Prio S.A. (PRIO3.SA) Earnings Call Transcript & Summary

Hello. Good afternoon. I'm Roberto, IR Coordinator. I would like to welcome everyone. Welcome to PRIO Day 2025. Since this auditorium has limited seating, there are a lot of people with us online as well. At the end, we will have a Q&A for those of you who are here in person. That's it. Thank you very much. [Presentation]

Hello, everyone. My name is Nelson Queiroz. I'm Chairman of Prio's Board and one of the people who helped build the company. Well, for starters, I know that there are many partners of the company, people who are there working every day, some of them here in person and some online and many investor funds. You don't work at the company, but you believe in us, you invest in us, you are partners just like us. And many of you managing third-party resources and assets from other people, that's a responsibility that we take very seriously, as seriously as our own -- as we take our own assets. So to get started, this very cool video we showed you shows a little over the last 10 years of the company. And perhaps one of Prio's strengths is that you saw many faces. Every time, every step, there was a different person narrating. And that's what we're going to have today. Some people will focus on the operational part and other parts. And we believe a lot in our operations. We have an important technical knowledge, but there's also what we do with the technical knowledge, your attitude, your spirit, your alignment, your long-term vision. That's something that we have always focused on from the start. And undoubtedly, it is one of our main strengths. But Prio was born in 2015, a little over 10 years. Over the last 10 years, a lot happened. We started with one field, Polvo. And Polvo Field started with a very challenging future. Polvo produced 6,000 barrels. Oil price was really low, but then the seller of the field, an excellent company called BP, with which we have an excellent relationship, well, they did not believe in the future of the field. And of course, oil prices were melting. Brazil was going through a huge crisis, mainly both large companies and small companies were suffering. And that's when we started Prio. And we know Prio story. If Prio was going to begin today, if we were going to begin another company today and if we started with Polvo, which actually worked really well, it was the foundation for us to build something solid, who would believe that, that base would be sufficient for us to build anything. The seller didn't believe in the field. Oil prices were down. So essentially, the question is, how did we go from a field with a short lifespan, a company they used to call HRT that had all kinds of issues, operating problems, financial problems, a cultural issue. So how can you get that foundation, that one field and make it into something that makes you proud. I'll get to that. And part of that answer is our culture. What we did is we enhanced our culture, good people, aligned people. Producing oil at any cost is not good business. That's kind of evident, kind of obvious, but it's something we pursued from the start. In order to produce oil, mainly offshore, we have to have a high return on investment. And since the beginning, when we look at any M&A deal, any well, anything we do, we always focused a lot on that on producing oil with profitability. And we had good people, aligned people, decisions are made not for the short term, but for the long term. So it's what we are building. We have to be prepared if oil prices fall. So we hope for the best and prepare for the worst. Over the last 10 years, among many highlights that make a big difference, everyone at Prio from the beginning, most of the people at the top as well, myself, Roberto, Francilmar, Milton, many others, we were here at the beginning when no one believed at the company -- no one believed in the company. And when I asked you about Polvo, well, people thought that there was no future there, but some people believed based on the math, on the strategy, on the technique, what we continue at the company until today. Of course, there was evolution. There was improvement. We listened to one another. We learned from experience from other people's lessons learned. But the method is 100% the same. People at the company are mostly the same people. Meanwhile, in the last 10 years, we faced all kinds of difficulties. If you're a Brazilian, we face difficulties all the time. And when you take a longer period of time, a lot of problems happen. The oil prices melted. We had the truck drivers' strike, then we had COVID. IBAMA started a strike. Two years ago, we were in the middle of a big project for us called Wahoo. And when we had made most of the investment and we were able to bring the project online, at Frade, IBAMA decided to go on strike. And that's the kind of reality we have to deal with. Oil now is costing about $62. Two years ago, it was double that price. It was $120 2 years ago. We started this year at $75. So how do we navigate all that? On one hand, it's about doing the math and preparing for the worst, doing stress tests for everything. If we have lower production, higher cost price of oil, you have to plan for adverse scenarios or else you don't have any hope. It's just waste of time. And what we always do is stress testing. If everything goes badly, we remain standing. So when some things are off track, we can stand it. It's not what we want. It's not the ideal scenario, but we are ready to face the hardships. And we're also ready to face things when they are doing really well. I spoke a little about discipline. Something we always do having a lot of technical capacity, which is what we're going to discuss today is capital allocation. We have one single goal here as important as, if not more important than producing efficiently, which is creating value. A company that stands a loss dies. A profitable company creates value. Either we cut down costs, but we have to make sure that money will be well spent and create value in the future or if we want to create value, investing in a well, in a tieback, in an improvement in trading, whatever it is. So we have a very clear vision of creating value and capital -- the right capital allocation. Along those lines, in 10 years, we had a reasonable number of deals. Come to think of it. We have now 6 deals in total, not to mention all the sales we had in the beginning. We had a lot of legacy assets from HRT. So we had a big number of transactions, deals. But here, I think that we said more nos than yeses. We had opportunities to double the size of the company in terms of barrels, but not in terms of cash flow. And since we were really small with a big dream until now, it's a clear approach to create capital and create value and have capital allocation. And it was the first time we said no to something we liked, just like a good asset at a bad price is bad business, a good asset at the wrong time, it's not good business either. So we had a good opportunity, but it was not the right timing. So capital allocation always guides us. And coming to the end of my initial remarks, we always listen to the market. From the start until now, we'll continue to listen to the market. Something we will announce in the beginning of next year is a shareholder remuneration plan. We are preparing a study that we will present sometime next year, more towards the first quarter, perhaps second quarter as soon as it is ready. But essentially, it is a plan structured so that if some criteria are met, the company will start paying dividends, resume the share buyback. And this plan has some components that we are assessing. Number one, cash position, a solid balance sheet in case the oil prices drop. Cash works for. If oil prices are down, we have more flexibility. We have our covenants for our obligations, our bonds, et cetera. So we always have a big safety margin. Just like for M&A deals, we always have to be ready. When a good opportunity arises, we have to have the ability to act. So this is something that we are going to speak more about in the beginning to mid next year, but it has to do with capital allocation. And even M&As, again, the M&A that I mentioned, it was a good deal, but in the wrong time. So sometimes if you add too much, you may lose in execution, and we're always ready to create value, and we will create even more value. If things are doing well. And if things are not so good, we'll just create a little bit less value. And there are some -- a couple of things I would like to mention. One of them is, well, a lot of people believe in the company. I've been with us for a long time, invested in us when no one believed in us. The first real internship had 10 slots in 2015. Only 3 applicants came to apply to work for the company. It was a difficult moment. The company was really small, facing difficulties. No one believed in us. No one wanted to invest their time or money in us, but some people did that, myself, Roberto, Francilmar, and a lot of people who remained with us. And somehow, after a first decade of life, we achieved a lot. We faced a lot of difficulties. We evolved. We learned from our mistakes with the lessons learned from other people. But there's something that excites me. I think that the next decade will be better than the first. The first decade had a lot of challenges. A lot of lessons learned. We had to get the cultural fit, the method right. The second, when we had very little, we were able to do a lot. Now that the company has a lot more tools and the spirit remains with a little, we did a lot, with a lot, we'll do even more. It's the same guide. Our mindset is the same. Our dream to continue to create value is the same. When we started with 6,000 barrels, we dreamed of 100,000. And 100,000 was never the finish line. It was just a point far enough to be challenging, but that we could still envision. It took us 8.5 years to exceed 100,000 barrels for the first time. Well, 200,000 will take about 3.5 years. after we achieved the 100,000. And I believe that 300,000 will not take much longer, but always following the same rule of creating value. Growing for the sake of growing is bad business. Buying a field at the wrong price is bad business. And doing a good business at the wrong time can be bad business. We are here for long-lasting deals that will generate more cash for us to invest in other deals and so on and so forth. Now to truly come to an end, I will ask you -- I want to show you this. You don't have to worry if you cannot read it from where you're sitting. But if you read what's written here on the slide and on the following slide, it talks about the vision of the company and how we have this vision of creating value of always evolving. So increased financial discipline, coupled with a sound decision to cut costs, which is super important. Cost is what you control. If the oil price drops, you don't control that, but you control your costs. The best hedging is having a low lift in cost because it will help you in the hard times, coupled with a sound decision to cut costs implemented since the beginning of XXX, allowed the company to be better positioned to face the drop in Brent prices. I'm not going to ask a rhetorical question of when you think this was said. But this slide, let's move to the next 2 slides. Next one, please. This is the same. I'll read just our commitment to safety and the environment is one of our core values. And the year XXX was marked by major challenges and important achievements for the company, culminating proof of our vocation. We focus on safety, sustainable results, culture. Next. And this last one, we ended, therefore, the year delivering on the pillars of our growth strategy, low operating costs, excellent operating efficiency, redevelopment of mature fields and the acquisition of producing assets. Our business model has been carefully followed. So I am sure that you know when this was. This was not set this year. It could be. It's not last year. This is 10 years ago, 2015, '16, '17, but they apply as much today as they applied in the past, and they will apply in 5 to 10 years because that's how we built this company. That's how we will continue to build it. What brought us this far is what will take us forward. And now to end, this cultural side of behaviors, the things that are necessary. What people do when no one is seeing, how we treat one another, that makes a big difference in our personal lives, that's super important, treating people as you would like to be treated just like professionally, this is the pillar sustaining everything we do. We have to say the right thing and do the right thing. Our values are essential, and they are core for all the new hires. We were a company of 80 people. Now we have more than 1,000. When we include third-parties, even more. So what you will get at the end of the day is a manifest of Prio's culture. This manifest is online if you're not present here. It was carefully worded with everything that we believe in all of the -- all of our values, our behaviors, and it's a manifest that is a living organism. Some people, even before they joined Prio, they have good values. They think in a way aligned with us and they think about creating value. When somebody gets here and they're ready and they just add to the team, wonderful. But if you are with the company for 1 year or 10 years, it's the same rule for everyone. And we wrote a manifest. It's something that we are going to be working more and more with the company. So we've always worked with this, and we will make this manifest more and more explicit. And at any time, if you want to get to know us, if you want to know how we think, the manifest will be available. I hope you will agree with what's written there. We learned with other companies and other people how it works and what we identify ourselves with. So kind of that's what I had, a good company is a company where people working there have their investments there. When people have the option, they choose our stock option program. Our stock option program is coming to an end, and we have more than 90% of the company's headcount in the program. And more than half chose 100% of their variable pay in stock, and we pay the stock over a 3-year period, 1 year without paying and then there is a letter, there's a 3- and 5-year program. And there is always a longer wait at the end. If the company performs and if people perform, the incentive is renewed. So it's always long term. There will be no shortcuts. We'll never make a decision thinking about the coming quarter, in detriment of the next year or decade. Our track record is here to show that even with a lot of challenges and difficulties, the company remains stronger. So for the investors who are here, you believe in the company, thank you. If you believe in the company, if your assets are together with my assets, my whole wealth is with the company, Roberto as well, Francilmar as well. And every year, we renew our investment. You can rest assured that our thoughts, technique and with our strategy and planning we'll always be 100% aligned with creating value. Thank you. I'd like to call Roberto, our CEO.

Good afternoon, everyone. Well, I'll be very brief, and then I will give the floor to Francilmar. Today is a day focused on the operation. The only nonoperational is Gustavo, who will speak about trading. But our idea is to give you more detail on our operations. Well, Nelson spoke about our history, and I would like to highlight the year 2025, which was, in my opinion, fundamental for the company in the sense that the company became a lot stronger, company became a lot more robust. Many of you were our shareholders continue to be, and you know that 2024 was not a good year, part due to exogenous factors and part due to things that we were not responsible for, IBAMA strike, but we also had Albacora that did not produce and deliver as we expected. So in 2025, we kind of delved into the company. We turned inward. And this has been a more introspective year, as Nelson said, we let go of 2 M&A opportunities this year. One of them was interesting, the other one not so much, but one of them was, but we said it's not the right timing. We already had the deal, the Peregrino deal, a big deal and the moment now is to stop look inside in-house and solve the 2024 pending issues and start delivering, generating capital and cash so that we can start 2026 with the possibility of dividend payout. And this was our goal for 2025. And I guess that considering the difficulties posed during the year, I think that we came out at the end quite well. We finally had the closing of Peregrino. Yes, there was a 60-day downtime, but we have a claim against Equinor most likely, and that will be resolved. But we were able to bring forward the deal. We are already capturing synergies. Production is doing well. We were able to unlock Wahoo. And all of the problems of 2024 were solved. So now everything is in our hands. But more importantly, when we talk about looking in, we were able to have a new oath to renew our valves. We were able to renew our valves. And if you will remember, 2024 was not a very good year. In the beginning of 2025, we did not have the bonus. There was like a slight retention. We paid 30% of our total bonuses paid in 2023. We paid just 30% in 2024 -- in 2025, referring to 2024. A lot of people left the company. Some of the people we needed to replace, but reaffirmed these values. Prio, at the end of the day, means people, results not settling and being bold. In Portuguese, these words fit the acronym. Some of the people presenting today are the very same faces that you know, but we have a very robust team now. And all of the people reporting to us are a very robust team. Never was I so confident in the company's ability to deliver results. And in the moment we are living. We have contracted growth of 200,000 barrels a day. Everything to get to this contracted growth is in-house. We haven't got any pending licenses. I mean, there are minor things, but no big pending issues such as an environmental license for Wahoo, which was a big, big problem or an Equinor business that required a lot of hard work for us to close and such. And now we have a very clear vision to deleverage the company over the next year, generating cash and redistributing cash. So I'm very confident in 2026. I think that 2025 was an excellent turnaround because 2024, at the end of the day, was a difficult year, and it was a test of our culture, and it made our company stronger. I'll end here. I'll invite Francilmar, and he will present the agenda and he'll speak about our operations at a macro level. And then he will invite people from his team to present the plan for next year. And I'll come back for the Q&A. So obviously, there's a pressing question, please feel free to ask, but we are going to have a Q&A question at the end. And then I will be joining. Francilmar.

