13 was a year of real challenges, our results were reasonably good. In E and P, the drivers of AAMI's profitability, production was disrupted by exceptional events. The resurgence of internal conflict in Libya impacted oil production throughout the year as well as causing the shutdown of our onshore gas operation in the country in the last quarter. Pricing oil bunkering also affected production in Nigeria. In addition, startups including Kashagan did not contribute as expected.
In the mid and downstream businesses exposed to Italy and Europe, we faced very weak demand. This has been the result of the underlying economic situation in the continent. Consumption of oil and gas in Italy, for example, was respectively 24% oil and 18% gas lower than the pre crisis levels. On top of this, our gas margins were further squeezed by the increasing availability of cheap spot gas and even cheaper coal and by the strong competition of renewables. Refining margins were badly affected by the weakness of oil products prices and by the narrowing of the light heavy oil differential, which impacted the economics of our complex refineries.
Finally, as you very well know, Stifen had a very challenging year. In the context of these strong headwinds, Eni generated resilient profit and healthy cash flows. Focusing on cash flow, our performance was the result of 4 main factors. 1st, the underlying strength of our E and P portfolio. Thanks to our low cost position, we continue to deliver an average cash flow per barrel of around $30 2nd, the ongoing turnaround in our mid downseam businesses, which delivered a €2,000,000,000 improvement in operating cash flows.
3rd, our disposal plan and in particular, the Mozambique farm down, which is an example of accelerated monetization from exploration success. Lastly, our continued capital discipline with overall investments in line with historical levels. In total, we generated a free cash flow of more than €4,000,000,000 supporting our progressive distribution policy without impacting our financial position. Turning now to our 20 fourteen-twenty 17 plan, we do not in any material improvement in market conditions. In E and P, we expect oil prices to decline progressively to $90 per barrel in 2017.
We are penciling in lithium in In Gas and Power, we see flat demand in Europe and in Italy. In addition, annual gas prices come under further pressure in 2014 as older B2B contracts are renegotiated. In N and M, we see consumption of oil products at depressed 2013 levels with small improvements in margins driven by progressive reduction of refining capacity. Lastly, in chemicals, 2 different trends. In base products, commodity products, we see increasing competition from low cost, that's base production, while in specialties, we see growing demand and resilient pricing.
In line with this cautious market view, our focuses on a selective growth in upstream and a material restructuring of our mid downstream businesses. All of this will increase Eni's cash flow from operations by 40% in the 1st 2 years of the plan and up to 55% in the final 2 years of the plan. Let's look at how in more detail. The biggest driver of our operating cash flow in the plan will be, as you would expect, E and P. Upstream strategy is focused on organic growth of low cost conventional assets.
Our exploration will continue to feed the superior reserves replacement, enhancing portfolio flexibility and strength and maintaining costs at a very competitive level. To give you some color, the resources discovered since 2,008 are equivalent to 2.5 times our production in the period. And this success continues as highlighted by the giant discovery Congo announced today. Thanks to the breadth of our portfolio, we will monetize some discoveries or even producing assets without affecting our longer term growth prospects. We a minority stake in Mozambique Area 4 and Arctic Gas.
A minority stake in Mozambique Area 4 and Arctic Gas in Russia. In spite of these asset sales and our prudent expectations in Libya and Nigeria, we target production growth of 3% a year to 2017. Our stream production growth is also very profitable. 1st, new production will be high margin, delivering an annual growth in operating cash flow of 5% at our planned scenario declining oil prices and the growth at 9% at $108 flat. 2nd, we will achieve this growth without any increase in CapEx.
Indeed, investments will actually go down by 5% compared to our previous plan, thanks to the prioritizing and rephrasing of growth opportunities. Turning now to our mid downstream operations. We target return to profitability excluding any improvements in the scenario. Our turnaround is based upon adapting our contracts and assets to the current tough market environment through renegotiation of the contracts, capacity cuts and operating optimizations and secondly, focusing our presence on resilient markets. We target overall EBIT and cash breakeven in 2015.
And over the planned period, these businesses will generate an accumulated €3,000,000,000 in operating cash. Let's look at each business in more detail. In Gas and Power, our turnaround is based on 3 pillars. 1st, the renegotiation of our entire supply portfolio. We target further significant benefits on top of the €1,400,000,000 contribution to EBIT, which our renegotiations delivered in 2013.
As announced last year, our supply costs will be fully aligned to market levels by the 1st January 2016. By market levels, I mean spot liquid markets across Europe. 2nd, the continued development of our premium businesses, LNG, trading, retail sales, which will deliver €1,000,000,000 EBITDA by 2017. Finally, the reengineering of the whole business aligning it to new market conditions by streamlining logistics and cutting fixed costs. We target €300,000,000 of savings in these areas by 2017.
As a result of all this, we target EBIT and cash flow breakeven by 2015. Turning now to R and M. In R and M, we will cut further refining capacity in order to tackle the persisting overcapacity in the Italian market. This will bring our refineries utilization rate up to 80%. Secondly, we will run an efficiency program across the board on logistics, labor and fixed costs.
Lastly, we will fully exploit the synergies with our trading arm to enlarge our feedstock base and take advantage of oil price differentials. The result of this action will be an increase of about €700,000,000 in EBIT, since €700,000,000 which will become positive in 2015. In Versalis, our chemical business, we made excellent progress on each of the three pillars of the turnaround plan we started in 2011. Firstly, reducing commodity chemicals capacity. We've already cut it by 25% through the conversion of Torto Torres into biochemical plant, the downsizing of the Triolo Crater.
In addition, we reacted to the economic slowdown that impacted the automotive sector, specifically tires, by reducing our exposure to elastomers, announcing the close of HEIGHT in the Q1 of 2014 of this quarter. We will further trim our capacity by 5%, mainly through the downsizing of the Porto Marguerite cracker. Secondly, refocusing on more profitable products. By 2017, we will have increased our production of premium products such as elastomers and styrenics by 50% compared to 2013. Lastly, increasing our exposure in fast growing markets and in particular in the Far East through our Malaysian and Korean joint ventures.
As a result of all this, we target EBIT breakeven in 2016. We will achieve cash flow breakeven in 2015. Our strategy will deliver significant improvement in operating cash flow, driven by high value E and P growth and by the return to profitability in our mid and downstream businesses. Starting from the €11,000,000,000 in 2013, our annual average cash flow from operation will grow to €15,000,000,000 in 20 1420 each of the 2 years, a 40% increase and to €17,000,000,000 in 20 sixteen-twenty 17. In addition, we have earmarked €9,000,000,000 of disposals over the plan, which include the cash in from Arctic Gas already completed.
