Good morning, ladies and gentlemen. Thank you so much for waiting, and welcome for this disclosure of results, the fourth quarter 2022, the consolidation of 2022. I am Marcelo, Investment Director. We have statutory directors, Mr. Magalhães, the CEO, Pioneer Operation, Rafael Cunha, Financial Director, Investor Relationship, João Vitor Moreira, Trading and New Business, Management and Sustainability. We are recording this session that will be available on the IR site of the company. If you need simultaneous translation, it's available in the interpretation at the Zoom toolbar. If you'd listen to this conference in English, then you can mute the original audio. To participate, we ask you to send your question using Q&A on the screen. When you announce your name, you can activate your name, and you can speak up.
If you do not open the mic, you write, no mic, in the end of the questions, we can read your question. Before starting the declarations and statements in this video conference about the business perspective of the company, estimates operational financial goals, these are the premises of PetroReconcavo and the information that is available. Future consideration is not a guarantee of performance, and they do involve risk. General economic conditions and other operational factors may affect the future results of the company, leading to the results that might defer to the future considerations. Now I pass the microphone to Mr. Magalhães, the CEO, and his initial considerations.
Thank you so much. Good morning, everybody. It's a great satisfaction to be here with you to state and disclose the accounting and financial results of the company final trimester quarter 2022. The management does it with a great satisfaction, presenting results that we understand that are extremely positive, improving the indicators, accounting, financial, operational ones in all the areas within the activity and the equipment and several challenges that the company faced in 2022.
We could enjoy the prices that were favorable on new assets that were part with interesting perspectives, short-term, low-hanging fruit, and the proposal was to increase meaningfully the level of the activities of this company to enjoy it all. Somehow, we went beyond the definition in our reserve report and some circumstances in our initial planning in the beginning of the year. The priority was executing more safely this value of the company never let go, and it's a big challenge. We incorporated throughout this period of time some hundreds of new employees, training new workforce, especially for the operation of the verticalized fleet of equipment.
This is something always in our industry brings risks, risk on safety, security, execution. I do believe that the results that you see on the screen really showcase the capacity of this management team and all the collaborators of the company, the staff, to make this growth of activity very expressive, then again, safely and delivering results that are exceptional. I believe when we see data, when we compare data, net profit, EBITDA production throughout the year, we see quantitatively the expressive numbers, and we could change the situation of the company in 2021 with lots of effort, work, dedication, honoring the history of this company, always seeking improvement on productivity and production. In addition to these numbers, I would like to highlight an increase of more than 550% of our EBITDA revenue. It's important to see what's behind it all.
When you see our increase in the number of activities, almost 40 new wells drilled, 263 new projects of workover showcasing our capacity of execution. I believe you all agree that this is not the end. Opposite, we are going to keep on enlarging the execution capacity of this company, seeking more and more productivity, efficiency, and profitability to the shareholders. In parallel to that, all this growth process, when we add people, we add equipment, we adventure in areas that are new to the company. The company did not have much expertise. Great part that was really impactful in these results that we are going to see. I would like to highlight the creation of a gas trading area in a short period of time, delivering contracts, delivering the capacity of this company to monetize all the potential, especially on gas, that we see in these assets.
Overcoming a lot our initial expectations, and the same way, developing M&A structure, capacity to observe this market, becoming pioneers with the recent acquisition of Maha Energy Brasil. This really shows that this company is able to honoring their long track record of execution. We are experts on it, developing mature offshore points, recovering, increasing reserves, always generating cash flow, profitability, and also developing and capturing new capacities, such as the case of the capacity, trading capacity, and M&A capacity, bringing different perceptions. Now I pass the floor to our directors so they can declare their specific areas and how this has contributed to expressive results that we delivered throughout the year.
Thank you so much, Marcelo. We are going to start operational performance. 34 blocks in 2022 that we are operating Potiguar, representing about 12,000 bbl in the year of 2022. Asset Bahia, we have a combination already of Bahia Remanso, Ibirarece, and Miranga. In total, it's something around 26 concessions. 60 concessions in total in the company in 2022. Here we can see in the production curve during this year, we started around 19 equivalent bbl, gaining already 2% a month, increasing our production in a total of 24% during that year.
As Marcelo mentioned, this was part of 260 workovers executed in Potiguar and Miranga especially, and 38 drilled wells in Potiguar. Observing here the final quarter comparing to the fourth quarter of 2022, we increased the production in Potiguar 1,000 more than 1000 bbl, comparing last year, the fourth quarter, 49%. Average almost five drilling, working in a drilling operation, executing 140 workovers and 38 wells that were drilled, 32 finished throughout that year.
It was a big task for in this area of Potiguar for project to bring facilities, increasing capacity of production flow. Bahia, we have more than doubled the production during the year. For workover drilling, working especially in Miranga with 123 interventions, increasing the production of natural gas meaningfully. In the area of drilling and services, we have had seven units in 2022. We had five drillings and one unit of fracturing and another unit for pumping. So we added this area 50% in 2023, engaging two probes, our drilling probes, and one more outsourced and four drilling the workover, and one fractioning unit. So this area is growing so fast.
Thank you, Troy. Rafael Cunha here speaking. I'd like to talk about our investments in 2022, connecting to the financial statement of the company. Our CapEx is divided into big groups. We had a CapEx that was expressive compared to the previous history of the company. With the investment to increase production and drilling of new wells, all those investment to increase production reserve recovery factor in total of the year BRL 646 million. That is our part here, BRL 235 million.
Great part of our stock goes to CapEx. We consider this as part of the investment, not an asset, short-term asset. That is a growth of BRL 235 million, a big growth compared to the history of the company. This reflected with one more asset, Miranga, assembling initial stock, and also this big preparation to accelerate the activities. According to the logistics problems at a global level, we are doing more than less. I would like to highlight all the fixed assets, tangible assets.
The main component are the probes and drilling probes, BRL 122 million, 155 drilling probes and billing units for production. We can calculate and compare CapEx on cash generation of the company in 2022, reaching the equivalent 70% of cash flow generation for this CapEx that is operational, not the acquisitions of new assets. Now, in the CapEx, breaking down 6% of the CapEx was for investments to increase production and well drilling. This percentage is higher, is just 60% because we had a big growth on inventory consuming 22%. This is not an expectation that this number is growing. I believe that we are going to keep it flat and decrease probably. The other expenses, equipment purchase, et cetera, 18%. Here we break it down the investments and the asset.
