Hi. Good afternoon, everyone. Welcome to Petrobras webcast with analysts investors about the 1st quarter 2023 results. Great to have you join us today. We'd like to inform you that all participants will follow the transmission by internet as listeners. After an introduction, a Q&A session will begin. You can send us questions by email at petroinvest@petrobras.com.br. Today, we have with us Ana Paula Zettel , Upstream Executive Manager, representing the Chief Exploration and Production Officer, Joelson Mendes . Carlos Travassos , Chief Engineering, Technology and Innovation Officer. Clarice Coppetti , Chief Corporate Affairs Officer. Claudio Schlosser , Chief Logistics, Commercialization and Markets Officer. Mario Spinelli , Chief Governance and Compliance Officer. Mauricio Tolmasquim , Chief Energy Transition and Sustainability Officer. Sergio Caetano Leite , Chief Financial and Investor Relations Officer. William França , Chief Industrial Processes & Product Officer.
To begin, we will watch a message from our CEO, Jean Paul Prates.
Dear investors, as we open this event to discuss our results, I believe it is of the utmost importance to talk about the future of Petrobras and the perspectives opened up by yet another quarter of solid operational and financial performance, the first under this new management team. In these first 100 days, we focused our efforts on reorganizing the company's structure, preparing Petrobras for the future, especially to lead the just energy transition . We continue to reach production records in the pre-salt and to increase the efficiency of our refineries. Our operating cash generation remains consistent, and our debt reached the lowest level since 2010. We have solid fundamentals, which underpin our plan to diversify our investments to strengthen Petrobras as an integrated, robust, and long-living energy company.
We will always pursue returns on investments and reductions in the cost of capital, maximizing the company's value and seeking to develop the Brazilian market with sustainability. Total attention to people is our non-negotiable priority, because only a skilled and diverse technical staff will allow us to meet the dynamic demands of the market, especially the energy transition. The investment in profitable exploration and production assets and in adjusting the refining facilities to the Brazilian market's demands are natural movements to ensure the energy supply that society needs. We will continue our efforts to decarbonize our production processes and to develop greener products, which we understand to be the only way looking forward for the oil and gas industry, reducing its emissions and consolidating clean energy alternatives.
In fact, we are convinced that Brazil and Petrobras have all the conditions to be global leaders in a fair energy transition without ceasing to be an oil power, establishing partnerships with other companies, and taking advantage of the different vocations and potentialities of all Brazil's regions. We will build this route alongside our partners. This is our path going forward. We make decisions always reconciling our social function and respect for our governance, honoring the trust placed in our company by our shareholders. This is my greatest commitment, as well as that of the entire executive board which I represent. Thank you very much to all of you.
Thank you. Now I would like to pass the floor to Petrobras CFO, Sergio Caetano Leite, that will begin our webcast presentations of the first quarter 2023 results. Please, Sergio, go ahead.
Hello, everyone. Good morning. I'm very happy to be here with you today in my first quarter results webcast, and even happier to talk about the important and solid performance that Petrobras delivered in the first quarter of 2023. We had very strong quarter from an operational and financial perspective, and I will take a moment to highlight several important deliveries. First, from an operational angle, pre-salt production set a new monthly record in February 2023, and a quarterly record reaching 77% of our total production. In February, we also had a monthly production record at the FPSO Guanabara in the Mero field, whose average oil production reached 179,000 barrels per day.
We made the first injection of gas at P-71, which continue its ramp up in the Itapu field in Santos Basin Pre-salt. The production of diesel, gasoline and jet fuel in the first quarter of 2023 reached 67% of total production, 1 percentage point higher than the first quarter of 2022. We also set production records for 10 PPM diesel at REPAR and REGAP refineries in January, and the REPLAN refinery in March. We advanced in development of more sustainable and efficient products with the certification of diesel oil at the REPAR, the launch of new premium gasoline, the exclusive commercialization of fuel oil with a maximum 1% sulfur content in the domestic market, and with the beginning of trade of Ultra Low Sulfur Marine Gas Oil.
Here, it's important point out that we have recently undergone the organization adjustment to prepare the company for the future by creating the Energy Transition and Sustainability Executive Officer. In March, we carry out the remain procurement to resume the works of the natural gas processing unit of the integrated project Route 3 in the Gaslub cluster in Itaboraí, which is strategic for the new natural gas flow from the Santos Basin. The financials, I would like to highlight our EBITDA, which reached around $40 billion, a very robust amount for fourth-highest Petrobras history. We had consistent operating cash generation, with cash flow from our operations reaching the solid mark of $10.3 billion. The net debt EBITDA ratio reached its best mark since 2010.