We expect this divestment to be mostly front end loaded. The growth in our cash flow from operations coupled with asset disposal and reduced CapEx profile will result in a 13% increase in annual average free cash flow versus 2013. In case of a flat brand scenario, this increase of 13% would be 45%. Let me now hand you over to Claudio for a closer look at our upstream strategy. Thank you, Paolo.
Good afternoon, ladies and gentlemen. The main objective of today's presentation is to give you more insight on our distinctive E and P model, our short and long term targets. This model is the basis for our strategy to overcome industry challenges in containing cost and generating free cash flow. Before speaking about it, let's have a look at 2013. This year, we recorded our best performer in HFC with a total recordable injury rate 60% lower than the previous 6 years and 0 blowout for the 10th consecutive year.
Our exploration performance continued to exceed expectation with about 1,800,000,000 barrels of discovered resources at $1.2 per barrel. We achieved all the 8 planned major startups and we took 7 main FIDs, adding 2 period sales for more than 1,000,000,000 barrels. The new startups, air ramp ups contributed 140,000 barrels per day to our production. Last year, our production was lower than in 2012, mainly due to geopolitical reasons. Disruption in Libya, Nigeria and Algeria caused production losses for about $110,000 per day.
Notwithstanding these issues, our net profit and cash flow is still very robust at the level of €6,000,000,000 and €13,400,000,000 respectively. To frame our action plan, a few words on the industry context. Over the last few years, the upstream industry has faced 2 key issues, a strong increase in total expenditure and the poor production growth. Since 2008, the major expenditures have increased by about 40%. This was mainly due to big M and A transaction on unconventional plays and increasingly costly projects.
This caused a worsening in the self financing ratio of our peer group of more than 20%. In the same period, HEMI has recorded a 20% saving in cost incurred, which translates into a corresponding improvement of our self financing ratio. So what has made this different trend and result possible for Remy? This has been possible for 4 main reasons. First, we are focused mainly on organic growth from a conventional asset base with no major M and A transactions.
2nd, our outstanding exploration has given us an efficient cost structure, ensuring solid cash generation. 3rd, the timely transformation into production of our yield discovery through a phased approach to investment, which allow us to reduce upfront financial exposures also for giant projects. And finally, our producing asset, the main area of cash generation, where we achieved best in class operating cost and superior recovery factors. Now I'm going to elaborate on our planned target based on our model. In exploration, our objective is to continue obtaining the excellent result of the last 6 years, following the same approach, targeting conventional assets.
To do this, we have renewed our portfolio with 2 main priorities. The first is increasing our acreage on emerging basins. In East and West Africa, where we target mainly gas in Mozambique and Kenya and oil in Congo, Angola and Gabon Presult. In the Pacific Basin, where we are concentrating on oil and gas in Vietnam, Myanmar, Indonesia and Australia and in the Arctic where we target oil in the Norwegian and Russian Barents Sea. And the second priorities come to a major review of our legacy assets where we apply a new geological play concept and leading proprietary technologies.
We have already achieved exciting results in Angola, Indonesia, Egypt and Congo. A remarkable example of this approach is Marine 12 in Congo, where we recently discovered more than 2,500,000,000 barrels of resources in place. Through this discovery, we cracked the code of the pre salt in Congo. This achievement was the result of deploying any leading proprietary technologies to an asset which has already been explored since the 70s without revealing any discoveries. The block operated by Eni with 65% stake is in the shallow water only 17 kilometers from the shoreline and close to our existing offshore facilities.
The M and A3 well has found very good quality oil and during the production test, the well delivered more than 5,000 barrels per day. In addition to the 2 500,000,000 barrels discovered, we expect further oil and gas potential that we will assess through a dedicated campaign starting this year. The proximity to existing facilities, high volumes, good productivity and low cost will bring the new discovery to production already in 20 16. The new portfolio made up of new emerging assets and the revisit, the legacy ones, give us prospective resources of about 10,000,000,000 barrels, of which we are targeting 3.2 in the next 4 years at a very low cost of about $2.2 per barrel. In our model, cash generation starts from exploration where we apply a dual approach.
On one side, a major portion of these resources will be developed to ensure high margin organic growth. On the other side, some of the resourcing can also be used to ensure early cash in through the initial opportunities. This strategy is achievable also because of our very high participating interest in all exploration assets currently in the range of 50% to 80%. The Mozambique transaction is a result of this model. 80% of these huge exploration successes of the last 6 years will be developed in less than 7 years.
The strong focus on time to market as the first key step as the first key step, the timing sanctioning of our projects. In the next 4 years, we will take 18 major project FIDs, mainly in South Australia and East Africa and Southeast and Central Asia. These efforts will deliver 3,500,000,000 barrels of 2P reserves. In the full year plan, we will put 26 major projects into production, more than half in the next 2 years, contributing about 500,000 barrels per day in 2017. These projects are geographically well balanced, mainly through our Europe, sub Saharan Africa, East Asia and the Americas.
Here you can see an update on how we are progressing on the main sanction project, all out on schedule with only few minor delays and very low cost overrun. We ensure a strong grip on our project by conducting most of the engineering in house through a reinforced organizational structure. We directly coordinate all the construction phases and deploy our own people to manage hookup and conditioning. The results of this is a project portfolio where we have better control, reduced risk and contain costs. And now an update on some of our major projects.
The Kashagan experimental program was completed and commissioned with 1st oil achieved in September. The well were on stream and the overall process and critical components were performing well. During the initial production, cracks were discovered in the gas pipeline. A thorough investigation identified a root cause and we have been carrying out intensive repairs to reinstate the pipeline by the middle of the year. At the same time, we have brought forward the commissioning of the Train 2 and the gas injection compressors, having more than 3 months of shutdown and allowing once the gas pipeline is restored a faster ramp up of production without further interruptions.
Also in the event the gas line restart is delayed, the gas reinjection will make oil production possible. Project is one of our major projects. The balance sheet is a very challenging environment that has required us to build the biggest circular FPSO ever, the first of this kind to be deployed in this area. The project has reached 71% progress in line with the plan, drilling and completion activities are progressing in line with schedules. The FPSO construction in Korea is at 89% and the sailing rate expected in 2nd quarter this year.
