 673,900 0.2496

(RHB Asset Management Sdn Bhd for Pertubuhan Kebangsaan Melayu Bersatu atau UMNO)

15. Asia Life (M) Berhad 660,000 0.2444(as beneficial owner (PF))

16. Citigroup Nominees (Asing) Sdn Bhd 633,200 0.2345(CBNY for DFA Emerging Markets Fund)

17. Chen Chin Peng 628,000 0.232618. Malaysia Nominees (Tempatan) Sendirian Berhad 550,000 0.2037

(Pledged Securities Account for Dr Deva Dassan Solomon (01-00030-000))

19. Tham Tatt Yow @ Tham Ah Chye 530,000 0.196320. Chen Chin Peng 497,500 0.184221. Eng Guan Chan, Sdn Bhd 488,800 0.181022. Citigroup Nominees (Tempatan) Sdn Bhd 420,500 0.1557

(Pledged securities account for Deva Dassan Solomon (473163))

23. Yeoh Kean Hua 401,000 0.148524. Neoh Choo Ee & Company Sdn Bhd 375,000 0.138925. Asia Life (M) Berhad 347,000 0.1285

(as beneficial owner (NPF))

26. AXA Affin Assurance Berhad 312,000 0.115627. Citigroup Nominees (Asing) Sdn Bhd 306,400 0.1135

(exempt an for Merrill Lynch Pierce Fenner & Smith Incorporated (Foreign))

28. Kim Poh Holdings Sdn Bhd 300,000 0.111129. Koperasi Sri Nilam Berhad 295,600 0.109530. New Tong Fong Plywood Sdn Bhd 280,000 0.1037

209,808,946 77.7070

SUBSTANTIAL STOCKHOLDERAs at March 15, 2006

1. ExxonMobil International Holdings Inc. 175,500,000 65.00

Information on StockholdingsInformation on Stockholdings

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AS AT DECEMBER 31, 2005

List of Properties OwnedList of Properties Owned

FEDERAL TERRITORY Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book Value315, Jalan Ampang F 4,659 Service Station 01.12.1967 15 2,808,074.00245, Jalan Bukit Bintang F 2,137 Service Station 01.12.1969 32 2,321,350.0029, Jalan Damansara Indah F 1,673 Service Station 01.12.1973 36 1,045,292.00125, Jalan Maharajalela F 789 Service Station 01.12.1962 40 1,564,718.00Lot 31362, Mukim Petaling F 2,354 Service Station 01.12.1986 19 1,361,815.00Lot PT 11134, Jalan Segambut F 1,734 Service Station 01.11.1992 14 2,187,829.00Lot 49260, Mukim Kuala Lumpur F 1,714 Service Station 01.06.1968 18 652,059.00Lot 3125, Mukim of Petaling F 2,080 Service Station 01.01.1987 17 1,486,700.00PT 1642, Sungai Untut, Setapak F 1,757 Service Station 01.12.1988 18 1,993,123.00Lot 26495, 6 ¼ ML Jalan Sg. Besi, Mukim Petaling F 2,250 Service Station 01.12.1990 16 1,879,769.00Lots 51 & 52, Section 98, Kuala Lumpur F 1,405 Service Station 01.12.1990 16 3,162,557.00Lot 199 & 200, Section 96, Kuala Lumpur F 2,017 Service Station 01.08.1993 13 5,457,901.00Lot 1758, Mukim Setapak, Kuala Lumpur F 1,926 Service Station 01.08.1993 12 3,556,835.00PT 22391, Mukim Cheras F 2,769 Service Station 01.11.1993 12 2,716,301.00Lot 435, (PT 32725), 14, Jalan Cheras F 4,048 Service Station 01.06.1995 11 3,519,889.00Lot 26494, Mukim Petaling, Wilayah Persekutuan F 5,669 Service Station 01.12.1996 11 6,113,557.00Lot No. 1853 & 1848, 69, Jalan Dang Wangi F 1,496 Service Station 01.12.1962 18 2,619,700.00Lot No. 126-129, Sek 65, Jalan Pasar F 983 Service Station 01.12.1962 16 908,911.00Bina Puri Sdn. Bhd., Taman Connaught F 2,931 Vacant Land 01.12.1986 N/A 1,029,148.00Lot 18113 Mukim Petaling, Kuala Lumpur (EWLINK) F 2,974 Service Station 01.01.2004 3 6,513,127.50HS(D) 102528 Lot PT46 Sek. 63, Esso Jalan Pekeliling L 1,406 Service Station 31.03.1972 31.12.2032 19 3,838,773.01Lot No. 20021, Jalan Genting Kelang, Mukim Setapak L 1,987 Service Station 10.10.1987 09.10.2053 17 1,296,877.62HS(D) 51787-51795, Mukim Kuala Lumpur L 1,715 Service Station N/A 10.10.2085 16 1,581,125.08Lot No. 64, Sek. 88, Bandar Kuala Lumpur L 1,917 Service Station N/A 10.04.2005 28 131,769.00HS(D) 77348, P.T. 107, Sek. 92A, Jalan Sg. Besi, Kuala Lumpur L 2,081 Vacant Land N/A 09.11.2053 N/A 2,130,823.50PT. 4062, Jalan Mewah, Cheras, Kuala Lumpur L 4,622 LPG Redistribution Centre 10.01.1996 09.01.2056 9 1,578,971.28Lot 23440, Mukim Setapak L 1,417 Service Station 25.02.1995 24.02.2083 9 2,571,823.68Lot 8094, Jalan Kuchai Lama L 3,437 Service Station N/A 04.03.2086 17 2,095,174.61PT 1604 & 1668, Mukim Ampang Esso Taman Shamelin L 2,437 Service Station 27.06.1994 30.06.2052 11 2,471,382.62

