Good morning. Welcome to Petrobras Day 2020. Today, we'll have the opportunity to discuss with our management our new business plan for 2020 to 2025. We'd like to inform you that all participants will follow the transmission by internet as listeners. After an introduction and presentations, a Q&A session will begin. You can send us questions by email, petroinvest@petrobras.com.br. This year, we're also broadcasting the Petrobras Day via LinkedIn, bringing more transparency to our strategic plan. Today we have with us Roberto Castello Branco, Petrobras CEO, Andrea Almeida, Chief Financial and Investor Relations Officer, Anelise Lara, Chief Refining and Natural Gas Officer, André Chiarini, Chief Trading and Logistics Officer, Carlos Alberto Pereira de Oliveira, Chief Exploration and Production Officer, Nicolás Simone, Chief Digital Transformation and Innovation Officer, Roberto Ardenghy, Chief Institutional Relations and Sustainability Officer, and Rudimar Lorenzatto, Chief Production Development Officer.
The presentation will be available throughout the event on our company's website. We'll start by listening to Petrobras CEO, Roberto Castello Branco. Roberto, you may begin.
Thank you, Carla. Good morning. It's a pleasure to be here, to talk with you about Petrobras and its strategic plan for the next five years. Individuals, as well as companies, should have a purpose, and ours is to be the best oil and gas company in shareholder value creation with respect to people, the environment, and a strong focus on operational safety. It's a nice statement, but what are we doing to reach that? First of all, we are promoting a transformational agenda at Petrobras. This is driven by a strategy that is composed of five pillars. First, maximization of return on capital employed. This by itself is based on two important concepts. First, to be the natural owner. In other words, we will own assets in which we are the best. We are the best to extract returns. This drives a large divestment program of non-core assets.
Second important concept is capital scarcity. Capital is scarce. We are in a very capital-intensive industry, so it must have competition for funds. Projects have to compete among them in order to obtain funding to be implemented. This is very important as a discipline in capital allocation and value generation. We have a strong preference for value over volume. Our goal is to maximize value and not to maximize volume. Another important pillar is reduction of cost of capital. As I said, we are in a highly capital-intensive industry, so the cost of capital has to be low, has to be cheap. In order to achieve that, we are deleveraging our balance sheet.
We are not happy still with the size of our debt. We have made many progress over the last couple of years. Since 2015 till the end of 2019, Petrobras paid $70 billion of debt, with interest payments of $37 billion. Second point is transparency. Transparency and strong communication with the financial community and liability management in order to have lower cost of debt and to extend the maturity of debt in order to minimize refinancing risks. Relentless search for low costs is also a pillar. We are a player in the commodity business. Commodities are exposed to volatile price. Price volatility transmit volatility to our cash flow. We must have low costs. We are pursuing this relentlessly. Seeing the long term, we have a scenario of low oil price.
In order to survive and thrive in this scenario, oil producers have to be low-cost producers. It is our goal. Another important pillar is meritocracy. It is the base for the creation of a value culture, a variable compensation program based on good metrics. We are using EVA that was introduced in the company last year, and it's generating very good results. Last but not least, an important pillar is the drive towards safety, health, respect for people and the environment. The environment, as I'm going to show you, we have a strategy for ESG in order to address the various problems related to climate change, to social inequality and so forth. Well, in order to execute this strategy, we have two important initiatives, two transformation initiatives, a cultural transformation and digital transformation. Cultural transformation is very important.
One may have the best strategy in the world, but if the culture rejects it, you are going nowhere. Cultural transformation is very important as well as digital transformation. To implement digital transformation, you have to change the mindset of people. It's not enough to just introduce artificial intelligence, analytics, machine learning, and other products of the digital revolution. We have to change the mindset of people. Digital transformation is very, very important for our future as a low-cost producer, as a very efficient producer, important as well for the environment, for environmental protection, for lower carbon emission, for safety of our operations and our employees. Moving ahead. Again, in order to execute this plan, we have a management model that's based on several points. First, courage, transparency, and integrity. I think they are necessary conditions for being a good leader.
Broad and efficient communication, external and internal communication for cultural transformation is key. Transparent communication, frequent communication, and to say the truth, in order to gain credibility. Strategic consistency. Strategy execution requires strong discipline. You have to be consistent all the way. The creation of agile teams, very efficient, able to interact. We have these agile teams composed by both corporate people and operations people, and they are able to discuss, to learn from each other, and to make decisions faster than in the absence of this. Efficiency in all activities and data-driven decisions, this is key. As part of the management model, we have freedom with responsibility. Accountability is our main marks of the management model. Meritocracy, trust within an organization. Trust among the members is fundamental. If there is no trust, you are going to fail. Succession planning and talent density.
Petrobras is a nest of talents. We have highly skilled people, and our goal is to identify young talents in order to prepare them, in order to mentor these people to be the leaders of the future. Moving ahead, as is widely known, this year we have the unprecedented case of a major health crisis and a global recession that was creating a negative shock on the oil industry across the globe. Our first reaction, we have to react to move fast, as in a war, once you are attacked, is to prioritize health, the health of our employees, and the financial health of the company. We organized teams to work on health safety, fighting the effects of the COVID-19, home office, creating a more flexible model of working with the adoption of home office. Home office is scheduled to last till the end of March next year.
After that, we'll move to partial home office permanently. This is very important as not only protects the health of employees, but it's very beneficial from the economic point of view. We are liberating about nine administration buildings for administrative buildings till the first quarter of next year. Some are already gone. Creating a smart office. Alongside home office, we adopted massive testing. Till now, we have applied more than 350,000 tests in our employees and employees from service companies hired to work for Petrobras. Cooperation with society. We understand that the human factor is important, and we should have compassion for the low-income people to try to minimize the suffering. Financial resiliency. As I said, we moved very fast in terms of guaranteeing that Petrobras will survive the crisis, and we did. We faced all this uncertain environment, gave a fast response.
It's not only a matter of get through it. As Albert Einstein, the world-famous physicist and Nobel laureate said, "In the midst of every crisis lies a great opportunity." We took the opportunity to accelerate the execution of our strategy, and at the same time, to accelerate digital transformation. This was very important for the future, and we are very conscious that it's not only a 100 m sprint. We are running a marathon, the 100 m sprint fighting against the crisis re-energized the company and created momentum to accelerate strategy execution and digital transformation. Well, Petrobras was the only company among major listed oil companies to reduce debt the first nine months of the year. We reduced $7.5 billion in debt. Among the pandemic, we were able to do that. Petrobras was also the company with the strongest cash flow among large listed oil companies.
Production growth in the first nine months in the year went very well. The pre-salt increased output by 32%. We are launching, as part of the program of lower carbon emission, we are launching cleaner and higher value-added fuels. We made significant advances in our logistics and sales and marketing of oil and fuels, not only in Brazil, but on a global scale. We reached export records in oil and fuel oil with low sulfur content that's more friendly to the environment than the old fuel oil. Given our financial performance, the market improved the risk perception about Petrobras. We issued 10-year bonds with the lowest yield in our history, a really landmark, major achievement.
Well, to finalize my presentation, I'll give you some top goals for next year. Since this year, we have an index of greenhouse gas intensity, emission intensity, as an element for variable compensation of our executives. We have goals for the oil business and for refining business, as well as we have spilled volume. That's very important to control then to avoid environmental damage. Gross debt, we have a target for $67 billion. Delta EVA, the increase in EVA, is projected to increase by $1.6 billion. The total recordable injuries rate per million of man-hour, we put a ceiling on 0.7. Last year, we are benchmark in the oil industry in terms of injuries, in terms of safety of our operations. This year, we continue to perform very well and we will continue to pursue ambitious targets.
Our main ambition in this area of spilled volume is to reach, at any point, zero fatalities in our operations and zero leakage of oil and fuels. Having said that, now we are going to present an institutional video.
It looks like fiction. If we tell, maybe no one will believe us. It is already hard enough to imagine how is it possible to extract oil from the deepest reaches in the middle of a vast ocean. It seems impossible, but it is what Petrobras does. It is our daily life. All this because we have a very powerful source of energy, knowledge. Driven by this force, we discovered pre-salt. We are continuously breaking record after record, generating maximum value and focusing in the business we do best. No wonder we are world leaders in ultra-deep waters. This inventive energy is not only in our new technology, it is in new ways of creating projects, making choices, reaching results, acting responsibly. The choices we make today guarantee our future. The challenges are many, but we are not intimidated.
We are driven by transformation, and we are launching new strategic programs, which will guide our operation until 2030. They are innovative solutions which will turn projects into results, the unreachable into achievements, and the impossible into amazing. Come with us to know more and to make history. We are energy for transformation.
Innovation is something that's embedded in our DNA. We are making all efforts to extract the potential that we have. I will pass to my colleague, Roberto Ardenghy, to say some words about ESG.
Thank you, Roberto. Good morning, everybody. You heard Roberto, and I think it's very clear that when you see Petrobras today, ESG and sustainability are becoming even more relevant and prominent for Petrobras and an important part of our business plan. We are maintaining our focus on maximization of returns to investors with a low cost and efficient operation, but with a very great focus on ESG and low emission. When we talk about governance and management quality, I think it's worth to mention that two out of four metrics we have for the whole company are ESG related, and they will impact all employees' compensations in 2021. This has already started some years ago, and we are emphasizing this even more, and put these metrics as part of the compensation package. Intensity of greenhouse and gas emissions and liquid volume of oil and oil products.
