Good day, ladies and gentlemen. Welcome to PetroRio's conference call to discuss 2020 results. Thank you for standing by. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session for analysts and investors when further instructions to participate will be provided. Should you need assistance during the conference call, please dial star zero for an operator. This event is also being broadcast simultaneously over the internet via webcast and may be accessed through PetroRio's investor relations website at ir.petrorio.com.br by clicking on the banner "2020 Earnings Release." Before proceeding, let me mention that forward-looking statements that might be made during this conference call relative to the company's business perspective, projections, and operating and financial goals are based on the beliefs and assumptions of PetroRio's management and on information currently available to the company. Forward-looking statements are not a guarantee of success. They involve risks, uncertainties, and assumptions as they are related to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry condition, and other operating factors could also affect the future results of PetroRio and could cause results to differ materially from those expressed in such forward-looking statements. I would now like to turn the floor to Mr. Roberto Monteiro, Chief Executive Officer, Mr. Francisco Francilmar Fernandes, Chief Operating Officer, Mr. Milton Rangel, Head of Finance, and Mr. Emiliano Gomes, Legal Officer. Mr. Monteiro, you may go ahead. Good day, everyone. Welcome to PetroRio's 2020 conference call. Before I begin the presentation, I would like to really thank the PetroRio team, our employees. The year of 2020 was very challenging, and still, we were able to have an excellent year. This is a great deal because of our team and their dedication and energy. To start with our highlights, the first, as could be expected, was our focus on safety and health. We were able to minimize the effects of the coronavirus on our operations and on the company as a whole. We always value the well-being and health of our employees. The two bullet items that follow are acquisitions. We were able to complete two very interesting acquisitions along 2020. The first was Tubarão Martelo Field and OSX-3, which is now called FPSO Bravo. This is a very interesting project because it will allow for the tieback of Polvo to this FPSO. We'll be able to operate the fields, TBMT, Tubarão Martelo, and Polvo, in the same FPSO, which will be the FPSO Bravo. This is a very interesting project in terms of operational optimization for PetroRio. The other very interesting acquisition for the company was the acquisition of 35.7% of Wahoo. It's kind of the same story, but happening at Frade field. We'll be able to develop this new area that was acquired called Wahoo. We'll be able to develop it, producing oil at Frade field, which also leads to very important economies of scale for the company. The next point to highlight was our volume of oil sold, 9 million barrels, a record number for the company under our management. Actually, it was a record mark for the company full stop, generating a revenue of almost BRL 2 billion, so another very interesting result. Moving on to slide number four. I would also like to mention our reduction in lifting cost, an ongoing trend along 2020. Granted, in the fourth quarter, the lifting cost was impacted by the low efficiency that we had in November. Francilmar will give you more detail on that. The Polvo FPSO fell way below our expectations in November in terms of efficiency. This is exactly the FPSO that will be leaving the field. This once again proves that our decision was right to have Polvo and TBMT fields producing out of the FPSO Bravo, previously called OSX-3. Anyway, we can see here a constant reduction of our lifting cost. We can also see, we included here in the dotted lines the pro forma lifting cost that we would have had if Frade had been 100% approved since the end of 2019. We see we would have gained another $0.80, give or take, per quarter in lifting cost reduction. We believe that this was one of the main drivers of our good result along 2020. Production. We have spoken a little bit about sales. From the production standpoint, the story is kind of the same. We ended the year with an average daily production of around 30,000 bbl. We currently have a higher production because of Frade field with the recently approved acquisition by ANP of the remaining 30% stake belonging to Petrobras. Here we would have to add another 30% of Frade field. Currently, our production is greater than 35,000 bpd- 35,500 bpd. Another very important point is that we had a very well-disciplined cash management that culminated with the follow-on operation that we had in January of this year. We ended the year with more than BRL 800 million in cash. In January of this year, we had a follow-on operation and raised more than BRL 2 billion to boost our cash. That was a very interesting cash management that will allow the company to enjoy continuous growth. Lastly, the flip side of the coin along 2020 was the reduction of our net debt over EBITDA ratio. Our operating numbers were good, our cash generation was very good. That led us to a reduction of leverage quarter- after- quarter, getting to a net debt over EBITDA of 1.2x. Now, with the follow-on operation, we are no longer a company with net debt. We are now a net cash company. The situation is reversed. We now have more cash than debt. In a nutshell, we had very efficient management along the year. I will turn the floor now to Francilmar to discuss our operations, and then Milton will speak about the financials, and I'll be back at the end to talk about the next steps. Thank you very much. Francilmar. Thank you, Roberto. Hello, everyone. Let's start with the operating highlights, starting on slide five. The reduction of the company's lifting cost in 2020 was quite significant. It started at $22.9 and fell to $14.5 consolidated for the period. We continue to implement initiatives to reduce this even further. Production. We sold 9 million barrels in 2020 with an average production of 26,000 bbl, quite representative and the highest production ever for us. The drilling campaign at Polvo Field was