If we zoom in the CapEx applied in developing reserves that we can compare with the reserve certificate report that we disclose every year. Let's see Bahia and Potiguar. As Troy mentioned, the drilling was for Potiguar. Mainly, we invested BRL 141 million over there. The workover, there was a breakdown, BRL 2022 million in Bahia and BRL 154 million in Potiguar. In facilities, the equivalent BRL 67 million in Bahia, BRL 63 million in Potiguar. The total CapEx for this category of investment was total BRL 646 million. If we compare the estimate according to the reserve report 2021, we had the estimate CapEx for 2021. In that report in the end of 2021, converting for the exchange rate that was BRL 5.50, we had an estimate of BRL 584 million invested, 10.7% more than the estimate value in the certificate.
This was due to different aspects, but mainly inflation pressure at a global level, especially in the oil segment, reflecting this new cycle. We had a scenario of oil $70 and to a scenario over $100 average in 2022. This was reflected in the CapEx of 10.7% above the certificate value. Calculating, we can also calculate that an indicator cost capital efficiency. When we consider all the CapEx that we used in the year of 2022, BRL 646 million, and see the variation of our reserve in production. What is not a reserve anymore, not developed, but now it's a developed reserve. When we calculate, we see that every barrel of reserve added as current production, as PDP, current production cost $6.12 per bbl of additional reserve. João Vitor, the floor is yours to talk about gas and trading development.
Good morning, everybody. As Marcelo mentioned, talking about 2022, we took up a new way of working and trading our production. We talked a lot about it throughout the year. We closed already the transactions, but the initial reality was trading at Petrobras. That was the owner of the treatment and processing units. During this year, we migrate on January 1, 2022, to a processing contract that is permanent in Maré. That was a contract so we could trade natural gas and the by-products to the market directly. We celebrate a contract on swap, PGN-Catu. We were negotiating so we could access this, and this swap contract enabled another way, anticipating the supply to Bahiagás that was estimated to January 1, 2024. So in August, we start trading 100% of our production independently out of Petrobras, celebrating contracts with TAG.
These contracts made us access Northeast producers, and as you can see, we celebrated some contracts with other players like Shell that are in the Southeast. So we are connected and with master contracts, so we can sell natural gas to all the gas pipeline system all over Brazil, the TAG, TBG, and TAG. As a subsequent event, we closed the swap contract in Catu. This was February 28, 2023, and it started on March 1, a contract in the same modality, PGN-Maré is a permanent contract of processing. There is no practical changing in the trading aspects. We were selling this gas already. But with this change, we restrained the aspect that we mentioned, swap contract, and also with a gain in the processing costs in the Catu plant.
It is important to mention that these contracts were essential so we could ensure the processing capacity that was necessary to develop production in our reserve scenarios, and this is assured in the contract signed. In Bahia case, we announced in the year the construction of our own UTG, São Roque, ongoing. The construction is ongoing according to expectations, so we can absorb this additional volume. The commercial aspect, it was a great success managing and increasing our portfolio on contracts, starting 2022 with contracts with PBGÁS, Potigás, and Bahiagás. These contracts were negotiated since 2001 in a price reality that was totally different. But we deliver all this gas, and at the same time, signing new contracts, moving ahead, evolving with the natural gas price and the scarcity search for GNL, we capture Cigás and other players, TAG, Unigel, higher contracts that were better.
I would like to highlight in the commercial aspects, we signed a contract with Cigás. This is part of a management defining a commercial policy for the company. As the initial contracts expire, we work with contracts short, midterm, and long-term. This contract with Cigás is our first 10-year supply contract, ensuring that we can have a long-term client. This is the best contract that we have in the trading area. So we start paying 13.6 Brent in the two first years, and then we have 12.6 descending scale for the future contracts perspective. But the main aspect we see is the evolution in the concept of a floor price. If there is variation on the oil price, the contracts are connected to Brent. It is never going to be under $70 Brent, 3.6% of $70.
This floor, there is a ceiling as well, connected to the North American inflation. We have a long-term point of view of natural gas trading to the average prices that are better than what we had in the year. This is part of our vision. The same for gas natural. We are working with the association and the optimization of midstream aspects. We have great interest in investing in associations, partnership, improving the cost of processing, and monetizing the byproducts, non-processed byproducts or GLP in the case of UPGN Maré, as we have the finished project. To talk about costs. Here we see the evolution of cost per barrel, cost of production. They call it lifting cost. Fourth quarter, this cost was $12.22 per barrel, superior to the third quarter that was low, but it was inferior to the average of 2022.
I would like to highlight, as we mentioned, the cost, on one side we have inflation and prices. There was the collective bargaining at the company. In September, a salary readjust of 12%, and this quarter variation is explained here. But a higher volume and expenses, as we call well repair, the producing wells need to be serviced according to the quarter we service more. There is more expensive parts than the others that are cheaper. The main variation on the quarter was well serviced and also additional cost on fluid transport. The down production of Petrobras of Bahia Terra. We had to re-manage the flow of some fields. It did not affect our capacity of selling our production, but some transfer on pipelines, that was interrupted.
We need to transport using trucks to bigger stations to flow the production, and this brings an impact, transport cost, in the quarter already. Finally, I mentioned that observing a long-term perspective, we can reduce the lifting cost of the company as we have new assets like Miranga in 2022. With this ramp-up of production, there is this cost dilution effect, as the unit cost, we have the production growing. This is a table breaking down costs and expenses of the company, representing 37% of the net revenue in 2022 and 38% in 2021, contributing to this margin of the company. Quarterly, speaking, little variation, 4% of variation compared to the third quarter.
I would say service, consulting, rental of materials, leasing, well service as well, and also the processing, transport, and gas flow reflecting on the continuous growth of the volume of gas produced and flowed by the company. Some charges in the end of the year, the higher capacity and the used capacity. Of course, we always hire little bit more than what we estimate to use, not to take the risk of getting the production stuck because we cannot flow this production. Fourth quarter, there was the higher amount of natural gas in the revenue of the company throughout the year. Average, we had 41% of the revenue on gas natural, but in the fourth quarter, this was 46%, really showcasing a diversification point of view of the company. Doesn't matter the oil price. Now we celebrate and sign this contract.
They could be connected to the oil prices, some of them, as it is being presented in previous results. We have some contracts fixed price based on dollars, correcting according to the North American inflation, and also the contracts connect to bring the new ones that we are signing. We are using minimum prices so we can have a natural head of production. This ratio is evident. It increased in the fourth quarter 2022. We understand this is going to be reinforced throughout this year and the following years as the new contracts are following this metric. On the right-hand side, you see the evolution of 2021 and 2022 in a ratio growing natural gas of the company.
In 2021, the gas was just 8.2%, and in the average of the year, 41% of the revenue natural gas as part of the company, showing that we are diversifying already, so we can survive very well even if the oil price varies. We are in the market of natural gas. The prices are not so connected to that condition. Can we get back to the previous slide, please?