Production start up is expected by the end of this year and the equity peak production will be 56 $1,000 per day in 2015. Looking beyond the 4 year plan, Mozambique will be pillar of our medium term growth. We have completed the exploration phase, Mamba Complex with 11 successful wells. Potentials' trend in resources account for about 50 Tcf of gas in place, while about 35 are fully included in Area 4, thanks also to our new discovery in Agulia. This year, we plan to drill 1 appraisal well and 1 exploration well.
Considering the significant amounts of newly disclosed resources, an enhanced development scheme has been defined with a total capacity up to 17,000,000 TPA. For Manda's trading resources in Area 4, where unitization has been agreed, is planning 1 initial onshore LNG trains plus 2 floating LNG units with a total capacity of 10,000,000 TPA and an option for a further onshore LNG train. And it's also ready to launch the development for the resources of Coral through a floating LNG. We confirm FID for the 1st phase by year end with start up in 2019. Our project portfolio is largely made up of onshore and shallow water assets with an average breakeven price of $40 per barrel.
Even deep and ultra deep projects
have a
very robust economic with an average breakeven price of $55 per barrel. Our project has very robust also in terms of cash generation. Considering 2013 ramp ups and the 4 year planned start ups, net cash flow will be positive starting from 2015, reaching a contribution of more than €4,000,000,000 in 2017 and in excess of €6,000,000,000 in the mid run. Our existing producing assets remain the main source of cash flow and will account for over 70% of total production in 2017. In order to extract the maximum value from these crucial assets, our objectives are to fight depletion and prolong the life of our field with an average target of $70,000 per day from production optimization project, reduced facility downtime to less than 6%, increased the recovery factor with a target of 43% for oil and about 70% for gas.
Now the Penn's main objectives. In the next 4 years, we confirm a production average growth rate of 3%. Our 2014 production is flat versus last year's excluding the disposed Russian production. This takes into account no improvement in Libya and Nigeria and the marginal contribution from Kashagan. Our performance could improve materially if geopolitical disruption are less impactful.
At the end of
the plan, we will record the major contribution from West Africa, the Caspian area and East Asia with an overall production target of about 1,800,000 barrels per day. In the longer term, major projects in East and West Africa, the Americas and East Asia will sustain an annual growth rate of 4%. In the next 4 years, our spending will be 5% lower than in the previous plan, thanks to the refacing of our project investment. Our rich exploration portfolio allow us to do this while maintaining production growth and targeting an increasing case generation. We expect to meet these cost targets for the following reasons: 50% of our project investment have already been sanctioned and most of the procurement contract have been signed and the cost locked in.
An additional 25% would be sanctioned this year. And second, we have the low exposure to complex projects. Only 20% are in costly areas such as LNG and Water. On exploration, we'll continue to invest in line with our previous guidance. In conclusion, our main objective of sustained cash generation is based on our distinctive model, which defines our competitive advantage.
First, we have a robust economic structure with a cost per barrel of less than $30 made up of outstanding exploration and efficient project development and resilient producing assets. 2nd, over the years, thanks to capital discipline and operational efficiency, we have maintained an outstanding self financing ratio above 100%. We intend to increase this to more than 140%. Leveraging on these factors over the planned period, we are in the right position to increase our cash flow from operation and our free cash flow by 9%. Thank you for your attention.
I'll hand over to Marco.
Thank you, Claudio, and good afternoon. I would like to begin by highlighting the main events that took place in Gas and Power in 2013. Starting with our take or pay contracts, last year we managed to reduce our supply costs by €1,400,000,000 which is better than we had expected. We reached agreements with all our major suppliers representing around 85% of our portfolio with the exception of Statoil, with whom as disclosed we entered into an arbitration in August because we were unable to find an acceptable solution. On volumes, we reached a significant reduction in our Algerian contracts.
This has allowed us not only to avoid further take or pay, but even to recover 3,500,000,000 cubic meters of makeup gas. Moving to optimization and trading, our relatively new activities here in London have delivered robust growth last year. 2013 was also a good year for LNG, both for the diversion and delivery of 3,000,000,000 cubic meters from our portfolio, premium Far East markets and also for the beginning of our effort to market the gas from Mozambique. As a result of all of this, adding back what we expect to recover from arbitrations for 2013, our overall performance last year was in line with guidance, notwithstanding a significantly worse scenario. Let's look at the market context in more detail.
First of all, gas consumption in Europe is back to the level of the late 90s. We now expect that total demand will remain under 500 BCM by 2017. This is still 10% below 2,008 20% below what we had previously foreseen. This year, we expect gas demand to remain flat. Moving to prices, long term contracts in Europe still have to be aligned with the hubs.
In the meantime, the roles of the hubs is becoming more and more significant. This process is irreversible. The power sector, clean spark spread has become negative in Europe and in Italy because of lower demand, poor competition from cheaper coal and from subsidized renewables. Any of these adverse market changes are more structural than cyclical. 2014, we will suffer a decline in the profitability of our B2B sales activity and in our power business.
In total, this year, adjusting for the arbitration with Statoil, expect to offset the more negative scenario and close broadly in line with 2013. In this market context, we built a robust turnaround plan based on 3 pillars. 1st is the opening of a new round of negotiations with our suppliers. 2nd is to grow our high value added commercial segments and the third is a profound restructuring of our operations and logistics costs. Let's go through these 1 by 1.
Starting with our supply contracts. Our target is to buy gas at a price that allows us to make a reasonable margin in each market. Considering the recent fall in gas prices in Italy and the periodic price reviews that are backward looking for a period of 2 to 3 years, the successful negotiations of 2013 are not enough to close the gap between our contracts and the markets. Put this into perspective, had we not achieved €1,400,000,000 savings, today we would be paying 15% above the hubs. Even after the cuts, we are still paying an average price, which is higher than the hubs.
Therefore, we've already started seeking further significant discounts in almost all our supply contracts. These new rounds of discussions will close in 2014, 2015. Given the progress we are making in these discussions and the strength of our contractual position, you can confirm today last year's target, which was to fully align our portfolio to the market by January 2016. In essence, we're only asking our suppliers for a fair application of the contracts. And in one way or another, all these contracts are structured in a way to allow any to make money selling gas economically in the relevant markets.
The stakes are significant. The negotiation process is complex, requires time, sometimes like in the case of Sato also requires 3rd party intervention. Finally, we're also working to revise our volume and offtake obligations in light of the lower demand. The second pillar of our turnaround is to grow our 4 high value added business commercial business segments. In LNG, our growth in the planned period will be driven by selling more of our portfolio into Asia.