SELANGORLots 83-88, Section 3, Banting F 1,115 Service Station 01.12.1962 20 903,198.00Lots 499 & 82, Section 24, Klang F 1,392 Service Station 01.06.1966 18 1,088,663.00Lots 222-226, Section 23, Klang F 932 Service Station 01.12.1962 16 1,457,847.00Lot 1352, Mukim of Damansara F 1,282 Service Station 01.10.1967 31 1,305,420.00Lots 9179 & 9180, Mukim Sungai Buloh, Daerah Petaling F 4,138 Service Station 01.12.1990 15 3,951,597.00PT 13123, PT 13122 Mukim Raja Kelang F 3,085 Service Station 01.12.1990 16 2,320,532.00PT 19199, Jalan Sg. Rasa, Mukim Kapar, Kelang F 1,765 Service Station 01.08.1993 13 1,894,185.00Lot 1115 & 1116, Petaling Jaya F 2,085 Service Station 01.08.1993 13 3,543,712.00PT 12368, Mukim Kelang F 3,188 Service Station 01.12.1993 12 2,437,687.00PT 3637, Mukim Telok Panglima Garang F 2,741 Service Station 01.10.1993 13 1,582,061.00PT 15209, Mukim Damansara, Petaling Jaya F 2,022 Service Station 01.05.1994 11 2,427,949.00Lot PT 43708, Mukim Kelang F 2,395 Service Station 01.12.1995 10 3,049,704.00PT 22493, Mukim Batu Gombak F 2,684 Service Station 01.12.1996 10 2,618,818.00PT 1444, Mukim Sepang F 4,047 Service Station 01.07.1997 10 3,016,749.00PT 46121, Mukim Daerah Klang, Selangor F 2,345 Service Station 01.12.1998 10 3,707,096.00Lots 21696 & 21728, Mukim Kapar, Daerah Klang F 4,032 Service Station 01.03.1998 8 3,848,449.00Lot 703, Mukim Bukit Raja, Klang F 4,088 LPG Redistribution Centre 01.06.1993 16 1,686,233.00Lot 19, Sec. 18, Ampang Pechah, Kuala Kubu Bharu F 2,954 Service Station 01.12.1964 41 330,996.00Lot 9340 HS (D) 41825, Daerah Klang, Esso Taman Sri Muda P3 F 1,609 Vacant Land 01.09.1999 N/A 1,386,648.00MG294 Lot 584 BT 18, Sungei Chua, Mukim Kajang, District of Ulu Langat F 2,789 Filling Station 01.06.2000 9 3,335,158.00HSD 94307 PT 28233 & HSD 94308 PT 28234 Bukit Rahman Putra Sungai Buloh, Selangor F 4,064 Service Station 01.06.2000 3 2,953,542.59HSM 28698 PT No. 59765 Mukim & District of Klang Esso Jalan Teluk Pulai F 1,795 Filling Station 01.06.2000 6 2,505,970.00HSD 15731 PT 8564 Bandar Serendah Tambahan F 3,037 Service Station 30.09.2001 9 5,211,421.00HSD 72700 & 72701 MK Sg. Buloh, Esso Meru 2 F 3,697 Service Station 30.04.2002 2 5,431,591.50HSD 85727 PT 45854 MUK Kapar DisKlang Perviously Grn 43494 Lot 37456& Grn 43497 Lot 37449 MK & Dist Klang F 3,865 Service Station 19.04.2004 2 4,884,693.10PT 21440 Daerah Kelang, Selangor L 4,048 Service Station 09.05.1994 08.05.2093 11 5,259,778.66PT 1517, Pt18428 Mukim Batu, Gombak, Batu 8, Jalan Rawang L 4,255 Service Station 24.01.1979 25.09.2048 15 2,767,819.92Lot 10513, Taman Putra, Mukim Ampang L 1,644 Service Station 31.10.1979 17.09.2009 20 342,009.15Lot 12276, Mukim of Batu Selangor, Mukim Batu L 1,440 Service Station 31.08.1980 10.07.2079 20 791,894.88

