In April, our total oil and natural gas output was 2.72 million barrels of oil equivalent per day (boed), of which 2.60 million boed produced in Brazil and 130,000 boed abroad.
Our net income reached R$4.45 billion in the 1Q17, reversing the loss posted in the same period a year ago. This reflects our operating performance, despite the lower demand for oil products on the Brazilian market.
The quarter’s performance was the outcome of lower expenses with oil and oil imports due to the increased share of Brazilian oil in the throughput, to the growth in the supply of domestic natural gas, and to lower selling, overhead, and administrative expenses. In addition, there was a drop in net financial expenses and lower expenses with dry/subcommercial wells.
Strict safety standards in operations characterize both the oil and gas industry and the aviation one. A collaboration signed with Embraer aiming to bring to the oil and gas industry the learning made in the aeronautical sector has already been showing results, promoting progress related to submarine well safety. The gains made with the collaboration were presented to guest offshore operators and representatives of the International Association of Drilling Companies (IADC) on Friday (May 5), in Houston, after the Offshore Technology Conference (OTC).
We are entering our fourth cycle of expansion in our history with the production obtained in the pre-salt. This is a major milestone for us, which we reached by overcoming challenges, developing technology, and accumulating technical capacity, remarked Solange Guedes, our director of Exploration and Production, who participated, today, in the “Oil and Gas in Brazil: The Rules of the Game” panel, in an event promoted by the Brazil-Texas Chamber of Commerce (Bratecc) on the sidelines of the Offshore Technology Conference (OTC). The executive recalled that pre-salt output reached 1 million barrels of oil per day a year ahead of schedule. In December 2016, when we reached the 1-billion-barrel mark in the pre-salt, oil and gas output in ultra-deep waters reached 1.6 million barrels per day, up 45% over December 2015.