The establishment of a climate change executive management inside Petrobras, and also connecting this executive management to a board level member, also shows that climate change and emissions are receiving a high priority in our agenda. Going to the next slide. When we see our path, in the future, we see three basic pillars. The first one is transparency, and what we mean, we want to really make sure that we quantify the carbon in all our critical process. The second one has already been mentioned by Roberto, the resilience of the position in view of the low-carbon transition. The third one is more related to technology and creation and skills to create a value in low-carbon. All those pillars, they put us in what you call a double resilience.
In one side, of course, being able to have a very good breakeven, very low breakeven in the economic area, but also make sure that this breakeven is also to connect it to our environmental low-carbon agenda. Next one, please. The next slide shows how we are going to do that. We see a lot of possibilities in terms of innovation in our operations, biorefining. My colleague, Anelise Lara and Nicolás Simone, will be able to go further on those two points and also developing competencies, developing skills for the future. We are planning to invest over the next five years, $1 billion in these areas. The next slide show you our commitments in terms of sustainability. We have not just commitments related directly to environmental and low emission targets, but also we have commitments related to investments in social environmental projects, in biodiversity.
We have been developing in Brazil many projects all over the country, to support, especially, areas in which we operate. These are part of our commitment to society and to the social part in Brazil. Next slide. In this slide, you can see that Petrobras has a target to remain in the first quartile of low CO2 emissions in the future. We are pursuing those targets to 2030, and we are planning 25% drop in total emissions. In the exploration and production area, we are targeting 32% reduction in carbon intensity. In refining, we are targeting 30% reduction by 2030. Those are the targets we have, and we are going to go very focused on these objectives. The next slide is also very important that are related more to our social responsibility area. We are working very hard in terms of training our employees in human rights.
We want to promote diversity. We want also to have a good diagnosis of the socioeconomic communities in which we operate. One project that we are developing that is a program that comprise many of the social projects we have over the country is one very focused on early childhood initiative. We want to make sure that we are able to invest in the improvement of the knowledge process of early children. This is very important to support children in terms of education and that they do not present gaps in the process in the future in terms of knowledge. All the programs in the social area that we are developing, we are trying to also give to these programs an early childhood education focus. Finally, I want also to express the governance area of Petrobras.
The good practice of a cooperative governance that are part of our decision-making process, they represent a very strong pillar to sustain our business. Through this continuous effort we are doing, we have been able to implement a very strong governance program, very effective, very ethic, and very transparent. We have done this through a new code of ethical conduct. We want also to communicate to our supply chain these principles. Not just a principle inside Petrobras, but also to communicate these principles and conducts to the whole chain of suppliers. Also, we are very happy that we have been able, after six years, to return to the World Economic Forum Initiative, Partnering Against Corruption Initiative.
This is one of the main organizations in the world to fight corruption and brings together top-level people from companies and government. We are very happy that we have been able to return to this initiative recently. Our commitments are develop a governance model today that is more balanced in terms of efficiency and control. We keep very strong the focus on integrity and transparency, zero tolerance to fraud and corruption. These are the messages that I want to convey to you. I will pass the word to Andrea Almeida, our CFO.
Hi, good morning and good afternoon, everybody. Very happy to be with you again. I will try to cover a little bit of our financial strategy. If we start with our financial strategy, it keeps focus on four main pillars. First one, the reduction of debt and the associated cost of capital. This has been our focus for a while, and if we look back in 2015, Petrobras shared just a small part of its value with its shareholders. 80% of Petrobras value belonged to financial creditors, so related to the net debt, and the shareholders held only 20% of the company's value. Today, that has already changed. In this regard, since 2018, we have already reduced gross debt by $4 billion. It seems small, but actually, we need to remember that in 2019, we added $24 billion of debt due to IFRS 16.
We were able to reduce $28 billion since then. Only this year, even in a challenging scenario, we managed to reduce our debt by $7.5 billion, reaching the value of $80 billion in the third quarter. As presented by Roberto, the 2021 target will be $67 billion, and 2022, the $60 billion. In terms of liability management operations, we continue to focus on repaying the most expensive debt and increasing the average life of debt, avoiding strong concentration of amortizations. This year, we did tender offer transactions, and we also repurchased bonds on the trade desk. In total, until September, we made $5.2 billion of bond repurchase, and we are right now in the market repurchasing bonds, executing the make-whole premium payment for $2 billion of bonds.
In the active liability management, it's important to mention that we know additional to that, we have several other obligations and contingencies that can impact our future. The effective management of this obligation is very important. In this regard, we can highlight all the work that has been done together with Petros, our pension fund, where we implemented several improvements. In June this year, we implemented equalization plan to solve a deficit of approximately BRL 31.5 billion. We are now working to implement another defined contribution plan, PP3, this year for employees who have the desire to migrate their reserves to this plan. With regard to the health plan, we made significant change with the implementation of an association.
We expect a cost reduction of BRL 6.2 billion in present value over the next 10 years due to better management and adjustments to the new regulations, CGPAR, where employees start to contribute with higher percent to the plan starting in 2021. We are also working hard to reduce tax contingencies. In this sense, we highlight the following process. We reclassified BRL 2.3 billion to remote loss related to the collection of ICMS on the import of natural gas from Bolivia. We made relevant REFIS agreements with the states of Rio and Espírito Santo, where we reduced BRL 4 billion in contingents with the payment of approximately BRL 2 billion.
It's important to remember as well the gain on ICMS on PIS/COFINS that allowed us the use of BRL 16 billion that we intend to use up to the first half of next year. In terms of the maximization of shareholder return, Roberto already covered that, but this is totally linked to portfolio management, the divestments in lower return assets, and concentration in higher return assets. As you can see from last year to this year plan, we included new asset sales like Marlim, BR, and some other assets. In the optimization of working capital, this year, we started using some credit lines from banks to extend the payment term for customers without any impact on Petrobras working capital. This instrument was important to leverage sales in the domestic market, especially in the challenging scenario that we experienced.
Inventory management has been a relevant focus for the company as well, and we are looking to work with optimized oil and oil products inventories. We are also working in procurement, with a program called Mais Valor, which is the financial tool for suppliers with lower costs, supporting our strategy to increase supplier payment terms. Turning to the next slide. We try to give you here an overview of our cash flows over the next five years. Perhaps the most important point is to show the strong cash generation that the company's planning for the next years, in order of $115 billion-$125 billion. In the divestments, we have a range from $25 billion-$35 billion. The investments cash flow expected for the next five years is between $40 billion-$50 billion. The E&P, exploration and production, will remain the biggest participation.
Dividend payments also show that our dividend policy designed last year tends to remunerate shareholders in a relevant way after reaching the goal of the growth debt of $60 billion. If we turn to the next slide, we show the range. We show the assets that are in the range that we just presented, and we had some assets that in the last plan, we informed that we would add them to the plan. I already mentioned some of them, like Marlim, Albacora, BR, Braskem, between others, in line with our portfolio review. In refining and natural gas, we have refineries as widely disclosed to the market, and the gas assets associated with the TCC agreement with CADE. If we turn to the next slide, we see the adjusted CapEx from $75 billion last year to $55 billion, with $38 billion in capital and $17 billion in sustaining investments.
E&P continues to be the biggest portion, representing 84% of the total. The main difference in the adjustments from $64 billion last year to the $55 billion in exploration and production were the devaluation of the real, the optimization of exploratory investments, keeping the commitments agreed already with ANP, our regulator, avoiding CapEx associated with divestment, and the revision of the investment portfolio. If we look at our deleveraging in the next slide, as I mentioned initially, the focus on reducing leverage has been constant in this company, and we managed to reach $8 billion in the third quarter, well below the goal of $87 billion for the year. We continue to repurchase debt, as I mentioned. We also see the results in the weighted average cost of debt reaching 5.8% per annum in the last quarter.
In the last quarter as well, we can see a small increase, and this was a result of the repayment of the committed credit facilities that had a lower average life and a lower cost. This is a very important insurance tool that we wanted to keep it alive for any volatility that we might have in the future. In this area, we can highlight the 10-year bond pricing at the lowest yield in the history of Petrobras at 4.4%. This bond is already trading lower than that, at around 4% in the secondary market, showing a positive impact from the perception of our credit risk. If we move to the next slide, we see the strong cash generation that we have experienced continue next year. We estimate the free cash flow breakeven at $23 per barrel.
This cash flow breakeven considers the cash flow generated from operations minus the CapEx. The cash breakeven that includes CapEx, interest payments, leasing, and principal payments to be able to keep our total debt stable from 2020 until 2021, with a cash balance of $5.5 billion, is the $28 per barrel. This is for the overall company. It does not include dividend payments or cash inflow from divestments. In terms of cash flow sensibility, we give you a sense in the right side of the slide, each $0.50 in the FX devaluation, or real devaluation, generates an additional $1.6 billion in cash flow, and every $10 per barrel of Brent generates $5.5 billion. This way, a scenario of Brent at $50 and FX at 5.4 would be generating cash in the order of $22.9 billion.
