Good morning to everybody. I would like to thank you for your attendance. I'm Francesco Gattay. I'm responsible for the Investor Relations. Today, we will present ENI integrated model for the development of sustainable energy, and the presentation will be conducted by our Chief Executive Officer, Mr.
Viscalci, together with the Chief of Development and Operational Technology Officer, Mr. Roberto Casulla and the Executive Vice President for Energy Solutions, Mr. Luca Cosentino. I would like to thank you also our Chairman, Mrs. Enno Marcegaglia, who is sitting in the front line together with our 2 other Board members, Mrs.
Karina Litwak and Mr. Andrea Geba with some of our top managers. I would like also to thank Kepler Chebrou for the organization of this event. And then I leave it to Mr. Viscalci the floor for the presentation.
Thank you, Francesco, and good morning, and thank you, everybody, to be here with us today. The main objective of this presentation, the 2 day presentation, is to give you an update on our environmental, social and governance models. Since last time we met, it was 3 years ago, I think a lot of things happened in E and I and also in the world. And we are here today to present you the update and adjustment we made in our model to face this new scenario. I'd like to start giving you some elements to define the context and the future challenges we are going to face.
The key future challenge for the energy sector, that is our idea, is to achieve a balance between maximizing access to energy and fighting climate change. Today, 2 third of our carbon budget, equivalent to 2,900,000,000,000 tons of CO2, has already been used. That means that we are at our disposal still $1,000,000,000 of CO 1,000,000,000,000 CO2 that we have that is our treasury that we cannot consume. Over the coming decade, we have to consider that the world population will grow from 7,000,000,000 to 9,000,000,000 euros and energy demand will increase by around 30%. There will be also a geographical shift in consumption and 70% of the energy demand will come from non OECD countries, which represent around 85% of the world's population.
A major priority is how to extend access to affordable energy. Today, there are 1,300,000,000 people with no access to electricity, half of them in Sub Saharan Africa and 2,700,000,000 people still using biomass for domestic cooking and heating. However, if the global temperature increase is to stay below 2 degree, we cannot give access to energy as satisfied increasing energy demand with the current carbon intensive energy mix, and that is the main issue. The solution to this equation will provide the basis for the energy transition. Also, this process will take time, at least until there is a technological breakthrough.
The challenge therefore is to change the energy mix thinking in terms of priority, feasibility, long term planning and the world's carbon budget as we said at the very beginning that we have to consider to solve this equation. So even in this complex and volatile scenario, AIMI's model looks toward long term value creation for both company and stakeholders and pay strict attention to the environment. Our model unites financial robustness with social and environmental sustainability through competencies and innovation, risk management and compliance. We made a decision to grow organically, to minimize risks and costs, and our upstream business is based on conventional portfolio. We awarded tarcent and very complex development, preferring to focus our effort on undiscovered conventional resources and where possible close to existing facilities.
Exploration successes of 12,000,000,000 barrels of oil equivalent discovered since 2,008 have made us the sector's top performer and justify the choice we made to work on the conventional asset and grow up organically. Inspiration is the fuel of our organic growth, allowing us to reach a breakeven level amongst the lowest in the industry, and is powerful in consolidating partnership with host countries. In the downstream sector, we are pursuing a turnaround plan which aims at enhancing efficiency and converting loss making assets into sustainable green business businesses. To successfully execute these strategic guidelines, we have at our disposal a unique cooperation and development model with the host countries, an operating model that minimizes risk and social and environmental impact, and the clear and defined path to decarbonization. For this last point, decarbonization, in 2015, we constituted the Energy Solution Department, which report directly to me.
Now let me talk to you about our integrated approach to risk management and compliance. These functions are now reporting directly to me, having become independent from business and staff activities. This result in a more effective and efficient organization, something that is more crucial in a context with growing uncertainty and risks. The head of these departments that are today with us are appointed by the CEO after consultation with our chairwoman. They are the process owners of the activities under their autonomous responsibility.
They periodically report relevant matters to the Board and to the various control committees. Risk assessments, they carry out with a quarterly review of the company risk profile, which covers all the business lines and 29 processes, encompassing more than 95% of the company performances in terms of cash flow, production and CapEx. Our risk portfolio consists of about 150 risks, of which around 20 are classified as top risks. These top risk has grouped in strategic, external and operational risks. And now let me talk you through our focus on the long term strategy to reach the organization targets.
And before that, infographics. So first of all, I want to say that we acknowledge all the challenges posed by climate change, energy poverty and the need to limit the temperature increase. We addressed these seemingly conflicting issues. We created an integrated energy transition strategy that is based on the following action plan. The first action is to lower CO2 emissions and enhance efficiency in all our operations.
We have already reduced our direct CO2 emissions by 28%, equivalent to 16,800,000 tons of CO2 since 2010. In the coming years, we will continue to grow in the core business, targeting a 0 routine fairing by 2025, and an overall 43% reduction of emissions per barrel produced. Secondly, we aim to preserve the low carbon profile and promote the use of natural gas as a bridge fuel for electricity generation, but also for transport. And 50% of any existing projects are gas. And upcoming development in Mozambique, Egypt and Indonesia confirm our commitment.
Finally, we will spread the development of renewables in the countries where we operate, whilst stimulating technological research. In the downstream, we have already launched the strategy this strategy, placing the production of green bioproducts alongside our traditional business. We were the first to convert a traditional refinery into a biorefinery in Venice, and we are pursuing the transformation of the general refinery in Sicily into green refinery. We have also launched a series of green chemical projects in Porto Torres, Sardinia and Porto Margheria, Venice. Combining gas and renewables is the idle bridge to lower carbon future.
It is the best solution to eliminate coal from power generation. Currently, coal accounts for around 41% of the electricity generation, but causes 73% of CO2 power emissions. If we can substitute coal with gas and renewables, we will already on track to meet the carbon reduction target of 2 degree scenario. We believe in the effectiveness of the International Climate Partnership. So let me highlight the international our international engagement.
In 2014, we were among the founding members of the Oil and Gas Climate Initiative with other 9 oil and gas companies to seek common solution of climate and promote technological development. On gas trading, we have been part of the World Bank's global gas flaring reduction for more than 10 years, and we are committed to reach very routine gas flaring in 2025, 5 years in advance of the EGFR commitment. We are members member of the Climate and Clean Air Coalition for minimizing methane emissions. That's our decarbonization strategy. But now I would like to go deeper into the concept of stranded asset.
A stranded asset can be a resource with a high breakeven price or a resource that is under substitution and therefore with a declining demand. We manage this situation in 2 ways. First of all, our choice is to grow through conventional assets, which ensure lower breakeven. In recent years, while the industry was moving toward more expensive projects, we kept our project breakeven at $40 We have managed to reduce this to $27 following our huge near field exploration discoveries and project optimization. Secondly, gas is very important to our portfolio, accounting for around 70% of our contingent sales.
Gas is the cleanest and most efficient of the fossil fuels and this role in the energy mix is becoming increasingly important. If we add all these factors with our strong position in Africa in terms of reserves, the risk of stranded asset is greatly reduced. In fact, talking about Africa, 1,200,000,000 people live there, 16% of the world population who use only 5% of its energy. The population will grow by $1,000,000,000 in the coming decade, almost doubling its energy demand. And what's more, 50% of the Africa energy mix is still based on polluting biomass like hood and charcoal, which needs to be replaced with cleaner sources like gas and renewables.