In the longer term, thanks to Mozambique, Eni will become one of the top LNG players more than doubling current volumes. In Optimization and Trading, we conduct very low risk asset based activities, equating the size and uniqueness of any portfolio of contracts, transport capacities around Europe. Leveraging a well developed trading platform also enhances our commercial capabilities. The traditional B2B market as we knew it does not exist anymore. Customers now want new price indices, flexible risk management solutions and are no longer happy with the simple commodity delivery.
Finally, other growth area with good commercial value remains the retail market. Overall, in gas, we aim to preserve our leadership role in Europe. Let's turn to the final pillar of the plan, which is our cost cutting. At the end of our plan, we target annual savings of over €300,000,000 per We will achieve this by integrating our foreign subsidiaries into any, therefore, cutting unnecessary corporate costs. 2nd, we will be merging 5 separate operating centers into 1 single platform to centrally manage all our billing, our back office and our other IT based operations, cutting significant fixed operating expenditure.
And finally, we're working to get rid of some of our capacity obligations that are no longer necessary as we sell less gas into the Italian markets. This would have an effect of reducing our annual logistics costs. Adding all this up, we're confident that we will generate sustainable long term profits in this business starting from 2015. Once we complete the rightsizing of our cost base and have brought supply contracts in line with the markets, we expect to generate around €1,200,000,000 of EBITDA by 2017. We also have a potential upside to this number in case the market tightens and the margins improve, which would bring us back to last year's targets in last year's scenario.
Moving to refining. Also here, we're applying an aggressive restructuring program to deal with the conservative outlook in Europe and in Italy. We're working together with R and M along three lines. Most important is cutting refining capacity. We have seen an overall 12% reduction in Italy in the last 3 years with the shutdown of 4 plants.
In this context, Annie has contributed by downsizing Venice and Gela, cutting our own capacity by 13%. In the next 3 years, we plan a further reduction of 22%, bringing our total reduction to over 1 third since 2012. 2nd, we're continuing with our efficiency program to reduce fixed costs and energy costs by a further €140,000,000 And finally, we are now running our refineries in very close coordination with our traders here in London in order to constantly optimize the slate and capture market opportunities whenever they arise. Overall, capacity reductions, cost cutting and asset optimization will contribute €600,000,000 to the overall refining and marketing EBIT target. Thank you very much for your attention.
I will now hand over to Massimo.
Thank you very much, Marco. Good afternoon, ladies and gentlemen. As mentioned in our presentation so far, last quarter as well as the entire 2013 had been a tough time for Eni. 4 quarter adjusted operating profit was down 29% versus 2012, suffering from the exploration and production drop of €1,500,000,000 due to the extraordinary disruptions in Libya and ForEx effects, which together accounting for 2 thirds of the overall amounts. Gas and Power benefited from the renegotiation with Gaspera, which more than compensated the effects of a worsening scenario.
Refining and Marketing reported a loss of around €100,000,000 severely affected by the near zero refining margin that prevail over the benefits of our turnaround actions. 4th quarter adjusted net profit was down €1,300,000,000 down 14% versus 2020, while the full year dropped by 35%. However, our 2013 reported net profit recorded increase of 24%, thanks to the realized disposals that also contributed in keeping the net debt flat comfortably within our leverage ceiling of 0.3. This remarkable financial result was achieved thanks to the robust cash contribution from D and P, material improvement in our mid downstream businesses and CapEx discipline. E and P, notwithstanding the well known issue in production, causing a negative impact of €1,000,000,000 upstream confirmed its high quality cash flow according to net contribution per barrel of $30 in line with 2012 in spite of scenario and inflation effects.
In our mid downstream businesses, we were able to announce our cash balance by €2,000,000,000 thanks to the improvement in working capital, the gas contract renegotiations and the operating efficiencies achieved. At the same time, capital expenditure were kept essentially flat in compliance with our policy since 2,008. Turning now to our plan. Cash generation growth remains the cornerstone of our strategy. In 20 fourteen-twenty 15 period, our cash from operations will recover quickly to reach a nearly average of around €15,000,000,000 The expected 40% increase versus 2013 will be underpinned by improvement in all our businesses and in particular by the gas contract renegotiations and the recovery in production.
In the same 2 years period, we forecast to cash in an average of more than €3,000,000,000 per year from disposals. It's worth mentioning that this amount includes the Russian licenses already cashed in last month. In 20 sixteen-twenty 17, cash flow operations will grow farther up to 55%, thanks to the additional step up in production and the turnaround completion in other businesses, the contribution of which will more than absorb the effect of our underlying declining scenario. As a consequence, the CapEx coverage from cash flow from operation will grow up to 114% in 20 fourteen-twenty 15 and to 126% in 20 16, 20 17. Assuming a flat brand scenario, CapEx coverage in 2016, 2017 will increase to almost 140%, while average fee cash flow along the period of the plan is expected to grow by 45% versus 2013.
And now let me explain why we are confident in keeping constant CapEx profile. Firstly, our past track record. As mentioned before, we have CapEx under strict control since 2008. That was our year of peak expenditure. Secondly, the robustness of our plan.
Around 2 thirds of our CapEx is already committed, which means we have high certainty on cost as negotiated in contract already in place. These elements together with the conventional nature of our project, the Claudio remembered a few minutes ago, give us even greater confidence about our projections. Over the next 4 years, we will invest overall €54,000,000,000 to deliver the growth highlighted today. This means a nearly average in line with past years and the reduction versus the previous plan of over 5% achieved in E and P. More still, we will continue to boost our cash through a material disposal program aimed at rebalancing our presence in core areas, complex projects and managing risk.
Since 2012, we have completed a very substantial disposal plan, selling €13,000,000,000 of assets and cashing back €12,000,000,000 of debt. For the future, including the sale of Russian assets, we are targeting an additional €9,000,000,000 of divestments, among which some exploration from down and the remaining stakes is Nam and Galp. Overall, what we have done so far and envisaged in the plan will result in a total cash in of €34,000,000,000 Our balance sheet will be stronger and more focused on high return sectors. Our average capital employed is expected to remain flat at around €77,000,000,000 with some changes in its composition. E and P has already increased its weight by 13% in the past 5 years is expected to grow further by 2017, while the other businesses decrease or remain stable.