I have additional comments zooming in the third and fourth quarter. We see that the Brent oil dropped reasonably, $100, $88 per barrel. We can see that the average price of the gas varied lower, 12.8, $12.5 per millions of BTU, reflecting a combination of what João said. These are not the contracts that are not connected to Brent. That is a ceiling.
Throughout, we add new contracts to our portfolio with the average price that was better than the ones that we initially hired. Just to highlight and reinforce the importance and the practical effect of this risk dilution as the natural gas gains more proportion in the result of the company. This helps a lot to alleviate the impacts of the oil price volatility, the oil price drop in the last tri quarter. The RE that is summarized, fourth quarter and the year of the company. Fourth quarter specifically, there was a drop of 4% in the net revenue influenced by the price of oil dropping down, and this was balanced by the gas aspect and increase of production in the period of time. Cost and expenses, 4% growth. Royalties variation in the period following the drop of the oil prices.
The result of EBITDA, 8% under the previous quarter. A big movement in depreciation, amortization, depletion. This is a new certificate reserve reflection. The amortization is calculated based on production divided by the reserve volume approved by the company. That is how we do it. The reserve volume grew, so we recognized this adjust on the fourth quarter, reducing the depreciation in the period of time in this big ratio, 26%. Financial results, a positive one because of the exchange rate. Because we have dollar-based asset and liabilities, people just see EBITDA, but the tax return had a big readjust, BRL 47 million. Because in December 2022, we could approve at the IFRS the benefits of Sudene reducing 75% the tax return that the company pay. The subsidiary, SPE Miranga, has a high profitability. The impact is also big, generating this reversion of BRL 47 million in the quarter.
The net results was BRL 400 million in the quarter. Talking about the comparison year-after-year, we see that the evolution is very expressive. Net revenue grew 186%, EBITDA 201%, and net profit 552%. This combination of production growth very expressively, the best oil price, best gas translated into a growth that was big and it is not common to see a company like this evolving this big in this result year-after-year. There is a snapshot of our hedge. We have several contracts on derivatives hedge of oil prices. We hedge throughout the history of the company, especially after Riacho da Forquilha that we hired some finance to support this acquisition. So we had some hedge contracts to protect us from oil variation, though this is reducing as the contracts expire. So here we have a snapshot of the year-end 2022.
There was 2.8 million of barrels of oil, future sales open, and the average price $54.65 per barrel. The fair value of this represented a liability of BRL 387 million for the company. This is decreasing as the contracts expire, and the oil price dropping reduces this value as well. Highlight that we communicated on the third quarter, and we signed a new finance contract in September, October last year, repairing the finance contract that we had with a new finance. The original contract was project finance. Finance is more corporate.
The benefits of this refinance, that is a simplification of covenants and guarantees, and eliminating the obligation of additional hedge for the future, showing the banks that this business of gas in the level it represents to our revenue, is providing a risk reduction that is meaningful to the company and the hedge contracts that we have. We have this tranquility. We do not have to add new contracts as the previous ones expired. This will show in a graph throughout time, a timeline, the oil price variation and the hedge contracts in red. Retrospectively, 2020, the oil dropped a lot, almost $15 per barrel. The hedge protected us a lot. The oil is coming up again in 2021, 2022. This damages us in this contract, but it is working. In this objective, bringing predictability and stability in the cash flow of the company.
Looking ahead, we see the amount, the volume of barrels, thousands of barrels a month, quarter-after-quarter, 400,000, 450,000 bbl per quarter. The horizon is the first quarter 2024, and then the volume dropped considerably. So looking in the current moment, we have for 2023, something around 4,921 bbl of equivalent oil a day hedged, equivalent to 21% of our production on the fourth quarter. Adding oil and gas in BOE, or just observing oil, 36.7 the oil production in the fourth quarter. That is the ratio of our hedged production. Looking at snapshot December 31st, we have the net debt and the net cash. We concluded the year with $9 million. The bars in red represent that we have to pay in the acquisitions payables in Miranga and part of Riacho da Forquilha because they had payments. Yellow, our bank debt, that is the front refinance.
We do not have amortization short term. You see the distribution and the timeline from 2024 on, we have a small part, but we end this debt in 2027. The due date, we do not have to refinance short term. In gray, we see they are now contracts, Miranga for Petrobras. There are some clauses of earn-out associated to Brent oil, and that is the amount yearly to be paid. Disclosure, we have a footnote. That graph does not represent the acquisition of Maha Brasil, concluded now in the end of February, 28th. Total value, $138 million. The acquisition value in fixed installments. When we see the first quarter, that is this effect of the acquisition of Maha. On the other hand, we incorporated the balance of Maha Brasil, that is part of PetroReconcavo as well.
Good morning, everybody. I will briefly introduce myself. I am Felipe Araujo, two months at the company. Today, I have found a team here with a technical quality that is amazing, execution capacity that is so big. The management process are well deployed in the company. Talking about my history, I worked for 10 years in a consulting company, McKinsey, helping companies to improve operational efficiency. After that, four years in eduK Educational Company, leading the transformation of their human resources, responsible for legal department as well, supply, integration, and strategic projects. I am here at PetroReconcavo to keep on the transformation process of human resources led by Rafael. With an external point of view, I bring a specialized point of view to accelerate this process, leading sustainability area.
I do believe that human resources and sustainability go hand in hand because we always transform people here inside the company and outside the company as well. I would like to talk about the year of 2022 ESG aspect. I will highlight three points of this slide. First, an association that we had with ICMBio, planting almost 20,000 seedlings in Rio Grande do Norte, native plants. Implementing in 2023, a project with SENAI to develop drilling professional courses.
It is a challenge to train people and technicians that can work at the companies in oil and gas, graduating 180 people, 42 already working with us, helping a lot, internalizing our services. Finally, I would like to bring our sustainability report. It is the first time we publish a sustainability report was last year, showcasing the pioneer work in the sector, one of the first companies to have a sustainability report, and our commitment with sustainability. It is something that we have in our DNA. We are going to launch a new report next week, and it is going to be available on our website.
Thank you so much, Felipe. Before opening the floor for Q&A, I would like to share with you all the number of movements that the management staff has based. The results were presented here. I would like to thank you, prepare the material for your effort, putting up this presentation. The results are really impacting, relevant. In the words of the CFO, you do not see a company increasing their net profit in 500%. We celebrate. We have different reasons to be really proud and pleased with this result.
But rest assured that we are far away from the comfort zone here. It is something that is part of this company. I am here for a long time, Troy, Rafael, and I, and the newcomers like Felipe. The capacity of having our self-criticism, self-assessment transparently on what we have ahead, I believe it is very important to see the history. I always bring the history of oil prices, Brent, throughout the life cycle of this company. I bring it to showcase this point, especially in 2008, 2015, and during the pandemic in 2020. Then we experienced a process of strong reduction on the prices guiding the totality of the revenue of the company.