If I go to the next slide, we show a little bit what we have been doing in procurement. That was very important during the crisis that we faced this year. In procurement, we are focused on five strategic drivers. Among them, I will mention compliance. That is the first and maybe the most important one. Efficient controls and well-defined procedures are extremely important in the supply process. This year, we launched the Guide to Ethical Conduct for Suppliers. That incorporates all the guidelines in the areas of compliance, health, safety, environment, and social, placing Petrobras at the forefront of the best ESG practice worldwide. This document has been incorporated into our contracts.
In the early engagement, important to mention that we have been working with greater standardization of our contractual agreements and technical specifications, reducing the man-hours involved in the negotiations of engineering in the engineering area and also in the legal area. This standardization initiative also supports the PROD 1000 project, one of the most important projects we have in Petrobras. Volume synergy, we started to implement the procurement process from the point of view of total cost of ownership. In practice, this means that we evaluate the contracts looking at CapEx investments with the OpEx overview involved in the long term as well. For some items like Christmas trees, we have changed the form of procurement this item, and included the maintenance service in the bidding process. In terms of alignment of incentives, this is not new. We have been doing that for a while.
We have bonus for suppliers depending on their performance. Deliveries ahead of time are awarded, and this is a very important fact, for example, in the chartering of FPSOs. Working capital reduction, I already mentioned the Mais Valor program. That is the financing for suppliers tool that will allow suppliers to get funding to anticipate their invoices using the cost of funding from Petrobras. Everything in this area is focused on generating more value for the company, and none of this would be possible without digital transformation. As an example of this, we will be implementing Ariba. That is an SAP tool that will help us speed up processes and ensure even more compliance. I would like to thank you all. Those were the messages for today, and I'll pass the floor to Capo.
Hello. Hi, good morning, or good afternoon, everyone. I'll start this presentation recalling our E&P strategies. I believe everyone has realized that we are increasingly focusing on deep and ultra-deep waters, and that our growth strategy is based on world-class assets. Our proposal is to move towards a portfolio that, in the five-year horizon, will lead us to lower production volumes after divestments have been made, but to a portfolio with greater value and greater resilience capacity to low oil price. Let's go to the next slide, please. With the prospect of a reduction in future oil price with a consequent reduction in estimates of future operating generation, we adjusted our investments of five years, making adjustments with a focus on maximizing value. We are now projecting investments of $46 billion in the period of 2021 to 2035, which represents almost 30% of reduction compared to the previous plan.
The Brazilian real depreciation against the dollar contributed to this reduction, as well as the fact that we have added more assets to our divestment portfolio, avoiding the investments associated with them. We also adjusted our investments in exploration. Finally, we optimized and postponed projects, also canceled projects that in the new reality of oil price are not attractive anymore. The result is a portfolio that concentrates investments in the pre-salt. Next slide, please. As a result of our value maximization actions, we see on this slide the production curve that should be growing in volumetric terms without divestments, and the production curve after divestments, which is relatively stable until 2035. This curve is sustained in a portfolio that generates more value and that has greater resilience to low oil price.
Looking at the year 2021, for example, we see a production of 2.75 million barrels of oil equivalent per day before divestments, and 2.72 after divestments that are yet to take place this year and next year. Looking now at the year 2025, we see a total production of 3.3 million before divestment and a production of 2.7 million after divestments. This difference of 600,000 barrels per day is due to divestments in onshore assets and also in shallow waters assets in Albacora, in Albacora West, and in the Polo Marlim. At the bottom of the slide, we see an increasing share of the pre-salt production reaching 80% in 2025, compared to 67% of our total production 2021.
We don't see numbers after 2025 on this slide, but we could expect growth in production even with divestments considered in this plan due to the growth in production in Búzios, where up to seven new systems are being planned or contracted to be added to the end of the plan, starting in 2024. Next, please. Next slide, please. I'd like to give you more details about our 2021 production. On this slide, we see on the left that we planned to produce 2.9 million barrels of oil equivalent per day in 2021 in our previous strategic plan. At that time, we mentioned that this figure did not include the divestments foreseen in 2020 and 2021.
Here on this slide, we are showing the second column from the left, the production planned for 2021, now discounting the 80,000 bbl per day associated with the divestment for this year and the next year, reaching a value of 2.82 million barrels of oil equivalent per day. I want to note that this number already includes the reduction in production of 30,000 bbl associated with the mothballing of 63 platforms in shallow waters, which we carried out this year. Next, we see the impact on the growth of the ramp-up of our production as a result of the COVID-19, and this impact occurred directly or indirectly. Directly, as in the case of the delay by Asian shipyards in the construction of the platform for the Sépia and Mero production systems.
Indirectly, which resulted in a reduction in the estimated future oil price with a consequent reduction in our investments to make them compatible with the lower cash generation. We can see that the impact caused by COVID resulted in a reduction in our production of 200,000 barrels per day. On the other hand, we see three effects that contributed positively to mitigate this negative impact. First, we see an increase in production compared to what we had foreseen in our previous strategic plan of about 20,000 barrels due to the better performance in reliability, integrity, and safety. This is due to lower production loss in the control and treatment of CO2 corrosion in the sub-salt pre-salt fields.
In the next column, we see an increase in production when compared to what we had predicted of about 30,000 barrels due to a lower decline in production in the Sapinhoá field, thanks to the better performance of their reservoirs. In the next column on the right, we see a new increase in production compared to what we had predicted of about 50,000 bbl due to the fact that we have been able to produce above the nominal processing capacity of the produced platforms. In this figure, in this number, we are considering that the term of the co-participation agreement will occur closer to the third quarter of 2021. We are conservative regarding this matter.
I want to note that we optimized the maintenance stops originally planned for 2021. For this reason, we are not predicting any impact in 2021 as a result of the postponement of the scheduled stops from 2020 to 2021. Finally, I want to mention that due to the uncertainties still present associated mostly with the COVID-19, we are working with the possibility of 2021 production varies for 4% upwards or downwards. Next slide, please. With the expectation of lower oil price in the future, our progress and assets should present a breakeven of less than $35 per barrel in order to remain our portfolio. This condition makes us converge to increasingly work with world-class assets in deep and ultra-deep waters that are more resilient to a scenario of lower oil price.
In these assets, we have the ability to optimize our investments and costs due to our technological differential and our capacity of innovation and digital transformation. Our director, Nicolás, will detail the impact of digital transformation on our future results, and I will go to the next slide, please. The continuous growth in our participation in the pre-salt area has resulted in a reduction in our lifting costs and in our perspective breakeven, which are two key factors to guarantee our resilience to low oil price. We see a 12% reduction in average pre-salt lifting costs, and as we are continuously increasing our participation in the pre-salt, the reduction in the ANP lifting cost is even more intense of 43%, as we see on those figures of the slide.
Regarding our investments, we continue to work with very low prospective breakevens of $19 per barrel in the pre-salt and $20 per barrel in the whole portfolio. Next slide, please. With regard to the Campos Basin, it remains strategically relevant to us. I would like to note that in our previous strategic plan, we mentioned our intention to return in 2024 to a level of production equivalent to 2019, not counting the divestments we made. As we can see in the figures of this slide, our intention remains the same.
We will invest $13 billion in the 2021, 2025 period in the Campos Basin renovation plan. This amount was reduced in comparison with the forecast in the previous strategic plan due to the following reasons: Increase in assets of our divestment portfolio, optimizations, postponements, and project cancellations, as I have mentioned before, and also the depreciation of the Real.
About 10% of this $13 billion value refers to investments in exploration in the 14 blocks that were acquired from 2017 to 2019 from ANP. In this basin, in the Campos Basin, in 2021, we should drill four exploratory wells, all with pre-salt objective. Next slide, please. To close this presentation, I want to mention that within our strategic focus on investing in world-class assets in deep and ultra-deep waters, we foresee in our strategic plan relevant investments in other basins outside the southeast basins of Brazil. About $1 billion will be invested in exploration in the equatorial margin, where we see a potentially important exploration of exploratory front. We will continue with the Sergipe Deep Water Development Project, where we expect investments of around $2 billion.
With this, I would like to call Director Rudimar Lorenzatto, who will give more information about our exploration production projects. Before I do that, I want to note that by putting together our commitments of sustainability, which were presented by Director Ardenghy, with our constant concern of reduction costs and being more efficient, with which we saw in this presentation. We can conclude that we have been, and will continue to be able to produce an energy that is accessible to society and with less and less carbon emissions. Thank you.
Good morning. I hope everyone is well and healthy. To start my speech, I bring here the schedule of the new units until 2025. Petrobras is the leader in investment in this kind of projects in the world. In the next five years, we will have more 30 new FPSOs that will come into operation, 11 in deep pre-salt and two in post-salt. Eight of them are already under construction and seven of them in China. In the next year, we will start the operation, two of these units, Sépia and Mero 1 . It's important to highlight that we are keeping the first oil for both units with the most probably dates for Sépia at the end of the first semester of the next year, and Mero 1 in the last quarter of 2021.