It's also important to highlight that we had the lowest level of gross debt since 2010, reaching $53.3 billion. Return on capital employed reached 15.7%, the same level as in fourth quarter of 2022. Our net income reached $7.3 billion, and the free cash flow was around $8 billion, which are very significant levels. We continue with commitment to generate value and financial sustainability by distributing results to society, as can be seen in our fiscal report in the first quarter of 2023. We paid BRL 63 billion in tax and government take. We also paid $4.2 billion in dividends, bringing our cash levels to $15.8 billion.
In terms of the external environment, in the quarter, we had 8% drop in Brent prices, and the average exchange rate went down 1% when compared to the fourth quarter of 2022. Next slide. As already mentioned, we had a very robust EBITDA. Recurring EBITDA in the first quarter of 2023 reached $14.33 billion, in line with the first quarter of 2022, despite the 8% of devaluation of Brent, mainly explained by lower exploration expenditure and legal contingencies. Next slide. Delving to the results by business segment in exploration and production, the impact of the Brent devaluation was partially offset by lower expenses and higher productions, causing the segment's EBITDA to decline 1% when compared to the fourth quarter of 2022.
In the downstream segment, EBITDA was 15% lower than the previous quarter, due mainly to the effect of inventory turnover with reduction of Brent between the quarters. When look at the replacement cost, the results for the quarter grew 3%, reflecting higher margins on oil products, mainly gasoline, due to appreciation of the international margins. In Gas and Power , EBITDA rose 16% due to the favorable scenario and the actions taken to building a commercial portfolio resilient to the business risks. Next slide. As mentioned earlier, the resources generated by operating activities and free cash flow reached very significant levels. The level of cash flow generation, together with the inflow of resources from divestments, were used to remunerate shareholders, make investments, prepay debt, and amortize the principal and interest during the period, and amortizing leasing liabilities. Next slide.
When you look at our debt position, we have a very comfortable debt profile in terms of liquidity and financial strength. At the end of the first quarter of 2023, gross debt reached $53.3 billion, as already stated. That's the lowest level since 2010. Net debt was $37.6 billion, a drop of 9.5% compared to year-end 2022. Our cash position remained quite robust, reaching $15.8 billion at the end of the first quarter. In addition, it's worth noting that we have available revolving credit lines of $9 billion. We closed the quarter with an average funding rate of 6.5% per year and an average maturity of 12 years. Next slide. In relation to portfolio management, we are reassessing the process in which no contracts were signed.
It's important to emphasize that the projects that have already been signed, which are in current closing stage, shall be owned by the company. Up to April 2023, cash inflows related to these divestments totaled $2.1 billion. In the first quarter of 2023, net income was $7.3 billion compared to $8.2 billion in the first quarter of 2022. This result is mainly explained by the Brent devaluation and lower financial results, partially offset by the lower operation expenses. In addition, there was a higher income tax expense, which was mainly due to the absence of tax credit in the first quarter of 2022 because of the dividend distribution for fiscal year 2022 as interest on equity.
In this first quarter of 2023, tax and government take to federal, state and municipal governments amount to BRL 63 billion, representing the return to society of 54% of the company operating cash generation. I finish here my presentation. Please, we can move forward.
Thank you, Sergio. Now I'll pass the floor to Chief Energy Transition and Sustainability Officer, Mauricio Tolmasquim. Please, Tolmasquim, go ahead.
Hi, good afternoon. It's with a great satisfaction that I'm here today as the first Chief Energy Transition and Sustainability Officer in Petrobras history to present to the market the excellent results obtained over the first quarter of 2023. Please, next slide. As we can see in the graphs, we remain aligned with our sustainability commitments with carbon intensity levels below 2022. The carbon intensity in our exploration and production operation reached 14.7 kilograms of CO2 by barrel in the first quarter of 2023, is the first graph. This level is lower than that achieved in 2022, is the result of our continuous effort to reduce emissions from our operations. We have reinforced the competitiveness of pre-salt oil fields, which represent an increasingly relevant percentage of the company's total production. Why this is important?