And we were able, in all these moments, to adjust the company in downturn or also in upturn, and we are so proud to say that in 23 years of this company, we generate operational cash flow in different situations for the market, always increasing the perspective of future reserve with more base and more activity, sometimes with lower base and lower activities, respecting the characteristic of external market that is really fundamental for our decision-making process. Always firm on our values, and I would like to highlight the aspect of resilience, austerity, and safety. I believe this is a big impact, especially in our adaptability. Recently, the company started growing and enjoying a market situation that is big, was the divestment of Petrobras. We could transit successfully in the acquisition, successfully incorporating these assets, increasing the capital.
Success incorporating people, new people, new equipment to ensure, as you can see, although all the changes, our adaptability made us to have exceptional performance. We are not going to sit and wait. No, we see the future, the following. We keep on having, as a consensus in the market, the expectations that in the following years, we are going to have levels of oil prices really, really comfortable around over $70 per barrel, to some point of views more, to some parts of the world less. But based on a thesis that we are in a transition process, energy transition, it could be longer or shorter, and the international majors reduce their appetite for new development. At the same time, the consumption does not seem to decrease, and it seems that this global conjuncture enables a work with a certain perspective of price stability mid-term.
On the other hand, João explained Brent is not the only reference. We have a meaningful part of our production referred by the gas price. Most of the cases are readjusted according to the inflation, bringing us the possibility of working with a basic scenario of good prices, and this takes us to keep on preparing this company to growth on production, growth on the activity space, and also a lower pace on what we see in the last years. And this perspective, as we placed last week on the reserve report, is recognized right now in this character, inflation pressures for development of these reserves, inflation of material, services, global inflation. We see the U.S.A., Europe with inflation rates high. Pressure on services here in Brazil, and with market open, and the company is developing new fields pressuring the service sector.
But then we realize that in our track record, our capacity of adaptability is taking us to be reliable in our capacity of bringing impact of these rates, reducing the future cost of the development of our reserves with our actions management, our experience throughout decades, placing new equipment, placing new people, and gradually reducing the costs on these operations, seeking gains on efficiency and gains on productivity. This is the company knows how to do it, and there is a strong dedication on the management side. This is going to be our focus for this year that we are starting. The results are not immediate. There is a lot of work behind it, but we trust in our capacity of executing, and several times in the past, we reacted to external factors.
In addition to that, it is very important to share with you that the dynamic of the operation and recovery of the fields, it varies a lot. We experience now we acquire fields from the operator that was not investing, occasionally was not efficient. Placing this field in, we had the opportunity to very fast has lots of low-hanging fruit projects, low complexity. It is execution. That is what we did in 2021. That is what we did in 2022, and this delivered that result. But we know things change. The company now is focusing assessing projects of secondary recovery project that takes longer to consolidate and assess even the positive surprises that we have in the acquired fields because we have more knowledge about them. New operations, opening up new areas, drilling deeper areas, and initially require a gain of capacity.
Initially, we have an efficiency factor that is lower, and gradually we increase it. On the other hand, in the initial point, we do not have the credit of the reserve certificate for the future gain that it is expected by the technical team, because we need to show first that these projects can bring the expected return. So the certifying company, based on this history, grant the company the full credit on this operation.
This is the year that we are having now, 2023, and we are sure that one more time, the company will experience this in a competent way in this process, having reserve volumes, as we had this year in the reserve replacement creation that was exceptional with comparative parameters with our oil and gas companies. We are going to keep on having this increase of reserves consistently, working strongly. This is done, as we always did in the past, with competitive costs. So the return on our projects is interesting, and the results consolidated of the company, as you saw in 2022, keep on exceeding the history. Thank you so much.
Thank you, Marcelo. Let us open up the floor for questions and answers. Pedro Soares BTG, Pedro.
Good morning, everybody. I have two questions, and I believe last week we talked about it. We talked about the reserve certification. I would like to bring some topics, different topics now. The first about Maha. Almost three months that you announced the acquisition, the asset is part of PetroReconcavo operation. If you could bring an update on what you saw, what is new, and what is better or what is worse than expected. What do we have to expect, especially about costs?
If we keep the expectation of Maha as being part of PetroReconcavo without great variability of what PetroReconcavo delivery. The second question about hedges. We saw in the last calls, and today, Rafael and Marcelo commented about this message. The idea is not to renew new contracts of hedge. The idea is to leave these contracts, the existing ones, to be terminated. I would like to hear from you if this strategy is going to keep the same, considering the price drops. Of course, this price decrease, that is a big volatility of the market.
But it is nice to hear from you if you are going to get back to do that, or if there is a price that you are going to get back to hedge contract, or if you understand that the percentage that Rafael mentioned, 20%-30% of the production in the next 12 months, and this would be enough. That is it.
Troy, can you talk about Maha first, and then Rafael talk about hedge?
Okay, Marcel. Pedro, the integration of Maha started in the beginning of March. After we closed that we had, we are very fast integrating people, and the first focus would be cost reduction that they have with the infrastructure. We have lots of advantages in integration using our own drilling probes and different aspects, maintenance that they have over there.
What we see over there is what we expected in the beginning, except maybe more opportunities in cost reduction and the trading of gas that this field is producing, and some optimization in some wells. We are working hard with Maha people so we can put it up and advance very fast. They do not have so many wells. They just have nine wells over there in two separate fields. So the integration is accelerated. We are expecting to have this integration in a few months, and they are going to be part of the company already.
If I may, something talk about the commercial aspect that is important, this reinforcement. The current production of Maha is from natural gas that is a GNC system. It is interesting, but naturally, we see optimization, as Troy said.
We integrate Tiê field is so close to Ibirarece, and our natural gas flows to UTG, so we assess different choices. But the rationale is, as we have the gas production added to our asset production, and the oil production will be as well, we are going to see synergies, commercially speaking, that is very interesting. The hedge aspect is something that we follow up close with the Committee of Finance in our Board of Administration. We debate a lot, and our conclusion for now is that we have a percentage that is big already of the current production in the next 12 months hedged. At this point, it depends on external scenario, considering to increase this percentage. We had some exercise, as I showed you, just observing the hedge, considering oil, we have this level, 30% of the production of oil hedged, 20% of BOE production.
And we had an exercise considering already in BOE, considering that some gas contracts are connected to Brent, but others are not. This exercise indicates that we have already a hedge on the portfolio BOE close to 40%-45%. Comparing to other companies in the sector, we believe that this percentage is solid, is robust, that would not lead to a need of new hedge contracts short term. As they expire, we discuss what to do, especially from 2024 on, these contracts expire, how we are going to replace this hedge contract that are expired using new contracts. We are going to discuss this with our financial committee this year.