Hi, everyone. Afternoon, everyone. After lunch, it's always difficult, I know. So this is our agenda for today, and I will summarize what we had, what we lived through and what's happening at the company. And after Nelson's and Roberto's opening remarks, I think that you understand where we stand, what we faced and where we are now. 2025 was a very important year. It was one of those years that was a test of -- that put us to the test. And in the end of the year, we can have this retrospective. And we are coming out at the other end much stronger and a much more robust situation. In terms of team structure, we enhanced a lot of structural, functional, technical points and mainly cultural points. So I think that we can let go of the ties. For a while, we had ties holding us back, but now we are free to fight with our own efforts, not really relying on external parties. So the company today, if we compare to the past, it was never this exuberant. If we look at our production data, we have 3, 4 FPSOs, 4 fixed platforms operating at 100%. We have 3 wells being drilled at the same time, 3 rigs drilling at Wahoo, Polvo and Peregrino. We have 3 subsea construction vessels working, laying the pipes, the subsea systems. So there is a lot of operations happening. And what we suffered in the last close to 2 years, fighting against the natural depletion of the field without being able to replenish with new oil in the system, not anymore, and we're back in the game. So Prio's main strength in the last 10 years is our ability to always find a way of having one new oil offsetting the decline of another field. And now we're strong to play the game. Let me go over the agenda very quickly. Everything will be explained by different manager, and they will give us a more detailed vision of what's happening. But overall, we'll speak first about Peregrino. Peregrino had a very fast transition, a very intense transition. You know that we had a problem in the middle of a transition of such a big field. Well, that requires a lot of work, and we have the shutdown. So at Peregrino, we were in the back seat. And then we moved to the passenger seat, and then we were almost driving the car. It was really intense. As a result of that process, we took over the operation and the initial result is very good and very promising. We have captured a lot. The synergy we had in the operation of our assets. We have a good number of assets for us. So it was good to have a mix. It was much smoother. And of course, we had the lesson learned in the past that helped. So we are going to cover the general plans for the future for the company. So Gabriel will speak about Peregrino. Peregrino, every day that goes by, Peregrino comes with many good news, and we become increasingly optimistic going forward. And then we will talk a little bit about Wahoo's development. Jean will give us an update. We are at 30% advance in the project. The project is moving quite well. Jean will give us more details, and then he will tell us when we should expect the first oil. So in general, we say that it's between March and April, but who knows. And then after that, we will give you a general overview on the subsurface. I will tell you about the future plans for Frade. Frade, we did some major work done by the subsurface team with all of the information that we got from our last drilling campaign. The drilling campaign, I mean, people are getting a better understanding of the reservoirs, especially those that we went through. So we will tell you a little bit more about what we expect to do in Frade in the future. Polvo, despite the fact that it was our first well, the oldest one with lowest production, but we still have some good news about it, about the new drilling. Then also, we would talk about Albacora Leste, ABL. In the last 2, 3 years, we started working with the seismic data, and now we have some more updated information going forward. And then we would talk about the maintenance of the assets. The main focus of the company is either to bring new oil into the system or to enhance our operating efficiency. And this is up to the maintenance team to do because they are the ones who will give us the necessary support to bring the equipment we need. And Lorenzo will then talk about that, followed by Gustavo, who will tell us more about trading and how we make money with that operation. And Thiago Ormonde, a newcomer, he will also give us an update on environment, security, ESG, et cetera. So with that, I will just give the floor to Gabriel Romeiro that will give you more detail.

Good afternoon, everyone. Okay. I'm Gabriel. I've been with the company since 2015, the very first days. I've been through all of the areas of the company throughout the years. And more recently, I was part of the Peregrino transition. So I participated in the effort to bring in the asset. And now I'm in charge of the southern fields, so shallow water fields like Tubarão, TBMT and Peregrino. Now I'd just like to give you our view of Peregrino, what is the plan going forward. I will also explain about the field and what are the main challenges ahead. I don't think there is anything new here for any of you. The field is locating in the southern part of the campus space and about 95 to 90 kilometers from the coast of Cabo Frio in [ Rio de Janeiro ]. It's very close to Polvo. So I think it should be 25 to 30 kilometers between platforms. There are 4 platforms. So one is in shallow water. So we have fixed platforms with FPSO about 100 and 110 meters deep. And it's very viscous. The oil is very viscous. There are some specific challenges in terms of flowing the material. It has a bit more of water. So that's why this field is a bit more complex when compared to the other fields. The field was developed in 2 phases. It initially started phase 1, phase 2. This is the name we've given. The first oil was in 2011, this particular position. And here, I think you can see the Bravo and Alpha platforms. FPSO is right here in the middle. So Alpha, Bravo and FPSO was phase 1. And the second phase was in 2022 with a third platform in the Southeast region with the gas pipeline already in place. And I'll talk more about it. And this is where we are working right now. I will talk about the wells. We have wells all over this extension. But the focus is more in this area. We want to develop the field, and this is where we stand right now. So how the production system works? How are they connected? There are 3 fixed platforms with an attached rig. So we have drilling capacity. This is very similar to what we have in Polvo. They are slightly bigger, but the concept remains the same. And they do not have processing capacity, so they have to pump it to FPSO and FPSO treats the fluid. So we have the subsea pipelines and they pump it to FPSO. So the FPSO treats it. It sends the water back to the fixed platforms and the fixed platforms then do the injection into the wells, in addition to the umbilical set and also automation. All platforms have dry completion wells, very similar to what we have in Polvo. So when you get to the platform, you can see the Christmas tree, all of the valves and the whole set of the Christmas tree. The reservoir has no energy to flow it immediately. So that's why we have the BSS pumps. They have a life span. So on occasion, they have to be changed because sometimes they break or their maturity expires. So it's pumped as soon as it leaves the well. It leaves with water, et cetera, then it is treated and then it goes back to the fixed platforms for injection. FPSO has the capacity to produce -- I mean, we are producing close to capacity. It's about 110,000, 100,000 barrels a day, which is the limitation of the FPSO. The field has a lot of water produced, but we're producing about 140,000 barrels of water a day. So we have plenty of capacity for water. We are just limited in terms of our oil capacity. So we can produce about 300,000 barrels. I am just bringing this here because this is one of the main jobs we have in the year. Energy generation, it's an important thing for the field because this concentrates the bulk of our spending in the field. How does this work? There is a cable that connects the 4 platforms. They are connected to an energy grid that flows between them. So they all benefit from the same energy grid. And energy is generated through FPSO and Platform C on phase 2. So this energy that is generated between the 2 platforms goes into a network. And so the 4 platforms work based on that energy produced. FPSO has a steam turbine. So 3 boilers associated to a steam turbine. So all of the gas that is produced by the boiler needs some diesel. It generates energy through the FPSO. And the turbines on the Platform C is very similar to what we have in FPSO. These are gas turbines, more complex ones, and they are designed to receive imported gas. It also has the capacity to burn diesel, which is the current configuration because we have no access to the gas pipeline, and I will elaborate further on that. But it does use diesel. So our current consumption is about 250, 260 cubic meters a day -- I mean 200 is on Platform C and the remaining is used by FPSO that uses the associated gas. What are the main challenges? I'll talk a little bit about generation, gas pipeline, et cetera. But operationally speaking, we are able to keep a very good level of production. The field has very good efficiency. And this is the key to achieve that. So our first -- our priority is to maintain this producing well. This is not very different when compared to other assets, and I'll talk about redundancy and maintenance. But we also have to do the same thing there. So what are the main points of alert and equipment? Well, we do not have the same complexity with the compressors like we do have in Albacora here. This well is reasonably simpler. But what's very important to us is the generation system and the pumping to the platforms from FPSO. So both turbines and boilers and the BCS has to be active and the multiphase pumps that pump the oil from the fixed platforms to all of the lines have to be in place. So the injection pumps are also quite important to us. Integrity, we are in the middle of the sea, and we have mature assets. I mean Peregrino is not so mature because it's still in the peak of its production, but it's been in operation for almost 15 years. Therefore, integrity is always very important to us. We have a flotel campaign in WHP. We see some promising things starting in the Alpha period. So we still want to see that evolving in the future. The field produces a lot of water. Water is important for the flow. Therefore, it's important that we strike a very good balance between the water to be able to produce and flow, but we try to prioritize the wells with the lowest BSW because we were working at a limit. Another important aspect that Francilmar just mentioned, is the knowledge that we inherited from the field. We just made a transition. The transition was quite intense, and it required a lot of effort on our part. But there was some very good thing because we were able to accommodate everyone that was working in the field. So lack of knowledge is not a risk for the field. So we inherited a lot of people with good knowledge. They are already very familiar with the field. They already know where the problems are and how they can fix it. 94% of the team that was already working in Peregrino, they are now working with us now. Everybody there already knows what to do. So what we are doing is just to bring them on board our own culture. So we would talk about the way we make things happen. They were used to a different culture because certainly, every company has its own culture. So I think the main focus of our work is managing this knowledge. We're very successful once we brought people on board, but now they have to be part of our culture. And how can we develop the field and maintain production at its best? For 2026, we usually say that Peregrino has to be a well machine. We have to make a lot of wells. The fact that we have rigs connected to the platforms gives us competitive cost. For next year, we're anticipating 3 wells distributed among the 3 platforms, 3 producing wells, 3 injection wells in addition to 1 producer and injector. Andre will talk a little bit more about it, but he is now revisiting the model so we can have our own view of the field. We are looking ahead for the 4D seismic. We are working in the 4D seismic. And there is another study about the synergies. What we can do, we're very close to Polvo and TBMT. We are trying to understand whether we can extract some synergies from the wells. So the study is quite promising. And very soon, we'll be able to tell you more about it. And there is an important point that Andre will mention, which is the drilling of the isolado. There is an area here between the 2 phases, which is what we call isolado. I think it's the Alpha platform. So we are anticipating a producing well here. Andre can shed some light on this subject about -- I mean, we'll talk more about this deposit. I mean, of course, that we always have to take care of the water. Managing the water is a critical element. These are our next tier wells, as I said, 6 wells scattered throughout the years along the 3 platforms. We will also work with the injection wells to ensure maintenance of the injection capacity of the field in addition to the workovers to maintain production going. Whenever a well leaves, then we add another one. And this should bring us a potential close to the limitation of the field with an average daily production of around 100,000 barrels. This is what we envision for this field with this working plan. In addition to the wells, one of the most important aspects of the field, and I think one of the largest projects we have going forward is the recovery of the gas pipeline. The gas pipeline connects platform C on to Route 2. It's about -- covers an area of about 60 kilometers, maybe a bit less, 45 kilometers of rigid pipes. In 2023, a vessel that had nothing to do with the operation was alongside and this damaged the ridges, the flexibles and the manifold. We are working to recover the system right now, and we hope that it will be online again in the second half of next year. This involves 15 kilometers of rigid pipes. We will reposition the remaining of the line. We will lay the manifold, and this involves a lot of complex work. The expectation is that this will cost about $100 million, give or take, and this will be reimbursed by our insurance. This is work in progress. Therefore, I know that Jean's team will help us with that. Then this is the main point, and I think this is probably the most important objective of the year, which is to bring Peregrino's cost to Prio's standards. I mean, to the level of cost of Prio. Not only we want to keep efficiency high, this cost reduction, I think, is our main goal for the year. And the gas pipeline is probably the main project as part of this. The rest is business as usual. We already had some cost optimization. For the mere fact that our structure is lean, we are already and we are working to optimize logistics. Therefore, the vessels that serve TBMT, they will serve Peregrino. I mean the same thing with the aircraft, logistics, everything is in place right now. Now we are entering the phase of contract renegotiation. In the next few months, we will renegotiate the contracts. We will look at our maintenance plans. We will reorganize our teams to bring everything up to speed. And so at the end of the year, we will install the gas pipeline. So as soon as we have the return of the gas pipeline, we will bring it to our level of operation. And from then on, we will just keep on leveling the field when it comes to high production. I think this is an old dream that the company had. And when I look at the field, I said, well, I wish one day I couldn't work in that field. But now we are there, but that requires a lot of work. I mean, so Jean will now talk about Wahoo a little bit.