This is important because the emission intensity from the pre-salt field is lower than the other fields. For example, if we look at Tupi and Búzios fields, both have emissions of 10.6 and 9.3 CO2 per barrel respectively. These figures are well below the national and international emission intensity. When we look to the next graphs, at the refining indicator, we can see a continuous reduction in carbon intensity too. This improvement is associated with increased energy efficiency through, for instance, the reduction of gases sent to the torch and process optimization. Finally, look the third graph. In the third graph, I would like to highlight the decrease in carbon intensity from thermal power generation. There are two explanations for this reduction in the carbon intensity.
First, the improvement of the thermal power plant itself. Second, the reduction of the dispatch of thermal power plants, reducing the dispatch of the less efficient plants. Next slide, please. Now let's take a look to the absolute emissions. In terms of absolute emissions, there is also a good performance. There was an important reduction of total operational emissions between 2022 and the first part of 23. The same happened regarding the operational emission from oil and gas, as you can see in the other graph. In what concerns the total emission, there are two main explanation for the emission reductions. First, the improvement in our process, and second, the reduction of thermal power plants dispatch. First slide, please.
In the first slides, I would like to highlight in this slide the three aspects related to climate and decarbonization. The first point to be highlighted is related to the Climate Supplement . In the period, we released the new editions of the Climate Supplement with information about progress made in decarbonization pathway, the Carbon Neutral Program, and other decarbonization initiatives. The document details information regarding emissions performance in 2022 and the project already implemented can be found also in this report. It presents also company's strategy risks and governance about the challenge of climate change. We detail in the document our actions to reduce methane emission, our position on just transition, and the strategy to use carbon credits. I invited all to read this document.
The second point that I want to highlight is that the, i n the period, we made some important partnership to leverage new business and decarbonization opportunities. Finally, the third point to highlight concerns our supply chain. We are a reference in sustainability by CDP, indicate our commitment to encourage good environment practices and climate change mitigation measures when dealing with our supply chain. Finally, in the last slide, please. In the last slide, we are going to focus on the Gas and Energy segment. The performance of the period was quite robust. It is the result of actions to build a commercial portfolio resilience to business risk that explain this good performance. Petrobras continues working to meet its contractual commitments for the sale of gas. In this quarter, it achieved 100% delivery reliability.
In the first quarter of 2023, the Petrobras natural gas market remained at the same level of the fourth quarter of 2022. Compared to the first quarter of 2022, there was a decrease of 16 million cubic meters per day. Two factors explain this drop. The first is the opening of the natural gas market in the country, and as consequence, the increase in the participation of other agents that used to produce gas and used to sell it to Petrobras that are now selling to the market directly. Another factor that explain this reduction of the market was the lower thermoelectric consumption, given the recovery of reservoir levels in April. The levels of the reservoir ended at 88%, a very high level in the power sector, Brazilian power sector history.
The lower thermoelectric dispatch partially explain the excellent result of the this follow-up in this first quarter. Why that? Because the drop of thermoelectric dispatch es need, that less LNG was imported at a time when the fuel is very expensive in the international market. The lower dispatch of thermal power plant at this moment, where the natural gas price is very high in the world, was very good for Petrobras result. It was also mentioned regarding the relationship with the non-thermal market of gas distributors, a commercial action to solve disputes that arose in recent past and the signing of a new contract with an extension of sales portfolio. I had to say now. Thank you very much.
Thank you, Tolmasquim. now we'll continue with Carlos Travassos, Chief Engineering, Technology and Innovation Officer, to present the E&P results.
Thank you very much, Carla. Good afternoon, everyone. I'm Carlos Travassos, Engineering Technology Innovation Chief Officer. Today I will present both the results of Exploration and Production and Engineering Technology and Innovation. Joelson Mendes was underwent a minor surgery and he will not be able to be here with us. He's fine, and by next week he's going to be back. Well, we can start with the next slide. You can see here that we have reached a 2% growth on the operated production in comparison with the first quarter 2022. We achieved 3.74 million barrels a day. What I mean with barrels, I'm talking about equivalent barrels here, yeah.
We can see a growth comparing with the last quarter of 2022, 2.3% if we compare with the first quarter of the last year as well. If you take a look in oil and gas in our production, we have a growth of comparing with the last quarter. This growth was mainly due to ramp up of P-71 and for entry of eight wells on Campos Basin, and also improvement in our efficiency. Going to the right, if you take a look in pre-salt our own productions, we can see that increasing of the share of pre-salt on our total production. Yeah, we achieve in this quarter 77% of pre-salt production as a share of our total production.