It is clear. Thank you so much.
Thank you, Pedro.
Next is Leonardo Marcondes, Bank of America.
Hi, everybody. Good morning. Can you hear me?
Yes, we can, Leonardo.
Great. Good morning, everybody.
Thank you so much for considering my question. My first question is a follow-up of Pedro's question, and I would like to hear from you more details about CapEx at Maha. What can be done? Because the production, especially in Tiê, dropped a lot in the last year. I would like to hear from you if there is fast and easy CapEx to do and get the production back to the level that is higher. My second question, I would like to understand more your mindset about capital allocation, especially in the context that the President of Petrobras wants to invest in Bahia. Did you have additional dividend? I would like to understand how we consider dividends and capital structure if Bahia Terra does not occur. Thank you so much.
Leonardo, [Non-English content] .Thank you so much for the question. In area of Maha and PetroReconcavo, 23 years, we are walking before running. We have a list of projects that is long for Tiê Field and Tartaruga, and we see there are some low-hanging fruits. We are going to optimize some wells, optimizing the lifting system. We are in a process of update some seismic interpretation for different drilling wells.
We are going to wait in this drilling area to validate the results of the work here short term to optimize the production on these fields and also in Tartaruga. We have a plan like this. The amount of CapEx is not so big because there are various workover to increase production short term and in the next two quarters. But what we see is more opportunities than what we expected in the beginning. Rafael, would you like to talk about capital allocation?
Yes. The dynamic that we have here in our financial planning, we discuss a lot with the board of administration and the budget. In this budget, we have some premises on prices, oil prices, exchange rate, production, CapEx, et cetera, that was designed in the moment that the budget was elaborated. Generally speaking, what we try to do for 2023, this perspective is having a distribution operational cash flow expected from these premises that we mentioned. We see how we are going to use this operational cash flow. Normally, we distribute it, CapEx of asset development, some CapEx long term, buying probes, buying drilling probes, benefiting capital, the execution of the company long term, and the payment of the shareholders. In 2022, I believe different from the companies, junior oils, we had a dividend distribution that was meaningful here in the company, JCP plus dividends BRL 310 million.
Observing 2023, I believe what we have estimating the scenario according to the budget, something around an investment, 60%-65% of the cash flow generation operation using for investments, and 35%-40% is for the use. We can have this combination, the acquisitions of assets. Eventually Polo Bahia Terra are raw material and more money for the shareholders. This is our commitment with the board.
Every quarter, we update this budget. We are rolling forecast this budget from everything that happened in the previous quarter. We update these premises, and we re-discuss. Okay, the scenario has changed, or it has not changed meaningfully. Then we decide if we are going to keep the original plan and if we are going to adjust. This is for the acquisition topics and also oil prices that is more volatile to define if we are going to adjust our portfolio and the investment base. I do not know if I have answered your question. It was long, but that is the reasoning behind the decisions on investing the company.
Just a follow-up. Considering the capital structure leveraging, how we think if there is no acquisition short term. Leveraging the end of the year was negative net debt. In the middle of the way, we acquire Maha, but this indicator in all the scenarios under 0.5x the net debt and EBITDA. The idea in the philosophy historically of this company is not a future decision, but the history philosophy, we see operational cash flow in the period, we take a decision of investing in the existing assets. What is left, we see the pipeline of new acquisitions, or we distribute, and this is our history of the company. If we do not have perspective of new business, we increase.
If there is, we have to see Bahia Terra, the acquisition that is really relevant, so we have to be extra careful. We have a big capacity, but in our policy, we have this leverage under 1.5x net debt and EBITDA. So before a big acquisition, we have to be more conservative and keep the equity in a scenario of this acquisition. When it is not eminent, there is no perspective, we are free to distribute profit.
Leonardo, I need to say something on top of that about this Tiê Maha field to mention. This Maha production is primary production, but these two reservoir, Água Grande and Sergipe, have the capacity in other fields that we have with excellent results in secondary recovery.
So we are implementing this philosophy over there, and this will be like this in the next two or three years as an investment track and drilling wells, deploying facilities to increase this field as a secondary recovery.
Perfect. If I may ask one more, I apologize for asking too much. Can you talk more about the inflation 10% in CapEx this year and last year, and the inflation of 65% that you showed in the certificate two weeks ago? I am sorry for too many questions.
Leonardo, I believe it is good to clarify. Inflation 60%, that is not the most accurate definition. Reserve report is a very relevant instrument, not only for external use, but especially for internal use, alerting and directing us to activities that when we have the work plan of the company is more productive, more efficient, and more profitable on return of capital.
This inflation of 60% that you mentioned, in fact, what it brings, at least three or four parts. That is certain inflation, especially on material, steel, finishing pipelines, and rods is captured in the number of the report, financial report 2022, and it is captured also in the reserve report. There is a window of execution between September and January. So this inflation on material and service is considered that. But great part of the 60%, as you said, is due to a change in the profile of activities that is designed in the reserve report, and this profile has two characteristics. On one side, there is no full recognition of the reserve because the work of execution was not for these fields. For example, you can assess Miranga, a deeper area of gas that was not explored by Petrobras when Petrobras was the operator of this asset.
We propose, for example, work so we can going to open this area and test of gas flow with expectation in our technical body. But when I do not have the number of work like this in some wells, so I can prove to the certifying company that our expectation of the technical value is 100% recognized, I generate inflation. The cost is full, and the reserve generated in this work in the current point is not totally possible. There is another aspect in addition to inflation, not having the recognition of some reserves. That is the aspect of productivity of our internal service. Clearly, throughout the last 48 months, the growth rate was so big that I do not have teams that are trained, connected to work safely in the same level that I had in 2020.
For example, we are bringing two drilling probes, and I do not have the expectation that when I place a new drilling probe with new teams, that I have the same efficiency level that I have historically with the PR-04. That is the probe that the company has been working for 12 years. If I spend five days to drill a well in Sabiá or Maha, almost 38 drilling are there, and a meaningful number of this drilling short-term are there as well. With the new equipment, a new team, I cannot keep this five days of drilling historically level. So the certifying company will get eight days, is what we agreed, and is the baseline forever. We do not see this as a fact.
We see this as a management problem to be addressed by the company when we are going to seek very fast and bring the efficiency level of these new probes. This is for the drilling probes, the deeper ones, and the new units, to the same level of efficiency that we have with the current existing equipment that we worked for 10 years. Then you see this, that my efficiency gain is back to the baseline. We expect to go beyond the baseline, and a reduction of the cost. So, two or four points that are raised, we understand they are addressed, and they are manageable, and they are the main focus of the management team of this company short-term.
It is very clear. Thank you so much.