Good afternoon. So we will also reduce the drilling cost of the well. Good afternoon, everyone. My name is Jean Calvi. I've been with Prio since 2016. So I was involved in the first recompletion process of Polvo, Phoenix, development of Frade. And now I will talk about Wahoo project, which is one of the most important projects of the company. This project creates a lot of value -- financial value for the company. But again, it also has some intangible value, which is knowledge and boldness. So when Roberto refers to strengthening the company, Wahoo is a clear example of that. Right at the beginning of the project, we made a decision not to close a PCI. That's when we hire a company to work on the scopes and execute it. It was almost like giving the key to your car to somebody else to drive it. So what we did was segmenting the project. So we segmented the scopes and Prio is now taking the lead. Prio is driving the car. Once we did that, we had to look for suppliers and suppliers in the country and outside the country, we had to look for engineering companies, develop techniques and bring a lot of people on board. And so throughout the project, the IBAMA issue, maybe we thought that we could shift gears quickly to decrease the cost and the risk of the project. And today, we see the value that this brought to the company. We are now driving the car. Now I will talk a little bit about the schedule and how the project is being developed. This is -- this was a very carefully orchestrated project. We waited for the license for almost a year or more, and we try to do the best we could for the company. Francilmar said -- well, I will start with the most important figure in the slide. Our expectation is to get the first oil between the end of March and early April. We have an internal methodology that we call P10, P50, P90. P90 is 90% probability. So this will be a more conservative scenario. P50 is the current scenario. And there is always a range in terms of complexity. So the range is about 1 month for delivery date. And how are we going to deliver the project? Today, there are 4 vessels working in the project. We have the rig, Hunter Green is drilling. We started back in March when we received the drilling license. So PO1 was the first drilled meter. So we sent the rig to TBMT to do the workover. Then we went back to Wahoo. We finished P2 completion and drilling. These 2 wells are ready. And now we are PO3. PO3 is an identical well when compared to the other 2. So we have 75 days for drilling. And in parallel, in the same field, we have 3 vessels doing the subsea construction, Amazon, 102 and Genesis. And I'll elaborate on each one of them. Just as a reminder, we have the landmark of the first oil. We call it phase 1 delivery of the project until the first oil, and then that is followed by 2 other phases, the delivery of the second production line that we call a second tieback and the delivery of the injection wells. There are 2 injection wells. So the presentation is divided into 3 phases. So what does phase 1 mean? Phase 1 means all the modifications of FPSO and the pipeline of rigid line and control umbilicals of chemicals and all of the equipment and mines that connect the production wells in the Wahoo field. Here, we have the Frade field, the tieback, all the path covered and the Wahoo field, which is about 30 kilometers away. So this is the scope of phase 1 that will be delivered in April next year. And so what are we doing now? Now we have Amazon launching the rigid tieback. It's the first one launched by Prio. We are closely monitoring the project together with McDermott. The vessel arrived in Brazil at the end of October. We had to go through a clearance process. And so far, everything is as planned. We are moving on well. We already launched or laid 12 kilometers. So it's been over 1/3 of the pipeline. So this first line, I mean, we made changes at some point in the project. We were at 4 ELS, 2 lines, and then we were fine-tuning the studies. So we installed 3 ELF in the first 15 kilometers in the first half of the tieback, we call it that. And the second, we don't have ELS. Everything has been determined by our engineering team. So we covered 12 kilometers, and then the next one will cover 3 additional kilometers, adding up to 15. And why am I saying all that? Because from now on, we will lay pipes much quicker. When we launch ILS, it will take a few more days. And then from now on, we should install about 1,000 meters or 1 kilometer a day. So this is the current scenario. So at the end of the line, after the tieback, we will install the manifold with Amazon in the Wahoo field. So when do we expect to conclude that? Well, the first week of January. So the first week of January, this should be ready and in place, and the vessel will then move on to take the second line of Wahoo, and we'll lay the second line. Here, I have some pictures. What does the vessel do? I mean, it's a line that lays down the pipes. It's a rigid pipe with the pipeline. So in the vessel, we have a welding process. This is a video of the vessel. It's a new vessel. It's in its fourth project. The first project was in Africa. Then it went to the Gulf, did some work for Shell. They had lots of problems with that. I think many of you knew about it and then it went to Africa and the vessel was improved. And today, this vessel has very good performance. This is the loading process. We put a QR code in all the pipes with the measurement of the pipes. The vessel selects the ideal pipes per size, they included in the assembly line. So it transports from the loading zone. The vessel is highly automated. There are a lot of robotic embedded. And here is the welding line and every welding line allows us to weld six 9-meter pipes. So every line is what we call rack joint. So this is the welding process. And so after it's welded and prepared, the tower carries it up and it lifts the pipe. And after that, it puts on a desk to weld the tube or the pipe when it's already in the water. So it's a new pipe [indiscernible] so after welded, we revisit the thermal isolation, and that's when we lay the pipe. The process is repeated in numerous times. The first Wahoo tieback is about 1,500 pipes. We are moving quite well when it comes to piping. In addition to Amazon, we have NO102 that lays flexible and umbilical pipes. What is the scope of the vessel? Umbilical pipe, 2 flexible pipes where production comes through. This umbilical carries chemicals, control fluids and the electric part. The umbilical connects both fields, and they also promote the connections of the Christmas trees in the manifolds with flexible pipes. So where do we stand right now? We did the pull-in, meaning that we installed the umbilical at Frade's FPSO. So it has been laid. We already laid that long control umbilical of 28 kilometers long, when we launched 3 other short umbilicals in the Wahoo field. So the next scope is to launch the chemical umbilical pipe. We will lay it and connect the wells to the manifold, and then we will launch the flexible pipes connecting it to the Frade FPSO. Here, we have some images of the vessel and how it works. This equipment is called Carousel. We stored 30 kilometers of umbilical pipes. This equipment turns around and delivers the pipe to this tower, which is the launching or laying tower. And these devices on top, they hold the top of the umbilical, which is quite heavy. So the speed control is done by this equipment. Here is an illustration of our design. When I talk about pull in, the lane vessel is very close to the FPSO. Part of the equipment or this equipment or this pipe comes here to the vessel. We anchor it in the vessel and then it lays the equipment in the direction of Wahoo. So this is the loading of an umbilical pipe, just for you to have an idea of the magnitude and the size of the equipment. And finally, there is the third vessel, this last one, it's like jack of all trades. He prepares the path for the launching of the larger vessels. So it prepares the area for the rigid pipe laying. It prepares the area for the installation of umbilicals and UTAs. And today, we basically have the entire preparation in place to install the equipment that we are still liking for the first oil. Well, we installed everything we needed in this first vessel. So this is not a bottleneck for the first oil. Here, we have some images of the work that we did. This is a Christmas tree being installed. Here, we have the mouth of the well. This is the well. The sea floor is 2.5 meters below the structure. This is the Christmas tree. So when Gabriel referred to Peregrino's Christmas tree, it's in the surface. And in Wahoo, the Christmas tree is in the bottom. These are the equipment that distribute hydraulic, chemical and electric power in the Wahoo field. Well, very briefly now, this is the scope of phase 2. As I said, Amazon will lay the second line. In the third phase, phase 3, we will drill both injection wells, and we will connect these wells to the second rigid line. The second rigid line can be both producing and injection line. So if we have any positive surprise, we can redirect the manifold because the manifold directs the flow, so it can produce for both lines. When production is down, this line could be also turned into a water injection line. So these are the things that we put in the design. A very important point about tieback. We have to have flow assurance. So we always work to make sure the production will leave one field and get to the next. And several studies are carried out. Some outputs of these studies. For example, I need to keep the oil hot so that it will flow and not form hydrate. Hydrate require gas or water and low temperature. So we install kind of a coating in the pipe based on this study. And this coating works as a prevention of hydrate formation, so hydrate will not form. In addition, we installed the ILSs that I mentioned. This is equipment that will allow us to access the inner part of the pipe. If hydrate is forming, we can go to the ILS and depressurize the pipe with equipment that exists in the market. These types of equipment are for remediation. If there is hydrate formation, I can access it and break it down. In addition, if I find something new or a new deposit, I can connect it to this equipment. So it has a double function. We always work with prevention and then with remediation. Another output of the studies is chemical pumping. That's a prevention for hydrate formation. We have several small lines inside the umbilical. What's interesting is that we have chemicals to -- for hydrate prevention and chemicals to ensure the health of the whole subsea pipes, anticorrosion, demulsifying, so flow assurance relies on this type of equipment. So this is another output of the studies at Wahoo, and it's all very technically robust. In addition to 2 production lines, we have a number of ways of preventing hydrate from forming. And lastly, I would like to speak about the performance of Hunter Queen rig. It is the first drilling campaign of this rig. The rig comes from a strategy of verticalization of core assets. And this performance reinforces our strategy. The rig, because it operates at a much lower market price, we can drill wells at a much lower cost. And we've been having excellent performance. The rig is operating greater than 97% of the time. So it is 97% available, 97% of the time for drilling. So this is a confirmation of our strategy. And I believe that in the coming year, this will improve even more. And the result of the first Prio pre-salt well, PO1, well, we know that the pre-salt is not trivial. We were able to drill it and complete it in 79 days, an excellent number comparing to the market. PO2, 98 days. For this well, we had the acquisition of seismics. So we had some additional activities at the well to collect information, and to ensure that we have data to simulate production. Now we are drilling PO3. It is believed to be finished before 75 days. It's a learning curve. When you're drilling, it is normal to adapt the project based on the information you get from the first wells. Lastly, PO4 that we should finalize by April '26 and start producing. If all goes well in the subsea, we'll start producing the 3 wells at the field. And if we can bring drilling forward, we'll have 4. But that's kind of not sure. And we have about USD 40 million for cost, which is a good result. And I'll invite now Picarelli to speak about Wahoo results and about the development campaign. Actually, that will be after the coffee break, you can have a 10-minute coffee break -- 20 minutes coffee break, and then we'll have more on Wahoo. And then you'll be able to take a part of Wahoo's project home, Roberto prepared something for you. Thank you. [Break]

I've been working at Prio. Since 2013, a lot of the story of the field is kept in my HD, my hard disk. We used to produce with 4 wells and the structure this big. So what we did was we got the other platform and tied it to a vessel where we had the whole structure ready. So your cost per barrel is reduced. And then the project can be much long living because it becomes economically viable. We're talking about around 15 years. We initially had about 4 years for the lifespan and a lot more now. I think I can retire now.