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SELANGOR (Continued) Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValueLot 4, Jalan Raya 2, Petaling, Serdang L 2,448 Service Station 01.04.1984 31.03.2014 19 895,884.53Lot PT 334, Mukim Petaling, Daerah Petaling L 3,577 Service Station 14.07.1993 13.07.2092 10 4,172,995.80PT 7234, HS(M) 5288 Daerah Petaling, Sg. Buloh L 2,370 Service Station 31.12.1987 30.12.2086 17 1,503,761.04Lot 1850, Mukim Ampang L 1,413 Service Station 07.07.1986 06.07.2085 15 1,277,074.80PT 23489, HS(M) 14599, Mukim Batu, Gombak, Selangor L 2,017 Service Station 28.03.1991 27.03.2021 10 1,739,049.23PT 20061, Daerah Petaling Selangor L 1,773 Service Station 30.06.1995 29.06.2094 11 2,042,146.60Lot 49, Sec 27, Lorong Utara, Petaling Jaya L 1,858 Service Station N/A 03.10.2022 16 936,073.16Lot No. 15, Road 201, Petaling Jaya, Selangor L 4,047 LPG Redistribution Centre 28.08.1960 27.08.2059 9 1,815,618.20PT 4675, Jalan Balakong, Mukim Petaling L 1,530 Service Station 25.03.1992 24.03.2091 14 1,309,745.02PT 902, Mukim Sg. Buloh, Damansara Highway L 3,055 Service Station N/A 01.02.2079 36 2,655,750.24PT 30165, Jalan Kuari, Mukim Ampang, Dist. Of Ulu Langat L 1,672 Service Station N/A 03.11.2091 12 2,167,842.58PT 11448, Taman Subang Indah,Mukim Damansara L 3,273 Service Station N/A 09.10.2090 12 2,786,298.12PT 12581, Tempat Batu 10, Petaling Tin, Mukim Damansara L 2,580 Service Station 1995 07.12.2094 9 3,000,997.60PT 7906, Mukim Bukit Raja, Petaling, Selangor L 3,237 Service Station N/A 07.10.2083 9 3,270,377.01Lot 390, Sect. 3, Bandar PJ, Jalan Selangor L 1,057 Service Station 28.02.1956 28.02.2016 17 359,941.19PT 8542, Mukim Kapar, Daerah KlangEsso North Port L 1,979 Service Station 25.08.1997 28.02.2098 5 3,750,262.03PT 2942 Mukim Rawang, Daerah GombakEsso Country Homes Rawang L 2,789 Service Station 03.10.1994 18.09.2089 11 3,318,444.79Seksyen 5, Pekan Meru, Mukim Kapar L 1,859 Filling Station N/A 30.09.2095 16 2,181,486.76PT 30186, Mukim Ampang, Ulu KelangEsso Pandan Indah L 2,182 Service Station 01.11.2003 30.04.2094 9 4,219,860.64Esso Jln Kebun South Bound, Batu 3 Puchong, Shah Alam L 2,787 Service Station 31.12.2001 30.06.2099 10 6,553,948.06

PERAKLot 2672, Mukim of Bidor F 902 Service Station 01.12.1962 44 535,342.00Lot 2225, Teluk Intan F 892 Service Station 01.12.1962 44 523,722.00Lots 3257, 3258 & 32A, District of Larut & Matang F 1,640 Service Station 01.06.1964 37 720,318.00Lot 2505, Taiping F 1,280 Filling Station 01.12.1962 44 275,069.00Lots 2878 & 2875, Mukim of Parit Buntar, Krian F 1,390 Service Station 01.06.1965 41 452,932.00Lots 2168-2172, Taiping F 756 Service Station 01.12.1962 36 265,062.00Lots 3637-3643, Ipoh, Daerah Kinta F 1,049 Filling Station 01.03.1963 36 442,517.00Lot 2738N,Ipoh, Daerah Kinta F 1,748 Service Station 01.12.1962 17 1,088,557.00Lots 916-919, Ipoh, Daerah Kinta F 693 Service Station 01.12.1962 44 396,221.00Lots 3045N-3049N, Ipoh, Daerah Kinta F 929 Service Station 01.05.1963 43 249,447.00Lot 103476 & 30982, Mukim Ulu Kinta F 1,463 Service Station 01.05.1967 17 721,236.00Lot 17898, Mukim of Teja, Ipoh F 2,200 Service Station 01.12.1964 41 243,176.00Lot 29881, Pusing, Daerah Kinta F 1,796 Service Station 01.12.1962 17 508,468.00Lots 455-462, Menglembu, Daerah Kinta F 1,479 Service Station 01.12.1967 37 648,778.00Lot 61406, Jalan Tasek, Ipoh F 1,415 Service Station 01.08.1984 21 1,233,745.00PT 146342, Mukim Hulu Kinta, Daerah Kinta F 2,163 Service Station 01.12.1998 8 1,486,215.00Grant Nos. 1115-1117 & 1128-1130, Comprising 6 Lots,245, Jalan Besar, Sg. Siput F 847 Service Station 01.12.1962 16 296,201.00Lot 10321 & 4459, 2 1/4 Mile, Ipoh, Perak F 2,582 Service Station 01.06.1968 44 678,567.00PT40, Kampar, Tasek Ind. Estate Site, Ipoh L 819 Service Station 07.05.1965 06.05.2064 21 46,338,72Lot 1803 Mukim Asam Kumbang L 18,057 Vacant Land 02.12.1929 01.12.2028 N/A 75,350.74Lot 162, Town of Tg. Tualang, District Kinta L 719 Service Station 06.08.1995 05.08.2005 44 285,298.00Lot No. 964 & Lot No. 100 L 26,305 Tasek Bulk Plant 1969 26.09.2068 40 1,227,638.73PT 153632, Mukim Ulu Kinta, Ulu Kinta L 3,610 Vacant Land N/A 28.12.2096 N/A 2,165,534.28PT 4825, Daerah Manjung L 3,717 Vacant Land N/A 18.07.2057 N/A 1,665,085.24Esso Falim HD9D KA72477, PT 156405 Plot 346 Menglembu Industrial Estate, MK Hulu Kinta L 2,931 Vacant Land 31.03.2000 31.10.2097 N/A 1,604,126.30