We can go to the next, please. Now we're talking about some achievements, important achievements. We actually, we have broken some records. We've broken a monthly records, 2.13 billion barrels a day. That was taking place in February. Actually a quarterly record with 2.05 million barrels. If you take a look in individual production as well, we're having an amazing result with Guanabara FPSO, 179,000 barrels a day, what means 100% efficiency. That was achieved on February. At the last time that we have the records was in November with Carioca, that means that we just broken our record. We can go to the next, please. Now let's talking about costs.
Now I'm showing a little bit about our lifting costs in Brazil. Just to understand this picture, we segregate in three layers, yeah. The yellow one is onshore and shallow waters. That will reduce our cost from 18.8 in the last quarter of last year to 14.7. This majorly related some portfolio movements that we have done. We also had results of lifting costs on deeper water, basically in Campos Basin, but not only Campos Basin, but basically there. When we have here you can see a drop as well of the cost, mainly due to the wells that we put in production. Of the pre-salt as well, having a good result mainly due to ramp up of P-71, yeah.
That's so, t hose results bring us a drop of our lifting costs from 6.1 to 5.5, yeah. Showing a little bit about total cost of our production, yeah. If you take a look in the last quarter of 2022, that was in 38, and we have a reduction of 11% on that cost. Here we include depreciation, depletion, amortization, and the government take is considered here, and of course, the lifting costs. Yes, of course, important to highlight that here, we must include to have a view of the total cost. We are not including in those numbers. The investment is not here, yeah. The capital cost is not here as well. We can go to the next, please. Yes.
Talking about our exploration, we achieved a discovery in 2021, and we are now, we have started extension well drilling on Aram block , Curaçao, yeah. This is the first drilling that we are doing, the first well, yeah. We have six more to be done and to declare as a commercial one. I think this is the last one for exploration production. I start talking about engineering technology and innovation. You can go to the next, please. Here you have a picture of Anna Nery. Actually, this unit, we just start production in Anna Nery yesterday night to connect the second well, yeah, on that unit. Reminding you that is part of Marlim Revitalization program, yeah. The Marlim Revitalization. You can go to the next, please.
In Marlim Revitalization, we are gonna remove nine units, gonna replace by units. Anna Nery and Anita Garibaldi . Anna Nery, we have start production, like you said. Anita Garibaldi we are in the mooring at this moment. Actually now from, if you take a look in our strategic plan, 2023- 2027. From these, 18 units, we have four in the final location. P-71, that's already production, that we anticipated. Anna Nery now is in production as well. Anita Garibaldi, that is in mooring process. We also have Almirante Barroso that is ready to start production, waiting for authorization. Coming back to the revitalization, that's a fantastic program. We intend to increase 20% in our production and reduce 6% of greenhouse gas.
This is a progress. All the time that talking about production systems, they used to show the units, but it's important to remind that we have a subsea working, and a very hard subsea working, especially when talking about revitalization, when we're gonna build 14 new wells and relocate 61. In these kind of projects, we have a special feature that we also have had to remove some lines here and there that's required for us, synchronization and a very good planning to do. Now we can go to the next, please. Talking about updating our startup schedule for 2023-2027. I think all of you are very familiar with this picture, yeah. That's the 18 units that we are gonna start operation on this Strategic Plan.
We have made some shifts with Búzios 7, IPB . Just highlighting that we're talking about despite all that is changing the year, we're talking about minor shifts. It's not big, and there is no impact on our production curve. In this slide, you can also can see the picture of P-78 for Búzios, units for Búzios, that is in standard construction. You can go to the next. Yes, talking about downstream. We're having a very important achievement in this quarter, that we signed the contract to restart the, our process gas units in Itaboraí Gaslub, yeah. That was interrupted next year, and we got putting back again in the fantastic time, in 6 months times. We have all the contract signed, and actually the people mobilized on site, yeah.
We are, we keep the planning to start operation 2024. Another important achievement is the contract to expansion of Train 1 of RNEST. In train 1 , we are actually gonna expand from 115,000 barrels a day to 130,000 barrels a day. The completion of this work is scheduled for 2024. Just another information, probably most of you know, we have already construction the air emission removal unit is the construction is in progress in RNEST as well. That's what I have for today. Thank you very much for your attention.