All right. Good afternoon. My name is Andre Picarelli. I'm the Subsea Manager of Prio, and I'll speak about 5 of our assets, 5 assets where we have the most activities this year and the assets that will require more activities in 2026 and beyond. We'll speak about Wahoo, Frade, Albacora, Leste, ABL, Peregrino and Polvo. We had some activity at Polvo this year and with very interesting results. So let's start with Wahoo, which is our big project this year. And I'll speak about some results we've had so far. In the map, on the map, we can see in green, the 4 wells that we will be drilling at the field. In blue, we have the position of the 2 injectors. This is a structural map at the top of the reservoir, the Macabu 100 formation. In the seismic crosscut, this shows what's happening, what's flowing through the 4 wells to be developed going all the way to APL 2, which is outlining the north part of the field. So we have producer 1, producer 2 and the 2 trajectories of producing well 3. And I've the results of the 2 wells that we have already drilled, producing well 1 and 2, they were within the expected range. Prod 1 with a slightly low net pay, 46 meters and producing well 2, a little more 67, 68 meters of net pay. But producer 1, well, we run an activity test and one of the big uncertainties at the field is the fractures, the flaws. We have a number of flaws at the field. And we suspected that, that one of the uncertainties was that these flaws could be barriers. If they were barriers, we would have to drill more wells to outflow the volume. And producer 1 showed a great injectivity. Very, very good indeed. It is in a stimulated well and mainly without barriers. The test that we run reached down to 800 meters. And we had a relatively important flaw at 500, 600 meters away from the well. And that, although it is not present, it's not a barrier. And so this was an important result for us for the future of the field. In producer or producing well 2, we completed it with what we call a fishbone technology. I'll speak more about it. Fishbone stimulates the reservoir in a directional way. I will explain this later. In the cross-section, we see 2 trajectories of prod 3, the green and the red one. And this is work that is being very well conducted by the team practically. Real time, we're updating the models. As we get the data, we update the model. we end a well and we have the well ready to review the trajectory of the next well. And this is what we did for producer 2. By adjusting the speed of the field, we adjusted the structure and we repositioned producer 3 in a more favorable position, really close to its original plan. And this is what we do. We have a model. We have a team working full time in this model, and we can update the 3D model of the field, avoiding these tectonic faults. A PO3 is located in this part of the structure. It is what we consider a low-risk well close to 7D that showed oil all the way to the base. And another important information is that another uncertainty was the oil water contact because we considered that we had good control, minus [ 400 more -- 830 meters ]. And we confirm that the oil water contact. So in a nutshell, the results are confirming our expectations for the field. We are now reviewing the model. I mean, we're always reviewing the model. And the volumes are in line with expected, considering the margin of error that always exists. And the -- we had the injectivity test that proved good mobility and absence of barriers in the region investigated by the test, proving that the faults, although present, allow outflow in drainage. And fish bone stimulation. That's the first time we do it in Brazil. Jean's team was able to execute it flawlessly. It issues a number of needles that cross the reservoir, the carbonate reservoir and become it more acidic, thus improving the productivity of the field. It had never been applied in Brazil. The SPE paper shows a productivity increase of 2.5x, in some cases, even more. So what does it do actually? This is a carbonate reservoir in the pre-salt. We know that there are natural fractures, open and closed fractures. And what the fish bone does is a connection with the natural fractures of the reservoir. And it also handles the bypass of the damaged zone. In other words, when we drill the well, this tends to reduce the permeability of the zone invaded by the fluid. It invades up to 12 meters within the reservoir bypassing the zone with the damage and it stimulates the reservoir deeply. And the other big advantage, the option would be to do hydraulic fracturing. But hydraulic fracturing, although it is efficient, it does not give us any control where it goes. You can get, for example, all water zone and bring water to the well and hinder productivity, although it will increase productivity of the total fluid. So we will be applying the fish bone technology in other wells. It is the first time that we do it in Brazil. And we did it very successfully. That's Frade. Frade is a field with an original oil in place. And all of them have an original oil in place that are significant. Frade, more than 1 billion; Albacora, almost 4 billion; and Peregrino, more than 4 billion, 4.6 billion original oil in place. So every 1% recovery factor extra that we get for the field is a significant volume. For Peregrino, 40 million new barrels and the recovery fraction is very low, 15% at Frade. In other fields, even lower. And here, the big -- this is a big opportunity at Frade. We have 4 sets of reservoirs at Frade. What do they have in common? There's a lot of heterogeneity and there are barriers between them. Every little thing here is what we call geobars. They are disconnected from the others. And this generates a huge infill drilling opportunity. And this is the plan that we have for almost all of these reservoirs. It all includes infill drilling, but it needs to be economical. And that's reusability, the work that we do with Jean's team to drill wells that are very cheap. And you will see our strategy to pursue will be to drill more, drill more infill wells economically to extend the recovery factor to be way above what we're expecting. This is one of the highest we have. You will see Peregrino has 12.5% of final recovery -- fraction recovery. And this is unacceptable, so we have to improve it. So this is basically what we have for Frade, a lot of heterogeneous reservoirs, compartmentalization and with a low recovery factor. And we are going to go after the recovery factor. So what have we done at the field? In 2023, '24, as you know, we had the revitalization project that increased production. It boomed at 6 producers, 2 injectors and some exploratory wells, in 2024 -- and 2 pilots. In '24, '25, we had static data, dynamic production data of the field. Well, we are digesting all of the data, and we are updating static and dynamic models of the field and doing it very intensely so that we can ensure the next leap of production, which will be FRP3. In addition to the static models that we're handling this year, and this is another common point to all of our assets. We are paying a lot of attention to the management of the reservoirs with water. In the case of ABL or Frade, water injection was very low below what the field needs, especially in at ABL. And this year, we resumed injection in Zone 560 in 2 zones, 560 and 54X. And we were quite successful, and we are now planning the next phase. The biggest novelty here, you will see Peregrino, ABL, in addition to the operating efficiency. We're working strongly on technology. You will see that 4D seismic that we are doing for Frade, Peregrino, and we've done it in ABL and the seismic is being interpreted. All of this will add significant value to the field, driven by technology. We already have seismic acquisition. We -- the bid has been complete. We'll acquire the seismic by the end of 2026. And in the end of 2027, we'll have the new interpretation of the seismics to guide us everything related to future development, and you will see the development that they are proposing this year. There's a slide about this. It privileges areas with infrastructure at the field, areas where we already have infrastructure. They are lower risk areas. And we are leaving exploration in the ring fence more to the future because the 4D seismics will add value for these prospects. So basically, the road map we have for Frade is this one. And this is what we are going to do in 2026. We're going to be drilling 2 wells, and they will access many reservoirs. Well, one -- instance one, that we are calling it infill 1 and well 2, we are calling infill 2. Infill 1 will get into this development of 570 at the high block, we will prove the [indiscernible] prospect, and we'll get to the reservoir zone of the 550, 447. And the other infill well is also directional. It will access this geo bar of the 570 in the west part of the field and the low part of the 570 testing a number of reservoirs. And we'll test this other geo bar of 570 in the low block. And we believe that these infills can generate 4 producing wells. We're being very conservative in our business plan. And we have spud well for 2029 or 2030. But I think that this year, we'll have good news. And all of these more risky prospects, we will leave them for when we have the 4D seismic. These trajectories are still preliminary. We have Jean's team trying to optimize this right, perhaps with just 1 infill, we can have the 5 trajectories to gain time and do it at a lower cost. In a nutshell, the 4D seismic bid is concluded. This yellow part here is the OBN seismic. These are nodes that we put in the bottom of the sea. This is the most modern Chevron seismic in Brazil, and it was registered in the 2000s. And now we are getting another snapshot of the seismic, getting basically this area in green to compare. And then we'll see -- you will see the results of ABL, Albacora, and we can compare the impedences and we can see the movement of fluid in the field. And you will see that the ABL results are extremely interesting. And the seismic, we'll cover a good part of the prospects that we have in this zone of the field, ILX. Like I said, we are going to be in 2026, cost reduction and risk management. The infill wells in the reservoir zone, and we will continue the maturity with 4D new input for the exploratory prospects. So I think the future of Frade, like I said before, will include a lot of infill drilling. We're working with this with our development team to drill wells costing much less $20 million, so that these will be much more attractive and increase the recovery factor because as it is, it is unacceptable to us. Okay. Albacora Leste, ABL. I'll move to this slide because I think it's easier for me. Albacora has 3 main reservoirs in the pre-salt zone, 110, 120, this red one, the 140, which is the main zone of the field and 2010 actually. And then we have Arapuca, which I didn't include in the seismic. And this is a map of the distribution of the reservoirs of the zones and recovered fraction, very low at ABL, a recovery factor 1P of 20%, which, in our opinion, is very low. This is the common thing we see in the Campos Basin, very low recovery factors. If we compare with the North Sea or even the Gulf of Mexico, it's low, albeit speaking of heavy oil, still recovery factor is low. So this is a big challenge, not just for Prio, but for the whole country. We're leaving a lot of oil down there. Permeability is spectacular above 1, just like in Frade, all of our permeabilities are really, really good. And in terms of development strategy, in 2025, this was a year of production and injection management. The old operator in terms of the top side left the injection system of the field at a very poor state with a lot of injectivity deficit in terms of replenishing volume. So what we did this year, in addition to the 4D seismic result and the updating of the reservoir model, the team did a spectacular work in terms of modeling. We dedicated a lot of time to the recovery of the injectors and increasing injectivity. Petrobras had a certain envelope of injection. And we challenged this injection envelope in a very safe way. We had a number of tests and we were able to improve injectivity safely by 30%, 40%. In some wells, we actually doubled injectivity. And another spectacular feat of the operational team, Jean's team, Lorenzo's team was water treatment. Unfortunately, we had a water quality that was very poor at Albacora. And well, the team did an excellent work. The main problem was the content of sediments in water that reduced from like 130 -- I don't know, it reduced 5x. So our water now is considered a very good quality. Something else that Jean's team did was to put a certification unit at the platform. We used to do it using vessels. It cost a lot. Whenever we lost injectivity, we would have certified. So now we have comfort at the field. We don't have to close down the wells, and we can replenish volumes, which we couldn't do before. In 2026, what do we expect to do? We are finishing 3 static and dynamic models. The dynamic model is already running. And we will be doing adjustments at the -- of the drilling programs. And you will see the 4D seismic image that we will show you that the 2027 campaign is very mature. It's just a matter of fine-tuning, optimizing the trajectories, the extension of the horizontals. So it's fine-tuning. For 2027, it's the start of the drilling and revitalization program of the field. And I am sure that this field will bring us a lot of joy. And we will have the start-up of production at Arapuca through the connection of one well. If we do it well there, there are 2 more wells to be drilled. And as in all fields, so we are focusing a lot on water injection management, increasing and maintaining activity, replenishing volumes that we're getting out of the reservoir and reversing the trend left by the prior operator. This is just one sample because this is really interesting. This is the 4D seismic result. This is the impetus difference between the current -- the past seismic and the current seismic. So red is what we call softening. It's gas replacing oil or oil replacing water. In blue is what we call hardening. It is water replacing hydrocarbons mainly. So what do we see? These are the gas layers of the field. And we can see that some areas of the field have high concentration of gas, others with greater water. This is the Zone 140, and this is the Zone 210. And we can see very clearly, together with numerical simulation, we can see it very clearly, and we can be very predictive in terms of where are the best oil saturation zones. For next year, we'll have these 2 wells in the high oil saturation zones and the injectors. Its function is to prevent gas from expanding and replacing ABL 13, which is a well in a good zone. And then we have these 2 zones. And there are some zones that we are identifying with a high possibility of adding more wells, more infill. Again, this will require infill technology, infill wells, cheaper wells to improve the recovery factor. In Zone 210, we have located these 3 producers to bring the oil to this zone. So in a nutshell, we have validated the 7 wells, 5 produces, 2 injectors for 2027. The 2027 campaign is all assured. Now it's just a matter of fine-tuning, working on costs, working to optimize the trajectories. Let's speak a little about Peregrino. Gabriel spoke a lot about Peregrino. But unlike other transitions with other -- or from other operators, Peregrino was a positive surprise because as Gabriel said, the relationship with Equinor during the transition in terms of them giving us information was just amazing. It's spectacular. They gave us the aesthetic dynamic models. We had like 6 workshops. So there was a knowledge transfer that I had never seen before. I participated in many transitions in my professional life, but this was unprecedented. The result is that with less than 6 months at the field, I can say that our subsea team has everything in our hands. We have the field in our hands. As Gabriel mentioned, initially, as we have a good knowledge of the Equinor model, we will continue with this. We won't risk. At the same time, we will build our models. What is unique about Peregrino? Peregrino is a very compartmentalized field. We have these canyons that cut through the reservoir, separating it into different compartments with different water oil context. And the second compartmentalization, which is the sedimentary system, proximal turbidites, deepwaters, all channeled. Some people see this as a bad thing. We see it as an opportunity, though, because there are many of these bodies that are bypassed. They're not drained. We have a well here. And perhaps there's this channel that was not drained. We have to drill and bring that oil up. And this is what we are envisioning for Peregrino. Recovery factor is ridiculously low, 7.4% for 4.6 billion of original oil in place, additional 40 million barrels of additional reserves. And the strategy will be to use an efficient secondary approach and then infill. Equinor did a tertiary recovery project, which technically was successful, increased oil recovery and reduced water. And we are seeing how we can scale up this project. It is perhaps another important front that might have an impact on Polvo, TBMT and even ABL. And Gabriel mentioned this, this is the famous isolado. It is an area at the center of the field where we see a great potential. Equinor also saw a potential there, but they didn't have time to develop it. This area is at the very center. Equinor drilled this well, 15A. This well found oil to the base of the layer. In other words, it did not find the water oil contact. The structural line of this is located here. This area has $350 million of oil in place, proven. It's not in the reserve. We're going to be drilling this one, 17A. This was proposed by Equinor, and we validated the well to prove this lower part because this is an amplitude an area very similar to this, and it is oil that is well known. So we will drill this well, and we will drill a producer based on 15A, an area that is already outlined. Once 17A proves our theory, we will make a plan for the whole isolado area. It is an area that can be very, very interesting. Polvo. We can never say Polvo is depleted. There's always more. My team of geologists, when they say there's nothing else left, it's the time to change the geologist because Polvo is an example of that. We drilled this well, [indiscernible] located in the development area of the field. And it gave us a very good net pay and with pressure 20% above expected, a well with 98% net pay, a useful reservoir to be completed. And now we are in the process of completing it with the help of Jean's team. And we have well B in the zone of the field. And we are going to be testing the pinch out. It's turbidite, and we have a zone of pinch out more towards the end of the reservoir. If it is positive, it can open up this whole zone down here. And if it is possible, we will try to test this zone here. And this would be most likely in 2027 or '26, maybe. And all of these other smaller things, we are studying them, reviewing them, reviewing the economics to see what we can do. This is the trajectory of the well that we drilled, and we have a good expectation of production for this well. Okay. This is what I had. I'll turn the floor to Lorenzo, who will talk about the operation. Thank you.