Sépia unit is expected to arrive in Brazil in this January, and Mero 1 is starting now the commissioning phase in Dalian, China. We plan to receive these units in Brazil at the beginning of the second half of 2021. The investment of these six projects are $17 billion in Petrobras plan. Please, let's go to the next slide. Here, we see a breakdown of investments in the E&P segment. As Andrea showed earlier, we reviewed our portfolio with a focus on generating value for the company, considering mainly the new oil price scenario and the COVID-19 crisis. In the E&P, our total investment for the next five years will be $46.5 billion, and 70% will be in pre-salt assets. Here we can see the main projects with an emphasis on Búzios, with 36% of our investment.
25% of this CapEx will be used in the project in the pre-salt also. We have investments in post-salt projects, as well as in the exploration, as Capo said. Next slide, please. Let's talk about the commissioning costs for this period. We plan to commission 18 systems with $4.6 billion. This includes topside subsea and well activities mainly. The costs are concentrated in Campos Basin system, as we can see in this slide. We will also have the commission activities on the coast of the Espírito Santo State and the offshore field in the northeast of Brazil. Let's go to the next one. Here, I would like to highlight important projects that are in progress in the downstream. I mean, refining natural gas and logistics.
The Rota 3 project is our third pre-salt route, gas route, which will increase the gas exported and the processing capacity from the pre-salt assets. It's expected to start operating between the fourth quarter of the next year and the first quarter of 2022. In the refining area, we also highlight three projects that focus on reducing sulfur emissions that will expand production of Diesel S10 with low sulfur content. These projects will be a revamp at Reduc refinery in Rio de Janeiro, REPAR refinery in São Paulo, and the construction of a new unit at Replan refinery in the São Paulo state. In logistics, Petrobras is concluding the São Paulo duct master plan projects that are removing oil, LPG, and naphtha pipes from high-populated areas in São Paulo. Please, let's go to the next slide. Back now to the upstream.
I will show you in the next slide, the evolution obtained in recent years in the three major areas of production development, subsea wells and topsides. Our vision of the future, always looking at generating value with new optimizations, technological innovations, and decarbonization actions. In topsides, we have captured in recent years a series of advances and lesson learning that allowed us to improve the design and the management of this project. The ramp-up performance of the units installed in the last 10 years gave us an average reduction of 4% per year. As initiatives in progress now, we can highlight the strategy for construction units with less interfaces and greater alignment of interest between Petrobras and the suppliers. The use of suppliers more qualified and projects with a higher degree of standardization.
It's important to mention here that we already have a series of decarbonization actions in our projects, that involve gains of energy efficiency and reduction of flaring of natural gas. For the future, we expect acceleration in units implementation time, CapEx reduction, and increased efficiency, and greater plant reliability, and reduction of CO2 emission, as I already mentioned before. Please, the next slide. In well area, we capture advances with several actions, as we can see in this slide, which allowed the average reduction of 7% per year in the total cost of well construction over the last 10 years. We are currently working on three initiatives, the PEP-70 Well Efficiency Program in the pre-salt that is special for Búzios, the Two on Three phases that is a new well design for post-salt wells, and the plug and abandonment program in order to decrease the well abandonment costs.
All of them with additional innovations, new optimization, and simplification. Our future vision indicates that we will have wells with greater reliability using rigs operating with more automation and with digitalization, and the use of intelligent electrical completions. Please, next one. In the subsea area, we have captured advances over the last five years, an average reduction of 7% in the cost of interconnecting wells, as we can see here. We have now several initiatives that will bring us more benefits, including subsea design and subsea configuration, as well as the improvement of our procurement strategy. In our future vision, we have additional qualification and standardization for subsea equipment and new technologies for ultra-deep water, until 3,000 m of water depth, diverless and automation operation, and the growth of synergy between subsea processing and topsides plant.
On the next slide, I will bring the innovation by Petrobras that we are working on. Here we can see HISEP that has its qualification expected to 2025 and has the potential to enable the production development of fields with high GOR and high CO2 content at Mero and probably Jupiter. This initiative involves several areas of Petrobras, including our R&D center. It's a subsea separation system capable of segregating CO2 on the seabed, with the great benefit of the bottleneck in gas processing plant in the topsides, and increase the recovery factor of the field. Other advantage of this technology are acceleration of the oil production, lower CapEx, lower OpEx during the operation, lower implementation time, and the emission reduction. Thank you for listening, and I'll pass the word to Ms. Anelise Lara.
Good morning. It's a true pleasure to be with you on this Petrobras Day, presenting an overview of our strategic plan in the areas of refining, natural gas, and energy. Regarding the refining segment, we highlight two macro strategies. The first one is to focus on refining units in the southeast region of Brazil, close to the large fields of pre-salt and the largest Brazilian consumer market. That includes the metropolitan areas of Rio de Janeiro and São Paulo. The second strategy is to transform the remaining refining park into the first quintile of international benchmarking in all dimensions. This is related to efficiency, low cost, better profitability, with less emission of greenhouse gas, and producing more sustainable oil products with higher added value. Following this way, we will be prepared to compete in an open market and in a low-carbon economy.
Next, I will detail the actions that are related to these two macro strategies. Next slide, please. As I said, our strategy to focus the premium market involves selling part of our current refining units. Today, Petrobras has 13 refineries located in various regions of the country, and we will keep five refineries concentrated in the Southeast. Despite the difficulties that we all had this year as a result of COVID restrictions, we are progressing very well to fulfill our commitments with CADE for the opening of the refining market in Brazil. Our remaining five refineries have a high degree of logistical integration, with a high degree of operational flexibility, and this will allow us to continue pursuing opportunities for cost optimization.
Our portfolio management actions scheduled is for our subsidiaries and affiliates considers the closing of the sale of Liquigás scheduled for this month, having already obtained the approval of CADE. We also have the sale of shares in BR Distribuidora, which have already announced and expect to happen in a more favored market moment. Finally, the sale of our stake in Braskem in a model to be announced in due course. We also have our divestment in Petrobras Biocombustível, which should be concluded in 2021. For the next five years, we are forecasting a CapEx of $3.7 billion, 34% for the development of new projects for the refineries that will remain in our portfolio. These are projects for hydrotreatment units at Reduc, Revap and Replan, that Rudimar presented, aimed to producing Diesel S10.
We are also studying the possibility of integration between Reduc and GasLub in Itaboraí, where we intend to invest in the production of more advanced lubricants from Group 2, in addition to high-quality fuels with very, very low sulfur content. I emphasize that 35% of investments will be directed to operational efficiency projects to maximize energy efficiency in our refineries, lowering the greenhouse gas emission rates, and optimizes also the reuse of water. Next slide, please. In September this year, we launched the BioRefining 2030 program, which includes projects for the production of a new generation of fuels, more modern and sustainable than the current ones, such as diesel with renewable content and also jet biofuel.
Renewable diesel is an advanced biofuel produced from vegetable oils and with the same chemical structures as conventional diesel oil, capable of reducing greenhouse gas emission by 70% when compared to regular diesel and by 15% when compared to conventional ester-based biodiesel. Renewable diesel is the third most produced biofuel in the world, behind ethanol and biodiesel produced from by conventional routes, and is the biofuel with the highest production growth rates nowadays. Next slide, please. The production of the renewable diesel in co-processing in hydrotreatment units already existing in our refineries allow the production of diesel with this renewable content. We are also working on greenfield projects that could be able to produce both jet biofuels and renewable diesel in dedicated units. It will take a longer time.
We are now awaiting authorization for the National Energy Policy Council and ANP for the marketing of this renewable diesel in Brazil. The recognition of renewable diesel for the purpose of meeting RenovaBio's mandatory target is important, not only to make its production economically viable, but also for diversification of supply and also to reduce the side effects on truck engines with the addition of the conventional biodiesel in diesel. These problems are recognized in Europe and the United States, which have established maximum limits of 7% and 5% respectively for the addition of the conventional biodiesel in the conventional diesel. Next slide, please.
In the gas and energy area, our major strategies are also in line with Petrobras strategic pillars, like Roberto mentioned, and involve actions seeking to add more value in the marketing of natural gas and the optimization of our thermoelectric portfolio, with a focus on generating value of the gas produced by our upstream segment. Next slide, please. We are forecasting a CapEx of $1.1 billion in our plan, with emphasis on the completion of Itaboraí Natural Gas Processing Plant, as Rudimar mentioned, which will receive gas from Rota 3, expanding the integrated capacity of pre-salt routes to 44 million cubic meters per day. By increasing and integrating the gas flow network of pre-salt fields, we are promoting greater resilience and safety to our oil production projects. We are also investing improvements to our gas turbines to increase power and operational efficiency, as well as control and startup systems.
Next slide, please. In line with the strategy of adding value in the gas market, we expect to reach 2025 with a significant expansion of our capacity in regas terminals through the expansion of the Guanabara Bay Terminal from 20 to 30 cubic meters per day, with a total regas capacity in 2025 of 50 million cubic meters per day. The startup of Itaboraí Gas Processing Unit will also add 21 million cubic meters per day of gas processing capacity. We are also leaving the gas transportation and distribution sector in line with the commitment with CADE.