Thank you, Travassos. Now pass the floor to William França, Chief Industrial Process and Product Officer. William, go ahead.
Okay. Good afternoon for everyone. It's a pleasure to stay here and to present the highlights of refinery segment in the first quarter of 2023. I'm so happy to be in charge of our refineries and our gas plants. In the first quarter of 2023, I'm sorry, we are going to prioritize two indications in this presentation, okay. Utilization factor in our refineries and operational availability. In the first quarter, the utilization factor in our refineries was 85%. We think that it's an important and excellent result, considering that we had three big turnarounds during this period in REFAP, REVAP and RPBC . We spent almost BRL 1.2 billion by maintaining more than 800 large equipments like heat exchangers, pipelines, pumps, towers, and reactors.
We had more than 10,000 collaborators contributed and performed in this big challenge, helping us. In April, we had a utilization factor of 29%, and at beginning of May, we are performing above 90%. Regarding the operational availability, in the first part of 2023, we obtained a result above 96%, which most of our refineries achieve the level of the best refineries, including the companies of United States. Okay. Thank you for your kind attention. Have a nice day.
Thank you, William. now I call Claudio Schlosser, Chief Logistics Commercialization and Market Officer. Schlosser, go ahead.
Thank you, Carla. Yeah, thank you. Hello, everybody. It's a pleasure to be here with you today to talk about our first quarter 2023 results. Next slide, please. In this slide, we'll talk about oil product sales. As you can see, there was a reduction in sales of oil products in the domestic market of 5% compared with to the previous quarter. This was already expected since diesel and gasoline seasonally have a weaker consumption in the first quarter of the year. It is important to say that in this quarterly comparison, there is still the impact of divestment of REMAN that occurred at the end of the last year.
It is important to highlight that gasoline sales were the highest registered for the first quarter in the last six years, driven by the greater competitiveness of gasoline in relation to ethanol. Regarding the foreign markets, the drop of fuel oil export was caused by lower production due to scheduled shutdowns of some of our biggest refineries, as mentioned by Director William. To conclude the topic of the product sales, I would like to take the opportunity to reinforce our focus on the market. The term market has even become part of the name of this board. That's why I want to highlight the startup of the new diesel and gasoline sales center in Rondonópolis, Mato Grosso do Sul . This action strengthens our presence in the Midwest and enables the practice of a specific commercial action in the region.
This is a very important milestone that guarantees Petrobras' presence in the region that should grow the most in the coming years. Next slide. We'll talk about oil export flow. As you can see in this slide, talking about oil exports, our main destination remains China. However, it is important to emphasize that, we continue to work constantly to seek global opportunities and to develop new clients, which generate more value for Petrobras in additions of to diversifying the client portfolio. Another key action is the market development for other oil streams, such as Sururu, Mero, and Atapu. The Búzios and Tupi streams are already well-known in the international market with guarantees them better liquidity and pricing. Next slide. Finally, I present the highlights of the quarter that reinforce Petrobras' commitment to supplying more responsible fuels.
We had a first bunkering, filling fuel test with renewable content with the Darcy Ribeiro, the ship that is in the picture and is part of the Transpetro fleet. The fuel was formulated with a 10% soy biodiesel, reducing around 7% of the greenhouse gas emissions. Considering the complete life of cycle of the fuel, a big step towards the goal of reducing carbon emissions. During the 40 days of testing, no anomalies were reported by the crew or operational differences in relation to the mineral bunker. Samples of collected fuel and ship monitoring data are in the final stage of analysis. Another action in the same line was that we started offering the domestic market exclusively fuel oil with a maximum sulfur content of 1%, discontinuing the sale of fuel oil with a maximum sulfur content of 2%.
By ensuring that all fuel oils sold by the company in the domestic market has a low sulfur content, we help consumers in the industrial segment to reduce their emissions. I also highlight the sales of the new product, the Ultra Low Sulfur Marine Gas Oil. Marine fuel with the maximum sulfur content of 0.1%. The new marine gas oil is produced at the Presidente Bernardes refinery, RPBC, in Cubatão, São Paulo . Previously, the product sold at the Port of Santos to long haul and the carriage ship powers was conventional Petrobras marine gas oil containing a maximum sulfur content of 0.5%.