Thank you, Picarelli. Good afternoon. My name is Lourenco Machado. I lead the maintenance of projects and assets at Prio. So it's a pleasure for me to be with you today. My mission at Prio is to increase operating efficiency and extend the life span of the assets through maintenance, integrity and projects. When we speak about maintenance, we also talk about topside challenges. We started with the acquisition of a field through operating transition, and Gabriel said that he was in charge of Peregrino's transition. And this is a very critical moment because we are transferring an operation from one company to another that they had different cultures, different maintenance and modus operandi. So this is a critical area. And then we mapped up all the detractors and availability of equipment. So some challenges are already well stated. And the other challenges, you find out about them as soon as we start operating the field. So it's important that you map out the detractors really quickly. The structural integrity means you have steel units in the sea environment. So you have to fight corrosion as soon as it appears. And then next comes the perpetuity of the assets. So we have to look at the reliability and monitoring of the machines because the machines talk to you. So you have to listen to them. You have to work in terms of building up data that allows you to react before things start happening. This is crucial in our business, and you have to extend the life span of the assets. In the case of Frade and Polvo, Polvo was to be abandoned in 2016, and today, it has the same production in 2026. And Frade now, we're already working for its extension for 2049 and this involves structural reinforcement. And structurally, we prepare the plant for the oil that's about to come. Not only we maintain the assets, but we also have to make a series of modifications to receive the upsides of wells that will be drilled next to the field, and we have to look at the tiebacks as well. Now I'll talk a little bit about detractors. As part of operating efficiency, we identified that we have 2 major detractors at Prio today when it comes to maintenance. And so we did some strategic and very focused work because this will certainly bear good results. We have a compression system, which accounted for the bulk of the loss. And then we have the generation system. To fight the challenges, we need machine availability, having the machines available and also reliable because that's critical if we want to promote operating efficiency, establishing redundancies, the critical equipment for the business and security have to be reliable and have the necessary redundancies. It may sound obvious. But Albacora last year, our most recent case, we only received it with 50% of the available generation capacity. Now we're already reached 75%. And for next year, we will have 100% generation capacity in that plant. We have to review the maintenance strategies. When we draw up our maintenance strategy. We look at the manufacturer's manual, we look at all the lessons learned from the industry. And we also add some of our own knowledge to our maintenance strategy, and this is our core business. Acquisition of reserve equipment. If everything fails and the equipment also fails, we have to have spare equipment to fight the detractors very quickly. So this is our instrument to fight problems and increase efficiency. And certainly, it's important that we keep a constant monitoring of all of our assets. We had a lot of data at Prio. We connected everything through data link, and we are operating with correlation algorithms to correct failures. Well, it's important that we are able to predict failure even before they occur. Well, speaking about production units and subsea units, we have to also talk about corrosion and integrity. In that note, I mean we have to be more efficient than the corrosion that appears. We have to fight corrosion faster than when it's generated. And there are 2 ways to do that. One is through preventive measures, anticorrosion measures, meaning painting, we have to paint the surfaces. And when corrosion is more advanced, we have to replace things to resume the original condition of the unit. We are talking about expanding the lifespan of the asset by 20 years. So we have to take care of that. Speaking about lifespan, this is one of the largest concentrations we have in Prio. When we talk about Frade, an unit projected to operate for 20 years and today, we are working with an additional 20 years of extension, it's almost like giving that production unit a second life. For that, we use a computational model. We generated finite elements and then we identify areas that will allow the asset to achieve the expected lifespan. What about reliability? We work to continuously improve our maintenance plan. We execute the plan. We learn from it, then we go back to the engineering table to review it, and then we execute it again. We have a Mandala that shows continuous improvement of maintenance plan and integrity. Not only that, we are now collecting data to monitor correlation of equipment, and we already have more than 1,000 models and more than 50 critical assets monitored. Well, once the asset is maintained, now it's time to get the house in order to receive new oil. In 2026, we have 2 large projects to adjust the top site. The first project is Wahoo's oil that we have to deliver in the beginning of next year and the project that involves adjusting Albacora Leste's FPSO to receive Arapuca's oil. That's a pre-salt field. Finally, one major lesson learned was Albacora Leste. When we look at the operating efficiency back then with turbines and compressors and all the losses, basically, Albacora Leste is responsible for the majority of the losses. That's why this year, we put together another program called [ SES, ] where we are revitalizing all of Albacora Leste's critical systems, establishing redundancies and integrity. In the first quarter of next year, our focus would be to resume the fourth turbine and recover the cooling system of the unit. This turbine has not been operational since 2019. It hasn't been in operation for almost 7 years. We received it nonoperational, and now we are working to putting it back in operation. It went on fire last year. With that, we will be able to restore redundancy and have 100% of generation. The cooling system, the cooling medium of the unit is also being repaired. It's a huge line that crosses the entire unit. This involves a major work and this work should be concluded by March. And then the introduction of the third compressor in the second quarter of next year, and this will increase even more the availability, ensuring more stable production. We already had some increments from the recent measures. But next year, we will be over 90% of efficiency. So now I'll call Gustavo that will talk about trading.

Good afternoon, everyone. Well, I'm Gustavo Hooper. I'm in charge of trading and everything that has to do with the trading of the products that Prio produces. So basically, we are talking about oil, how do we reach the markets, shipping and natural gas. So I'll start with a short video to show that we have a lot of things going. This is just to get to in tune with the world of trading. [Presentation]

The VLCC moves on to the market and the other with dynamic positioning remains in Brazilian waters goes to Uruguay to do other shuttles. This is to illustrate a bit of what we do, of course, that the name seems a little bit romantic. But in fact, everything is very physical because there is a lot of things are happening. And when we talk about Peregrino, we have some special challenges. Peregrino, as Gabriel mentioned, produces heavy oil, not only is heavy, but it's very thick. And down below, we have a table to allow you to see the thickness of the Peregrino oil. Peregrino is like honey; and ABL, it's very similar to sour cream or yogurt. So it's easy for you to see the viscosity of the oils. And Búzios, who is an expert flagship, it's a medium oil and viscosity is very similar to olive oil. Then you can see the difference between the different oils. So Peregrino logistics is very complex because it requires special vessels. You have to warm up to heat up the vessel. The unloading has to be done very carefully to ensure that we can do something efficiently. But if there are challenges, there are also opportunities. The main opportunity that we capture from day 1 are the co-loads with our own portfolio. So we can load larger vessels in Peregrino. When you have future opportunities to load VLCC straight from the platform. And in 2025, we had good results with other oils that we blended in the vessel, in the ship to correct viscosity. This is a project that we are also pursuing in Peregrino. And all of that and all of the efforts are already bearing results. So in this chart, we can already see the differences of FOB equivalent to ICE Brent. So if you look at the first line in blue, it shows a differential from another heavy oil. It's a Colombian oil in this case, vis-a-vis Peregrino. Peregrino, while it was being produced by those who own 40% of the asset, these were the numbers that they achieved. So you see that there is a big difference between the two physical oils. Once we were in charge of the trading, we apply all of our logistic expertise and the capacity to create synergies between the different assets, we see a major differential. We already expected to have this upside, but not at this level because not only this brings about logistics savings, when you increase your trading batch, you can also reach other markets in a very economical way and you have a more competitive oil. The trend from heavy oils shows that it was a very positive year. It's been a very positive year in terms of differentials. The physical market is healthy. It was healthy until the moment of the chart, and we see a big difference between what was before, what was done last year and this year in terms of physical oils. Certainly, that the differential into ICE Brent is something that we cannot control. But when you look -- when you compare to physical oils, you can clearly see the synergy that exists between assets and all of our investments in developing the trading area and particularly when it comes to Peregrino. And here, this is the main source where our synergy comes from. VLCC, the oil from VLCC, the trading of this oil increased a lot in 2023, when we decided to restructure and mature our trading strategy. We increased the proportion of VLCC considerably in our sales, sales not only to China or to more distant markets, but also to markets that were negotiated in Suezmax. So in 2026, we had our first trips in VLCC. The proportion was still small. But in 2024, we increased the number of trips when compared to Suezmax trips. And now in 2025, you see that the ratio is considerably higher. [Presentation]

There, you can see the bird's eye view of both vessels, and this represents an enormous efficiency gain. This involves the trading team, the operations team and PRIO's execution capacity. Today, PRIO is the only company in Brazil that does this operation. But this is a recurring operation in Western Africa and also in the Guyanas. And we brought this operation mode to Brazil. The forces present at VLCC are different. Suezmax, it's a different aircraft. But with that, we were able to reach 100% of the markets in the world. Today, we can take our oil to 100% of the market, starting with the West Coast of the U.S., going to Europe, Middle East, we can sell oil to India, Asia, Singapore, China, Korea, Northern China. So these are the markets where we operate. And you see the arbitration we have in all markets in every cycle. So today, India that for a very long time, used to pay very little for our oil because of geopolitical changes. Now India is decreasing its purchases from Russian oil. And so now we are selling a lot more to India, taking advantage of this window of opportunity. And freight arbitration, what do we -- what is there for us to gain when we do VLCC with Frade? So in blue, we see prices of freight per barrel around $7, Suezmax from Brazil to China, and how much would be the price using the VLCC. In the bars down below, we see how many dollars per barrel is the difference between VLCC and Suezmax, the proportion of the bar. I mean, it goes -- it ranges between something around $5, but the average is around $2. And this light blue area shows how much it would cost us to do that ship-to-ship transaction at Frade as well. This operation or every time arbitration was at this level here, it would pay off for me to do a transfer operation to put together 2 million barrels within the VLCC. And then when we started operating VLCC at Frade directly, my cost to put that within VLCC, the cost became very minimum per dollar per barrel. So the waiting time for you to get the other person and the deviation until another port or another FPSO until you get the other portion. And here you see the difference in scale. This is VLCC, that it carries 2 million barrels. And Suezmax was a vessel that was a charter vessel for us, it carries 2 million barrels. Therefore, we had a considerable increase in productivity. And now I'll talk a little bit about natural gas. As of January of 2025, we structure the natural gas area very similar to what we did with oil. We decided to control logistics, control our molecules ourselves, and we did that by accessing the infrastructure that is now operated by Petrobras. Petrobras is forced to give us access to their infrastructure. So we access the distribution system to the Campos Basin. Our gas is treated through an integrated processing time. And we knew we use the transportation infrastructure from another company. Before that, all of our gas was sold at the well at a very small amount. So by having access to the infrastructure, our netback or gas equivalent or how much that occupies at the mouth of the well, we get a much higher selling price. Not only that, we have operating security since logistics is under my control, I can control everything, and this is much better in terms of operating security. And since I can balance production between my different assets, I have good savings because at times when I have surplus of gas in one asset and scarcity in another asset, I can balance things out. We had $20 million in savings by only balancing things between the assets. And as I said, we can sell the gas at a much higher price. And this is certainly another benefit stemming from this strategy. The strategy was envisioned for Wahoo because Wahoo will bring about a lot more gas when compared to what we had until then. So we access the infrastructure already thinking about trading files. We developed this market at a very timely fashion after the acquisition of Peregrino. We will import gas at Peregrino, and we can do that balancing among the assets that have surplus of gas, which is Wahoo and Peregrino, a field that will import gas on a recurrent basis. And this is another source of savings and efficiency. And that's it.