Africa then needs to leverage its huge potential coming from more than 14,500 Bcm of proven gas reserves and the enormous possibility deriving from all the renewable sources it has. And for these, A and E's asset and gas and renewables projects will become even more valuable. Finally, I can say that any scenario is more conservative than that of the International Energy Agency. So that evaluation so the evaluation of our projects is not impacted by the forty-fifty PPM scenario. That is scenario to stay below 2 degree.
It's also worth highlighting that any applies a carbon pricing sensitivity of $40 per ton CO2 in real terms that implies a stronger readiness in our project for emission optimization. And now let's focus on the first of our operating levers, our model of cooperation and development in our country. We can see this model in this short video. So what I'd like to say first is that our cooperation framework supports local development, seeks for minimizing social economic gaps, and involves all stakeholders. When we started in Africa about 60 years ago, we were not a big company.
We were surrounded by all the major players who were supported by historical relationship with African countries. For that, we needed to do something more than just investing for export. We invested to capture domestic potential, to increase local development, and raise hosting countries profit share by creating fifty-fifty incorporated joint venture. And that we did first time in Egypt in 1955. And this initial weakness, the fact to be very small surrounded by big guys became our strength, our belief and at the end, in the end, our culture.
We understood that involving the host countries more and supporting their development was the only way to grow together and to be recognized. Essentially, the main step is to pass from being an early shareholder to be also a stakeholder, so be part of the community. By doing this, we became local, anticipating and providing for domestic needs. Even today, this is how we work. Our attention is focused on production for domestic market, so not only export, access to electricity, diversification of the energy mix, so not just oil and gas, but we have to create a community that can live also without it, diversification of local economies, transfer of NOI and technology, local development in Health and Education.
This cooperation model helped development and living conditions in the areas we operate in. It also gave us the credibility that strengthen our ties with the countries. This has been crucial to our growth in Africa, where we produce around half of our equity production and now we are the 1st operator in term of production, number of countries and reserves funded. So that means that the model can work. One of the main issues that, as we mentioned, we'd like to face and discuss now is access to energy.
The lack of access to energy is the main reason for social and economic gaps and for weak development, fragile health conditions and safety issues. In Sub Saharan Africa, around 600,000,000 people live without access to electricity, and the average electricity consumption per capita is around 200 kilowatt hour compared with an average of 2,000 for Asia, 5,000 for Europe and more than 10,000 kilowatt hour for the U. S. For this reason, we decided from a strategic point of view to develop a gas not just for export and that was the main trigger, what changed our position in Africa, but also for supply of local population providing millions of people with access to energy. Since the 70s when we start producing in Sub Saharan Africa, we have shared electricity production coming from our plant with local communities.
So we have plants, we have flow stations, we produce electricity for our production. We're always considering the project to have some more electricity to share free of charge with the surrounding communities. And that creates what I said before, this double flag and to be part of the stakeholder, not just shareholder. They develop and export. And nowadays, talking about access to energy, Nowadays, in the Mediterranean area, we provide almost the entire amount of gas necessary to supply Libyan power plant.
We are the only company, IOC company that decided to give all the gas most of the gas to the Libyan market. And we supply more than 5 BCM per year, covering all the power needs. In Egypt, where our entire gas production already stay in the country, we will have to create the conditions for energy independence, thanks to the development of a new giant discovery of the ore. We are selling our gas production of In particular, in 10 countries, we deliver our entire production for local consumptions. Moreover, in Africa, we have invested to diversify the energy mix 50% of which is currently based on biomass and coal.
Just to give you an idea, when I talk biomass when I say biomass and coal, I talk about, as we said, wood and charcoal. And worldwide, the biomass used for domestic cooking and heating are producing more than $4,500,000 debt. And we talk about women and children because they are using domestically, they sleep and they and that is one of the major issues. Just in 2013, in Africa, we had more than 400,000 deaths in 2013 because of the use of biomass. So biomass is not just polluting, but is a big issue for Africa.
So in Sub Saharan Africa, we have invested in power generation in the generation using associated gas, which has traditionally been flared. And today, we are the leading power producer among all the international oil companies. By doing this, we have managed to improve access to energy in areas where the energy supply was scarce and unreliable, while reducing gas clearing. And that was the first big step when we decided to clearing down and use this gas to create energy. And that means that we invested a lot of money to do that.
AEMI has installed more than 1 gigawatt of electricity capacity in 4 plants in Nigeria and Congo and transmission infrastructure, we provide 20% 60% of this country's respective electricity supply for an investment of more than $2,000,000,000 And that was a clear choice because instead of export this gas, maybe making more profit short term, we decide to reduce our profit short term and create more value long term for the country, but also for us. And what we became in Africa is also because we apply a view that is more focused on the long term. I know that's analysts and investor. I'm not sorry about long term. They prefer the short term.
But if you want to invest in a company that is still alive in 10 years, we have to look at the long term. So in total, in the sub Saharan region, we have installed electricity plant to provide power to over 18,000,000 people. This model will soon be replicated in Angola and Ghana, where we have already signed an agreement for the development of new projects, as well as in Mozambique. In line with our projects to sustain low carbon energy mix, we are investing in renewables to include various energy solutions that are customized to the needs of the countries, generating energy from renewable sources alongside existing oil and gas production by using facility already in place on through off grid. This is a new model.
I think that you saw the new press release of the agreement we signed in Algeria and Egypt. And now we are going to extend this view that we'll present later on by Luka Cosentino that is in charge of the new Energy Solution department. Our view that we our model that we call brownfield model because we are the aim is to replace the internal consumption of our activity that is huge because we consume about 3 gigawatts worldwide for our internal consumption. So our aim and we use gas, we use oil, we produce CO2. So our aim is to replace this consumption through with a portable tank and solar.
Why we can't do that? Because we are in this country and we are in Africa. Africa is much richer in sun than in oil and gas. And they are not using at all. And so that project that can increase our renewable capacity has been we started discussion with the countries a couple of years ago.
We are going to do that and we started projects, essentially project this year. 1st project, 1st result 2017, we started North Africa and then also on the other activity in Africa and Asia Pacific and Italy. We presented already a summary of what is our Italian project, but we are going also to do that in Italy. And that is also another subject that will be discussed by Luca later on. So energy, first problem, access of energy to aim at the development and to reduce the gap that exists between rich and poor people, people that are anything to survive and people that can stay a little bit better, but this gap can be filled if they have energy.
Outside the energy sector, we are actively engaged in promoting local projects, helping diversify country's economy and supporting agriculture program. The other big point is we are an oil and gas company, but another point to look at the future and aim at the value is also to create alternatives. This country can really survive and live better if they have alternatives. Sometimes oil and gas creates some desert of economies, of initiatives, of entrepreneurial initiatives. And what we think is that we have to give energy.