Next question is Bruno, Morgan Stanley. Thank you so much for getting my questions.
The details are so rich about the report and the reserves. Just to try to brief up, it is clear that your cost is in the certificate cost. Marcel said September and January, but the dynamic of the market changes. The direct question is, what you have in your budget of CapEx for 2023, is it reflecting 100% the report, or it is a lower number, and you believe that you can have some efficiency in probes, in facilities? I would like to hear from you about this number in 2023.
The second question about lifting costs, Rafael mentioned in the explanation, there are some events that may be alleviated, the transport using trucks. So the trend of lifting costs in the next quarters would be stability or decline, decrease, removing these punctual effects. The final question, a follow-up question on Bahia Terra. If for some reason this acquisition, especially, does not go ahead, do you see space for more Maha in PetroReconcavo? If consolidation is a topic that is going to be developed in 2023, or if it is something for me the long-term in your industry.
Thank you so much. Bruno. João, feel free to jump in at any point. As I said, we put up an area of M&A here at the company, able to develop the first business very fast. The idea that this is less longing, we are observing several alternatives, and it does not matter the divestment plan of Petrobras. We see that the maturation of this market will bring new opportunities. The company has big experience, low leverage, and also in our point of view, we can deal it also with the negative aspects, this inflation pressure that we suffer better than great part of our peers.
This generates future possibilities. Some are already in dialogue, and others that we imagine that might happen in the future. The idea is to have M&A department permanent with more track record, more capacity, and less leverage. This is a positive positioning, upturn or downturn. Then again, we have used throughout the cycles. I will get your first question, and maybe you remember the middle question about the CapEx. We have a process here, all the discussion, budgetary discussion with the board has some relationship, of course, with our reserve report. I would say that in the first year is more aligned in big numbers, the volume of resources that you want to put, what is the type of increase of production. These are KPIs that are well-defined to the assessment of the company and the management and its efficacy.
So there is a relationship, but if you ask me necessarily you are going to execute the projects listed in the reserve report for 2023 as a priority, not necessarily. This is an assessment that is permanent through IT, and seeking to see the gas contract that you want closed. It is more interesting to have [inaudible] than September. Also the current price of these commodities and the capacities of the company and efficiency gain. If tomorrow I have more efficiency gain in bringing a new fractioning unit than drilling unit, probably I will prioritize fractionating projects, leaving drilling projects for later. This is the advantage of having 900 projects listed in the reserve report, and the order that I decide to execute these projects. Also, the detail of execution of these projects we assess here permanently.
The reserve report is a guideline aligned with budget, aligned with the company's objectives and the board, but does not restrict the company to execute the list in that order. There is a middle question. Lifting cost, Rafael will not promise anything, but he can say, speak up.
Yes, I will talk that there was this impact of the oil transport because of Bahia Terra. I would reinforce that the field is they are standing still. In the first quarter, we are going to see a higher impact, although that number is not going to be so big to change the level of the company. But the fields are standing still. We are using trucks to flow the production, but the expectation mid-term is a drop in this cost as the volumes of production increase, and great part of this cost is fixed. We dilute this fixed cost.
Troy mentioned we also see bringing Maha, an asset that should bring cost per barrel lower than the average of the current PetroReconcavo. The current cost is similar to the current levels of PetroReconcavo, and it is going to be lower. In the first point, there is a cost of transition. But yes, throughout the year of 2023, the expectation would be lower numbers.
I would say something on top of that, Bruno. This is what we are seeing consistently, these assets that we operate currently. In the first point, efficiency gains that we can deliver, production increase, also mix gas higher than oil. We have this trend of cost per barrel decrease, considering that mid- and long-term, as you implement more projects of secondary recovery, and you move more water volume with more corrosion, we see 23 years, we see Remanso. The end of tail stage, the cost per barrel accelerates, and this is a sign of success and is consistent executing secondary recovery projects, and then we will have recovery factors within the estimate numbers.
Perfect. Thank you so much.
Next question, Monique Itaú.
Hi, everybody. Good morning. Thank you so much for considering my questions. I will follow up a topic that Marcelo commented. It is clear that the reserve certificate is not a restriction or even a guidance. We talked about it last week of the reserve certificate. It is not a business plan, of course, there is flexibility and differently. Marcelo said the CapEx for 2023 is online. The certificate is a good reference. Other premises that the report brings, is there any that has a big divergence in what you see internally? I do not know, production level, OpEx, prices.
Is there any difference between what you see internally and what the reserve certificate brings as a reference? Where should we expect flexibility, higher flexibility, higher variability? Just to understand when we see flexibility, more or less. Another question, Marcelo commented about the KPIs that you monitor and track, and you base your decisions and reserve certificate presentation. We talked about RRR, reserve replacement ratio. That is a metric that is in scorecard and the company goals. If you can talk more about it, the alignment of the variable payment of management with the main results and the shareholders and the KPIs that are there, beyond the IRR, it will be interesting.
I can start. The KPIs, the payment of the board of directors, 30% is fixed payment, salaries, pro labore , 70% is variable payment. Out of 70%, 30% is short-term incentive as annual bonus, as we call it. The calculation of this bonus is based on a KPIs package, like a balanced scorecard, and these indicators have different weights. There is a production goal that is yearly, and you are going to produce at any cost? No, there is another indicator that is lifting cost per barrel. I have the goal of replace the produced reserve.
We have reserve replacement ratio. That is an indicator. I will do it at any cost? No, that is an indicator. There is the reserve development cost, the cost CapEx of every reserve barrel. In addition to that, we have a beach indicator, financial indicator capturing everything, external factors, oil prices, and other indicators on sustainability and hazard. Incentive short-term has this aspect. Felipe is a newcomer.
I believe it's working for a while in the company, and there is this spirit that we have to balance the weights and align the financial performance of the company. ERP is an alignment because the structure, we have action programs, restricted actions in a period of vesting that is three years, that is large. Half of the ILP is submitted to the vesting process, that is the time aspect in three years. The other half of this LP is connected to stock return, the perform of the stock in this period of time, three years of the day. The action must have performed more than the IPCA plus the return throughout this period.
For accounting purposes, in my point of view, I would say that 70% of the payment of the executives is really connected to the financial performance align to the stockholders' interest, and great part, 40%, is almost in the vein and alignment because it's based on stock. I would say part of a subjective assessment of the board that is based on what we call major corporate objectives, bringing things that are extremely relevant for the business mid and long term. But there is no financial reflection short term. For example, extension of concessions in the fields that we acquired in last months. This is a work that does not generate economic impact immediately, but there is a big impact in the longevity of the company and some accounting aspects, an area that is really success in these processes in ILP.
