Our Exploration and Production division’s mission is researching, locating, identifying, developing, producing and incorporating oil and natural gas onshore and offshore. The aim is to develop and exploit reserves safely and profitably. As world leaders in deep and ultra-deep water exploration and production, we are recognized for being at the forefront in introducing new technologies. Thanks to this leadership, we have earned prestigious local and international oil and gas industry awards such as the OTC Distinguished Achievement Award in 1992, 2001 and 2015 and the ANP Technological Innovation Award in 2013. 2 Total costs and expenses, excluding purchase of raw materials 13 In 2015, there was a major fall in international oil prices. Brent’s average price fell 47% from 2014 to US$52.46, which adversely affected profitability for the entire industry, particularly exploration and production, leading to projects being postponed or canceled. In order to mitigate this effect, we are taking measures such as: • prioritizing investments to develop production, focusing on more profitable and higher cash flow projects;