In our thermoelectric units, we intend to maintain a generation capacity of 4.3 GW, maintaining our focus on more efficient natural gas units, with a focus on generating value for the commercialization of our gas produced by Petrobras, and seeking competitiveness in participation in the auctions promoted by the National Agency of Electric Energy.
The last slide, please. With the opening of the gas market, we continue to be a relevant player, but we are leaving Petrobras' monopolistic position in the transportation, import, and sale of gas. As a result, gas demand in Brazil will be met by different players competing in an open and dynamic market. As for Petrobras, we will also be looking for efficiency and optimization for our offer portfolio, consisting of our own production between 40 million and 50 million cubic meters per day, gas imports from Bolivia, around 15 million cubic meters per day, and our LNG imports. I highlight the speed of these movements. We will evaluate from having an almost integral participation in the internal gas supply, and in four years, we will reach levels close to 55%.
We understand the importance of this diversification for the Brazilian market. There is still a need for regulatory advances in the sector. Thank you. Andre, the floor is yours.
Thank you, Anelise. Good morning and good afternoon. The Trading Logistics Office was created earlier this year and already reflects the opening of the refining market in Brazil. The objective was to place more emphasis on the function of marketing, sales, and logistics, and also to enable our role as those responsible for harmonizing our productive chain with market demands. Our entire team has been working hard to implement a high-performance culture and a customer-centric mindset. In this sense, I would like to share with you our ambition for the next years. We want to be the first choice of our clients by offering sustainable products through efficient trading and logistics solutions.
We have several work fronts in order to maximize value creation on marketing and sales, logistics solutions to better serve our clients, and also to better serve their E&P demands, as well as various actions to improve inventory management practices in the company. For instance, we have obtained excellent results in the diversification of our portfolio of clients in three continents, which has been fundamental for us to beat several records of oil exports, already commented by Roberto. We continue with the objective of keeping our low sulfur bunker oil as a reference in the world with tanking and mixing solutions in the main markets.
With regards to diesel and gasoline, our largest volumes, we continue to act in order to ensure competitiveness in all markets in which we operate, bringing new solutions to be even more aggressive in the domestic markets, such as our auctions that already represent over 10% of our volumes. As has already been commented by Roberto Ardenghy and Anelise, we will enable a new portfolio of refined products with lower carbon footprint, as bunker and renewable diesel, jet biofuel, in addition to the development of non-fuel products like lubes, paraffin, solvents, and petrochemical feedstock such as Naphtha and Propene. With regards to logistics, we are enabling solutions to expand our delivery capacity of low sulfur diesel, for example, in the Midwest of Brazil. Which due to the agribusiness growth, continues to show a great potential for increase in diesel consumption.
Through digital transformation initiatives that soon will be better detailed by Nicolás Simone, we are increasingly improving our market intelligence information. We are also developing AI-based simulators capable of anticipating movements of our competitors in the competitive market. We are evolving a lot in asset optimization. As an example, 12 ships were withdrawn from the Transpetro operation in 2020, and another 5 will soon be withdrawn. The average fleet age of Transpetro has dropped from 14 to seven years during this year. The operational availability of our ships also reached 99.1% in the third quarter, the best result in our last three years. As already mentioned by our CFO, Andrea, we had a reduction of more than 30% in the operating inventories of oil from April to today. We also continue with a great effort of having a better alignment with our wholly owned subsidiaries, Transpetro and PB-LOG.
Such alignment has been crucial during this tough year that we are experiencing. As for spare parts inventory management, we are positioning our team to lead as a conductor of an opera, our inbound supply chain. During the next year, we plan to cut by half the number of warehouses that we operate in Brazil. For the remaining ones, there are several projects focusing on the digitalization of their processes. Finally, there is a whole set of activities going on related to discarded materials and scraps in order to increase control and organization of those kind of items. We foresee a promising future for trading and logistics. Our initiatives and projects on development with our research center, Cenpes, cover from additive manufacturing with 3D printing of critical items, to a whole new operations planning model.
Including IoT and unmanned vehicles, not only to transport small and critical parts, but also to monitor the environmental conditions of a given area. There is a very interesting initiative with digital ship, with a good amount of automation, with focus on operational and energy efficiency. We plan to invest around $2.1 billion from 2021-2025 in logistics. On pipelines, but also on ship docking and on maritime terminals, such as the one in Santos that has a bidding process to be launched in the first semester of 2021. In other areas of Petrobras, we are also dedicating efforts to actively manage our portfolio of assets in logistics. We expect to have a leaner and more efficient logistics footprint in Brazil by 2025, keeping eight maritime terminals in the Southeast, one in the South, and one in the Northeast of Brazil.
We also plan to have 23 onshore terminals in the Southeast and two terminals in the Midwest. For our integrated pipeline network, we will focus on our 82 pipelines in the Southeast and six pipelines in the Midwest, which account together for over 5,400 km of pipelines. In this last slide, I'm bringing the change in our oil sales profile. We have been working on expansion of our global client portfolio by developing new markets. This year, we have already exported our crude oils to 45 refineries located in 18 countries on three continents. Such diversification of clients was key for our export records during the pandemic. We plan to move further. As you can see, we are planning to double the average export volume in 2021 and 2025, when compared to the average exported volume from 2015 to 2019. Why is this happening?
Well, we are planning to sell half of our refining capacity until 2025. The new owners can decide whether or not they are going to keep buying Petrobras oil to feed their refineries. In this 21/25 plan, we are being conservative by considering that a relevant portion of the oil currently being fed to our refineries will be exported. If this need to increase export is confirmed, Petrobras will have the export capacity to deal with those projected additional volumes. Well, having said that, I'll pass the word to Nicolás Simone. Thank you all.
Thank you very much, Andre, and good morning everyone, or good afternoon. What we are going to see right now is the strategy of digital transformation and innovation. As you can see, the strategy is across all the business unit or the areas of Petrobras. Here, what we are going to highlight is some, I think, important message that we would like to pass you. First of all, the strategy of digital transformation and innovation is focusing in three dimensions. One dimension is the green light here in the right side of the slide. We are focusing in the go digital dimension. That is, it means to change and to work in the legacy of our technology architectural and technology platforms, rethinking the technology that we are implementing in place.
Also making the strategy of make or buy applications in order to accelerate the digital transformation in the company. The second dimension that we are focused on is the go lean part, is the purple line here in the right side. That we mean we would like to have a lean Petrobras, less bureaucratic, more paperless. What we are focusing in that dimension is to be a more digitalized processes with more robotic or implement robotic automation in Petrobras and focus in a shared service center, more digital. As Roberto highlight also, the digital transformation in a company is through people. That means that we need to focus in a be digital part or to focus in this dimension. It's a cultural transformation process, as Roberto say, is a new way of working.
We are implementing agile methodology, design thinking, hackathons, and an ecosystem that we can move forward with our colleagues in Petrobras in order to recycle the knowledge that we have internally also in the company. In the left side of the slide, you can see different technologies that we are moving on. Of course, we have artificial intelligence and analytics, innovation ecosystem, agile at scale. As Roberto say, we are eliminating the barrier of Petrobras in order to connect more the technology areas through our business unit or corporate areas in Petrobras. We have a huge challenge also in connectivity. We are thinking to implement, for example, for the offshore, an ocean fiber optic to connect our platforms in a high-speed connection.
Also what we already have, we have a low orbit connection in order to increase the speed and, of course, take advantage of all the technology that we are implementing in Petrobras, with the platforms and also in the refineries. What I will explain in the next slide is what we are doing in the different corporate areas or business units. Here, for example, in upstream, we are focused on artificial intelligence and analytics. We are focused on digital twin, personal production systems innovations, and also augmented reality. To take one part of each one of these technologies, for example, why we want artificial intelligence analytics? For example, to predict maintenance for preventing platform shutdown is one example. I won't detail all the projects that we are having here, for digital twin, what we want is to have the digital rocks.
That means we want to have the digital of the soul that we are working in order to be more predictive in the way that we are working, also exploring more our strategic projects like XCM, X100, and PROD 1000. Of course, for innovation, we are focusing a lot on lower carbon emission, as Ardenghy and other directors explained, but also to reduce the human risk exposure using drones or image analytics technologies and augmented reality to navigate in order to do asset inspection and maintenance. What we want, if you see the three blocks at the bottom, we want to integrate data platform, high performance computing increase. We are increasing our capacity of processing in order to reduce the time of simulation in 80% approximately, and of course, offshore connections like I explained before. What we want to be is a data-oriented company.
As Roberto highlighted also, we have 67 years of data that we need to transform in information. When we see downstream, we are doing a lot in order to increase the efficiency of the downstream business unit. Also, just to give some examples of how powerful is the technology in order to add value, in digital twin, for example, we are implementing digital twin in some refineries, but what we captured until September of 2020 was already $125 million in gains. That means that we have a huge potential, for example, with digital twin refinery, estimating $173 million per year. Of course, we still implementing mobile devices, assistance for inspection, operation, and safety. We want to also implement virtual reality, doing some partnership with some strategic partners. We have implemented artificial intelligence and analytics to predict automation shutdowns and failure diagnostic.