It's reflected in these major corporate objectives that is a pact with the board in a rolling basis. We fulfill ones and add others, and it's up to the board to assess how we match these priorities and how we advancing in these priorities. CapEx and reserve report, there are two aspects, as Rafael mentioned. Capital discipline, we have an aspect determining what's being generated on cash and how much I invest in the business, in the execution, how much I pay the stockholder, and how much I invest in organic acquisitions. This is one aspect. Another aspect is the reserve report to say, I need to invest X million dollars in Y projects that will make the reserve replacement rate achievements. So when you match it all, this is a daily decision involving all the company, how we calibrate that.
I believe next week, we are going to bring more transparency to all these topics to you all. It is something that internally, with the board, according to the dynamic of the things, we do it in a rolling forecast on quarterly basis. We do not have the reserve report connection, not even the original budget. We can adapt the volatile situations that we have more and more in the world, but in agreement between the management and the board on priorities. Generally speaking, I believe that we have an alignment that is stronger in the first year, and the objective is to get the revenue gain close to the estimate numbers in the reserve report, but I am not going to grow just by growing.
If I face different prices from the ones that I have in the reserve report, I decrease the level of activities and wait a favorable moment to keep on developing reserves. This is something new in the graph of prices we had several times. I believe that not only the experience but the internal structure of services enable me to do it more agile because I am not connected to long-term contract on service providers that I must use a certain type of equipment to perform my work. Just to complement, you talked about the reserve report that can change and be reflected differently in the future. Marcelo used this example of a drilling gas field in these wells. The company is really optimist that these areas will be well-developed.
Of course, in the reserve report, we have to obey rules and to be orthodox applying this in our reserve certifier. Most of the time, some of these projects are not based on gas increase as we expected. Something could be identified for prices of gas that João is getting in the market, that the gas is going to be stronger in the future than what is estimated in the reserve report.
It is clear. Thank you so much.
Thank you, Monique. Christian Audi Santander has a question.
Hi, Marcelo. I had two questions. The first, talking about M&A. Marcelo, can you talk about an update since the final conversation? We had a new announcements of Petro. They are going to move ahead with the signed projects, observing the non-signed projects as well. We have a new board that took up today. What about this process?
Could you restart, reactivate this dialogue? What point do you say, the process is taking so long, I have an opportunity cost on my capital, and there is a point that is not worth moving ahead, I quit, because we have other things to do. That was my first question. The second, capital allocation point. Correct me if I am wrong, based on what Rafael said. If there is money left, you would consider paying extraordinary dividends, buybacks. I have a question about it, especially based on the exaggerated pressure that the stock suffered after the certificate reserve buyback. Are you considering discussing or not? Thank you so much.
I believe we are all on the same boat, and there is lack of clarity. We were not communicated formally. There are different communicating the media that is Petrobras and government talking about it. We are not officially interrupted in any process. But in practice, these projects interrupt. It is not clear for their side, the decision. We are coming and going, signing things.
Sometimes you have the idea that they are going to be revisited. Non-signed things are under the process of assessment. How long will it take? 90 days, maybe more, because I believe there is no consensus. The takeaway message that we captured of this Petrobras new management, they do not want to leave Bahia, Rio Grande do Norte, but I do not see the message if they want to operate Campos Maduros. In one of the recent texts of Jean Paul Prates, they say no. I believe that we are not here waiting. We are living our lives.
As I mentioned, I believe the great priority of the company is to get efficiency levels that are good, enabling us to execute what it was estimating the reserve report, focusing in M&A incorporation and organic growth, and also aware of M&A choices. Bahia Terra is in our radar, and PetroReconcavo, based on the position of the basin and the expertise and the recognition that we have in the state of Rio Grande do Norte and here in Bahia. The results that we generate on the seriousness and the capacity of fulfilling the commitments that we have brought for the government of Bahia. We have big reliability, and the situation, the financial situation. The capacity of capture and generating results better than any other company. For the geographic proximity, I believe that we are going to pass the baton to Petrobras, to a third party.
We are in pole position. We were chosen as the preferential partner of the negotiation, but we need to understand it better. As you mentioned, the board is taking up today. What is the direction that Petrobras board will bring? Of course, we are going to update you in the market about their decision. But then again, Bahia Terra is an asset that we would like to operate. We can lots to contribute to the bottom line of the company and for the job generation in the state of Bahia. But it is not our life. We are moving our lives here to face things and topics that are really relevant on efficiency, productivity, capital discipline, and we are doing it. The buyback, the level, the degree of the movement, we discussed this at the company, but we do not have a decision on it.
We have a buyback product on a small volume for these long-term incentives based on company stocks, but we are assessing, but with no decision on this topic. Different from the U.S.A., we have the possibility of paying the stockholders in our own capital, bringing tax benefits. So part of this assessment is the best way of adding value to the stockholder, if it is distribution, JCP, as much as we can, or buyback of stocks. This topic, we started observing it carefully, but no decision taken yet.
Okay. Perfect. Thank you so much, Rafael, Marcelo, for your comments. When you see the M&A market, considering everything that is going on in Brazil, oil export, all this mess with Petrobras, are you more excited of M&A opportunities in Brazil? Is there more today than six months ago? Can you talk about it?
I believe yes, there is more now than seven years ago. This change of guidelines of Petrobras and the federal government on Petrobras' assets. The companies that are more consolidated, in our case, taking up assets, generating cash, our position is more comfortable. We had an IPO already. We have more activity. This places us in a position that is more favorable than other players that could not achieve that position on assets and level of liquidity that we have. Eventually, they have a leverage higher than ours. All the aspect of a price reality that is favorable or unfavorable, as far as I see, I see it favors the balance in favor of PetroReconcavo because it's more a consolidator than a consolidated.
That's great. Thank you so much.
Thank you, Christian. Tasso Vasconcellos has a question, UBS.
Hi, everybody. Thank you so much for getting my questions. There are two questions on my side. The first one may be for Marcelo, and this relationship that you have with Petrobras in a negotiation with Bahia Terra. Petrobras is a service provider in Catu. Can you talk more? Marcelo commented that they were not officially communicated in Bahia Terra. Marcelo, can you talk about this relationship with Petrobras in the last years, and if eventually when the government changed and the leadership of Petrobras, if this relationship is changed somehow? If it's more distance or closer in a negotiation of Bahia Terra or any other workfront that you have, for example, hiring services. How about this relationship with you and the company? Second question about the certificate, maybe to Troy. You commented about the impact of complexity increase of some projects, 900 projects that you assess.
Can you think or can you break down maybe by asset, what are simpler projects, more complex projects, this deeper drilling in the CapEx that you have observing Miranga as well? What are the simpler and more complex projects so we can understand this flexibility in capital allocation that was a topic of previous questions. I have these two questions for you. Thank you.