PENANGLot 1991, Section 12, George Town, Daerah Timor Laut F 1,395 Service Station 01.12.1969 35 1,083,062.00Lots 425, 433 & 144, Mukim 7, Province Wellesley F 1,145 Service Station 01.10.1967 44 587,047.00Lot 402, Mukim 1, Daerah Central Penang F 1,627 Service Station 01.12.1967 14 1,113,384.00Lot 33, Section 4, Daerah Timor Laut F 1,774 Service Station 01.11.1973 28 958,802.00Lot 1684 & 378, 79, Jalan Mcalister F 1,620 Service Station 01.11.1970 34 1,326,340.00Lot 389, 32A, Jalan Ayer Itam F 2,126 Service Station 01.12.1966 14 1,222,110.00Lot 1791, Tanjong Bungah F 781 Filling Station 01.12.1962 10 482,202.00Lot 1011, 449 & 452, 539, Jln Dato Keramat F 993 Service Station 01.12.1962 44 950,604.00PT 783 & 784, Section 4, Seberang Perai Utara F 1,998 Service Station 01.12.1962 44 1,895,590.00Lot 140, Section 2, Seberang Prai Utara F 1,859 Service Station 01.12.1969 14 837,234.00Lot 152, Section 9, Jelutong F 5,660 Service Station 01.12.1962 44 1,389,290.00Lots 95-125, 128, Lot 2328-2338, Bagan Luar F 43,780 Storage & Dist. Plant 01.12.1962 44 11,338,299.00

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PENANG (Continued) Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValueLots 7632, 7633, 7634 & 622, Sungai Nibong, Mukim 13 F 1,536 Service Station 01.12.1989 16 1,168,791.00Lot 3565, Mukim 6, Seberang Prai Tengah, Butterworth F 2,969 Service Station 01.12.1996 11 3,329,388.00Lot No Part 229/XIV, Mukim Bukit Mertajam F 1,009 Vacant Land 01.12.1962 N/A 26,000.00GM137 Lot 648 MK15 Seberang PraiEsso Jalan Rodhzan F 4,181 Service Station 30.04.2002 4 3,500,840.00HSM 414 Lot 2779 MK4 Seberang Perai Tengah P.P.Esso Hussein Onn F 8,196 Service Station 30.09.2001 7 5,195,225.47Lot 3168 Mukim 04 District Seberang Perai Tengah F 2,761 Service Station 23.09.2003 3 5,079,324.50GM1392 Lot 2555, MK10 Seberang Prai F 35,000 Service Station 30.04.2002 9 2,805,363.73Pegangan No. 2339, Sek 4, Bandar Butterworth, Jetty Product /Daerah Seberang Perai Utara L 1,566 Marine Discharge N/A 24.01.2025 N/A NilEsso Jalan Jelawat L N/A Service Station N/A 18.08.2073 3 7,179,460.30

KEDAHLot 4136, Mukim of Sungai Petani F 919 Service Station 01.12.1962 34 691.560.00Lot 20, Section 49, Sungai Petani, Daerah Kuala Muda F 873 Service Station 01.12.1962 28 253,281.00Lot 151 & 3056, Mukim Pengkalan Kundor F 239 Service Station 01.12.1963 31 609,337.00PT 3928, Mukim Alor Malai, Alor Setar F 2,569 Service Station 01.08.1993 13 2,702,694.00PT 1595, Mukim Kulim, Daerah Kulim F 2,913 Service Station 01.06.1996 10 2,629,000.00Lot 22384, Mukim Sg. Petani, Daerah Kuala Muda F 2,625 Service Station 01.03.1997 9 2,897,493.00GM 910 Lot 005393, MK Pengkalan Kundur Kota Setar F 45,228 Service Station 30.09.2001 5 3,010,625.00

NEGERI SEMBILANLot 3246 Daerah Jempol F 2,937 Vacant Land 01.08.1984 N/A 1,075,697.00Lot 4590, Village of Nilai F 839 Service Station 01.12.1965 16 349,921.00Lot 1305, Port Dickson F 1,821 Service Station 01.11.1970 35 826,584.00Lots 2645 & 2647, Mukim of Port Dickson(Lot 2646 & 2648), 1926-1930, 1593-1595, 1805, 1838, 1803, 1836, 1757, 2278 & 1222, Mukim Port Dickson F 1,631,970 Refinery 01.06.1984 21 11,171,286.00Lot 18171, (PT 940), Batu 2, Jalan Ampangan,70400 Seremban F 2,074 Filling Station 01.12.1990 17 1,159,123.00Lot No PT 12697 - 12699, Tuanku Jaafar Industrial Estate, Seremban F 30,171 Lubes Dist. Centre 01.11.1994 12 4,947,702.00HS(D) 92484, Esso Bdr Baru Nilai, MKM LabuDaerah Seremban F 180 Service Station 01.06.2000 7 4,362,180.00HS(D) 120088, Esso Bdr Baru Nilai-2 F 4,047 Vacant Land 01.06.2000 N/A 2,941,446.00HS(D) 110853, Esso Bdr Baru Nilai-3 F 4,706 Vacant Land 01.06.2000 N/A 3,483,517.00HSD 12088PT 14995, MKM Labu Seremban F 43,561 Vacant Land 30.09.2001 N/A 142,601.80HSD 31135 & 31136, MKM of Rantau, Seremban F 23,239 Vacant Land 30.09.2001 N/A 1,148,410.90PT 3861, Mukim Rasah, Seremban L 3,437 Service Station N/A 10.04.2089 14 1,295,116.009 Lots Land at PD L 717,747 Vacant Land 1972 30.09.2060 N/A 553,167.72Pipeline to Jetty, Lots 135-141 L N/A Pipeline N/A 09.12.2021 N/A NilPT 14782 Mukim Ampangan, Panchor Jaya L 4,319 Filling Station N/A 09.09.2092 8 2,866,803.47PT 14782, Mukim Ampangan, Persiaran Senawang 1 L 3,659 Filling Station N/A 30.09.2093 8 2,572,867.53MPP and KVDT L N/A MPP/KVDT Facilities 01.03.2001 01.02.2100 N/A 19,754,309.70MPP and KVDT L N/A MPP/KVDT Facilities 01.03.2002 01.02.2100 N/A 903,615.80