Also, we are doing a lot of innovation in downstream to add value, like Anelise Lara explained in her presentation. Please, can you go to the next slide? Running through commercialization and logistics. Well, André explained very well in the slide, but we are really focused to have air, sea, and land operation performance analytics and optimizations. That means that we are implementing artificial intelligence and analytics across the company in order to accelerate the efficiency in the company. We have projects with augmented reality, but also we are focusing on integrating technological platforms like S&OP Evolution and CRM. As Andrea said before, we want to have a customer-centric perspective. For that, we are implementing a CRM 360 in order to have the full view of our customers and build an ecosystem to focus on the user experience also for our customers.
Of course, we have a competitive market intelligence supply chain. We are focusing a lot in IoT, RFID technology, and also in integrated data platforms in order to have a lot of information, intelligent market indicators that give us or push us to be one step further in a predictive way. Can you move forward, please? In the corporate areas, we are doing a lot. Andrea talked about some projects. For example, in digital procurement, we are implementing Ariba, as Andrea says. The Mais Valor program that is a lot of is technology platforms in order to add value, to have a lean procurement and a more efficiency one. For digital HR, we are implementing artificial intelligence. We are implementing e-learning in a way that we can recycle our colleagues in this new industry 4.0 and focusing also on the employee experience.
Like we put the customer in the center, we are putting the employee in the center also. In digital finance, we have a lot of strategies of digital projects for that one, but one that is very important for us, of course, is blockchain. We are analyzing and implementing this technology in order to add value to the finance area. Digital legal is an area that we launched a platform in January that allowed us to have a lean legal in place, reducing more than 20,000 documents already this year. That means that we have paperless, we have more digitalized processes. Of course, with HSC and COVID response, we did a lot in order to connect with the society, but also internally implementing technology to have a company more healthy and take care of one of each other.
For digital shared service center, what we are focusing is to implement technologies to have process more digitalize process and do a robotization of the processes itself to be more, how to say, efficiency in that way. We believe that with SAP S/4HANA, the migration that we are doing of SAP to SAP S/4HANA, implementing digitalization of the processes and robotization, we have a huge opportunity to have a lean, less bureaucratic Petrobras. We want to be from working a bimodal way in order to just not maintain the day-by-day operation, but also to increase innovation and digital transformation in the company in a high speed. I think with the COVID-19, of course, we have a sad history in the world. In Petrobras, we believe that with all this transformation that we need to do, we put almost 30,000 people in home office.
I think we evolved in digital transformation, we did six years in six months. I think we are very proud of the movement that we are doing together. Can you pass through, please, the next slide? To finalize, the message that I want to give to you is that we are focusing also to build an innovation ecosystem. What we are doing in the last year was to open the, or to break the barriers from Petrobras to start selecting startups, for example, but not only startup outside of the company. We have a program that we call startups from outside the company that we engage more than 500 startups, and we select 23. Also we are innovating in that part, selecting or engaging startups internal in Petrobras.
We believe that we have excellent professionals with excellent ideas, and we need to find a way that we put the ideas of the people that we have internally in place, also. That means that, for example, internally, we engage 93 startups and we select 15 startups. In the innovation ecosystem, of course, what we are doing is a partnership, for example, with MIT in a program that we call MIT REAP to build an accelerating program focusing in sustainability and energy here in Brazil. We are going to launch an open innovation platform in order to connect to the world, in order to, starting from a need or a problem, connect with the world in order to have the solution and implement programs there.
We have there our R&D center, that we call the lab of the lab because we have 147 labs of innovation, and we are very proud because it's the largest research center in Latin America. With this new home office or anywhere office, like we call, we are also preparing to change the layout of our corporate areas or buildings in order to have more collaborative areas with the concept of smart office and co-working dimension. We are breaking, and be open. If we are thinking to run a company in a agile mode, we need to also think the way that we are working. We believe that we are very in a high-speed move to add value to the company. It's not technology by technology, but it's technology and innovation to add value to Petrobras. Thank you very much. Pass through the floor to Carla.
Thank you, Nicolás. We also would like to thank you all the people who follow us through Twitter. Your questions will be answered on the comments. Now we'll start our Q&A session. Our first question comes from Frank McGann with Bank of America Merrill Lynch, and he has, in fact, two questions, and both of them are for Capo. Capo, how's the company thinking about growth? Clearly, the emphasis is on high-grading assets, and it's expecting a net flat production over the plan period when output from divestment is excluded. Is the expectation that the underlying growth will remain solid, driven by pre-salt assets for the plan period and likely beyond the plan period?
Oh, hello, Frank. Thank you for the question. Yes. My answer is yes. That's possible. As I pointed during the presentation, after 2025, we could expect growth in production, even with divestments considering the plan, due to the growth in production in Búzios. We're up to seven new systems are being planned or contracted to be added to the field from 2024. The answer is yes, it's perfectly suitable to think about this perspective.
Cap, the second question also from Frank is regarding last year's plan. In last year's plan, the Campos Basin was expected to bottom a 0.8 million barrels of oil equivalent per day in 2021. In this year's plan, that now appears to be a little bit lower at 0.7 million barrels. What's driving there? Is it greater decline rates? Is it lower investments in revitalization projects, or any other factor?
Well, Frank, actually, it is a combination of some effects. Divestments, we closed in 2020, mothballing of shallow waters platforms in the Campos Basin, and reduction in our investments to make them compatible with the lower cash generation. I think, those three factors are the main factors that we could consider when we look at what we presented, what we expected last year, and what we are showing now. There was some difference between them. Particularly, it was due to the fact that we have to recombine our portfolio in order to cope with the COVID as well.
Thank you, Cap. We have questions from Rodolfo Angele with JP Morgan. The first question is about refinery. Discussions on refining divestments have been mostly focused on the process that are more advanced, like RLAM, REPAR, and REFAP. Could you please provide some color on how are the process and interest for the other assets, such as REMAN and REGAP?
Hi, Rodolfo. Yes, as you mentioned, these three refineries are in a divested process of divestment. We still have three more that we already received the binding offers, like REMAN, Lubnor, and SIX. In this case, we considering that next week we are going to receive the binding offers for REFAP and REPAR, we'll have six refineries already in a binding phase. REGAP and REMAN, the binding phase for these two refineries will be in the first quarter of 2021. The reason is that due to the COVID, we have to postpone some site visits, and we left these two refineries by the end. We expect to have the binding offers by February, March next year. Things are going well, and we receive interest for all eight refineries that are in our divestment plan. Thank you.
Thank you, Anelise. The second question from Rodolfo is for Chiarini. Chiarini, you mentioned that about 42% of your oil production should be exported in 2021- 2025. How do you see the demand for Petrobras crude? Will China's independent refiners be the key customers, or should we see other players, such as India, for example, becoming more relevant?
Thank you for your question, Rodolfo. Well, we see a strong demand for Petrobras crude in the coming years. Petrobras has a solid presence globally with a very diversified client portfolio. Currently, China is the main market for Petrobras crude oil exports, being the independent refiners an important outlet that supports the prices in China. We also sell for major refineries there. Although we do not expect this configuration to change drastically in the next years, other markets also play an important role in our sales strategy. For example, premium clients in Europe and in the Americas. India is also an important market, being on our top five destinations markets in the recent years. Thank you.
Thank you, Chiarini. The next question comes from Luiz Carvalho with UBS. They are both to Andrea. Andrea, we have been using the iceberg analogy to illustrate the impact from divestments in your cash flow and balance sheet. We mean that we usually have visibility on how much cash Petrobras can collect, we don't have much visibility about how much the divestment can impact your OpEx, CapEx, EBITDA, cost of debt, and etc. My question is, how much of these factors are already embedded in your forecast vis-a-vis the divestment forecast?
Luiz, thank you for your question. On the cash flow that we show for the next five years, actually, we incorporated all the effects from the divestment. We are not just adding the funds that are coming from the divestments, but we are taking out the revenues, and actually, CapEx is not really relevant, so it's not really affecting CapEx as well. In terms of debt, we take a look. For debt, we really considered all the uses and sources. We look at it in a corporate overview. All the debt that is needed or all the debt that we are going to repay is under the overall portfolio of debt. Whenever we do the financing of Petrobras, we look at the overall.
There's nothing attached to the items, but definitely the divestment funds are helping us to deleverage and to invest in other assets that have higher return.
Thank you, Andrea. The second question also from Luiz, is your recently adjusted dividend policy. The company can pay its dividends even under accounting net loss scenario. The management proposal to the board in general lines would be to equal dividends to both preferred and common shares, or until we reach $60 billion gross debt level. We should see preferred shares having higher dividends than common shares?
Okay, Luiz. Thanks for your second question. We asked flexibility to the board to be able to pay even in a scenario with net income lower than zero, as you know. Always with a net debt reduction in the last 12 months and payments with reserves. It's just to have flexibility. We don't have a discussion with the board around that yet. Considering that equal payments to ordinary and preferred, we will always try to pay the same, but it's not an obligation. It's just a, we will try, if possible, we will pay. If not, it's not an obligation. Definitely, we believe the higher payments will come as dividends will come after we reach the $60 billion gross debt. 2023 on, that's when we believe we are going to be paying more dividends.