The energy can give these people the possibility to develop other activity. They are not just oil and gas. And now we talk about what we did in the last 20 years and that was another winning factor for our presence in Africa. And agriculture is one of the main points. Talking about what we invested, so in the period 2010, 2015, we have invested around $600,000,000 supporting more than 4,000,000 people through agricultural projects, access to water, health care, education, and in the next 4 years, we expect to maintain more or less this kind of investment.
Between 20102015, we involved 550,000 people in agricultural projects. An emblematic example of this economic diversification is the Green River project in Nigeria, which aims develop agriculture and promote modern farming technique and new crops. We started 27 years ago, selecting the most appropriate seed with the support of Lagos and Florist University, turning local people and incentivizing microcredit over and over the year, this project has grown, creating now 500,000 new jobs. We started with a few families. We started with about 20, 30 people and now really became a very sustainable project.
And that is we have to consider that is in the heart of Niger Delta, in the Delta state, where really we have the delta, the major delta and was a is between the land and the swamp area. So has been not easy to perform, but these people didn't have anything and now they have a job and they are leading what they are producing. And they are not leading to the oil and gas. And there's a huge amount of people. Other key concern are access to water and education.
We carry out projects in 11 countries, providing supply of clean water to around 130,000 people. We are also involved in the provision of education facility for 90,000 students mainly in Mozambique, Kazakhstan, Nigeria and Congo. Finally, our sustainability projects focus on better health care including prevention programs, training for medical personnel and provision of medical supplies involve 1,000,000 people. And now as a last point, as a last leg of our model is sharing of know how and expertise. And that is essential because it encourage the development local skills and streamlines the supply chain.
In the last 5 years, we have increased the share of our local employment by more than 21%, And on average, we reached a level of around 80% of local employees in our consolidated affiliates. In Egypt, Libya and Nigeria, our historical countries, 92% of our employees in 2015 are local. On the supply chain in 2015, we spent €13,500,000,000 on local procurement, a 20% growth in 4 years, working with more than 9,000 local contractors, which provide around 66% of our procurement. So I conclude this first part, and now I give the floor to Roberto to present our operating model.
Thank you, Claudio. Thank you, Claudio, and good morning to everybody. The second lever is our operating model, which is characterized by continuous effort in minimizing risks along the whole production cycle. On this specific risk evaluation and management is carried out in all operations to support decision making and efficiency. Focus on minimizing risks and safeguarding people and the environment is a must in our operating model and one of the main targets of each phase of the production cycle.
Safety and environment are at the top of our priorities, But let's watch now a video showing our performance. Well, for the last 3 years, we have been the industry's top performer regarding the reduction of injury rates. In 2015, the total recordable injury rate was 0.45%, which is significantly lower than the peer average of 1.3 and testifies to our commitment to improving our safety performance where we target a zero level of injuries. In terms of environmental protection, we are also improving all our performances and indices along with a growing commitment on conservation of natural resources. For flaring, we cut flare gas by 3 quarters compared to 10 years ago, and we target 0 routine fraying by 2025.
We have halved upstream methane emissions since 2007, and we will further reduce them by up to 80% by 2025. And finally, we have raised their injected water rate from 40% to 56%, and we plan to reach 64% by the end of the decade. All these results have been achieved thanks to our strict policies and procedures, which also cover related issues like conservation of biodiversity, attention to sensitive areas and water stress. Now let's move to exploration. Exploration is the 1st building block in growing reserves and consequently our company's future and success, as well as being the strategic driver behind our low cost organic growth.
For this reason, we decided to strengthen our exploration organization and strategy. Indeed, our objective was to manage exploration activities with a more entrepreneurial spirit, more way to competencies, fitting closer with the rest of our upstream strategy, which is pointed at optimizing time to market in developing our discoveries. To do this, we built a balanced exploration portfolio where we have a proper mix of near field exploration opportunities and few high risk, high reward frontier initiatives. The first provide us in case of success, a fast time to market taking greater advantage of already existing infrastructure. The second gave us the transformational discoveries and the volumes that will provide the base for reserve replacement and long term production growth.
In the last 8 years, we have discovered, as Claudio said earlier, around 12,000,000,000 barrels of resources at the unit cost of $1.2 per barrel. This means we discover 2.4 times what we produced in the period, far above the peer average of 0.3. One such exploration success is Zohr in Egypt, the latest giant discovery, the 5th in the last 5 years. All of which are located in different basins and proof new plays. Out of 12,000,000,000 barrels of resources discovered so far, we have promoted around 8,500,000,000 barrels to 3P reserves.
But how did we get here? Well, as I said earlier, in 2,008, we made a strategic decision to change our approach in exploration and to develop internal competencies and proprietary technologies. These last 8 years, we have spent more than €200,000,000 in geophysical and geological research to develop our proprietary technologies for seismic imaging and petroleum system modeling. And this is in order to better quantify the geological uncertainties, derisk exploration, derisk the asset life cycle. These technologies are based on complex algorithms and implemented on our high performance hardware platform located in our green data center where we can call on 4.5 petaflops of computing capacity.
With this, we can process about 90% of the depth imaging projects in house, saving on the cost of licenses. All of this is also instrumental in fast tracking the transformation of the discovered resources into reserves, but we will come back to this later on. So let's go now to how we turn exploration successes first into reserves and then into production. So I mean our development activities. The transition from resources to reserves is the result of workflows, processes, organization that have been critically reviewed, in some cases, in the light of lesson learned on the operated and non operated projects.
And why? To mitigate the execution risk and improve the time to market and enhance the profitability of our projects. Indeed, we have left behind the usual sequential pattern of our activities, choosing instead to carry out most of these in parallel and with greater integration among the different disciplines. This has had 2 main results. The first one was that we can perform reservoir modeling during exploration and appraisal phases.
And the second one is that the design of the surface facilities can be tailored to the way the information on the reservoir and the fluids is evolving. All of this contributes to reducing subsurface risks. The close integration from exploration to production startup activities means fast tracking resources into reserves. Indeed, to mitigate risks associated to development activities, reduce cost and enhance the time to market, we pursue a simpler, more effective and manageable approach composed of the following elements. Firstly, a phased approach.
This gives us a better time to market of our project and accelerate ramp up. 2nd is design to cost. This is where the project is optimized to reduce development cost whilst making sure the facilities are energy efficient and environmentally safe. 3rd is the strict control on project execution, contractual strategies, design freezes and maintaining high level of supervision by using our own people. Finally, a closer integration between commissioning and operations.
This approach resulted in an average upstream cost of our new projects from $30 per barrel, the level in 2014 to around $20 per barrel now. Furthermore, another important element is a high level of operatorship, which will reach 90% in our start up in the next 4 years, putting us in a position to strictly control risks, cost and time. Let me give you some examples of our integrated approach to exploration and development. Marine 12 in Congo and Nowruz in Egypt. Both Marine 12 and Nowruz come from our NIL field exploration strategy.
In Congo, we reached 1st oil just 11 months after discovery. The huge potential of this play is now about 5,500,000,000 barrels of oil equivalent of resources and we expect further upside, reaching overall production of 150,000 barrels of oil equivalent per day at the end of this decade. In Egypt, the Neuruz field has reached in only 13 months a production level of 128,000 barrels of oil equivalent per day. And we expect it to reach a production of almost 160,000 barrels of oil equivalent per day early next year. Let's now focus on our drilling activities, where we manage one of the most relevant technical risks of our business.