Among upstream geographical areas, we will expand our presence in Far East and Sub Saharan Africa, supporting our diversification as well reducing our exposure to North Africa. Unproductive capital being still in investment phase will decrease from 25% in 2013 to 15% in 2017, thanks to the pipeline of start ups. Over the plan, we will continue to announce our leverage position, which will be kept well within our maximum target of 30%. Finally, we are committed to keeping strong level of cash equivalents tied to potentially maintain 2 years of independence from the financial
Coming up, we will face continuing headwinds in all our markets. We have therefore set out our 2014, 2017 plan based on prudent cautious and conservative assumptions. In this challenging market environment, we will deliver a strong performance in all our businesses over the next 4 years. In E and P, we have built a very powerful engine. In 2017, 70% of our production will come from assets which are already producing today and a further 15% from new fields which are on track to start up in the next 24 months.
Our industry leading exploration success provides attractive low cost growth options, which will be partially monetized through disposals. With regards to our mid and downstream businesses, we are executing a focused turnaround strategy. We have already cut the cash burn from these businesses from €2,500,000,000 in 2012 to €500,000,000 last year. And thanks to our actions, we target 1 point €5,000,000,000 of operational cash flow in 2017. With CapEx past its peak, the net result of all this will be an attractive free cash flow profile, which will underpin a strong financial position and a progressive shareholder distribution policy.
As you know, our shareholder distribution policy comprises dividends and share buybacks. The dividend per share is expected to grow over time at a rate which broadly reflects the group's underlying earning and cash flow growth, while taking into account investment requirements and the overall financial structure. The share buyback program is pushed through the management's judgment when a number of conditions are met. With regards to our 2014 dividend, I will propose to my Board a payment of €1.12 a share, an increase of 1.8% on 2013. As for the buyback, when reviewing the numbers of our plan, I feel comfortable with the current program.
Ladies and gentlemen, thank you for your attention. We would be delighted to answer your questions.
Good afternoon and gentlemen. We are ready now to start with the Q and A session. We'll first collect questions from the floor and then we will reply to a
few questions by phone. Please before asking, stand up and state your name. Thank you. Let's
start. Hi, it's Michel della Vigna from Goldman Sachs. One question for Marco and one for Claudio. For Marco, in 2013, you showed the adjusted EBIT for the Gas and Power division. But could you just walk us through how you get to the underlying number there?
In that I thought that with the renegotiation with Gasper, actually you had a benefit that goes back quite a few years in 2013. But here it looks like you still have more to reclaim. And for Claus, I was just wondering if you could give us an update on Libya and where you currently stand in terms of production. Thank you.
Thank you, Michele. That chart is intentionally qualitative to say that we have taken out the 2012 proceeds from solution of 1 of the contracts. We have tried to give you what we consider apples to apples, because remember last year we said we were targeting to have in 2013, assuming we close everything, same underlying results as the previous year. The previous year had a $500,000,000 one off. The underlying of 2012 was minus.
And so what we've done is taken an estimate, prudent estimate of what we think will recover in the future and added that back to
For Libya, as you know, we had a very prudent approach and we consider same production in 2013 for 2014. We are still in a transition phase. So we have up and down. A few days ago, we reached 250,000 barrels per day. That is very nice, very nice production.
But yesterday, Awafaa has been shut down, so we lost 100,000 barrels per day. So we are always in a transition. Say, we think that it's not just a geopolitical issue, but after 2 years of closing, open our wells, we need also a special maintenance. So for that reason, we hope to be able to have 220,000 barrels per day in average for 2014.
Thank you. Roberto Ramirez from Bancaise in Sao Paulo. Two questions on the E and P and one question on the gas and power. I understand that your strategy is to go where cash flow production are probably more than production increases. 3% is a fewer than last year plan and thus you're enhancing your cash flow.
My question is about your portfolio specifically. In detail, in your chart, you indicated a breakeven price for ultra deep water, which is $50,000,000 65 dollars per barrel. So basically my question is you think that and in another chart you indicated also that this ultra deep offshore production is strongly increasing for 2017, 2020. So my question is, if you see some risk of cash flow generation from this kind of a project. So you see any risk of not for the breakeven path, risk on margins and squeeze your return on the Ultradis quarter.
Another question on the Gas and Power. Okay. The rationalization of the renegotiation of contracts means that you are renegotiating your contract contracts you have currently or you are just also changing your portfolio on this contract? And one more question is that you see in the next few years some risks of a squeezing of the trading margin for the energy gas supply from the U. S.
One very last question is on chemicals restructuring. Could you please give us some indication on the extra cost on chemicals restructuring spend? Thank you very much.
Yes. Let me start with the E and P. So I think that our presentation showed that our strategy has been in the last 6, 7 years to add a conventional asset. And our average the heating price for the future for the project for the future project is $45 per barrel. So we have most of our projects that are between $30 $40 per barrel.
And we have 20% of our, we can say, more costly projects, LNG and B for sure, that are about $56 per barrel. So the average is $45 and we don't have any risky projects. So we have just conventional projects. So I don't see any risk because the margin is quite high because we are about 45%. We don't have any unconventional assets.
We are just conventional assets and just margin exposure on cost of projects. So I think that the future is like now with a very interesting cash flow generation. As I said at the same condition, same price condition, our target is to increase in 3 year plan our free cash flow of 9%. So that is our main target.
Thank you. Regarding our plan, we do not assume any change in the portfolio. So all our targets are based on the existing length of gas and duration of the contracts. However, in parallel with the price discussions, we are entertaining some considerations aimed at maybe reducing some of the interest in the new business phase where the contracts will be more or less aligned with the markets and let's say the old trends that one was able to extract from these contracts is no longer there. So I wouldn't be surprised if going forward we see some volume reduction with the targets you've seen today are based on the existing.
In terms of LNG, certainly the U. S. Will come to market with volumes. We're not seeing that pressure right now in the market nor in the medium term nor in the longer term people who are out there selling because that pressure point yet reflected
chemicals. I take all the numbers of the restructure are included in our numbers.
Thank you. Good afternoon. £2, Jonathan from Nomura. A number of questions. Firstly, just first on Nigeria.
Could you just clarify where production levels were last year? And then going forward with reduced levels of production in Libya, just any guidance on tax? And then just a question tax rate in at the group level, please. And then just a question on the Congo. Could you talk about sort of early production?