Good afternoon, everyone. My name is Thiago Ormonde. I am the Manager for Sustainability at PRIO. The PRIO sustainability department is oftentimes called ESG. We are in-charge of environmental management and security, security processes, and occupational safety and health. So my message to you today is environment and safety. Starting with the environment. Obviously, we will talk a little bit about the future. What are our expectations vis-a-vis environmental licenses. We start with the ratification to drill new wells in Frade. And I think at the end of '25 and early '27, we will get the licenses. Looking at Wahoo, the licenses are in place for drilling and installation. And now we head towards the final phase once we get the first oil at Wahoo. Polvo and ABL, we are focusing on wells and the ratification for the drilling of new wells. ABL is work over. Both Polvo and ABL are foreseen or forecasted for the middle of 2026. And looking at the company as a whole, we should submit our request to IBAMA for the geographic area. So in addition to Petrobras, we will be the first company to submit this request for geographic area. This will bring about savings in terms of cost management and savings in terms of time for drilling and workover of new wells and operating efficiency. Having said that, speaking about the environment, we look at environmental projects going -- looking towards the future and actions for 2026. Here, we have the forecast for a large environmental project with relevant environmental impact. We are now finalizing and doing the fine-tuning of this large environmental project for 2026. And focusing on emissions, now we are designing a pilot project for 2026 related to methane emissions for offshore projects. This is in line with the new ANP regulation. They already published a draft and they already talked about the regulation related to methane emissions for all offshore facilities. And as a company, we are already getting ahead of ourselves, redesigning a pilot project together with ANP, together with the agency. This is an offshore pilot project related to methane emissions. Now I'll talk a little bit about safety. Given everything that was said before, a lot of people in the company have to take care of the facilities as a whole. So our commitment to safety permeates the entire company, and we have the sustainability area that takes care of that. We have a team that is reinforcing our structure and all of the techniques. In terms of operating safety, we have a safety management system. Even though this topic sounds something very philosophical, it's not philosophical, but it's very concrete. And now I will tell you a little bit about the 17 practices that support our safety management system. But basically, safety system is geared to risks. So all of our management practices we'll see here are directed to avoid a major accident because this is what really drains value from any company, other chemical, petrochemical, mining, steel company, oil and gas, aviation, whatever. So companies need to spare no efforts to prevent major accidents. Our management system is risk-oriented, performance-based, and it is aligned not only to serve the -- to meet the regulatory framework, but it needs to be aligned with the best practices of the industry. When we speak about safety, mainly process safety, we're talking about the global industry. So process safety in Brazil is the same one as it is in Japan, Indonesia, U.S., U.K. So our safety management is designed to be regulatory compliant in our case of offshore regulations by ANP, the Navy, the Ministry of Labor, but mainly operating risk management, which at the end of the day means managing business risks and risks of our assets. And like I said, it's all based on 17 management practices. When we look at PG 17. It starts with culture of safety, training, performance indicators, internal and external auditing, critical elements of operating security identification and analysis of risks, mechanical integration, change management, all this operational safety management is not just philosophical. It all cascades down into thousands of SOPs, analysis of risks of our plants and so on and so forth. So there is a formal materialization behind it, and it reflects on the performance of our assets. Now looking at the 17 practices, I would like to focus on practice 6 linked to continuous monitoring and improvement of performance. That's where we contain safety indicators because safety must be measured, and we do measure safety at PRIO. When we look at performance indicators, the performance indicators play an important role in the management system, mainly because it is the way that the top management of any company can monitor, track and verify the safety performance of an industrial asset, whatever the type of the plant or process. So it is high value for the top management. And for us to be able to monitor evolution or involution, and then come up with action plans when an indicator is far from its target. So what kind of actions will the company take to bring that indicator back to target? So the first indicator I'd like to mention to you is called Test Plan. And here, a disclaimer. This is an indicator related to major spillouts or releases. This is an important indicator. I would risk saying it is the most important one in process safety in the chemical, petrochemical, oil and gas industries. It is an indicator of big releases. We will mention losses of containment, not just any spill, the main spills, the major ones. Why is this indicator important for safety? Because when we have losses of containment, that's when we have a higher likelihood of fire and explosion. Fire and explosion are the events with the highest damage potential and the potential to hurt human beings and the environment and the asset, of course. Major explosion will put human lives at risk, but also have the potential to destroy the asset. So this is a major release indicator. These are the Tier 1 events. There are criteria to explain what is a major release. And when we look at PRIO's performance as a company in recent years, we can see the light blue line as the international benchmark by IOGP. IOGP is made up of 55 oil-producing companies among the biggest in the world, Chevron, Exxon, Petrobras and others. And PRIO's part of IOGP together with Petrobras, we are the only operators that are part of the IOGP benchmark. So this is the IOGP benchmark and PRIO's performance vis-a-vis management of large releases. Tier 1 events measured by the [indiscernible] indicator have to do with large releases that can have within walls or outside our walls. Fortunately, in the case of PRIO, we've never had any release to the sea. All of the releases we had were spills to the inside of the facility, never to the environment. But we can see that in 2025, the IOGP has not been published yet. So we replicated the 2024 one. And it's very much in line with the previous years. But this year, we had a total of 0 large releases. We didn't have any containment loss that would be considered major in any of the platforms or assets of the company. So when we look at this trend in the time line, it's all about everything we said regarding the management system, which is based on best practices, focusing on risk management, and we see that our safety management system has matured as a whole. To give you more context regarding spills, this is Brazil. We haven't got PRIO's data here. The dark blue bars are offshore operators in Brazil. This is data coming from the annual safety report published by ANP, published this year with the performance result of the industry in 2024. So dark blue, we see major leaks of flammable gas in offshore installations. I repeat, this is not PRIO. And in light blue, the benchmark used international forum of regulators globally. So we see that this was a São Mateus explosion that brought this number up. And we can see that particularly post-pandemic, we have seen a worsening of the offshore industry as a whole in terms of large releases of gas from 2020 to 2024. And ANP does not have a Tier 1 indicator specifically, and that's why I got larger flammable gas releases. And we see the opposite trend here at PRIO, reduction of large releases, large spills, again, showing that our safety management system is becoming more and more robust as time goes by. Another important indicator more linked to occupational safety is what we call TRIR or TRIR, which is relative to the rate of incidents recorded, basically incidents that require people staying away from work, basically employees that cannot come to work. And we can see a comparison of the company's assets, PRIO with IOGP. And again, we can see a positive trend of this indicator in terms of safety related to TRIR to this benchmark. In 2025, we reached a number lower than the benchmark. Again, I need to be repetitive because this is important. This points to maturity of our safety management system as time goes by. Not just maturity, but the company's focus on preventing and avoiding major spills and also pointing to improved occupational safety. Lastly, and coming to an end, safety to us is a value. It's not something written in the company's policy that is neglected. It's just posted on the wall. No. Safety to us is a value because it has a direct impact on our result. And lastly, I'm going to show a video that I believe you all know. It is the I Love PRIO platform focused on the social, cultural, sports platform. But we, as an oil company, we believe we have to leave a legacy for society because we produce and we operate oil in Brazil. So we created the PRIO Institute, the first oil company to actually create an institute geared and focused on the social and environmental aspects. So we will show a video speaking a little about the I Love PRIO platform and the PRIO Institute. Thank you very much. [Presentation]

PRIO was born in the oil and gas industry. But early on, we chose to be a lot more than that. Our true legacy lies in the impact we leave for people, communities, and the environment. That is why we created a sponsorship platform called I Love PRIO to broaden this impact and strengthen what moves Brazil. More than investing, we participate, more than supporting, we transform stories. We believe in projects that aim high and break down walls in sports, culture, or social transformation. This is the legacy that remains and is multiplied. One life transformed inspires many of us. Guided by this vision, we broadened our purpose to go beyond the social, embracing also an environmental commitment through PRIO Institute because there's no future without care. The institute was born to have a positive environmental impact at scale with three strategic pillars: environmental education, biodiversity and climate, and sea economics. Sustainability to us is not just slip service. It's our daily practice. When the social culture and the social environmental need, something unique is born, integrated impact that looks at people, the planet, and to everything that we can build together. This is our purpose to leave a positive and long-lasting legacy. PRIO much more than oil and gas. [Presentation]

Very well. Now I would like to invite on stage Nelson, Roberto, Francilmar, and Milton for the Q&A session. December '25, January '26, that is the concept for Frade. It seems that there was a typo in the presentation. We had promised it for December. Does anybody have a question?

I'm Gabriel Barra with Citi. For a while, we didn't have a PRIO Day. It's really cool to see the projects, et cetera. Perhaps what caught my attention the most was this dividend payout discussion. So I'll get back to my question in the last PRIO Day, a question that I made about a formal dividend policy and why you didn't do it back then. And I heard Nelson and also you, Roberto. So what has changed from then to now in terms of having a formal dividend payout policy? Also, the discussion on M&A, not to do M&A deals as a form of correct capital allocation. So what do you see looking forward and putting it together with the dividend policy in the future of PRIO? My second question is about production. And this is my question. My question is, what are you going to do after Wahoo? And I think that you answered the question. So let's speak about the revitalization of Frade with this third phase of Frade, what we can expect in terms of production reserves. I don't know if it's too early to talk about that, but if you could elaborate, it would be very helpful.

I'll start and Nelson can complement if he thinks it makes sense. In terms of what changed regarding the dividend policy in the last PRIO Day 2 years ago is the maturity of the company, the moment we're having. Back then, we clearly saw that our cash generation was going to be entirely consumed in the coming years in M&A deals. We could talk about it. But at the time, we were already considering Peregrino, and we knew that Peregrino was not going to be just one single deal that it was going to be more than one deal. We had the Sinochem and then Equinor involved. So this was very clear in our minds. But today, we're getting to a maturity level of the company that if you think about oil costing $60 a barrel, producing 200,000 barrels a day, which is what we have already contracted, we're going to generate an amount of cash, if we consider $60 per barrel of about $2 billion a year. It's kind of hard to allocate $2 billion a year. It's not trivial. So we had this discussion at the Board. And we thought, okay, the policy needs to be flexible enough because if we have an opportunity of M&A, we might not have dividends. It's not written in stone. It shouldn't be done in detriment of the company. If we find projects that make sense in terms of return, we have to have flexibility of not having dividends paid. Another relevant point is indebtedness. It's all like I'm going to keep a dividend policy that is going to corrode the company over time. No. So we have to keep an eye on the debt level to keep the debt low, but we see now that the company is at a different level of maturity. And I guess that, that is why that discussion came to surface. And this is a discussion that we're having at the Board. It's not just dividends. It is share buyback, dividends to be paid, and so on and so forth. So this is a new phase, a new maturity of the company. And as for capital allocation, you said it yourself. If you look back, we acquired Peregrino, X, Y, Z. And our shares are at the current level. It doesn't make a lot of sense in terms of share performance. So it's been like this for a while. And if we think -- if we don't do an M&A deal, we'll miss that opportunity. If we didn't buy Peregrino, we would lose it. So it was the right moment to be aggressive on that front. People would say, but instead of buying Peregrino, why don't you buy back the shares? Because if we buy back the shares, we won't buy Peregrino. And share buyback will be available if this asymmetry persists as it is the case. Nelson,would you like to add anything? Can you hear me? Is your microphone on?

I think that Roberto put this really well. We always kept an open mind to define a structure and the basic pillars of when we would consider paying dividends. And the moment arrived with capital allocation, creating value in scenarios of adverse Brent prices, what has always marked us. We started the company in 2015 with oil costing $70, trending down to $60, 2016, '17 was. So the values are identical. The only difference now is that we would like to have a well-defined policy, but still preserving the solidity of our balance sheet and flexibility if oil prices drop, we will always be in a situation of safety operating with good safety margins. If M&A opportunities arise, okay. And as we grow, it's all about IRR, and the bar is always up. When we identify an opportunity, we prepare for it. But our main point was creating value to our shareholders. Our vision is a lot more than producing oil. We want to produce returns. That's what our track record shows. The M&As we pursued and we thought they were not worth our while, it's because either the timing was wrong, the time was wrong when you have a doubt, you don't know what's going to happen to the oil price in the short term. We always have to hope for the best and prepare for the worst. If oil prices drop, we have to be within our covenants. We have to have a solid and healthy balance sheet. And if an M&A opportunity arises and it's good, we have to be ready. For a good business, asset good, price good. A good asset, bad price, not good. and good asset, bad timing, not good. So these are the rules, and we were considering a very interesting asset that we really liked, but it came at the wrong time. The time was wrong. With all the respect we had for the seller, we are not going to comment on it because we respect them, but we always have to prepare. And we are always prepared for the downtime, for the moments when things are not that good. And as regards to Frade, what we can expect in terms of the Frade campaign. We kind of inverted it a little. If you will remember 2023, when we had our campaign, the next steps, the next wells would be Maracanã and Bertioga, those reservoirs. But if we look at them and they are kind of far away from Frade, bit distant. So it was almost like a mini tieback. Well, what was the distance, 10 kilometers? Yes. So this was going to be an expensive well to drill. We would have to lay the pipes and so on. So people during 2024, mainly which was a year when we didn't have great opportunities to drill, our team started reassessing the seismic based on the 4D seismic that we have from Chevron plus reservoir modeling. So the team came to the conclusion that it makes more sense to have an infill campaign. It's not like a new well with 10,000 new barrels per day. It wasn't like that. It was something more contained. It's a well that is closer. We don't have to lay and install too many lines and with a lot more safety. So they designed two wells to be drilled next year at Frade. These two wells cross several different infill targets. In these different targets, I think there are 5 or 6 targets. We estimate to put 4 into production, 2 between the end of 2026, beginning 2027 and the remaining 2 in the beginning of 2027. And then in 2027, the question will be, we'll probably have Frade. We'll probably have ABL, Albacora, and we'll have to prioritize the business considering Frade and Albacora because you will remember, we had 11 wells planned for Albacora. Of the 11 wells at Albacora, 3 wells to be reconnected, to be worked over and the rest would be wells to be drilled. And of the 8 wells to be drilled, 7 have already been identified by us. And Arapusa is out of the question. So actually, we have more than we had in the beginning because considering that we had 11 plus 8. And in the 8, there were 2 Arapusa wells. Arapusa is out. So now we have 7 wells identified. So Albacora, I can't really tell you what the decision will be in terms of Frade or Albacora, the best risk return decision. But our strategy is once we get to 200,000 barrels next year, it is expected by midterm, we'll start using Frade and Albacora to maintain that level. We won't be investing a lot of CapEx. We won't be handling a lot of major developments to get to 250 and then have a big decline. No. We want to use that reserve of wells at Frade and Albacora, and there's also Polvo. If Polvo does well, it opens up a frontier at TBMT. And we'll use all that to maintain production for the longest time possible.

I'm Tasso Vasconcellos with UBS. I'd like to thank you for the event and for the update. My first question is perhaps addressed to Nelson in terms of culture and processes. Nelson, at the beginning of your speech, you talked about the process of creating a culture and the processes that the company lived through in recent years. Looking to the future, perhaps the company is at a whole new level with much greater production perhaps a much bigger headcount. So the company is becoming a whole new company. So how can we think about looking at the company in the future, maintaining the same base and the same characteristics that work really well so far, but at the same time, preparing the company for a whole new level. And my second question, still on the stage of the company, perhaps addressed to Roberto. That's a discussion we've been having, Roberto, for quite a while now. That has to do with operational complexity, having several assets in-house at the same time. How should we look at PRIO today? It is a company with more assets in-house. But at the same time, operating efficiency has to remain high in all of the fields. I know I've been asking this question for a while, but I think that the timing now post the closing of Peregrino could bring us an update. These are my questions.