By introducing this Ultra Low Sulfur MGO , we started helping ship owners to reduce emissions of the pollutant sulfur oxide. In addition to avoiding fueling stops on the way of vessels passing through the sulfur emission control areas , reducing the cost and the time. These actions show that we are on the right track in developing cleaner fuels and guaranteeing lower emissions, generating great value for the company, society and the environment. That's the final slide. I'm going back to Carla.
Thank you, Schlosser. Thank you, all. We can move to our Q&A session. The first question that we received comes from Bruno Montanari with Goldman Sachs, and it's for Sergio. Sergio, Petrobras CapEx is poised to grow in the next few years under the current and possibly the new strategic plan to be announced. What is the comfortable level of cash position the company should target? More, less or in line with the prior management target of $8 billion?
Thank you, Bruno, for your question. I believe that the levels... Sorry? Oh, no.
All right.
Sorry, Bruno. I believe that the levels set up in the co-current business were not very prudent. I think we must keep solid parameters in terms of liquidity and leverage. We want to always keep a robust financial structure, which allow us to face inevitable down cycles in oil prices. I also need to be sure that our investments will be self-funded with our operational cash flow. Nonetheless, allow me to emphasize that the discussion of the new business plan may result in a revision of the current targets. Thank you, Bruno.
Thank you, Sergio. The next question comes from Vicente Falanga with Bradesco BBI, and it's for Travassos. Travassos, the company recently announced the delay in the startup of some platforms. What was the major cause of that?
Okay, thank you. Thank you very much for your question. That's a very good question. Actually, we have the net. Actually, it's a minor adjustment on the schedule. Despite of we see the shift from one year to another year, we are talking about a minor change, and maybe due to some perception of our risk analysis. These perceptions is regarding for the supply chain markets, both for top sides and also for subsea. Just for information, if you take a look in IPV, that we're talking about 13 days of shift. Not too much. Of course, when you see a shift from one year to another year, it seems that you're having a big change. Here, we're not talking about a big change.
Petrobras, all the time that we're having a change that's that appears in our business plans, we are very transparent, and it's important to show up and analyze these markets, yeah. This change does not bring any impact on our production curve, okay. Thank you very much for your question.
Thank you, Travassos. The next question comes from, Luiz Carvalho with UBS. It's for Tolmasquim. Tolmasquim, we've seen a series of comments regarding the company's focus in the future, particularly with diversification of investments focused on energy transition. Could you list some potential investments options? How fast the investment portfolio could be built? This portfolio could be made through organic investments or potential acquisitions. Will the company pursue assets in petrochemicals, renewable power generation, offshore wind, fertilizers, biofuels, fuel distribution, new refiners or some other sector? In your view, is there any target on how much this could represent from future investment plans?
Thank you very much, Luiz. In fact, we are planning to diversify our investment regarding renewables. Let's say, we are talking about maybe investing in offshore wind, green hydrogen, CCUS and other possibilities. We still doing our Strategic Plan for the next cycle. It is in this Strategic Plan that we are be able to understand, to know, which technology we are going to invest. The investment can be, let's say, through organic investments, it's not to discard the possibility to make some acquisition also. Our preference for organic investments, we want to do this mainly with partnership with other companies. I think is the best way to do new investments, mainly with the big companies.
The, in terms of target about future investment plans, we don't have yet the targets because, as I have said, the statistical plan is been doing. I could say that we are going to do this with a financial responsibility. The idea is that it's possible to do some diversification but maintaining our financial indicators, good. Thank you for the question.
Thank you, Tolmasquim. The next question, also from Luiz Carvalho, UBS, is for Schlosser. Schlosser, the company's current fuel price policy considers international price and import costs. What parameters could be used in a possible new policy? Is export parity for the domestically produced product an option? Does the company considers holding lower margins on the domestically produced products in order to reduce price pressure for the final consumer?
Okay, thanks for your question, Luiz. First, I would like to take the opportunity to comment that, although the term price policy is used a lot, what is up to Petrobras is to elaborate its commercial strategy. That being said, the import parity is a reference to the cost of our importing competitors, but it doesn't have to be the only reference for Petrobras. We have other opportunities that we can explore due to our installed refinery capacity, logistic integration throughout the chain, and operational efficiency, which allows us to compete efficiently, preserving the company's value generation. That's the answer. Back to you, Carla.