I think there's a couple of projects you put in the appendix on gas. But also I was surprised that your peak production sort of in the outer years, I think you're suggesting sort of 25,000 barrels a day from the Congo. So I just wanted to get a clarification on how big you think production from Nene could be.
Nigeria is quite stable in terms of production now. It's producing about 100 and 20,000 barrels per day. This is our liquid production. We are experiencing like last year issue on bunkering and sabotage that is continued. Because our potential production in Nigeria is 180,000 barrels per day.
So we are losing against our potential 60,000 barrels per day. And we can see the rest for Libya the same assumption that we don't have any improvement this year. So it's quite flat. For Congo, when I talk about 5,000 barrels per day was the catch still of the well. So that is the potential for each well.
And we are going to as I said before, that is a joint project and we are going to phase. So we start with the early production for the 2 fields we have, namely El Chincholi in 2015 and the second phase in 2016. And then we continue until 2019 with a at the moment, with what we have found now with the development that will be to a platform because we are in shallow water, an equity production that could range between 70,801,000 barrels per day.
In terms of tax rate, we accounted for a 66% tax rate adjusted in 2013 and we consider it a sort of ceiling because our expectation looking forward is to keep the same level as far as 2014 and start we expect the tax rate starting to decline. First of all, E and P will enjoy lower tax rate because we'll start up production in countries in which tax rate is lower than the current average. And second, because of the recovery of our Italian businesses that will benefit a lower tax rate.
Yes, it's John Ricchi from UBS. Two questions. The first is on E&P. I think when you spoke before, Clari, as I've been impressed by your focus on trying to bring projects from discovery to production quickly to make sure you're monetizing your investment in the past. If I look through the portfolio and judge it against when you first discuss those projects, I'm thinking about Block 1506, Goliad, that's Perla, the Emily and Kafka, there does seem to have been some delays around where your first aspirations were on those.
It does seem to keep cropping up. So I just wonder whether there's an issue there that you're finding and whether you want to address them. The second is for Marco. I was just reading on your slide where you're using metallics by contractual enable the buyer to market economically the gas delivered. I wondered whose growth that is?
Is that yours? Or is that from contracts? I guess those that wording is incredibly important in negotiations. Thanks.
Just on the NPS. So you talked about M and A and Kafka. It's true. M and A and A and A, we already started last year in 2012. And because of the imminent issue, we delayed over at least 5, 6 months because we couldn't send our people on the ground.
So that was the reason the main reason of the delay in M and A costs. After that, we reach our target production in the phase of about 250,000,000 tonnecrobi feet per day. And so for Angola, we as we presented last year, we had a emission in our contracts for local contents. So we had a discussion 1 year for the project and that was the reason why we shifted over 8 months in dollars, so it's not so big a delay. And on that level, there is no delay because it's always has been always considered at the end 2015, beginning 2015.
And now we are confirming Q1 2015. So there is no delay in parallel. Goya, there is a delay of 4 months because we are supposed to start in August, July August, and now we talk about the end of the month or the end of the year. So we are talking about marginal delays of some months for some project because of geopolitical issues, for other because of technical. But it's not 2 or 3 years.
So I think that we don't have we don't see any problem in the future. If I may add a comment, every time we are not operator, we see much longer delays than ours.
Don, thank you for your question. We couldn't put any specific contract wording in those. So what we tried to do was put general concept that is though common to all contracts. And I think this is a hugely important point for us as we think about the sustainability. None of these contracts has anything in it that could force buyer, in this case us, to making a loss.
So there's never any FID associated with any of these contracts. Remember the concept of a loss, there was always a concept of sharing in a profit. I think this is very much reflected in the outcomes of the arbitrations that we have seen in other situations where very hard for the arbitrator given these contracts to force 1 of the players in concept visit general.
Hi. It's Henriques from Exane BNP Paribas. Two questions. The first one is on the lower CapEx that you're indicating now over the period. It's just that the re phasing of the project or do you see any kind of lower cost including some of the projects?
And the second question is in terms of restructuring, you were talking about all of the numbers just to confirm all of the numbers for the new restructuring are including the EUR 2,400,000,000 internal that you took in the 4th quarter or is there something more to come?
Quick answers. Rephasing, first answer to your questions and second are included.
Peter Sutton from RB Team. Just a couple of the targets that you've got in E and P. You got a cash flow generation target of 9% CAGR, which is at a flat 108 percent. And you've got a volume target of 3% CAGR when the price goes down from where we are today to 90 percent, which is the base case And what is the CAGR in cash flow if you take the same macro assumption as you're using for your production volume? Second question is on that you've got 7% sorry, you've got 70% of your production from effectively conventional relatively mature fields coming through, which is where we've also seen some increases in cost inflation in OpEx as you try to reduce the depletion.
Can you make a comment on the cost trends on that 70% which constitutes quite a high level of base
as well please? 70% is the So what is already in production now, 70%. The rest is complement is our new project. So the OpEx are increasing. You saw this year that is $1 increase because we are looking at the unit costs.
And we had this backhaul production in Libya and Nigeria. So at best, always about $110,000 per day. So for that reason, the unit cost OpEx has been increased this year because it's just a matter of the less production at the same level of cost. In the future, we have we are we will remain steady about $8,000,000 $8.5 per barrel operating cost due to the new more expensive production from example from Cascagano, from Goliad or from Santangola production because of the leased FPSO that is upgrading cost not at the CapEx. But that is the main reason that I think that if you look at the absolute value of OpEx, there is no big increase in our cost.
Giuseppe, with Cinefidentis Equities. I've got 3 questions. The first, again, on the target of E and P. What is the target CAGR of production in case of Brent threat flat at the current price instead of decreasing to 90? 2nd question is on your E and P cash flow.
If you can give us a sensitivity of what the cash flow becomes if let's say the Brent goes down to $70 And the third question on your disposal plan. You caught €3,000,000,000 disposal in corporate and others. Could you please give us some more colors about the areas where you think to be able to dispose of
EUR 3,000,000,000 worth assets? Thank you. The answer to the first question, if we at EUR 90 per barrel, so in 2017 instead of $110 per barrel, we have a reduction of our capital from 3% to 2.5%. So it's not very sensitive to at this level with this kind of contract, it's not very sensitive to the oil price. Let me now $70 is very far away.
It's a different world in the sense that this is not a linear equation. I think we consider €130,000,000 for every dollar in terms of net profit. But of course, this is if you move from 104 to 103, if you move from 104 to 70, that's another world. Frank, I don't have a quick answer to that. And what I can tell you is that since we have a cost, we have a breakeven at $45 for the new projects.