MALACCALots 94-101, Village of Alor Gajah, Northern District F 1,177 Service Station 01.06.1965 41 774,981.00Lots 394-397, Town of Area XXIX, Central Malacca F 645 Service Station 01.12.1964 41 527,846.00Lot 817, Klebang Kechil F 1,105 Service Station 01.12.1962 44 475,799.00Lots 4 to 8 , Mukim of Jasin, Southern District F 822 Service Station 01.12.1966 40 462,315.00Lot 140, A, Jalan Semabok F 743 Service Station 01.12.1962 43 512,118.00Lot 262, (Lot 467), Mukim Bertam, Daerah Melaka Tengah F 3,716 Service Station 01.10.1997 18 1,785,656.00Lot 7529, Mukim Bukit Baru Malacca F 2,788 Service Station 01.05.1993 13 2,421,603.00Holding No. 153, Bukit Baru Malacca F 1,652 Service Station 01.06.1963 42 872,476.00Grant No. 150, Melaka Tengah F 1,839 Vacant Land 01.12.1966 N/A NilLot 511, & Qtr 385, District of Malacca Central L 268 Service Station N/A 24.02.2070 43 240,103.60

JOHORLot MLO 643 & Lot 3250, Mukim of Simpang Kanan, Batu Pahat F 2,327 Service Station 01.12.1966 15 1,088,838.00Lot 890 Township Segamat, District of Batu Pahat F 976 Service Station 01.12.1962 44 307,440.00TLO 2084, Jln Salleh F 1,114 Service Station 01.12.1962 15 608,154.00Lot 535, Township of Bandar Penggaram, District of Batu Pahat F 1,897 Service Station 01.09.1963 41 728,391.00

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JOHOR (Continued) Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValueTLO 4111 Bandar Johore Bharu F 1,985 Service Station 01.11.1972 19 1,187,763.00Lot 456, Town of Mersing F 1,232 Service Station 01.12.1962 21 212,421.00Lot 15317, Bandar of Johore Bharu F 1,394 Service Station 01.04.1966 40 1,107,498.00Lot 151, Township of Pontian Kechil, District of Pontian F 841 Service Station 01.12.1962 20 419,246.00Lot 480, Mukim Tebrau F 1,745 Service Station 01.07.1987 19 780,331.00Lot 375, Mukim Bandar Penggarang F 2,414 Vacant Land 01.12.1966 N/A 156,000.00No. PTB 4771 Bandar Kluang, Johor F 1,940 Service Station 01.12.1989 17 782,081.00P.T.D. 54009 MK Tebrau, Johor Bharu F 2,021 Service Station 01.12.1990 14 1,492,774.00Lot 25729, Mukim Kluang F 3,608 Service Station 01.12.1993 14 1,992,378.00Lot 6280, Town & District of Johore Bharu F 5,933 Service Station 01.12.1996 10 4,909,485.00PTD 127533, Mukim Plentong, Daerah Johor Bharu F 4,624 Vacant Land 01.12.1998 N/A 4,506,394.00Lot 18302, Jln Kebun Teh, Johor, HSD 251562 PTD 111903 Mkm Plentong F 1,564 Service Station 01.12.1962 19 1,057,933.00Esso Bandar Sri Alam 2 F 3,572 Vacant Land 01.06.2000 N/A 4,803,458.00Land Title CT3951, Sek 7 F 372 Service Station 01.12.1962 40 233,107.00QT(R) 477, Kg. Melayu Majidee, Johor F 2,788 Service Station 01.01.1991 14 2,418,534.00HSD 137048, PTD 27075, MK Tebrau Johor Bahru F 21,466 Service Station 30.09.2001 2 2,218,632.00PTD 149703 Mukim Plentong, District Johor Bahru F 3,016 Service Station 23.09.2003 N/A 3,162,867.56Lot 2055, Jalan Mengkibol, Kluang L 2,300 Service Station 21.10.1978 20.10.2008 23 309,044.94Esso Jln Dewata, JB, HS(D) 251614, P.T. 20417, Bandar & Daerah JB L 2,406 Filling Station N/A 30.07.2095 9 4,325,666.50PT87837, Mukim Pulai, Daerah Johor Bahru L 2,274 Filling Station N/A 31.05.2096 8 4,460,031.85Esso New Tampoi 2, PT No. D64145, HS(D) 216976, Mukim Tebrau, Johor Bahru L 4,298 Service Station N/A 26.07.2093 14 4,525,704.70

TERENGGANULot 1745, Daerah Kuala Trengganu F 770 Service Station 01.08.1969 37 573,491.00Lots 108 & 109, Part of 102, Town of Chukai F 1,122 Service Station 01.12.1962 22 500,654.00Lot 2904-2907, Mukim Batu Buruk F 1,649 Service Station 01.11.1992 14 1,503,751.00Lot 3550, Dungun SS L 1,532 Service Station 30.03.1970 27.03.2030 44 162,192.65