Well, to give some numbers, over the last 4 years, we have drilled both in operated and non operated activities, an average of 4 90 wells per year, with 15% is represented by critical wells. Our drilling activities are managed through an advanced risk management model, which is based on 3 pillars: competencies, processes and technologies. For each well to be drilled, we make a detailed analysis And if the risk is too high, we simply decide not to drill the well. Let's start then from competencies. The technical organization located in headquarters closely follows up the professional family worldwide and ensures that all our people are properly trained and have the right competencies.
This is achieved through an intensive training program and a dedicated learning process on the job with the aim of maintaining the ownership of operations through the internal know how. In 2015, only for the drilling activity, he and I invested more than €5,000,000 to provide over 100,000 training hours with about 1800 attendances. In terms of processes, all wells classified as critical, for example, high pressure, high temperature wells, are monitored by the Edgewaters Technical Organization, which must give its endorsement to the well drilling design before activities start. Then during execution, we closely follow-up critical well operations through our real time drilling center where the same information available at rig site are shared with the most qualified experts who provide full technical support to lead the operational decision wherever the wells are drilled. Finally, E and I is the leader in the development of technologies aimed at maximizing safety.
All new technologies are developed internally, starting from the proof of concept to the engineering design and the application of patents. In the last years, the use of innovative technologies and the E and I approach have reduced the probability of incidents by an order of magnitude compared with the peers. I mean, one event over 100,000 wells versus one event over 10,000 wells. And we intend to reduce it by further order of magnitude. Furthermore, we have developed a proprietary system named E WISE, any well incident systematic evaluation certified by a third party, which allows to accurately estimate the probability of incidents and to select during the engineering phase the well design that minimize risks.
Then during execution, it allowed us to focus the attention on critical operations. At the same time, E and I has focused the research on the development of emergency response technologies such as the dual ROV killing system, RapidCube, which is a containment system. Both these technologies enable us to quickly restore well safety conditions in the remote case of an incident, reducing its potential consequences. And now focus on our policy in order to preserve one of the most sensitive regions, the Arctic, where we are operating around 130,000 barrels of oil equivalent per day. Our operations today are concentrated in three areas.
Firstly, we produce from 2 fields in the North Slope in Alaska, and we are exploring and producing in the Barents Sea where we have recently started the Goliat field. According to our policy drilling activities in the Arctic are carried out exclusively in the ice free offshore areas, satellite monitoring to detect the presence of icebergs and remote monitoring for all activities are in place. Site specific procedures are applied to guarantee the conservation of fishing activities and biodiversity and our operations take place only when there is a minimal effect on the marine habitat. In terms of activities, we apply all our drilling and containment technologies we have seen earlier. Of local populations, keeping them informed, safeguarding their activities and making use of their skills for the management of emergencies.
For example, the use of fishing vessel for the containment of any oil spills. In addition to the areas already mentioned, we also have a long term interest in Northeast Greenland, where we are performing very preliminary environmental studies in the Russian balance. Once again, our driver is to carry out activities only in areas where we can operate and manage both routine and emergency situations through existing technology and where we are expecting a breakeven price in line with our portfolio. And now I would leave the floor to Luca Cosentino who will give you more details about the action we are pursuing on our path to decarbonization. Thank you.
Thank you. Thank you, Roberto. Good morning, everybody. So let's start now with the path to decarbonization. And let's start in particular with the role of gas in the transition process.
The promotion of gas is key to our decarbonization strategy, which in turn is based on the ideal energy mix of the future. According to the IEA scenario, global energy demand in 2,030 will increase by 21% with respect to the current levels, reaching 16 gigatons. However, this growth would only involve minor changes in the energy mix. Coal will still play a major role, satisfying 20% of total demand, while model renewable will contribute just 4%. As a consequence, this will cause a further increase of total GHG emissions from 32 gigatons in 2013 to 35 gigatons in 2030.
If we do not intervene to change the energy mix, we will not be able to reach the goals of meeting energy needs and safeguarding the environment. We all know that modern renewables like solar and wind have a very positive impact on the environment. But today, they still suffer from several limitations. Extended areas that are needed for installation, A wind field, for example, needs 200 times the space of a gas power plant intermittence, subject to the availability of the natural source and to climate conditions low utilization factor and geographical misfit, meaning that high potential areas are often far from consumption areas and require large investment in infrastructures. When considering the pros and cons of the different sources of energies, it is clear that today the best partners for renewable is gas.
From an environmental perspective, gas fired power plants are more efficient and produce about half of CO2 emissions with respect to a coal plant and none of the other pollutants such as SOEX, NOEX and fine dust. In terms of cost, gas is a highly competitive resource as well as being reliable and secure. Gas is therefore the best energy source as it can supply power systems with base load profiles and considerable flexibility. We also have to remember that gas is largely available and easily accessible with current estimates of proved worldwide reserves around 200,000 BCM. In this transition process towards renewable, natural gas is the ideal fuel for electricity generation and has also an important role to play in Today, 58% of ENI portfolio is made up of gas, and the forthcoming project in Mozambique, Egypt and Indonesia confirm ENI commitment in this front.
In terms of greenhouse gases reduction, we have implemented a number of initiatives that allowed us to reach a reduction of 28% in 2014 with respect to 20 10 levels. In the upstream sector, in particular, in our operated asset, we have reached the level of unitary emission of GHG of 0.2 tons of CO2 for each ton of oil produced, which is among the lowest in the oil and gas industry. In coming years, we are planning to further improve these levels, targeting a 43% reduction of GHG intensity by 2025. We will reach this goal through 3 main initiatives: continuing the reduction of flared gas, mainly in Nigeria, Congo and Libya, with a planned 0 emission target in 2025 improving the monetary and reduction of the fugitive emissions of methane along the oil and gas value chain, aiming at a reduction of 80% of GHG emissions in the upstream sector and further improving the energy efficiency of our plants. Now let's talk about renewable energies.
First of all, let me highlight that ENI is not a newcomer in this field. We have been working in solar technologies since 1980. And for over 30 years, we have been engineering and producing high quality photovoltaic cells, installing more than 50 large scale solar plants, both in Italy and internationally. We therefore have a distinct competence that form the basis of our new approach to this business. In late 2015, as the CEO we have created a new department named Energy Solution reporting directing to him and whose objective is to identify and deploy new initiatives related to renewable energies.
Since then, we have developed an original business model, which is complementary to our traditional oil and gas business, and it is based on a number of distinctive competitive skills, which includes our global presence and large portfolio of industrial assets that provides us with a large number of opportunities, both from a geographical and a technological point of view. The know how in managing large scale projects in a number of different domains from upstream to downstream to power generation. Our excellence in research and development and our ability to timely deploy the best ideas and concepts and finally, the capacity to activate multiple and flexible financial levers according to type of projects and location. We have identified 2 main types of projects, brownfield and greenfield. Brownfield projects are related to existing industrial assets and have the objective of producing energy from renewable sources, taking advantage of all industrial, commercial and contractual synergies.