Thank you, Schlosser. The next question comes from Monique Greco with Itaú BBA. She sent us a message. Thank you for the opportunity for addressing our questions. On behalf of Itaú, I would like to wish the new executive board good luck in this new phase. The first question from Monique is to Spinelli. Spinelli, could you comment on the challenge you expect to encounter in your new position? If possible, share some of the plans and ideas to be implemented during your term.
Hi, Monique. Thanks for your question. First of all, I consider that it's important to point out that we already have a very robust integrity and governance system.
Mário Spinelli, you have to turn on the camera. Sorry.
Oh, turn on? Is it working, Carla? Can you see?
Now I can see. Thank you.
Is it? Okay.
Yeah.
Okay. Okay. First of all, I think that we must consider that we have a very robust integrity and governance system that doesn't mean that there isn't anything to do. Quite the contrary. What we need to do is now to enhance this system so that it becomes more sustainable and totally aligned with our business. There are important aspects related to improving our performance that can be considered, such as our strategy to prevent and combat harassment. It's just an example. This is an important point for us, and we will improve it. Moreover, some technology tools can be incorporated into our compliance actions, making them more efficient and agile. We will enhance our compliance risk management, also focusing on issues that may represent risks of damage to the company's strategic objectives.
With this, we will be able to identify the most exposed areas and work in a preventive way. The point that I consider most important is that we need to ensure that our integrity program is strong and responsive enough to protect our assets, to protect the company, and at the same time, to ensure our efficiency, respecting all the rules and focusing on people. I think that's it. Thank you, Monique.
Thank you, Spinelli. The next question from Monique is to William. William, despite the refinery maintenance carried out in the recent quarters, the company has managed to maintain high levels of refinery utilization rates. In this regard, is there still room to increase the current utilization levels? What would be the desired level of refinery utilization for the refining park as a whole?
Hi, Monique. Thank you for a good question for us. The answer is yes. We have got conditions to increase our refinery utilization because of two reasons, okay? First one, we are performing and operating our refineries with an excellent reliability. So important, okay? to remain in this kind of performing. The second one, the second point, is because we won't have got big turnarounds for the next months. Until the end of the year. I think that we have a good room to increase our refinery utilization for the next months, above 90% in order to capture market opportunities. Okay? The goal is to maximize our production in the course of our operations by respecting all of the aspects of safety, environment, health, and integrity. Okay?
Thank you for your question, Monique.
Thank you, William. The next question is about E&P. I'll call Ana Paula Zettel . Ana Paula , regarding the Equatorial Margin , could you comment on the company's expectation regarding the approvals at IBAMA? If the regulatory agent's president follows the negative opinion presented by the technical area earlier this month, could you discuss the medium long-term alternatives for the company to continue increase its production figures?
Thank you, Carla. Thank you, Monique, for your question. Well, Petrobras is waiting for IBAMA positions on the pre-operational assessment. This is an exercise to evaluate the company response capacity in an unlikely even-accident event. It's part of the process, and we are pursuing that authorization to the next steps of the permitting process. We are followingly, we are following strictly the requirements of IBAMA, and there are no pending issues from Petrobras. All the resources are in the locations waiting for IBAMA's authorization. We understand that the activity in the region is very safe. That's the reason we have planned $3 billion to drill 16 wells in the Equatorial Margin. We also have investments planned in exploratory phase. We are monitoring closely all opportunities abroad.
That's part of our strategy to build up our reserves and to, and to manage our portfolio. Thank you very much, Monique, again.
Thank you, Ana Paula. The next question comes from Gabriel Barra with Citi, and it's for Mauricio Tolmasquim. Tolmasquim, could the managers give us more information, return levels, time for construction on offshore wind farms projects being studied together with Equinor? You are on mute, Tolmasquim.
Well, thank you for the question. Until the moment we have only, let's say, a memorandum of understanding and some projects, some areas that we apply to environmental license at IBAMA. Let's say we are waiting for the establishment of the regulatory framework to start studying specific projects. At the moment, we don't have any figures about investments, timeframe, and so on. I believe that in a short time we are going to have this kind of information. Thank you.
Thank you, Tolmasquim. Thank you all. At this time, the Q&A session is over. If you have any further questions, you can send to our investor relations team. I would like to thank you all for your attention. It's a very important quarter with a solid result from operation and financial point of view. Thank you all, and have a great day.