Thank you, Andrea. We have questions from Bruno Montanari with Morgan Stanley. The first question is for you as well. Thinking about capital allocation priorities and understanding that Petrobras is generating very healthy cash flows, how does the company think about dividend distributions within its priority ranking? This is a metric which is well regarded by global oil investors, it would be interesting to hear how the senior management at Petrobras sees this changing. Andrea?
Sorry, I was everything locked here. Bruno, thanks for your question. If we're looking at cash flow figures, you will see that the range for dividends and the range for debt reduction is the same, $30 billion-$35 billion. The priority is the same. The time is different. We will be working harder to get to the $60 billion total debt. That is I believe it's important to make Petrobras be more sustainable, to have a lower cost of capital. It's something we need to focus at the beginning. If I would say both are very important, but maybe up to 2022, we'll be more focused on the levy, and after 2023, we will have the dividend payment as a more important, how can I say, contribution in the cash flow. I would say we should balance those two things.
Thank you, Andrea. The next question from Bruno is for Chiarini. Chiarini, regarding the refining market, as a dominant agent, Petrobras is not currently able to differentiate contracts for different clients. When will the company be able to differentiate contracts? Will the company only be able to do it after it sells all the refineries as per the agreement with CADE, or does it have to reach a certain level of percentage of the total market, or it's something that's still pending discussions?
Excellent question. Thank you, Bruno. Given the current regulation, our understanding is that even the new owners of the refineries wouldn't be able to differentiate contracts among their own clients. We expect, for sure, more flexibility in the rules, as we will have more players in the refining markets in Brazil in the coming years. Such debate is still ongoing. Thanks.
Thank you, Chiarini. The next question comes from Andrea Shane with Itaú BBA. Last year, Petrobras during the terrestrial rights auction, made a bid on the surplus volumes for Búzios Fields, along with the Chinese companies. He has an ABC question. A, Caio, could you comment on how the negotiations regarding production sharing have been evolving? The contract states that there was an 18-month deadline to which, is there any risk of this matter going to arbitration by ANP? Finally, the partners would have to reimburse Petrobras for the losses stemming from the production curve dilution. Is there any sense on how and when said payments would be made?
Okay. Okay, Andre. Thank you very much for the questions. Well, regarding the negotiations of the production sharing, we have been negotiating with PPSA, CNOOC, and CNODC, and the negotiations have progressed very well. We are in a good pace, and we still believe that it will be able to find a common ground among the parties until the end of this year. After that, we have the approvals of the ANP, and so we think that at the beginning of next year, ANP could approve the whole negotiation that we have made and the agreement. Although in our projection, as I have mentioned in the presentation, we have for a conservative reason, we have set the signature or the final agreement at the third quarter of 2021.
We still think that we can close it this year, and ANP could approve it at the first or second quarter of 2021. About any risks of arbitration, no, we do not foresee an arbitration regarding the co-participation agreement terms. As I mentioned, negotiations are advanced, and then we hope that the co-participation terms will be agreed this year, and ANP will approve it at the beginning of next year. I think that was about the co-participation and the payment. The payment terms are part of this ongoing negotiation with CNOOC and CNODC, and we expect to receive the amount from 2021.
Thank you, Capo. Now we have questions from Regis Cardoso with Credit Suisse. The first question is for you, Capo. It's regarding divestments on E&P business. Divestments can reduce production by some 0.6 million barrels per day. That is about 20% of our current production. Is it fair to assume that the impact on the E&P EBITDA is disproportionally smaller because you are selling the least profitable assets while holding onto highly productive pre-salt fields?
Thank you for the question, Regis. The straight answer is yes, you are right. Considering our strategy, we are focusing on assets that bring more value to our portfolio. It makes sense what you are saying.
Thank you, Capo. The second question from Regis is for Roberto. Roberto, in your view, which assets sale will be most material? It is feasible to have closing of refineries Albacora and Marlim still in 2021. How about the offshore gas pipeline Rota 1, 2, and 3?
Thank you, Regis, for the question. First of all, it's difficult to speculate about values. I can stumble that one refinery or oil fields, we have many oil fields per se. The group of oil fields could be much more valuable. It's a difficult question. The most important thing, that we are following our divestment program. It remains intact and alive. As Anelise mentioned, we have right now four refineries, which reach the final stage of sale. We have two more that we'll be receiving binding offers on the tenth of December. Remains only two of the refineries that will get the binding offers in the first quarter of next year. With relation to the subsea gas pipelines, the so-called routes, route 1, route 2, route 3, we're discussing to structure a transaction. We have partners.
We have to talk with them to negotiate, because our plan is to IPO a company, to form a company, a midstream company, and to IPO it. At the moment, it's very difficult to make any commitment about when it will come to the market. I am very confident that it will come. If possible, still in 2021, probably in the third quarter of 2021. We have to move fast. We are trying to do this because it's very important. All the divestment are very important, not only in terms of debt reduction, but in terms of generating value to finding the best allocation of our capital. The ownership of midstream assets does not make sense. We are user of the service, but to be a client, one doesn't need to be the owner. In this area, our goal is to be asset light.
Thank you, Roberto. We have also questions from Gavin Wolff with Scotiabank. The first question is for you, Roberto. With the revised dividend policy and current cash balance well above $5.5 billion, and the material reduction in net debt that was achieved during 2020, should we be expecting a dividend in 2021? Any guidance around what level or yield would you be targeting? What would be the timing of such discussions with the board?
Well, thanks for the question. First of all, oil companies are not cash cows. We have seen recently, since 2015, oil companies paying hefty dividends and financing it through debts. We are not going to do that, definitely. This is a process. We are very focused on capital management, and we have to make decisions about investment, debt reduction, and dividends. We did not discuss yet dividend distribution for 2021. We will start the discussion only early next year. At the moment, there's no answer to your question.
Thank you, Roberto. The next question, also from Gavin, is for Rudimar. Rudimar, FPSOs for Marlim 1 and Itapu have been delayed. Outside of COVID, what are the key risks of bottlenecks facing timing of FPSO delivery versus plan? Forecast shows some potential tightness in the FPSO market, shipyard capacity emerging in 2024 and 2025. Any concerns there for Búzios's development?
Gavin, thank you for your question. First, it's fair to say that the Itapu project actually has been rescheduled one year earlier from 2024 to 2023 with our value creation strategy to adjust P-71 to Itapu. About Marlim, this project has been slightly adjusted in order to seek better value creation due to a scope of optimization and CapEx reduction. Outside COVID, we can foresee normal market restrictions, and we see the potential restriction as we always see the stressed supply chain for low lead items for our FPSOs construction, commissioning phase of high complexity units that we have some of them, and market restriction for high complexity FPSOs. In Búzios 7 and Búzios 8 development project, despite our improvements we have made, like alignment of interested, our rigorous process selection of suppliers to have better suppliers with higher capacities, our main concerns is the shipyard performance. Thank you.
Thank you, Rudimar. We have also questions from Vicente Falanga with Bradesco BBI. He has one question, and this is for Capo. Capo, given that your output curve considers the revitalization of the Campos Basin, don't you feel your output estimates for 2025 are strongly conservative? The pre-salt is not declining yet, and if the Campos Basin will also not decline, then your net output growth will be defined by the platforms you add. This would result in a much stronger output for 2025 compared to the 2.7 million barrels per day in your official estimates.
Well, Vicente, thank you very much for your question. In fact, I don't think that we are being conservative. We believe that our estimates reflect our best vision at this moment. As I have presented during my presentation, we saw that we are having a better performance in the Tupi and Sapinhoá Fields than we had expected it last year, due to the fact that the climate prediction is lower. In fact, we are still at the beginning of a lot of platforms. We also need to consider the effect that it could have on the divestments of all the plans that we have for the Campos Basin, and also the performance on the Campos Basin. We have mixed it all together and made a risk analysis, and so we think that we are not being conservative. We are being realistic about that.
One point that we should stress is that the production is flat, okay, during the period of the 2021-2025, but we are very much focusing on value. After the 2025, I think that we could expect an increase in the production due to the fact that Búzios field will also come on stream, and we have a lot of platforms that we are planning and contracting at this right moment.
Thank you, Capo. The next question is from Lilyanna Yang with HSBC. The first one is for you. Could you please disclose the decline rates that underline your production curve guidance for 2021- 2025, for pre-salt fields as well? Since they might be close to zero at many fields as they have only recently started to produce, could you please give us a color on the decline rates you have seen for different reservoirs?
Thank you, Lilyanna, for the question. We are sustaining our production in fields like Búzios and Mero due to the new wells that we will put on stream in the days to come. I think that we could say that there is no decline in those fields, that we are adding wells in order to complete the processing capacity of the platforms. In the Tupi and Sapinhoá Fields, where we have some decline phase and we have just begun at some front platforms. We are still working in the reservoir management to extract the greatest possible value from them. If you want to consider some figure for the decline of production in those fields, as we don't put any other wells on the platform, you could think about a range of 5%-10% per year as a guidance.
I think that it's good for you if you have this figure, because it's better for the position that we are going to make in your model. Anyway, I think that as a whole, we could see a very low figure regarding the decline of production when it comes to the pre-salt.