This includes fossil fuel replacement projects, like for example, replacing fuel gas with solar power. And then greenfield projects, which are new renewable energy projects not related to existing assets. In recent months, we have identified and launched a number of large scale renewable energy projects, both in Italy and internationally. In Italy, we have started an important initiative called Progetto Italia, whose objective is to make use of our own industrial land in order to implement renewable energy projects. We have identified 15 projects so far for a total capacity of around 220 Megawatt, mainly photovoltaic, that will be installed before 2022.
Outside Italy, we have already started utility scale photovoltaic projects in Pakistan, Egypt and Algeria for a total plant capacity of around 160 megawatts to be completed by 2018. All these projects will be realized in a fast track mode. We plan to take 6 FIDs by the end of this year for a total capacity of 150 megawatts. These plants will be completed and connected to the grid between end of 2017 beginning of 2018. In terms of avoided emissions, the current portfolio of projects will save about 0.3 megatons per year of CO2 for the next 20 years.
In the longer term, we will work to maximize the use of renewable energy in all our facilities as well as expanding our overall installed capacity with objectives of making our business more efficient in terms of energy production and consumptions, while contributing to the reduction of greenhouse gases emission.
So we arrived at the end of our presentation. Let me find the last slide here. So at the end of this presentation, what we'd like to do is present our new brand new mission statement for Eni. And I think that is a nice opportunity because I think that our mission statement summarize the essence of this of today's presentation of the ESG efforts. And I'd like to read with you and then make some comments and then pass to the Q and A.
So we are an energy company. We are working to build a future where everyone can access energy efficiently and sustainably. Our work is based on passion and innovation and our unique strength and skills on the quality of our people and in recognizing that diversity across all the aspects of our operations and organization is something to be cherished. We believe in the value of long term partnership with the countries and the communities where we operate. What I'd like to say that I'd like to take at least 3 main keywords or 3 main key state key statement from this mission statement.
The first one is access to energy that is inside our mission, which means for us development and building a better future for humanity. The second point that is equally important is diversity, which means respect for the others, inclusion, and enhancing all the potential around us. So I think the diversity we want to put in our statement, we want to put in our model because it's what the appreciation of the and the inclusion of the diversity is that what help us to grow and to become what we are. And the last point, last keyword is stakeholder engagement, which means create long term value. So we finished the presentation and we are ready for Q and A.
And we'll answer with all our colleagues that are present and maybe also our Chairwoman and our directors, if they like. Thank you very
much.
Okay. We are ready now to start with the Q and A session. First of all, I would like to say that we will have a session dedicated for investor. After the break, we will have a question time for the Zolovid. So please, for the Zolovid.
Please, before asking, state your name and company. Thanks.
Dan, that's me.
Bertrand, Kepler Cheuvreux. So just before asking my question, we'd like to thank you again for choosing Paris and for choosing Kepler Cheuvreux to help you organize that important event for ENI. So my question, 2, please. 1 on Goliath. There has been several reports in the press about potential safety breaches and security issues on Goliad.
Can you give us an update on the status? And also on all the remediation measures you may have taken since the various incident? And the second question, you also consumed around 3 gigawatts for your own, I would say, production facilities. You have several projects that you've announced in Algeria, in Egypt to try to substitute gas to renewables for your own, I would say, production? What are the targets you want to achieve in terms of this potential substitution inside those 3 gigawatt?
Okay. So first question is Gorgias. And thank you for your questions. So allow us to explain what happened. First of all, Goya started this spring and we already produced more than 10,000,000 barrels of oil.
From a technical point of view, we never had big problem. We have just had twice a litre per shutdown. You know that to reduce CO2 emission, that is a very good project also from this point of view to reduce CO2 emission. All the electrical generation is onshore and then we have cable to give power to the platform. That is quite unusual because normally in the oil and gas business, we use our gas, for example, mainly gas, 100% gas, to give continuity.
We have our generators, and we give continuity. That is because we want to keep continuity in our process. The process is quite dedicated because involve wealth, involve separators, involve transmissions, involve offloading oil. They use power to offload oil. So we want to be sure.
But now we thought that with the government, we thought that to reduce CO2, we have to make a big effort. So that causes some problems. So from a technical point of view, I think that we didn't have big problem. I think that when we start up in a so dedicated environment, what we did, we realized a platform that is very sensitive, is very touchy platform that as soon as you touch something, it means you react in term not just in term of emissions, clearly gas leak, clearly, but also some human error. So there are other systems that are more for which the tolerance is much more higher.
In this case, we wanted to really to reduce the rest. So we had some growing up in the knowledge and the experience of all the team. The team moves all the staff teams and all the operational people. And so the soft issue has been much more important in this case than the hardware. So the hardware was good, is good, but all the software that require strong knowledge to put up in place these projects has been quite important.
Also to consider the old big projects, now we are in Norway. So I was saying after once a while, all these projects have a long time to a long transition to put in place and fine tuning all the different systems. So we have to think that is just 4, 5 months of production and so big system sometimes require. But additionally, we have also these things that we have to train and retrain. And also, I have been there, talked with our people and also the stakeholders with all the Norwegian institution.
It's clear that the Norwegian system is very clear. It's a 3 party system. You have your workforce, CCR company, you have your union. And so and you have to involve inclusion and involvement. And I think that we learned the lesson.
We paid the lesson quite expensive, but we learned the lesson that you have to adapt yourself on the system where you live. And this 3 party system that is very good, is very powerful, you must understand. The first time that we operated there, so I want to really to be very clear and candid on that. I have to learn, we don't, I think. But it's clearly that dialogue inclusion was one of the issue we had.
And I hope that we are improving. The second point is perspective and this is a very important question because it's related to our longer view about the decarbonization process in our company, especially because we have a big advantage, a big opportunity. We have a geographical feat because we have a we are we are and we have operation where we have the renewable energy in a very strong dimension. So we have sun and so we have the opportunity to do something that is very important. We hope that we can replace an important part of these 3 gigawatts.
I think that we have to the work is in progress. That would be our 10 year plan. So it's a big project that is going to we are going to work in the next 10 years. We want to facilitate also green project, as Luca said, off grid, especially in subside in Africa, where you cannot reach all the different points. We already did some exercise some years ago in Congo.
But I think that this is one it will be one of the main project, I say, 10 year project. From the first estimation, we can say that we can we have the possibility with the existing technology to replace at least 1 third of this. And we aim to do more, but and that will be a very important plan because it's going to free up a lot of gas, a lot of fuel that can be that can use in the in this in our countries where we work.
I thought the question about the Golar platform was interesting, and I wanted to add to that question about the DAGLAS project and also about the actually the final
So sorry, can you repeat because you're disturbing me.
So It's a
progress project and I'm probably mispronouncing it, but it's the Val the Agri field.
Ah, Val Douglas.
It's the old show Italian gas. So again, with the Douglas project back in 2013, the U. K. Regulator has issued requested any to inspect the transmission pipe supports. And then earlier this year has issued a note a provision notice that forced a shutdown of the field.
Then in the case of the Dival, the agri field also enforced shutdown provision by the Italian regulator and also some arrest in connection with the inspection. So the question is for the VACLOS field, the question is has any done something how did any respond to the early morning?
There were COVID, wasn't it?