Our history is a long relationship with Petrobras in different ways. 19 years as service provider, and now we use the gas processing structure of Petrobras, flow structure we use. We are customers. We sell oil to Petrobras, and I think that we have, more than any other company, a clear point of view of the assets and liabilities of any close relationship. I believe this helps us.
The new management, coincidentally, Jean Paul was a strong presence in Rio Grande do Norte is a state that we arrived first. The first asset that we acquired was there, and we developed a very good relationship with the governor and the senator. It's someone that we have a proximity, and some assets that they published in the media, they refer to separate what's good, what's bad. I propose to think that PetroReconcavo is the good aspect more than the bad aspect because our position is a specific company, offshore mature fields and upstream. When you see, for example, at any point we were competitive in the bid of the asset Potiguar, because somehow it is not in our interest in that moment. It was not something that is not the core business of the company.
This brings to a position that is more complementary than competitive with Petrobras. There is something very strong on maintenance of the company in the states. There is something very strong of maintenance in oil and gas, and we see this willing of higher control on fuels, prices, infrastructure. I believe we are not so competitive. I have this perspective that is favorable to talk to Petrobras again within different parameters and see ways of creating value for their assets, and they create values to our assets. We have open access to the senator. It is a person that I do respect, has lots of knowledge, and we may diverge in some opinions about the role of the company in this operation, but we can easily dialogue very big. I believe if we have some possibilities of reaching common points.
Considering services, Marcelo, during the presentation, we mentioned this subsequent fact, the beginning of Tatu. Jean Paul as a CEO, he started this contract on March 1st, and the attitude was the same. They keep a clear vision of partnership, opening this market of natural gas. Oil is on a different level, but the contracts are continuous, and up to the point, what we see is the normality in these aspects, and we are so close commercially and services with them. I would like to add, specifically, Bahia Terra block, we had an attitude of bringing Savoia Admiral, the director, Simone, they were very cooperative, showing ANP that the context is beyond Petrobras. ANP thinks that takes a duration. The attitude was very strong in cooperation with Petrobras, returning this asset operation in Bahia.
Troy, there is a question for you. You mentioned about some examples that there are nuances in projects in 2021 report and 2022 report. The example is Miranga field, and then we have lots of wells with the return of production. This example in 2021, this production associated in these wells, this is the history of production when they were closed in the past. This activity is simple, and then you go, and we do this 190 times in other years in different fields. This is simpler. When we started, we see the well, when we identify other areas that Petrobras did not complete.
In the same procedure, when we are inside the well, we reactivate the well, but we open other areas that indicate that there is gas or oil according to profile analysis, as we do not have relationship to the others because Petrobras has different areas, and we do not have a relationship with these areas in different wells. These activities cost increase because we have one or two fractionating in this well. As the profile of production that is not well-defined for this area in this field, we have a production curve that is more conservative in our reserve certificate. This is one example that you have in Miranga. There is another example in Potiguar. This way, there is a pending zone that they have in our field. This pending zone has up to 20 different areas.
When we started seeing the profile, we started the workovers, and then you have two or three fractionating instead of just once, one fractionating in a non-area. In these new wells, we are doing different areas that were not produced in the past. Part of what you see in the results for 2021, 4% above the reserve report. Some of the areas are bringing return already of production based on the diagnosis, and we are developing these areas now, and new zones as well.
If we talk about deeper wells, as we did, we integrated the seismic studies in different areas around Miranga, already observing that there is an extinction of deeper areas in different concessions around Miranga, in the field of Miranga. But these areas were not developed in Miranga field. They did not drill the wells up to that level. It is included as the next extension of this other concession in deeper wells to develop these deeper reserves in Miranga.
It is clear. Thank you so much.
Thank you. The final question is Bruno Amorim.
Good afternoon, everybody. Thank you so much for the opportunity. The first question is about the CapEx expected for this year. As we talked last week, it is not 100% of the CapEx that is estimated in the reserve report. For example, buying equipment, there was this discussion when you buy the drilling probe, and what is in the reserve report, there is a tariff, something equivalent on the probe use. Just to have a point of view that is more objective, and what is the CapEx this year in your point of view?
The second question is about Marcelo's point and the new drilling probes, new team that will not operate with the same level of efficiency as the company currently have. This is part of the reserve report in the following years. If we exercise the imagination, mid and long term, you are going to convert to the current level of efficiency. What is the gain in the CapEx curve in the reserve report?
Thank you so much. Bruno, I believe the second question demands more time and more detail than what we have in this call, but I am sure that Rafael and Cruvinel in the following days will detail this with you in a broader perspective. Rafael, would like to talk about the CapEx more?
CapEx is hard to give you an accurate number, but this CapEx and other activities other than fields development, I would say that we still have the engagement of equipment. The estimate is the number similar, a little bit lower than what it was the fixed asset investment in 2022. We are doing more of the same, and we are drilling in more expensive ways. We started the process of acquisition last year, and we are going to receive and putting into production in the end of the year. If I may complement, it is a clear lesson that we need to communicate not just about using the reserve report in the future. Honestly, it is not clear what we can use, consider guidance and the limits.
I believe that we are convinced from the market reaction to the reserve report that we have to talk more transparently about the company and the definition of CapEx, the definition of the level of activities. I believe that we are going to talk more about it in the following weeks, more permanently, how we see this. So you can have this transparency as possible according to the regulation when we communicate and disclose information.
Thank you so much. Good afternoon.
Thank you, Bruno. We conclude the Q&A session, Marcelo, and we go to the final consideration.
Back to what I said in the beginning, I have learned with a consulting company, we have to celebrate good results. I believe this financial report 2022 is going to be well celebrated in the company without sitting and waiting in our victory.
We know there are challenges, and as we find the possibilities in these fields of Petrobras, we are so pleased to seeing better perspectives than the ones used to fundament the offers of buying these actives, bringing the need of the company to go beyond on what they did in three years. Back to what Troy did in Remanso 2002, 2003, when they reached the level of maturity, developing the projects of secondary recovery and water that were successful. This was a good guidance, but we know I need to drill efficiently wells 3,000 m deep. The company never did that in Brazil, 3,000 m deep. It is not a rocket science, but we have to talk about, and our experience shows that you start in levels, and then you gain efficiency. We are here, and the third set of it was in Salvador, so we can have extensive.
The first time we do it, and it is complicated, and the level of efficiency, they trust the technical body. The history let us see the answer that I am not pleased of going, as you mentioned, go to the levels of efficiency that I had in the past. We want to go beyond these levels of efficiency without promises, and this demands work, consistency. I believe throughout the next quarters, you are going to see it repeating in the continuity and the improvement of the results of the companies. That is what we imagine to improve even further on what it was presented to you today.
Thank you, Marcelo. Thank you so much. We conclude the call today.