So $70 we will still be profitable even at 70 dollars As for disposals?
As for disposals, the number relates mainly to the shares of NAM and GALP that are linked to the convertible bonds that has been issued in 2012 and 2013 for which we have the right to repay the bondholders' shares.
Good afternoon. Andreas Kaur from Media Bank. I have a couple of questions on first of all, on cash flow. Could you please give us the underlying assumption of the ForEx that you have in your cash flow assumption that you have detailed? In case the $130,000,000 $135,000,000 or whatever.
2nd question on cash again. You said that 2014 production should benefit from a small contribution from cash again to quantify what is this contribution? And the third question for Mr. Scarone, the buyback program in the Slide 45, where you said that there is a multiyear buyback program. Is it possible to give us a range of this move year buyback program possible that is year for year, 5 year or historical average that we saw in the past?
Thank you.
So yes, in terms of ForEx, the assumption is 1.3 all along the full year plan. But let me say that because of the cash in and cash out, we expect along the 4 year. So cash in from operation and cash out from OpEx, Even if we seem to change this kind of assumption, the overall results should remain more or less the same.
As for the share buyback program, I think I made quite clear that when I read the numbers of our plan, all the numbers of the plan on the assumption of our plans, oil price,
exchange rate with the dollar. As I said,
I feel comfortable to continue to propose to my Board, because by the way, this is a bold decision to continue share buyback. Now we are quite reluctant to give numbers. Because we give a posteriori numbers. We give the numbers when we have done it because we want to keep a real flexibility on this program of buyback. We consider $2,000 per day.
Thank you. It's Maria Rimpulse from Barclays. Could you just talk about in 2017 where you see return on capital being and
whether that is something
that you would look to target for that point? And then just secondly, could you do an update on the Algerian operations?
Algeria what? Algeria, yes, Algeria operations.
So the overall return on capital in 2017, if I well understood the question, would be in the range of 7.5% to 8% assuming the decline in this scenario we announced on the pace in our plan.
Changing our operations, you know that we are continuing the buildup of MLE. We have to drill some 5 wells this year, which we reached same store production of about 280 €180,000,000 annuity paid. And we are developing also the CAF gas that started 2 wells last year and has to be developed and jointly with MLE. And then we have the M and E cask oil that will be put into production in 2017. So that's the activities on
Hi, Oswald Flynn from Sanford Bernstein. Another question on Gas and Power, Marco. You've been increasing your spot sales in the Italian market quite a bit. Give us a sense of how big that market is. Can you be increasing sales into the spot market?
Just to clarify, the Algerian gas volumes, you're not taking them at the moment into Italy and how much longer can you spare Algerian borders coming into place? Is that something that's presented further? And for Claudio, question on Congo. I've heard you before talk about the Mozambique reservoir being fantastic and beautiful. How does this new significant discovery look in Congo?
I know you've load tested part of it, but look across this reservoir, do you think it's going to be a high quality or that's quite variable.
Thank you. So the Algerian agreement lasts until the end of this year till October 2014 and it doesn't involve 0 volumes, it involves a significant reduction in volumes in Italy and volumes that have been so that will last for 3 months. PSV, you're right. We have been active in the PSV, ready to be a significant hub in Europe to the level of other Europeans, not as liquid as the NBP, that was certainly as liquid as French hubs are. So I would consider our sales activity on part of our normal operation.
Congo is really fantastic discoveries because after 70 years that in this area, in this block, any country found anything. So the result in Congo, we discovered just small, small, small reservoir. So completely different to the Angola side. So it's a huge discovery. We think that we are just at the beginning.
The productivity is the reservoir is not so good much in Mozambique, but the oil is very good. It's French is between 36 and 38 degree half, so it's very good quality in low viscosity. So I think that we can really make additional satisfaction in the area because there are other structures, other three structures that we have to explore and other price of wells. So I think that we are just at the very beginning, but wonderful. It's Ian Reeves from Bank
of Montreal. A couple of questions about Montreux sorry, about Mozambique, if I could. You drilled a well in the south of the block and you came out with a gas concentrate discovery. And I think you're looking for black oil there. Have you written off the potential for conventional oil down there?
Or is there still a play which is worth chasing? And secondly, maybe you can just update us on the status of the project in terms of utilization and gas sales, etcetera.
So I saw during the presentation, I talked about Nusmukhe as a gas based because we found some large gas that would be difficult to find oil to compensate for this gas. So in the south is true. The first well in the lower part found some wet gas, so completely different from the gas that we have found very dry until now. So we are going to drill a second well and exploratory will well this year. Our expectation is to find wet gas to condensate.
That is very good because we can still condensate. We don't think that always hopes to find oil. It's more a gas product. In terms of project, as I said before, we increased the potential because since last year, we discovered more additional 25 this year. So for the Block IV, we increased the number of train RNG train and to create more flexibility, we move also offshore.
And that is just a part of the project. We didn't mention anything about GTL that is another part of the project, but it's still premature. But for the rest, we are very close to issue tenders for the FEED for the floating LNG. And for the floating LNG in Kola reservoir that is in Tara in Area 4, we think that we will be ready to take an FID before the end of the for the floating LNG. So that's for the market, can you say something?
So we signed a number of confidentiality agreements. As I said, we are in the market for the early trains. We intend to have binding contracts in place before the end of the year to support Cloudy's FID process. And as I commented before, we're finding very strong interest and very strong demand for these early volume market, of course, Asia and Brazil in reference market.
Hi, there. It's Jason Kenney from Santander. Thank you for your presentation today. So we've had great success with resource efficiency over the last few years. And I think that statistic of 2.5 times discoveries to has this forward looking 5 year process.
Have you got access to base in
or is there an internal target that's
maybe a bit more tempered to add a certain amount of resources going forward? I'm conscious here that because you have found so much resource, how do we go into a development mode, maybe
As I said during the presentation, we are already we started 2 years ago to renew completely. So our portfolio on new basins and we move to the Pacific basin. So we have 2 different as I said, 2 different priorities and we started 2 years ago. So we have new fresh basin and new fresh target exploration target in the Pacific area in Norway in Russia, Barents Sea. And we have also started revisiting our existing assets.
And when we talk about existing asset, I mean, as a known basin like Congo. Congo is an example. We start 2 years ago to make a new study on the result and we have the discovery as we did in the Block 1506. Remember that Block 1506 was a relinquishment. That's where the growth we restarted and we filed more than 700,000,000 barrels of oil and then the same in Indonesia.