Have it it was there any response from any back in 2013, but there was a first warning from the U. K. Regulator? And the question about the second question is also, is there a pattern of ignoring early warnings until there's a more serious full shutdown or investigation?
So just to give you, this is part of our trend because we have so many projects and I can answer about Valtagrid that is a quite clear case, at least for me. And you can answer about Valdagari. You want to talk about Valdagari? So let me talk about Valdagari.
Yes. About that, you are describing a case that it could occur in Tafen, and it is the first kind of warning that was, let's say, assigned to the U. K. We know that that is part of the Liverpool Bay that was acquired by NII by a previous operator. It's mature fields.
It is part of normal activity. So it could occur. It is the first case that it occurred. It was already replaced what happened. So the field is currently back to operations.
So there is no, let's say, specific or any kind of off events that are, let's say, justifying this kind of a pension rate to value.
So for Vantagry, I think that is a more serious stuff, it's better to address. What happened is that we received an injunction, and we stopped production in end of March beginning of April for something related to water injection. So water injection in the water disposal well. The issue that has been said that the water composition was not in line with the rules and authorization that we received for the project. This issue is not just that we neglected the warning, it's that when we receive the warning, we ask a complete third party to run the test for, I mean, 90 days, and then we test that without our people.
And the composition of water was in line with the authorization, with the Italian laws and with authorization in the international standard. So exactly what we inject in the U. S. Or U. K.
Or Norway or Kazakhstan or everywhere. So we discuss with the prosecutor and then we obtained the possibility to restart. We made additional separation for oil and gas, some very marginal remediation job that didn't imply any new authorization in the project. So it's been done very quickly. Our position is clearly that what we did and what we are doing is aligned with the rules.
Just to give you an idea, this process, this project that is run by us and as part of Shell passed through a very long process, authorization process. In Italy, we have at least we have 26 different signature and authorization between the central and the region and all the different stakeholders. So, has been very, very long. In Italy, the time to market is at least double or 3 times what we have on average in the rest of the world. So that means that there is a lot of attention because the environment is very sensitive, a lot of population, small countries.
So regulation now may be more stringent than in Norway, if I can say. But in this case, what we think is that we need the right things. So now there is a process ongoing. We're going to sue at the end, But it was not that we neglected some early advice or some early notice is that we think, and also the third party think, that what we are doing is in line with this international standard. So that is my answer.
Thank you and thank you for the very interesting presentation. I have two questions. One is on your integrated model and the other one on governance. The first one is, do you envisage to improve the reporting and targets on a regular basis of your integrated model to help us understand how it underpins your core business. We're interested in more granularity into the CapEx, the OpEx output sales beyond your very clear license to operate model.
And the second one is on governance. So we are very pleased to see here our elected representative on the Board But recent decisions raised strong concerns around the covenants of the Board and so and the respect of minority shareholders. So I was wondering if you could give us some views on that.
Okay. So I can answer on the first question and I ask our chairwoman to answer to the second one. Well, for the for the first question, we present our KPI and our results on a 6 month basis. So we have we make full disclosure. Now we once a year, we are going also to make a presentation, a specific presentation on sustainability, environment, social issues, many of these today.
So we want to start a tradition to disclose completely what we are doing because we are doing a lot, and we understood that nobody knew or few people knew about our big efforts on sustainability. So the answer is yes. So we are going to present figures, but we are going to we'd like also to start presenting how we work that is giving much more color and understanding respect to just numbers.
Thank you for the question. It's my pleasure to explain what happened. I think you are referring to Carina Lydac's situation. So what happened is the following. In July, the Board was made aware of a judicial investigation involving, among other people, also Karina Litvak, which alleged wrongdoing, so offense against ENI and its CEO.
And if you want some more details, I can do it, but it's like it's an offense against E and I and CCO. Of course, as always we do in this situation, the Board took legal advice. And I don't know if you know the civil code the Italian civil code and the Italian statutory rules and also the Italian corporate governance code, they said that when there is the risk of prejudicial circumstances, the Board could be liable for negligence if it doesn't take action. So in this situation, the Board felt in a certain way it had no alternative but to remove temporarily Carina from being part of the Risk and Control Committee. Of course, she's still a member of the Compensation Committee.
She's still a member of the Sustainability and Strategic Committee. She's of course, a full member of the Board. She worked a lot with us. And why we did that? Because this was done because there was a concern regarding a potential conflict of interest between her position and the Board and the company.
But there is no sending, I want to say that the Board has full confidence in Karina's competence, integrity and innocence. We are determined to work constantly in a way in the best way with her. And I think I can say that she wants to work in the best way with the Board in the interest of the company. We are also working together very closely because we'd like to bring the calls to the exclusive possible conclusion. So we are also working on that.
And of course, as soon as, I mean, the charges are dropped, it's my firm intention to propose to the Board to renominate her in the Risk and Control Committee. And apart from this, of course, we are give her full support, moral and also financial. So we will pay the company, we will pay for her defense. I mean, there is an insurance. We think the insurance will pay, but if there will be any problem with the insurer, the company will pay for her.
So it's very clear this. And I think we will work all together in the spirit of the best mutual trust and ongoing collaboration. Today, she's here with us, and we are very happy that she's here with us. And of course, we consider very valuable work on any field, but particularly on the field we are discussing together today.
I just have to add one point that we in this for this presentation, Karina helped me on the Q and A just to give you just to give you the how is the situation and the environment. Unfortunately, that happened, but we are working very closely and warming together.
Matthias Baer from BMO. And thank you again for the clarification now on the governance issue. And we look forward to receiving more information as this matter progresses. I've got 2 questions, one relating to what you were speaking about the portfolio resilience, how you're testing that at any. And you talked a lot about cost competitiveness and your focus on gas.
You said very little about oil and how you stress test different scenarios for how oil demand will impact your portfolio decisions going forward. So if you could speak to that, that would be great. 2nd question is about the new Energy Solutions business that you were talking about. And it's good to see that any together with some of your European peer companies are sort of building up that institutional capability to look at alternative energies going forward. Question is, what are your business objectives with this?
Is this a potential third leg you're growing there in addition to oil and gas? What are the underlying KPIs you're looking at in terms of revenue, in terms of CapEx, R and D? If you could speak sort of more to the numbers you alluded to, Understanding the time line of these objectives would be good.
Thank you very much. We sorry. I didn't ironically speak about the oil, but when I mentioned the 450 BPM, so the 2 degree scenario, clearly, that was related to the oil price. And when we talk about the oil price and we show the oil price that is long term $65 per barrel, that is one of the lowest in the industry. That means that also from the oil side, from the oil point of view, we that is our we are very resilient.
And on view that our upstream portfolio, on average, is $27 per barrel. And technically, is less than $20 per barrel. And just to give you a breakeven, we have less than 1 now we have less than $1 on average. Up to now, less than $1 per barrel on average for exploration. We have 6 $200 per barrel for operating cost, and we have $11 per barrel for development cost.
So we are asset. We are improving because we, with the recent discovery over the last couple of years, we increased the conventional or we can say new field discoveries and that reduced the overall breakeven because we have a less investment, and Ouz was an example of marine. And we go through a transformation of our activities, especially where we are producing oil and gas, we have facilities. We want absolutely our target when we talk about the 3 gigawatts that we consume. And now we are other projects.