Thank you, Carlos. The next question also from Lilyanna. It's a mix. Maybe Andrea and Roberto may step in as well. Can you provide color on your initiatives to reduce pension related and healthcare medical expenses for your beneficiaries? Let us know if you have any targets of savings in this area. Should we expect lower expenses ahead or current efforts will be in the lines of preventing current expense from rising significantly?
I don't know if Roberto wants to start, but I can start with pension. This year, as I mentioned, we did already the equalization plan for pension. We are working now with the approval of a new defined contribution plan. What we want, if more people move to a defined contribution plan, that those plans tend to be generating less deficits than the defined benefit plan. It will be positive for the future of Petrobras. In the case of the health plan, and Roberto can add at any time, we just implemented a new association that we expect to reduce costs over time by renegotiating contracts with healthcare providers, and better managing the plan, really, with a better use from the beneficiaries.
Adding to that, we are increasing the percentage of the healthcare cost paid by employees from 30% to 40% in 2021 and to 50% in 2022 according to CGPAR regulations. This is embedded into our regulation. As we published, we expect a $6.2 billion present value to be realized over 10 years of the reductions of cost in the health plan. I believe we have a really good, how can I say, perception of cost reduction over time.
It was a thorough response. If I may, I'm going to add some points. First, the healthcare was managed by Petrobras itself. It was very badly managed because we are not specialists in managing healthcare plans. We are an oil company. There was a loss of BRL 2.5 billion per year. The service were considered poor by many people. Now we formed this private association. It's not a subsidiary of Petrobras, it's independent. We hired people from the market, people that are specialists in healthcare plans. As Andrea mentioned, we are cutting costs in the management of the healthcare plan. It was very expensive. It's converging to a much lower cost management. Alongside this, as Andrea mentioned, we are moving for a situation in which the employees share only 30% of the cost to 50% in 2022. That's all. Thank you.
Thank you, Roberto. Thank you, Andrea. The next question is from Christian Audi with Santander. It's for Roberto. Roberto, first, Christian would like to thank you for continually improving transparency and level of detail that was provided with this strategic plan. We are seeing, particularly the global oil companies in the Europe and also in U.S., adjusting their long-term strategy more and more towards greener forms of energy. That said, Petrobras has this amazing profitable productive pre-salt, which generates much higher returns than green energy might. How do you plan reconciling both in the medium and long term?
Thank you for the question, Christian. Well, as I said, our strategy towards low carbon is to use technology in our core business to be a low carbon emission company. With respect to green forms of energy, frankly, we did not have the competencies to introduce business. We had some initiatives in the past. All of them failed. They generated some substantial losses, and we are not going to invest in assets that will give us very poor returns. Our goal now is to clean our house, as was mentioned, to launch new fuels with lower emission that will meet the needs of our clients. We have a lot of research. We are doing a lot of research on renewables, but for the future. We do not plan to invest $1 in renewables as a policy for the next five years.
Perhaps in the middle, we find some technological breakthrough, and that will allow us to start thinking about entering this type of business. To produce solar or wind energy, wind powered energy, is totally different from the oil business. This is a different business, and we still meet several technological challenges. We'd rather follow this strategy. We have seen European companies making big announcements, not the U.S. companies. They are more like us. Our focus will be ever to create value for shareholders and try to reconcile value creation to shareholders with lower carbon emission. This is our goal. If you do that, we will thrive. If you not do that, we'll start investing in low return projects. By the end of the day, we will fail and do not accomplish our mission.
That's to provide very good products at low price to our clients.
If I may add, Roberto, as you mentioned, one part of this strategy is looking for the project itself and see how we can improve efficiency and lower the carbon footprint. In the case of the pre-salt, that is the question we have, we are not just making a big effort in terms of carbon capture and use and reinjection. This is the larger plant in the world in terms of carbon reinjection. This carbon reinjection is also very good for lowering the carbon footprint of the project, but also improves the efficiency of the project because it increase the recovery factor of the project itself. It's a double success in this case, and I think that the carbon capture in the pre-salt is a very good example of what you mentioned right now.
Now we have the Hisep that will allow us to go further on carbon capture. We have also the projects of all electric platforms that depend on the authorization of the regulatory authorities in Brazil. That will save much more carbon emission in our operations.
Thank you, Roberto. Thank you, Roberto Ardenghy. The next question from Christian Audi is also for Roberto. Roberto, on renewables, you have said in the past that the company should focus where it has competitive advantage, like in a deep and ultra-deep water. Given what you have seen and learned so far as a company about renewables, how long do you envision it might take for the company to feel more comfortable with spending more on this front, to be able to say that it has competitive advantage in renewable fuels?
There is no exact response to your question, Christian. It depends on many factors. Depends on the path of technological innovations, depends on the investment in renewables proving to be very profitable in order to deliver value to our shareholders, as both Roberto, Ardenghy and myself stressed. Our goal is to combine the transition to a low carbon economy with generating value for the shareholders. If renewables will satisfy this criteria, why not? Go ahead. At the moment, we do not see this. We think that we have to go ahead with our research and development products in order to give you our response to that.
Thank you, Roberto. We now have questions from Gabriel Francisco with XP. The first question is for Rudimar. Rudimar, could you comment on the drivers behind the CapEx reduction for the construction of new wells? More specifically, what are the current levels of CapEx per new well, whether you expect the trend in CapEx reduction to continue going forward?
Thank you, Gabriel. The main drivers I can summarize that we have three. The simplification in well design, the continuous applications of new technologies during the completion and drilling, and the rig performance. The second part of your question, the answer is yes. We expect to continue the trend of reducing CapEx in drilling and completion activities. As I pointed out during my presentation, for the pre-salt wells, we have the Well Efficiency Program that aims to optimize the engineering projects of the wells by incorporating more technologies, with a focus on reducing costs, and we expect to reduce up to 30% of the cost. The ambition of this program is to reduce the duration of the wells to up to 70 days.
In the post-salt, we have, as I said during my speech, the True One Trip Ultra Slender, that is also adopting new design and technologies of drilling and completion in accordance with our reservoir characteristics for the pre-salt fields. Thank you.
Thank you, Rudimar. The second question, also from Gabriel, is regarding company's portfolio of thermal power plants. Roberto, the thermal power plants are for sale. What is the strategy for the divestment? Will the company pursue with ANEEL an extension of the authorization of power plants with a short-term duration? Will the company sell assets only after the participation in an auction?
As Anelise explained, we have several power plants for sale. We reserved only 10 for ourselves to think about what to do in the next few years. Perhaps we will sell them, or we keep them because all of them are natural gas fired, so they generate low carbon energy, and decide about the future of these plants. At the moment, as the Brazilian market is still in its early stage of development, I'd like to stress that Petrobras, with its divesting program, is creating three new industries in Brazil. First, an oil industry composed of small and medium-sized oil companies. Second, a market for refining. We have a real refining market. Fourth, a natural gas market. These were not markets. Only one company was the dominant player. Now there will be more competition.
As I was saying, we are in a very early stage, so it's still an illiquid market. Let's wait for some time and see the evolution of the liquidity of this market in order to make a final decision, to sell or to keep these thermal plants.
Thank you, Roberto. Now we go for the last question. The last question we received is from Fernando Cunha with [Sealy]. She's mentioned that throughout the presentation, several productivity and efficient initiatives were mentioned. However, I want to understand what is the main driver behind the sharp drop in BRL 6.7 billion CapEx in exploratory assets. Or is it a matter of lower depletion rates that we originally forecast in pre-salt regions? Caio, would you like to start?
I'm going to do that. Thank you for your question. Well, no, it has not to do with decline rates for the exploratory blocks or even lost potential of those blocks. The reduction of the exploratory investments was just an adjustment over time, a postponement of exploration in some blocks that we have made, and we are still keeping the commitments with ANP for those exploratory blocks, and we still see potential on them. We had to adjust our CapEx profile to cope with cash generation for the 2021/2025, considering that this cash generation will be lower due to the fact that the performing price will also be lower on expectations there. It was an adjustment to cope with lower prices and to cope with less cash generation, just that.
Capo, I can say also that it's true that the cost today for drilling exploratory wells is getting lower, and then we are having more opportunity to capture from exploration. Just to add what you have said, Capo.
Thank you, Capo. Thank you, Rudimar. At this time, the Q&A session is over. If you have any further questions, you can send this to our investor relations team. Roberto, you can now make your final remarks. Please, Roberto.
Thank you, Carla. It's worth mentioning that this year, the Petrobras Day is also celebrating the 20th anniversary of Petrobras listing on the NYSE. It was a really important event for the history of the company. Now Petrobras has liquid stock. Although being a state-owned company, we have private shareholders owning 45.9% of our voting shares, and owning also 64% of our total capital. We need liquidity, and there is a very liquid market for Petrobras at the NYSE. We are very happy with the listing. It was a very good initiative took in the past. Finally, I would like to thank you for attending our event. That, according to our view, is the most important event of Petrobras with investor relations during the year. We are very happy with your participation and the analyst questions that were addressed to us. Thank you.
Please stay healthy and safe. Bye. Take care.