I think that the best way to answer your question about culture would be having another person answering because you will see that the values are identical for all of us here, not just people on the stage, but all of the managers of the company. So at the most difficult moment, we have this culture. Now that we have things going in our favor, now it will work in terms of capital allocation, when we had very little, we allocated capital really well. And now that we have more cash, we'll allocate it even better. But there's training involved, onboarding involved. This company is totally open space. Everyone sees one another at the field, we try to have the same culture. Yes, it's delicate balance between autonomy and following existing processes. But people always come fast, never processes. Processes are important. They are in place, but good people are the ones that move the boats. When we look at other companies, the companies that do really well. What have they done that went wrong? We look at them. We study them consistently. I'm not going to mention any names. We respect them, but we study models all the time. There's some degree of subjectivity and objectives metrics. But what is the most difficult about the company's culture, the dream, the ambition. Everyone joining the company now has to want as much as we wanted in the beginning. So how do we create adequate incentives? It's very challenging. And I keep thinking about this. We speak a lot about this. Why is that PRIO managed to do everything we did when we had the most challenging beginning. When we compare to our peer companies, when we started in 2015, we had cash burn. We had a challenging asset, Polvo. The whole industry going through an incredible stress moment to get to where we are today. If we look at all of the companies back then, they would never bet on us. Only we bet on us. So the most difficult thing was to maintain our culture, our drive. Now the numbers guide us. We only want to grow if it makes sense, growing for the sake of growing never happened in this company because this would mean that we lost our technique. So I know it's a delicate balance, having ambition, having the incentives because that helps a lot, having a budget, having free cash flow, preparing for moments when oil prices drop, having incentives for everyone to perform to the best ability, transparency, monthly meetings to discuss results, meetings we have on Saturdays, sharing the results as we are doing now. So we open up for questions and answers all the time. And I can talk a lot along those lines. But I can talk about the challenges, but what gives me comfort is that video in the beginning, 10 years, and we saw so many different people talking. There are so many people seated here and some are not here yet, but we always share the same dreams and the same ethics of always wanting to do the right thing. So we dedicated a lot of time. The fact that we are talking about culture and focused on culture gives me confidence that we'll always get there because we speak about this nonstop. It's impressive speak about results, stress scenarios and culture. And I talked about what I don't think is that good. We have a lot of good people, and we focus a lot on our people. So this is all part of the onboarding of the company. Roberto talks about it. Francilmar talks about it, Milton. We put a lot of time and effort into that. And of course, profitability is important. Everybody -- we have to get there. But I'm sorry for a long answer, but I hope I have addressed your question. Production or the complexity of the operation has to do with synergy. I mean you can't just say, I'll buy it right now. I'll buy an asset with 10,000 barrels a day. All right. I mean, I don't think this can be a good business. This will be a good deal because even though you say, oh, it's cheap, et cetera, et cetera. But this will also bring about a lot of losses, even though the well is producing 10,000 and it could reach 80,000. That's another thing. But would it make sense for us to buy another Polvo? Probably not. So this is pretty much what we look at. We are being now more selective. Now we just had 2 M&As. There are 2 M&As happening as we speak. And if we think that the return is not there yet. Well, maybe it's not there. We are not even participating. So we don't know. So if we think that we're going to stretch the company too much to a level that it makes no sense. So we won't do it. We can just look at ourselves and say, okay, we have the shares of the company. I mean if you're investing without doing anything else, is the same risk all we have to do is to buy back the share. So the operating risk will be the same because it will be business as usual. This thought is what allow us to maintain things under control rather than doing something that can take us to somewhere out of control. 2024, we thought a lot about that.

My name is Vicente from Bradesco BBI. Congrats on this event. Tamuri talked about a long-term view of the company of reaching 300,000 barrels a day. Is this an objective for the company in the long run? Or does it depend on something else like Petrobras selling assets again? And my second question, going back to the compensation policy. Why not establishing a basic payout for shareholders. Of course, within the oil range? But if 200,000 barrels a day, the company is too large. You generate a lot of cash. Campos Basin today produces 400,000 barrels a day. It will be difficult to imagine another asset in the Campos Basin and the Prio wouldn't be able to internalize and at the same time, have some basic payout. Congrats on the event again.

Thank you, Vicente. I mean, we are not here to talk about different nuances or compensation possibilities. But well, we are just talking about things and then we still have to work on this subject. We are trying to mature our thoughts and discuss that with the Board. This is not a one individual's isolated decision. We have to take everything to the Board. I mean 300,000, it could be 500,000, a 1,000,000. You can put whatever number you want. But this just shows the possibility and the desire to grow. Of course, if Petrobras decides to sell assets, again, there are a lot of assets in the Campos Basin that could be sold. But today, this is not in the radar, Petrobras is not willing to sell anything. But we don't know what could happen in the future. I mean, you could say, okay, my goal is to reach that and that amount of production. Every year, we set up a production goal. And every year, that is the most important thing. I mean we had a dream when we produce 6,000, we wanted to reach 100,000. The only reason why we had a dream that because everybody said that will be impossible. You're never going to make a 100,000. Once you reach 100,000, you may become a large company. Okay. So we will reach 100,000. That was back in 2015. But we are never saying that we want desperately to reach that mark because if you do that, you may not engage in the best opportunities. You have to be flexible enough to let go of a transaction. As I said, there are 2 things that are happening now. So we are not engaged in these transactions because we decided that was not a good time to do it. But then you do, if I do that, I may not fulfill my strategic plan, which is to reach 500,000 barrels a day. Well, we talked about reaching that number, but this is not binding. So what Nelson said about reaching 300,000 is just as simple as saying, okay, it took us 8 years to reach 100,000. The second 100,000, it took us 3, maybe the next 100,000 it will take a shorter period of time. But if it takes longer it's okay, too. The important thing is that we have to generate returns, right? I would just like to add one more thing. On the operating side, everything we did in the past 10 years, I mean, we got some very challenging fields. Some of that -- those have been through many issues that people thought there will be no solution to the problem. But we acquired the fields, and we put them to operate, and we added them to our infrastructure in a very constructive way. There is the side of operating excellence. I mean, these -- all these fields are performing quite well. And the nonobvious thing is the way we generate value. The way we create value, we are very good of arbitrating things. It doesn't necessarily mean that if you pay more, you did a good business. Most of our business were bilateral. We invested a lot of time. It took us years to get there. And we only gave the step, the size of our legs. And we always went beyond the limit for allocations that we create good value despite stress brand scenario. So I mean, we are not here to produce barrels, but yet results. As the bar goes up, we go up with it. It is just more of the same here. The focus is to create value and to remunerate our base, doing good business all the time, not any business for the sake of it.

I'm Monique from Itaú BBA. I have 2 questions. First, I would like your help to consolidate all the initiatives that you mentioned with different wells and interventions and how that can be translated into CapEx for '26 and '27? And where do you expect to -- your production to be in 2027? And my other question is about Wahoo. During Picarelli's presentation, he referred to learnings from the first well and the possibility of adding a fish bone to the second well. The lesson learned, can it be replicated to the next wells? Are we seeing a different way to drill the next wells? And my question stemming from the first one is whether we should expect something different from the Wahoo wells? Or are you still remain firm in the expectation of 10,000 barrels?

Well, starting with the CapEx part of the question. CapEx in 2025, should be close to $450 million to $500 million -- sorry, CapEx for 2026. Now CapEx for 2027 should drop a bit because in 2026, we still have to complete Wahoo, et cetera. And then in 2027, this CapEx should be down a bit, something around 450 million barrels (sic) [ $450 million ]. But please do not use that as a guidance. This is more like an idea, you know that we never give CapEx guidance, but these numbers would be enough for us to continue drilling Albacora and Frade and most likely maintain production at around 200 barrels a day. Now about the fishbone, the idea has always to drill with fishbone. I mean we bought that years ago. I'm not saying that there was a reprogramming because that was the original idea. In fact, I mean, I even ventured say, I know some people are looking at me and asking what is he going to say next? I mean maybe we wouldn't even need the fishbone in the second well, but this is something that we bought way back then because we wanted to have a cushion and one of the potential risks we had at the reservoir is that it was closer than what we anticipated. That's why -- I mean, we I think you went to Norway, right. This started -- I was studying something for Polvo but then in the beginning of -- in the middle of the Wahoo project, we saw that would be in a way to ensure that not only we would overcome difficulties in the reservoir, but also it would improve drainage. So right from the beginning, we decided that we'd use that starting in the second well. The first is not because the condition was poor, but we had to analyze it further. So from the very beginning, we said, let's do the first one. Let's collect the data, and then we will do the same in the second and third wells. And then they are the carbons. Production average, I mean, when you think about the reservoir, some wells will produce more and other less. I mean our number is 4,000 barrels for Wahoo. Well, we are not going to look at it per well, one produced 10 and the other 12. So let's generalize.

I'm Regis Cardoso with XP. Congratulations on this event. Yes. I'm right in the back here. I'm In the dark. Two questions have been answered. So from the questions that have been answered about your dividend policy. Maybe you should take it to the decision-making team. I don't know whether you already talked about benchmark, best practices or maybe if you discuss things that you like or you dislike or what could be applicable to Prio. Now about CapEx, my question was going to be on maintenance CapEx. But I understand that the $450 million for 2027, it will be a good proxy to find out what would be necessary to maintain production at that level. And the original question is on Wahoo. What do you think about the initial production and whether you think that if the reservoir has more potential, maybe I could maximize its lifespan in a time line, whether you see that there is a potential to do more or there is a downside risk? I would just like to hear your views on this first phase of Wahoo.

Wahoo's initial production is 100% defined by the reservoir engineering area. This is the number that maximizes the recovery factor in the field, not more, not less, more than 40 or -- less than 40, et cetera, but there is a technique. And myself and Francilmar, we don't have an opinion. I mean as long as we follow the technique, it is what it is. There is nothing today that would lead us to say that it will tilt to one side or the other. People sometimes place bets in the company. But this has no value whatsoever. And I won't be able to tell you or no one can tell you whether it's more or less or whether it is 40,000. I think that as we drill, we derisk, we see positive news. We can say, okay, the wells productivity is slightly better than what we thought. And in addition to that, we put the fishbone, which improves even further. So we are eliminating risks from the project, but we will only know for sure further on once it's in production. Now about dividends. Let's not get ahead of the game. I think that the main takeaway is that this is a subject for the Board. I mean it's not saying I like company A, Z or B. It's nothing like that. And the third question has to do with maintenance. When I give CapEx figures, I'm thinking about something close to $100 million. This is maintenance CapEx just to keep our assets going, our facilities going. So these numbers take into account maintenance CapEx, mostly focusing on operating efficiency, replacement of BCS pumps that sometimes do not work anymore.

Caio Ribeiro with Bank of America. My first question is about net debt to your leverage levels, you talked about Wahoo and with the entry of Peregrino that the company will generate more cash now. So looking forward with a stronger cash generation, my question is whether you anticipate any changes in the leverage ranges of the company or whether you would go after a bigger transaction even knowing that with this more robust cash generation, if this leverage would come more naturally and faster. And secondly, when we look about -- when we look at new fronts, the question is whether today, considering the way Prio is today is if the company is prepared to look for new fields or to be to participate in different assets. And what will be the criteria you would follow to identify assets that have something to do with your current assets?

Speaking about leverage, net debt-to-equity ratio, something would be below 1, 1x net debt-to-EBITDA ratio. Today, we are like 1.3. So if we reduce our leverage, our strategy is to reduce leverage to 1x net debt to EBITDA ratio. If we don't do anything, if we don't pay dividends, et cetera, this will go down to 1x even before that maybe in the first half of 2027. But we will extend a little bit more and get to something like 1x at the end of '27. And this delta is what we will use for -- to do the buyback. But a number that is comfortable to us will be a leverage below 1. We could even say with a higher oil price I mean, if oil goes to 80 or 70, it's 60 now, maybe it's even below it could be even lower than 1. But this is a number that gives us a very good degree of comfort. But considering a potential acquisition, it could reach 2x. This is what happened until Peregrino, the second part of Peregrino is 60% that we acquired from Equinor. It happened slightly before we anticipated. We thought it would take us longer to conclude the transaction. And that's why our leverage went to 2.3. It will reach 2.3. But this is not where we want to be. we wanted to be low. So when we have another transaction, it will go up a bit. Now speaking about other locations. We like -- in Brazil, we like the Campos Basin. And as I said to many of you in several occasions, there is only one jurisdiction that is interesting for us and that's the Gulf of Mexico -- I mean, the U.S. portion of it, which is the Gulf of the Americas. This is a good jurisdiction on the regulatory side and also in terms of its geology. Having said that we haven't seen any other transactions happening there with the desired return. We look at -- it is a return with a $60 barrel and we haven't seen this return in that area. We look at all of the transactions that occurred in that area, but this is a condition. If there is -- if this return is not there, we won't go. I mean, that's all we know how to do. So we are looking at the Campos Basin. We will continue to be curious about the Gulf of Mexico. But with that caveat, which is the desired return that for the time being is not there. Looking at the leverage issue again, we have to have low leverage with low price of oil. If our leverage is good, but the price of oil is high, that will be a problem. So we have to be ready to have low leverage low price of oil. And even all the covenants are important, if you look at maturities of our obligations, they are way ahead. So Prio's maturity dates are over 2027. And forward, if you look at liquidity and maturities of our obligations, this is something that we monitor and manage very closely, not only it's important that we have a lower oil price, but liquidity also matters. Now establishing a connection between the questions. We also look at the complexity of the assets. The company is evolving very quickly in terms of its technical capacity. 2024 and '25 allowed us to be a very robust company. So today, we -- when we look at an asset, we just analyze something in the Gulf of Mexico. And we have to see that if -- whatever we have today is very compatible with anything else in the world. And this allows us to analyze things with a good degree of safety. So if we find something that we can manage well, I mean, we acquired many things throughout our acquisition journey. Things are improving. The criteria involve attractive returns. And if it makes sense and if it is not going to hurt the company, then we'll go for it. Otherwise, we won't go for it.