We are going to increase the internal consumption. Really, we want to displace, if possible, where possible, but at the maximum level of this. That is a big impact, but it's a transformation inside our core business. And the core business and the renewable one, they are going together. It's clearly that the renewable one exist and we can do that because we are the core business.
So it's an improvement. It's a strong optimization in the core business, making it more efficient. What I'd like to do now is really to focus on that. We have a huge amount of energy that we can produce. We talk about 10 year plan that is very, very important.
We talk about 100 100 of of $1,000,000 to invest. But again, when we talk about this investment and we look at the generated return of these projects, that normally has not so high for renewable. When we look at the renewable business in Italy, you see an average of 5, 6, 4, maybe less if there is no subsidy percent of internal net to return. In this case, in Africa, in our case, also in Italy, in our case, a little bit different. Why?
Because, first of all, we are replacing gas. So we are not burning gas to create electricity, values, renewable. So the gas that we get from this operation is not included, but we have to be included in the term rate of return. We are working on our installations, so we don't have investment. We are working on our land, so we are not bidding or tendering for getting land.
So our surrounding cost, because of the nature of this project, are less. We have the land, we have the infrastructure, we have the facilities, and we move we push out gas that we can get to to sell or to put in the system. So this renewable system, if you ask me, that is a business, I say, yes, this is a business. It's a good business. Yes, it's a good business because you make money, but especially you reduce completely your emission.
And we are in the right place to take advantage out of that. So if their question is, it became a 3rd leg, I think that is a became a 3rd leg and is going to grow as a big leg in the future. Yes.
I am involved in tourist development. Tourist development. Tourist development. This is my specialty. I was very impressed by this slide.
The slide where you have indicate all the action you are making to develop countries, healthcare, education and so on. As I have succeeded in the past to bring some industrial companies, airlines and others to do and to participate to tourism. Instead, to participate in bribe, I think that this is a touchy subject now to participate to the development of the countries. And what you are doing and presenting here is a key for me, it's a key of your presentation. And I think that some countries where you are like Tunisia, particularly Tunisia today, Egypt with what is happening now in Egypt and the disaster in the tourist industry, I think that if you can perhaps with Italian company by the way, develop and reinforce the only potential that this country has and I am also thinking to Morocco where I'm advising the government.
So I think that if you can say, if you are in all these actions that you are now doing, if you can be at the side of the 2 development of some countries.
No. My colleagues remember me that we did in the past in Italy, for example, we work on that with hotels. The question you are making is very interesting because it's a question that a lot of countries, they're asking us to help them to develop the tourism. Tourism and why we we didn't that I don't include that we can't invest as a social project. Why we did?
Because I think that we have to solve first, we have to solve a lot of more existential issues and like poverty, like electricity, like education, like water. We thought that I talked with the one of the president that say, why we don't develop tourism? He say, I it's not it's not sometimes not very nice that we are rich people, tourists, rich people close to somebody that is not able to eat, drink. It's not electricity. So I said to everybody, we are ready to do, but we have we have priorities.
We think that the first things to do is to give equal treatment to all these people. We cannot have to spend money in big hotel. That is, I talk it personally, it's quite what I think from my and a lot of these people dying. There are too many people that are dying in Africa, and nobody say any anything. When I told you that 450,000 people that are dying because they cope with wood or charcoal and they hit themselves with that and they go to bed in the morning, they are dying.
So I take your point. I think that we have to help these people also to diversify. We have to do, but we have to really to focus and to put our countries, Europe or other developing countries and the African countries in front of the fact that we cannot have big gap. We cannot live survive with super rich people and super poor people. We cannot say 1,300,000,000 people without electricity.
No, we cannot say. So is is something that the that the Western countries that our residential model have to face. We have to think about that. And that's one way I talked before about the profit and the value, profit short, value long. I think that as a society, we have to think that the long term is made by equal treatment.
So sorry if I from the tourism, I can to a larger talk, but it's very, very it's very talk of today. And the very talk of our future as refugees is because we didn't think about the future. If we thought that our model is perfect, it's not perfect. That are the result. We create Western, I talk about Europe weaker and a very poor Africa, for example.
So I think that we have to try priority. And because we have still, we have money, we have something, we have to do something with incense. You tried.
Thank you very much again for your interesting presentation. My name is Matthias Naur, I work for Robeco. I have a question related to the carbon price that you make reference to. You use US40 dollars which I think is a little bit more ambitious than what we have seen by some of your peers, but I think also more accurately reflecting the externalities. I was wondering, could you give an example of a concrete project where the investment decision was actually put on hold or canceled the whole project due to this internal carbon price that we use?
Then we I can give the floor to Roberto to give some way to talk about that. We have to start from the point that our projects are conventional, so with a very low CO2. A lot of gassy project and our hurricane 27. That is the first point. So we're also applying $40 We are quite resilient to the CO2 because we are very low.
And secondly, what we are doing in our project goal is an example, where we are from the conceptual design of the projects, then the basic design feed is really to put in place all the different action in terms of processes to reduce the CO2. For that reason, when I in the presentation, you said that the readiness, we use $40 per barrel in real terms so that they grow. And we are ready because from now applying that, we create a conceptual design of the project that is a very, very low level of CO2. And for that reason, we don't have this case because we work to avoid this kind of case. And maybe, Roberto, I don't know if you have to add anything in the evaluation of all the projects that you are developing.
Carbon price, actually no, I have the microphone. We didn't cancel project because of that. But certainly, we started continuous iteration until the project economics were robust enough to go for authorization. As Claudio said, a lot of efforts are put in the engineering design because if for whatever reason we see that the $40 per tons start weakening our project, the profitability of project, we go back to the design and we see how to have a more efficient energy efficient project. And this is possible because in the model I've shown earlier, you have to consider that we have now created in house an engineering hub instead of subcontracting to 3rd parties this activity.
So there is a continuous iteration also on the design of the facilities in a way that we are able to present a sustainable project. So yes, the answer is we thanks to this sensitivity, we definitely intervened on the project, but we did not cancel project.
Maybe Massimo can add something. Massimo is our very well is our CFO.
Just to
give you some numbers. So as Claudio said, we used to verify applying the $40 per tons, the return in our investment. So this exercise has been we perform this exercise every 6 months applied to the full set of projects that are under the supervision on our Board. So we are talking about project that amount in term of full life CapEx more than $40,000,000,000 So the first very short comment that we apply $40 together with a brand scenario that is, as Claudio said, pretty conservative in the environment. So in order to judge the $40 level, I would say the best way to do it is to combine the $40 together with the current scenario.
Having said that, what I would say that if we apply $40 to the overall project I mentioned, the reduction in term of IRR is just 0.5%, so very small. And just 2 projects out of the total would fall below the other rates. But in any case, it would be the return rate of return would be higher than the weighted average cost of capital. So that's the reason why because this project has been launched in the previous environment with higher price and the result today is the one I just mentioned. So I would say the final consideration that we feel much more comfortable in this exercise having seen this kind of results.