So we are moving as we did in the last 6 years, in these two directions: new basin and we already reloaded that and existing assets. And we have on our new package, we have 10,000,000,000, 10,000,000,000 barrels of risk equity prospective resources that we are going to on which we are going to work in the next years. The target less than €1,000,000,000 per year that is a lot is €800,000,000 So it's not €2,000,000,000 or €1,800,000,000 like in the last years because I don't think that is sustainable. But it's still a very interesting and important target. And as you said, we are going to have a lot of resources.
And part of these resources will be developed, but part of these resources will be from us to anticipate the cash in.
So because it's
oil, we found good resource in easy projects, so low risk. And that is very interesting option that we already started using and we're going to use again.
Thank you. It's Irene Himone at Societe Generale. I have 2 questions please. One on Saipem and one on CapEx. Saipem, they had a bit of a worse year than we all thought, I guess.
And Andy has always managed that relationship at arm's length. I guess my question is, has anything changed as a result of the past few months in terms of that relationship? And are you doing anything different? Secondly, on cash again, accidents happen. My question is, is there any provision in the contract as to what happens next?
So obviously, you're missing substantial cash flows and so is the government. Do we know once it's fixed and up and running, what follows, if anything? Or is it force majeure?
Let me comment on Saipem. The relationship at arms length Saipem dates back the time when Saipem was 100% of any was working essentially for any. And at that time it was I believe 97 or 96, it was decided that Saipem to be listed and to be managed at Damsnay in order to gain new customers. And as a matter of fact, any is not anymore the number of 100 customer, not even the number 3 or number 4 customer since many, many years. So let's say relationship at Arms Bank is the key to the success of the company itself.
And this does not mean that we have to when we decide about our Board representative, the management, etcetera, which we have a say as a shareholder, we have to choose the best people, make sure that the company is well managed. But we cannot interfere to their activity day to day activity otherwise, Piper will lose customers. For cash again, there's no provision in the contract for problem of cash flow that we are missing because of technical issue, which that there is any gross negligence. The only provision that we have in this contract coming from the agreement in 2008 that we are not able to reach the KCP by the 1st October. All the costs incurred after this date to reach the case if we are not recoverable.
That doesn't mean that are not recoverable from an insurance point of view that are too different. But there's no other kind of option in If I may add something to this question about exploration, but I wanted to give you precise number. If you've seen before in that slide that we have discovered 2.5 times our productions, while all our peer group had discovered between 5 and 2 of their production
in the same.
If we exclude Mozambique, suppose we have not discovered Mozambique, which I rate as something somewhat exceptional, we cannot discover Mozambique very often. No, it's a bigger discovery of our history. We still would have discovered in the last 5 years 1.2 times our production, which means that systematically we perform pretty well in exploration and we can feed our resource base organically, which we believe to be the key of our profession, really the key of our profession. For example, I don't know if you made this calculation, but if we consider oil in place in Marine 12, so the Changi Lee and Nanak, The fact that we have said 65% and the recovery rate normal, only Marine 12 is almost 1 year of our production for us. Make a recalculation, though, it's almost 1 year of our production.
Let's say, with one discovery, the one we announced today, we have fed our production, of course, it can take years, but with 1 year of production.
Thank you. It's Mark Bloomfield from Deutsche Bank. Two questions on targets, please. First of all, on your upstream volume targets. I think you previously talked about a degree of headroom built into that number.
Perhaps you can give us a sense of what kind of contingency is built into that target now? Secondly, in terms of your cash generation, perhaps you can give a sense of whether there's any working capital release built into your operating cash flow targets either over the 20 14, 20 15 or the 20 16, 20 17 period and particularly pertaining to the prepayments which you've built out in
the Gas and Power division?
So contingency now, we put some huge contingency in the 1st 2 years because of geopolitical issues. So for that reason, I said that if there is any geopolitical disruption to impact like last year, we can't increase. So we have been prudent and we are in a range of 100 or 1000 barrels per day of contingency. That is the range. So we move from the end last year last year we had our contingency at the end of the period.
Now we move at the beginning of the period because of geopolitical and mainly because of the 2019.
I expect in terms
of tuition to our cash flow from working capital capital and the net, I would say, 2 years, we expect a slightly positive increase slightly positive contribution.
Christine Piscareno from Stylus and And the second one, I know you have been asked before, but I just want to find out if you haven't changed your opinion. Could you consider spinning off your retail
Venezuela, the short answer would be no, time being. We are watching closely what happens in Venezuela because I've read somewhere that in Caracas last night some turmoil. But so far so good. We started production in Q1, which is a successful net airline project on time and Orocodoro, which is our our position is somewhat the following. Yes, we realize that retail is a business certainly very different from most of our other business.
Fuel is a business in which one side we sell gas and electricity and gas and electricity. And we sell it normally at a premium as compared to the market non retail. And second, we are so big, so big in retail because we have more than 10,000,000 customers that we certainly have the scale, developed right people, right IT system, right commercial strategy. So it's not a small business lost somewhere. I don't know how many retailers, energy, gas and power, hope to sell at 10,000,000 customers, but I don't believe very many.
So it is a real business which is producing good returns so far. For the time being, we are still looking at the situation, but taking notice.
Okay. I think that
we can now take a few questions by phone. There is any question on the phone, please.
No questions from the phone.
So no questions. If you have any further questions.
Thank you. It's Neil Morton from Investec. A couple of questions, please. Firstly, to Marco, several years ago when you and I was faced with market share limits in Italy, you tried to expand across the rest of Europe. I was just intrigued as to how supply margins ex Italy bear with most in Italy right now.
And just secondly, a very simple question I suppose for Claudio. Post the sale of your Russian upstream gas assets, how does the oil versus natural gas production split vary over the 4 year plan?
I think the Italian market has now, as we discussed previously, more or less aligned itself to the PSV and the PSV itself has aligned itself to the other northern markets. So what used to be a premium market has now become exactly in line with the others. In terms of supply margin, we've built our business now in a way that we separate our supply activities from our marketing activity. We have an internal transfer pricing, so we no longer think of supply margins in countries with commercial margins.
More or less, they're going to
be the same
Our share, sorry, our share of oil will go down to 48% because Mozambique has a huge production about 4,000 barrels per day. So that is
That's close to hand. I thank you for your time, Louis. Thank you very much.
Thank you.