PAHANGLots 59-63, Section 18, Kuantan F 17,461 Service Station 01.12.1962 42 603,926.00Lot 7171, Mukim Kota Kuantan F 1,181 Service Station 01.12.1967 15 982,043.00Lot 9141, PT 2266, Mukim Kota Kuantan F 1,046 Service Station 01.12.1966 35 827,557.00Lot 1804, Mukim Sabai Bentong, Esso Karak F 1,971 Service Station 01.10.1968 38 342,591.00Lots 73-76, Section 8, Raub F 889 Service Station 01.05.1964 44 453,871.00PT28106, Mukim Kuala Kuantan F 3,232 Vacant Land 01.08.1993 N/A 902,304.00PT29313, Mukim Kuala Kuantan F 1,961 Service Station 01.12.1993 14 1,677,630.00GM 1492, Sek 10, Bandar Temerloh F 1,268 Service Station 01.10.1992 36 579,002.00HS(M) 1187, Esso Kuala Lipis F 4,048 Service Station 01.09.1995 41 1,248,783.00Title CT3952, Sek 8, Raub F 945 Vacant Land 01.12.1962 N/A 92,001.00Lot 4691, Mukim Kuala Kuantan L 5,771 LPG Redistribution Centre 31.01.1957 31.12.2055 15 713,868.99

KELANTANLots 231, 233, 1 Lorong Minyak Gas F 6,227 Phased-Out Dist. Plant 01.07.1987 44 331,959.00Lot 171, Jalan Sultan Ibrahim, Kota Bharu L 1,742 Service Station 31.03.1964 13.03.2063 22 235,730.95Lot 552, Bandar Machang L 1,030 Service Station N/A 12.10.2059 16 406,861.79

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ESSO MALAYSIA BERHAD

NOTICE IS HEREBY GIVEN that the forty-seventh Annual General Meeting of the Company will be held at the TRAINING CENTRE, LEVEL 18, MENARA EXXONMOBIL, KUALA LUMPUR CITY CENTER, 50088 KUALA LUMPUR on Thursday, May 25, 2006 at 10:30 a.m. for the purpose of transacting the following business:

1. To receive and adopt the Company's Audited Accounts for the year ended December 31, 2005 and the Directors' and Auditors' Reports thereon.

2. To approve the declaration of a final dividend of 12 sen less Malaysian Income Tax at 28% per ordinary stock unit of 50 sen each for the year ended December 31, 2005.

3. To re-elect the following Directors retiring in accordance with Articles 104 and 105 of the Company's Articles of Association:

a) Y. Bhg. Dato' Zainal Abidin Putih b) Mr. Robert Fisher

4. To re-elect the following Directors retiring in accordance with Article 109 of the Company's Articles of Association:a) Puan Faridah Alib) Mr. Lam Foo Keong

5. To approve the payment of Directors' fees for the Independent Non-Executive Directors.

6. To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company and to authorise the Directors to fix their remuneration.

7. To transact any other ordinary business of the Company.

NOTICE OF BOOK CLOSURE

NOTICE IS HEREBY GIVEN THAT stockholders who are registered in the Register of Members and Record of Depositors as at the close of business on June 1, 2006, shall be entitled to the final dividend which, if approved, will be paid on June 20, 2006.

A depositor shall qualify for entitlement only in respect of:

a) Securities transferred into the Depositor's Securities Account before 4:00 p.m on June 1, 2006 in respect of transfers;

b) Securities deposited into the Depositor's Securities Account before 12:30 p.m on May 30, 2006 in respect of securities which are exempted from mandatory deposit; and

c) Securities bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad.

By Order of the Board Puan Sri Junaidah Mohd Said

LS 0008614Secretary

Kuala LumpurApril 25, 2006

Note:A member of the Company entitled to attend and vote is entitled to appoint a proxy or proxies (if the member is an authorised nominee) to attend and vote instead of the member. A proxy need not be a member of the Company. The instrument appointing a proxy must be deposited at the Share Registrar’s office at Tenaga Koperat Sdn. Bhd., 20th Floor, Plaza Permata (formerly known as IGB Plaza), Jalan Kampar, off Jalan Tun Razak, 50400 Kuala Lumpur, not less than 48 hours before the time set for the meeting.

Registration counters (located at the Ground Floor of Menara ExxonMobil) will be opened from 9:00 a.m. and will close at 10:20 a.m.

Refreshments will be served before the Annual General Meeting at the Eatery located on Level 6 of Menara ExxonMobil, from 9:00 a.m. to 10:20 a.m.

Notice of Annual General MeetingNotice of Annual General Meeting

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STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING

1. Directors standing for re-election

• Y. Bhg. Dato' Zainal Abidin Putih retires by rotation and is eligible for re-election pursuant to Articles 104 and 105 of the Company's Articles of Association.

• Mr. Robert Fisher retires by rotation and is eligible for re-election pursuant to Articles 104 and 105 of the Company's Articles of Association.

• Puan Faridah Ali, appointed since the last Annual General Meeting and eligible for re-election pursuant to Article 109 of the Company's Articles of Association.

• Mr. Lam Foo Keong appointed since the last Annual General Meeting and eligible for re-election pursuant to Article 109 of the Company's Articles of Association.

2. Details of attendance of the Directors at Board Meetings

Four (4) Board Meetings were held during the financial year which ended on December 31, 2005. Details of attendance of the Directors are set out in page 15 of this Annual Report.