I'm Milene from JPMorgan. You open this event saying that the cost we control, but we cannot control the cost of oil. So I would like to go back to Peregrino. You are now taking over the operations. You announced more than $300 million in savings. If you could elaborate more about what is next. And as operators, what kind of opportunities you see ahead. Could we see production acceleration, changes in FPSO and even in that reserve that you mentioned?

Here, the $300 million for Peregrino in terms of cost reductions, this is divided into 3 pillars, I mean, I'll say 4 pillars. SG&A, the overhead of the company, which is -- we are done with in Peregrino, many of the decisions were made outside the country. These decisions would require overhead allocation, which was very heavy on top of the asset. So -- and this is over once we change the location of the company. This is close to $70 million a year. There is a second synergy that is worth $30 million a year, and Gabriel mentioned that is logistics because we'll start sharing vessels, helicopters, logistic base, et cetera. This will happen until January of next year. There is another thing that involves an integrity project that is coming to an end. This is not our idea, but it's a project that is approaching its conclusion. They brought a flotel is a hotel floating hotel, that is near the platform near the asset with a lot of people, 400, 300 people. And all of these people increase the work capacity. And they are in charge of the integrity work. We did that in Peregrino, all the platforms, the last platform is to be concluded in January. And once this is over, it's over. Our strategy is a bit different. Equinor waited a long time. They did a huge campaign, and we have a campaign every 5 years. We just did Frade, there will be another one next year. Every 5 years, we do a campaign like that, and we spent $40 million. And then there is the last thing, this is worth $80 million. That is another one that is worth $120 million, and that could be improved a bit each depending on the trading promised by our colleague, Gustavo. So we want -- I mean, this field is burning diesel today. So the difference between diesel and gas is worth $120 million, and this will be achieved in the second half of next year. This has to do with the deployment of the gas pipeline. But everything has its own timing. There is no more risk related to the gas pipeline because the equipment has been removed from the bottom of the sea, has been recovered. So there is no -- nothing is unknown, but this is something that will be implemented in the second half of next year. And at that time, our Peregrino cost will be around $250 million, and this will dialogue with a barrel price of $8 to $9 approximately, give or take. There was another question.

There was a question about opportunity, this is Roberto. In addition to the expenses area, we want to replicate in Peregrino what we did in Frade. The offtake in Peregrino was only 700,000 barrels. So why can't we increase it? Moreover the VLCC studies, like the ones we did in Frade. If we can do the same thing in Peregrino, we can also replicate the strategy to expand it to Peregrino and do the upload to Peregrino. And on the geology side, in Peregrino, you have the carbons as we did in Polvo and TBMT, we also see the possibility and we will go after it. There is the Isolado, the [indiscernible]. And we would do that early this year. We start drilling early next year. And this will add reserves for both. And we are also looking at 2 large projects in Peregrino. One is the possibility to connect Peregrino with Bravo. The name of the project is Bravo with Bravo. So we want to connect Peregrino with Polvo and TBMT. And we think on the geology side, that it makes sense if the upside makes sense and if it makes sense to connect both platforms and to take -- connect everything and use Peregrino with Peregrino A and C, we'll do it. And the other thing we are looking at, I mean, these are just ideas, concept. And the other aspect we are looking at carefully is the possibility to electrify Peregrino, Polvo and TBMT, to put all of them together and electrified with the land. There will be a drop in cost as well because all of these fields consume a lot of diesel and gas. And so if we can do something more economical coming from the onshore, that could be interesting.

I'm [ Eduardo Munoz ] with Santander. I think your remarks were very clear in terms of cost management, lifting cost is a very good hedge for the company. With the exception of Peregrino, where else, Roberto, you think that you could have potential cost cuts? And looking at 2026, how should we look at the lifting cost curve and with the company is running at 200 barrels a day, what will be the lifting cost level?

What we see in terms of cost reduction is in Peregrino. And the other possibility is Wahoo because once we start producing 40,000 barrels a day, Wahoo's marginal cost would be $1 per barrel. And once it starts producing, we will see a significant drop in the consolidated lifting cost of the company in the first quarter of next year -- I mean this fourth quarter will still be closer to [ 13 ], the same as last quarter or close to last quarter. We will try to get something a bit better, but it should be around [ 13 ] because we still carry over 2 weeks of stoppage that started -- that was in October. So even though, I mean, most synergies are already happening in Peregrino for December, we still have to wait and see how things will evolve. In the first quarter, Peregrino will run with most synergies. It will be -- we will run at about $10 to $11 per barrel. That will be a scheduled maintenance that will probably deviate a bit from this number, but this will be a regular number. So once Wahoo comes in and gas import from Peregrino comes in, in the half of next year, we will approach something like 8. This is our idea. We would -- I would say that with 200,000 barrels a day, we should run about $7 and $8 per barrel. This is the number for lifting cost.

I'm Victor from Opportunity. Perhaps a slightly more specific question, Francilmar, perhaps you can help us -- on that slide, when you show a cross cut of Wahoo field. I'd like to understand whether I understood it right. But the impression I had is that the broad to water oil content is a little higher. Does this in any way reduce the effective net pay that you can have? Although It was a higher net pay. That's the only question.

No, the contract is the same. [indiscernible] All of the wells at Wahoo, there were 7 and the 2 new ones matched the other 7. So there's no fear regarding contracts. It's all sorted out. We were kind of worried about compartmentalization if a block was up or down. But in our tests, we confirmed everything is fine. So it's one single tank, one single reservoir, nothing changed.

I am [indiscernible] Wegener with Safra. I'd like to hear from you. This will make sense to have a farm out without loss of the operation or the field to enjoy an interesting M&A opportunity that arises and that you might miss and more in the long term. Do you see Prio getting to a stage where Prio would be selling assets that would bring less opportunities of growth?

Thank you, [indiscernible]. We never say never, but I think it is hard. We have sold an asset. Manati and Manati was not really did not have much to do with us. It was in the north. But anyway, if somebody offers a [ $3 billion ] for Polvo, you may take it. Fine, take it. But I think it's all about return, and we can still get a lot out of the assets. Of course, any opportunity, we'll consider when we are a player to stay our asset with the shortest life span is Polvo, which is 2035. And then Frade, Albacora, it's all 2040, 2050. So these assets have a long lifespan ahead of them. Close to abandonment, it might make sense to sell but then we would be a different type of company. There are many companies in the U.S. They buy pre abandonment. They buy a fuel pre-abandonment they produce a little more, and then they like go. But this is not our case. And today, I wouldn't bet on that. I think that our case is to continue to expand the life span of the assets continue to develop them, continue to grow the company, looking at the possible synergies, Peregrino, Polvo with TBMT and that's why we are not thinking about selling a minority stake. That's one of the reasons we like to hold 100% of the asset. We want to connect Polvo with TBMT with Peregrino, we can do it. It's easy. You own 100% working interest. But if we have somebody holding 20%, this player, this partner will be arbitrating, they will be complicating things. And then it's more difficult to obtain synergies. But I think it's very difficult that what you mentioned will happen.

I have 2 questions. One specific on ABL. It's a question I've had in my mind for a while now. I'm trying to understand to what extent the plan and you talked about number of wells, drilling, redevelopment of the field. To what extent is it different than what was implicit in the reserves certificate of the field? Because I understand that was Petrobras project back then. Did anything change? And if so, for the better or the worse? Why you explaining a fewer number of wells initially? That's my first question. Second question is more conceptual. I'd like to get your take on oil prices because we recently saw a more pessimistic narrative for 2026, a possible oversupply, et cetera. And I'd like to understand, in your opinion, what do you see for the commodity next year deriving from that? The reason I'm asking is because this narrative, they estimate an oil price that would be way below $60 per barrel, which guides the company's decisions. So is there any oil price that would delay your initiatives in your pipeline?

As we got to ABL, way back when we acquired the field, we said that we had a revitalization plan that would add 30,000 barrels a day. And things remain exactly the same. What we are doing is cooperating the plan with 4D seismic more studies, et cetera. And that includes Arapuça, post-salt wells, completion and everything else. And nothing has changed. It's exactly the same thing. What happened at ABL is everything got delayed? Everything took longer. And so we got the efficiency of the FPSO at 95%. So since efficiency of the FPSO, all the way into production, everything took longer. On the other hand, we got a better oil price. When we did the math back then, the oil price was $60. For some years, the price was above $60. So I cannot really tell about the return, but the change was not very marked. As for oil price and expectations in that regard, $60 per barrel in our opinion, hurts Brent at $60 per barrel means WTI at $58, #57 and it hurts shale. Today, shale oil is in the hands of the majors. Most of the shale oil is in the hands of the majors. And they have a slightly different dynamic than the previous cycle. The previous cycle was smaller companies, they were hedged. They would raise capital and hedge it. And now the majors in most of the cases, they are not hedged. So this decision is made a lot faster of saying, okay, I'll stop investing, I'll reduce CapEx, et cetera. When smaller players were hedged, they wouldn't do it because they were hedged to pay their debt they needed to produce, so they kept producing. And all of that hedge was finished, we had a huge oversupply with low price and several players went bankrupt and they were acquired by the majors. So I think that we can see oil below $60. It is possible. We don't estimate oil prices. It's $60 today. We use $60 because $60 seems to be a level at which we won't continuously have a price below that. It's like a cut off, it's a barrier. Can it get to $50? Yes. Can we have a one-off moment when it gets to $50? Of course, that can happen. But I do think that we can have a sustainable price below $60 because shale oil will start reducing and that price will start dropping, and that will bring the oil prices up again. And it seems to me that the balance price would be a WTI close to $57, $58. That's a price at which many producers in the United States, breakeven. And that's why we use $60. It's not because we estimate or take or nothing of that sort. It's just that it seems a threshold that makes sense in the long run. Stopping projects for 2026. No. Unless we have a huge problem, we can hold back Frade wells. We can postpone that. But then we would have to think about oil costing $20 or $30 a barrel, then we can postpone Frade. For Wahoo, we need $150 million to have Wahoo online. It will come in with $1 per barrel of lifting cost. So there's no price of oil that would justify delaying that. For Peregrino, the transaction is done. So we just don't see it in our EBITDA yet because today, Well, the deal is closed, we adjust the price until ANP approves it. So until July, we won't have the field EBITDA, but the price is adjustable. So it's our field, the economics is our. [ Wahoo. ]

Bruno Montanari with Morgan Stanley. A follow-up question on production and then a question. So net of external factors that you don't control, what would be a good metric of exit rate for 2026, '27, according to the current drilling plan? And the other question is about Subsea. There was a lot of constructive comments on the recovery factor for all of the assets. So when in a time line could we see these initiatives translating into potentially an increase of reserves or even an increase of production of these assets over time?

As for exit rate, we are producing 155,000, 157,000. So we'll exit at that level. Let's call 150,000 to round it up. But we're producing a little more than that. For next year, we should have an exit at 200,000 barrels. And for 2027, our work will be to maintain those 200,000 barrels daily. This is it. This is what we are pursuing. Everything you saw here, our CapEx and everything else. That's what we are looking for. And there was another question that I can answer [indiscernible]. We have work where we create more value. Well we don't really give you details about is the development plan. There is a gigantic team. We have many managers of the subsea equipment and production development team, and they architect these projects. They look for opportunities. So it's there, it's given, that's their challenge to get ABL at around 20,000. How can we get to 35,000? That's the work. When will this happen? As soon as we have good cost, which is economically and technically viable. So it's almost like a basket of opportunities. And this is something firm that becomes a reserve. So people work here until we can change position and this will happen over time. Our goal mainly in these gigantic fields, any field that has more than 1 billion barrels of oil in place is gigantic. Our goal is that for all of these fields, we want to get above 25% recovery factor. Well, then, we are coming to the end. And after here, we'll be outside to continue to talk to you. But it's been a while since I've talked with you. So I just want to say it's been a pleasure being here. It's excellent to have this kind of exchange. We are always available. And from our standpoint, the dream remains the will to work, the will to build our day-to-day pleasure to work remain. The company is full of -- the company is full on Monday morning, and it's all on Friday evening. People like what we do. People have friends, just out of curiosity. We have lunch every day together for 10 years, we have lunch together every single day, and we also have things to talk about, for good or worse for more than 10 years, we've been having lunch every single day. It's almost the same food every day, minimum food variation except one can stand eating the very same things. But it's the same drive. We adjust, we adapt. There are more difficult moments, better moments. And we always believe that what we are doing will continue to bring us extraordinary results. We're not here to do the basics. We just have to do the basics. We stay home. We all have the intellect, and we believe that our work will lead to great results. The difficult moments have brought us this far and we continue with the same intensity. So our dream is to be much bigger than we are. Is there risk? Yes, Will there be a return? Absolutely. Our focus is to bring results, produce barrels, produce results. That's necessary. That's our business with safety, with sustainability, doing what's good for Brazil. The amount of taxes we pay, the social projects we support, cultural support initiatives and support make us proud. What brought us this far is what's going to take us further. The feeling of work is identical when the company didn't have $0.01 and have a dream. Now that we have capital, the dream remains even more alive than ever. So thank you very much. I hope you have enjoyed it. We are always available. We are closing now. And we'll be outside if you want to take part of the happy hour. Thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]