I have two questions, if I may. The first one is related, as you say, that Goliath, you learned some lessons. You I'm just trying to understand, does that have any impact on your divestment strategy, especially for the shareholder perspective, how to be sure to set up in a new oil country, a large LNG plant. So in your last conference call, if I understood correctly, you're not expecting to give the opportunity to sell or to give the opportunity of the new energy plan. So does Golar, the event recently changed your mind?
And my second question is going to be exposure to Africa and especially for corruption. I'm sorry to according to some experience, there is a higher probability in these countries. So I'm just trying to understand how if you don't do you have internal different way to deal with these kind of countries?
Thank you.
So for Goliad, no, I think that there is no issue, no way, no hope for everybody to become operator in Goyet until the last drop of oil. Now I want to be clear because maybe somebody can make interpretation about my my work. And we are very happy about our relationship and our relationship there. I have to remember that we have been the first to discover over there and we are the first to put in production in the field. And we have a lot of blocks there.
We operate or we are we are visitor. So we consider that in this kind of environment, the experience that we got until now is something that the country and the other company have to exploit to use. The learning curve is very high. And Norway is a mutual country. And I said that we didn't understood none of them, so now we understood the 3 party model.
So for for corruption that is not just a African issue, I think. It's everywhere. So we have our IT principle. We have our rules. We have our filter.
If you consider the country where we are, we are in the country where all the majors are. And normally, with some exception, I think the situation improved in the last years. Why? Because these countries had to be more open in terms of transparency, showing data. Now if they don't show, we show.
If they don't present data about taxes, bonuses or all the other payments, we do. Now we do. And that is a very strong point. And most of the country, in most in most of the country and for all of the big projects, there is a tender. That is another important point.
About the process, the governance, maybe you can give the floor to Massimo Montalani to give explain what is our process.
Let me say that Claudia underline the issue is everywhere. We do have a system whereby there is a risk assessment based on each country. Because each country, for instance, consider even Italy, has some particularities. And that does have an impact on the overall system, which is nevertheless centralized. We have an anti corruption unit, which is now in the integrated compliance model and is segregated from business.
So it's also overlooking on the subsidiaries on the activities they do. And this system has been implemented also looking at the best practice intentionally. We have constant contact with all other peers and we ensure that the system is on with what they do. And Claudio said something which is very important that there is an issue for which is a cultural issue. And probably the perception we have is that it's moving in all countries internally.
And that is something which we probably have to
put an extra effort not only on what
we do for ourselves, but on how we can actually increase the culture in the company, in
the country where we work, which really is a benefit for everybody. I'd like to just to close with talking about the EITI action. So we joined in 2,005. And since 2,005, at least I talked for our company, we have been very proactive. We wrote to all the different and we are written.
We wrote to we are writing, but we wrote to all the major institution, but we met president, we met minister, we met not all or or neither with our people to explain about transparency. And most of the countries now are joining the group. So this about the transparency that is the base to you must have internal rules. You must have, you have to apply internal rules. But it's clear that we need all the system that is moving to a better system.
And I've seen this movement and transparency is the one of the most important things because it's if everybody has to show what it pays and everybody has to show what you receive, then I don't know how they can do, but what they receive is a quite important step. And as a company, I think in terms of EITI, we have been one of the most engaged and publicly also with the public
I just wanted to say, of course, the anti corruption culture is already was already very strong in the company. But when this board started to work in 2014, we dedicated a lot of times and efforts on this. Just to give you an example, in 2013, there was the board, statutory board asked for an impact assessment, an assessment of the overall compliance anti corruption system. The result was a very good one, but then they gave some suggestion to even go further and this board implemented that. We had also some other advice, for example, for another American law company, American law firm on how to do that.
So I mean, the anti corruption process is a continuous progress of making better. We also decided something different, and this was an advice coming from our legal department, for example, when there is a decision has to be taken, the anti corruption office has to give its assessment to the one who has to decide. So if the decision, for example, on investment is coming to the Board, the Board want to see the due diligence on anti corruption. And we had huge, I mean, discussion on some cases, and we look at all the red flags and we decided altogether. So just to give you the idea that this Board has worked a lot on that and we think that we have to increase continuously on this point.
So the attention of the Board is really very high on this. And the last thing I wanted to say is also we decided when we look at the risk, we have a very strong risk management, but we also decided to look also at the reputational risk because also this is something we want to consider. So just to give the idea that we are working a lot on this point.
I think that we are running late. Just the last question, short question.
Yes, hello. Bruno Rodrigues from Montpensil, French Asset Management Company. Today in your presentation, I was very impressed that it took you only 3 months to go from discovery to first oil at Neurom. Neurom. Where I was less impressed is in Nigeria.
For the past 50 years, number of villages, communities in Nigeria have been complaining, shouting, crying, weeping, begging all measures to stop flaring. And this morning you're telling us that you are contemplating another 9 years, 9 years to stop flaring in Nigeria.
Not in Nigeria, worldwide. Worldwide. Nigeria is with I don't know. I'm sorry.
I don't know.
Maybe it's finished neither, but
I doubt it. So can
you explain what's the technical complexity to stop protein flaring? How much money would it cost?
Can you help us understand that? No, I like this question as one of the main points I discussed during my presentation. So we started the fairing down in Nigeria, and we invest in Nigeria and Congo because we are while we have operating and we have a ferry situation offshore, for example, and we invested 2,000,000,000. We invested the 2,000,000,000 and because we decided that we wanted to use this gas for a power plant. So we built in the Niger Delta with a very difficult exercise, we built a 450 in a combined cycle, a 450 megawatt power.
And we reduced drastically our flare. So now, our flare in Nigeria is much, much, much more. It's practically finished, and we are injecting offshore. And now in Nigeria, we are in a steady state. We are not developing anymore, so it's very easy.
When you say that is a wind 25, because worldwide, we are increasing production and we produce more gas. And now we are on each project as an internal project for fairing. And all you use otherwise we inject. GOLLET is an example. GOLLET injects all the gas.
And in Congo, we built a power plant of 300 megawatt now to that can be extended to 4 450 like in Nigeria. And we made also the high tension, middle tension distribution line for the villages. So when you want to reduce flooding, you have to invest. Invest in activity that sometimes less economic. For that reason, I will stress the point.
That sometimes you have to look at the value and less at the profit. And that is, if you ask me how many company, how many company, how many major company built a combined cycle and decide to invest in the access to energy and electricity, not investing in combined cycle. In Africa, 0. We've been the only one. And I have to not this board, but I have to convince the board.
I have to explain to the investors, say, why you put this money? You can have a return of 20%, 22% in your upstream business. You are putting this money that our money in to reduce the flare. You ask me why, and so I have to explain because I look at the future. But if you want money now, say no, this money, put somewhere else and burn this gas.
So we have to consider where we live and the contradiction and the paradox. So there are people that want all and die tomorrow. There are people that say, do something for the people that are dying, so you can ask more. We are in this side. I'm in this side.
I want to look at the future.
The board is in this side.
We are in this side, and my board is with me. I think also my investor. And for that reason, I'm today here to say these kinds of things. That maybe can be a little bit difficult to say, difficult to hear, but I think that we have to do something for our work, for our company, and for ourselves. That's what I think.
Thank you.
I think that this is the best conclusion of today. We now move to the bracket, then we will have the