3. Place, date and time of the Annual General Meeting

The forty-seventh Annual General Meeting will be held at the Training Centre, Level 18, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur on May 25, 2006 at 10:30am.

4. Details of Directors standing for re-election

(i) Profiles

The profiles of the Directors standing for re-election are set out in pages 12 and 13 of thisAnnual Report.

(ii) Statement of shareholdings

None of the Directors standing for re-election held shares in the Company.

(iii) Family relationship

None of the Directors standing for re-election have any family relationship with any Director and/or major shareholder of the Company.

(iv) Conflict of interest

None of the Directors standing for re-election have any conflict of interest with the Company.

(v) Conviction for offences (excluding traffic offences)

None of the Directors standing for re-election have been convicted for offences within the past 10 years.

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ESSO MALAYSIA BERHAD

ADALAH DENGAN INI DIBERITAHU bahawa Mesyuarat Agung Tahunan yang Keempat Puluh Tujuh bagi Esso Malaysia Berhad akan diadakan di PUSAT LATIHAN, ARAS 18, MENARA EXXONMOBIL, KUALA LUMPUR CITY CENTER, 50088 KUALA LUMPUR pada hari Khamis, 25 Mei 2006 jam 10:30 pagi dengan tujuan mengendalikan urusan-urusan berikut:

1. Menerima dan meluluskan Akaun-akaun Syarikat yang telah diaudit bagi tahun berakhir 31 Disember 2005, Laporan Pengarah serta Laporan Juruaudit mengenainya.

2. Meluluskan pengisytiharan dividen akhir sebanyak 12 sen tertakluk kepada cukai pendapatanMalaysia pada kadar 28% untuk setiap unit stok biasa yang bernilai 50 sen seunit bagi tahun berakhir 31 Disember 2005.

3. Memilih semula Pengarah-pengarah berikut, yang bersara mengikut Artikel 104 dan Artikel 105

Tataurusan Pertubuhan Syarikat :

a) Y. Bhg. Dato’ Zainal Abidin Putihb) Encik Robert Fisher

4. Memilih semula Pengarah-pengarah berikut, yang bersara mengikut Artikel 109 Tataurusan Pertubuhan Syarikat :a) Puan Faridah Alib) Encik Lam Foo Keong

5. Meluluskan ganjaran Pengarah-pengarah Bebas Bukan Eksekutif.

6. Melantik semula Tetuan PricewaterhouseCoopers sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan imbuhan mereka.

7. Menguruskan lain-lain urusan biasa Syarikat.

NOTIS PENUTUPAN BUKU-BUKU

DENGAN INI DIBERITAHU bahawa pemegang-pemegang saham yang berdaftar di buku daftar ahli Syarikat dan Rekod Pendeposit pada akhir perniagaan, 1 Jun 2006, adalah layak untuk menerima dividenakhir dimana, jika diluluskan, akan dibayar pada 20 Jun 2006.

Seseorang pendeposit hanya layak menerima dividen berhubung dengan :

a) Sekuriti-sekuriti yang dipindahkan kepada Akaun Sekuriti Pendeposit sebelum 4:00 petang pada1 Jun 2006 bagi pemindahan biasa;

b) Sekuriti-sekuriti yang didepositkan di dalam Akaun Sekuriti Pendeposit sebelum 12:30 petang pada 30 Mei 2006 bagi sekuriti-sekuriti yang dikecualikan dari deposit mandatori; dan

c) Sekuriti-sekuriti yang dibeli di Bursa Malaysia Securities Berhad berserta hak kelayakan menurutPeraturan Bursa Malaysia Securities Berhad.

Dengan Perintah Lembaga PengarahPuan Sri Junaidah Mohd SaidLS 0008614Setiausaha

Kuala Lumpur25 April 2006

Nota:Seorang ahli Syarikat yang berhak hadir dan mengundi di mesyuarat agung adalah berhak melantik seorang proksi untuk hadir bagi pihak ahli. Proksi itu tidak semestinya seorang ahli Syarikat dan peruntukan Seksyen 149 (1) (b) Akta Syarikat tidak berkenaan ke atas Syarikat. Seorang ahli yang juga nomini yang sah seperti yang didefinisikan di bawah Securities Industry (Central Depositories) Act 1991 boleh melantik sekurang-kurangnya seorang proksi untuk setiap akaun sekuriti yang dipegang dengan unit stok biasa Syarikat, yang dikreditkan di dalam akaun sekuriti tersebut. Surat perlantikan proksi hendaklah diserahkan di Pejabat Pendaftar iaitu di Tenaga Koperat Sdn. Bhd., Tingkat 20, Plaza Permata (dahulu dikenali sebagai IGB Plaza), Jalan Kampar, off Jalan Tun Razak, 50400 Kuala Lumpur, tidak lewat dari 48 jam sebelum waktu mesyuarat yang telah ditetapkan.

Kaunter pendaftaran (bertempat di Aras Bawah, Menara ExxonMobil) akan dibuka bermula pada jam 9:00 pagi dan ditutup pada jam 10:20 pagi.

Jamuan akan disediakan sebelum Mesyuarat Agung Tahunan bertempat di Dewan Makan, Aras 6, Menara ExxonMobil, bermula pada jam 9:00 pagi hingga jam 10:20 pagi.

Notis Mesyuarat Agung TahunanNotis Mesyuarat Agung Tahunan

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PENYATA YANG DILAMPIRKAN BERSAMA NOTIS MESYUARAT AGUNG TAHUNAN

1. Pengarah-pengarah yang bersedia untuk dipilih semula

• Y. Bhg. Dato' Zainal Abidin Putih bersara megikut giliran dan layak untuk dipilih semula menurut Artikel 104 dan Artikel 105 Tataurusan Pertubuhan Syarikat.

• Encik Robert Fisher bersara megikut giliran dan layak untuk dipilih semula menurut Artikel 104 dan Artikel 105 Tataurusan Pertubuhan Syarikat.

• Puan Faridah Ali, dilantik semenjak Mesyuarat Agung Tahunan yang lepas dan layak untuk dipilih semula menurut Artikel 109 Tataurusan Pertubuhan Syarikat.

• Encik Lam Foo Keong, dilantik semenjak Mesyuarat Agung Tahunan yang lepas dan layak untuk dipilih semula menurut Artikel 109 Tataurusan Pertubuhan Syarikat.

2. Butir-butir kehadiran Pengarah di Mesyuarat Lembaga Pengarah

Empat (4) Mesyuarat Lembaga Pengarah telah diadakan sepanjang tahun kewangan yang berakhir pada 31 Disember 2005. Butir-butir kehadiran Ahli Lembaga Pengarah adalah seperti yang tercatat di mukasurat 15 di dalam Lapuran Tahunan ini.

3. Tempat, tarikh dan masa bagi Mesyuarat Agung Tahunan

Mesyuarat Agung Tahunan ke empat puluh tujuh akan diadakan di Pusat Latihan, Aras 18, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur pada 25 Mei 2006 jam 10:30 pagi.

4. Butir-butir lanjut mengenai Pengarah-pengarah yang bersedia untuk dipilih semula

(i) Profil

Butir-butir lanjut mengenai Pengarah-pengarah yang bersedia untuk dipilih semula tercatat di mukasurat 12 dan 13 Lapuran Tahunan ini.

(ii) Penyata pemegangan saham

Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai sebarang saham di dalam Syarikat.

(iii) Hubungan kekeluargaan

Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai hubungan kekeluargaan sesama Pengarah-pengarah yang lain atau pemegang saham terbesar Syarikat.

(iv) Percanggahan kepentingan

Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai percanggahan kepentingan di dalam Syarikat.

(v) Kesalahan-kesalahan yang disabitkan (selain daripada kesalahan lalulintas)

Pengarah-pengarah yang bersedia untuk dipilih semula tidak disabitkan kesalahan-kesalahan dalam tempoh 10 tahun yang lepas.

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ESSO MALAYSIA BERHAD( Company No. 3927-V )

( Incorporated in Malaysia )

P R O X Y F O R M

CDS account no. of authorised nominee

I / We _______________________________________________ (name of stockholder as per NRIC, in capital

letters) IC No. / ID No. / Company No._____________________ (new) ____________________ (old)

of ___________________________________________________________ (full address) being a member(s) of

the abovenamed Company, hereby appoint ________________________________________________

(name of proxy as per NRIC, in capital letters) IC No. _____________________________________ (new)

________________________________________ (old) or failing him / her ______________________________

(name of proxy as per NRIC, in capital letters) IC No. _____________________________________ (new)

________________________________________ (old), failing him / her the Chairman of the Meeting as

my / our proxy to vote for me / us on my / our behalf at the 47th Annual General Meeting of

the Company to be held at Training Centre, Level 18 Menara ExxonMobil, Kuala Lumpur City

Centre, 50088 Kuala Lumpur on Thursday, May 25th, 2006 at 10:30 a.m. and at each and every

adjournment thereof.

My /our proxy is to vote as indicated below:

Resolutions For Against

1. Receive and adopt the Company’s Audited Accounts

2. Approve the declaration of a final dividend

3. Re-elect the following Directors:-a) Y. Bhg. Dato’ Zainal Abidin Putih

b) Mr. Robert Fisher

4. Re-elect the following Directors:-a) Puan Faridah Ali

b) Mr. Lam Foo Keong

5. Approve the payment of Directors' fees for the Independent Non-Executive Directors

6. Re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company and authorise the Directors to fix their remuneration

7. Transact any other business

(Please indicate with an “X” in the spaces provided how you wish your vote to be cast. If you do not do so, the proxy will vote or abstain from voting at his / her discretion)

__________________________Signature / Common Seal

Number of stocks held : _________________________________

Date : _________________________________

Notes:

1. A member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of the member. A proxy need not be a member of the Company and the provision of Section 149 (1) (b) of the Companies Act, 1965 shall not apply to the Company. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991 it may appoint at least one proxy in respect of each securities account it holds with ordinary stock units of the Company, standing to the credit of the said securities account.

2. The instrument appointing a proxy must be deposited at the Share Registrar’s office at Tenaga Koperat Sdn Bhd, 20th Floor, Plaza Permata (formerly known as IGB Plaza), Jalan Kampar, off Jalan Tun Razak, 50400 Kuala Lumpur not less than 48 hours before the time set for the meeting.

3. In the case of a corporation, the instrument appointing a proxy or proxies must be under seal or under the hand of an officer or attorney duly authorised.

4. Unless otherwise instructed, the proxy may vote as he thinks fit.AN

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ESSO MALAYSIA BERHAD (Company No.3927-V)

(Incorporated in Malaysia) An ExxonMobil Subsidiary in Malaysia