rather positive. We started producing at a new well in a reservoir that had never been put into production at the field, increasing production by around 2,500 bpd for starters. As for TBMT, it was a new field acquired. We handled the whole transition and start-up of production, as well as the connection of a new well, TBMT-4, that was completed and connected to the platform, all amidst the COVID-19 confusion. We started the tieback project connecting Polvo Alpha to the FPSO of Tubarão Martelo. It is progressing quite well, with more than 40% of the physical implementation done, and it is expected to be finished by the beginning of June of this year. As for operating efficiency, despite all of the issues faced and all of the initiatives to fight COVID, we were able to maintain a good operating efficiency and production. Here I would like to thank our whole workforce. My big thank you goes to the PetroRio team that was able to maintain a good work rhythm, avoid operating problems, and mainly, they were able to maintain high levels of safety, taking care of the environment with excellent numbers as always. Let's move to slide six, the one that gives you an overview of the performance of our assets. We can see all of the numbers. I want to highlight that total production increased by 38%, already considering the integration of TBMT field and the start-up of production of the new reservoir at Polvo. On slide seven, we see more detail about the lifting cost. Along 2020, we had good results with a quarter- after- quarter reduction. In Q4, we suffered a little more. We were taking a number of measures to reduce the lifting cost, either by optimizing our resources or renegotiating, when we were able to renegotiate contract scope and values, and that has yielded results. In Q4, we suffered some pressure on our lifting cost, mainly due to production reduction at the fields. At Polvo, we had a stoppage of the FPSO Polvo. More on that later when I speak about each asset. At Frade, we lost one specific well. Here it is worth mentioning that this lifting cost does not include the 30% stake of Frade field acquired from Petrobras, which would improve the numbers a bit, as you can see in the graph in the upper left-hand corner. Speaking in detail about Frade, slide eight. We see that the field has been performing well, with the exception of Q4, when we had an impact on production cost, specifically by stoppage at well MUP3A that had a hydrate formation in the subsea production line. This well has been put back into production, but it negatively impacted the fourth quarter. Similarly, there was a delay of the preventive maintenance program in the compression system, and that negatively impacted production at the field as well. Other than that, the field has been operating in excellent conditions. At Polvo on the next slide, number nine, we can see this field is more challenging. In Q4, we had a more serious problem at FPSO Polvo, which is chartered. It should be leaving the field in the end of July when we complete the tieback project. Until then, we have to deal with this vessel in the best way possible. We had a problem in the energy generation system. Due to corrective maintenance that was needed, we had a downtime of close to 10 days. That strongly impacted production at the field, forcing the lifting cost up. Other than that, on slide 10, I would like to give you an update on the field revitalization program. Mainly on the production of the new Eocene reservoir. We see in the bottom right-hand corner graph that the pressure of the well has been maintained stable. It is quite promising. This has been a very positive surprise for us. Now with all the data we've been collecting and reassessing, the reservoir has proven to be a lot more promising than we expected initially, which gives us confidence and drive to continue in the process to develop production for this reservoir. In the near future, we should drill more wells in this reservoir. Moving forward to slide 11, I give you more detail on TBMT Field. We started the transfer of the field in the second quarter of last year and completed the transfer in Q3 of 2020. We've been maintaining the operating efficiency of the field at good levels as before, and we are working to reduce costs. The field has been behaving very well and should continue to do so. On slide 12, I'd like to give you a quick update on the tieback project between Polvo and Tubarão Martelo. The project is unfolding well at a good pace. We can see here on slide 12 on the left, this illustration showing the tieback, the connection of a production line that we call umbilicals, and the completion and connection of this well, TBMT-10, which is right in the middle between the platform and the FPSO. The project is unfolding well. Even with the COVID threat and the impact on some operations, we don't see a real threat at this point. We are on schedule at 42% of physical progress and advancing as planned. We expect to have it completed by July of this year. TBMT-10 should start production flowing first oil by September of this year. On the right, we see some photos of services that are being performed, both at the FPSO and at the platform, all according to schedule and for the coming months. Moving to slide 13, I'd like to speak a little about Wahoo, which was acquired together with Itaipu in November of last year. This is a block in the pre-salt in the Campos Basin, about 30 km away from Frade, with a similar water depth of 1,400 m. A reservoir with excellent quality oil, 30 degrees API. What is most important here, moving to slide 14, is that you appreciate where we currently stand. We have finished phases I and II, discovery and evaluation. This was done by Anadarko. A number of wells were drilled. There were discoveries. The wells were tested and put into production. Now we are detailing the development phase. This year, we will be planning and working on the engineering and design and preparing the development plan to submit to the authority, ANP. By the end of the study, we will have detail on all of the specs of the equipment and on the best strategy to develop this field. Initially, we are planning to drill four producer wells and two injection wells, depending on the actual need. We will also install a subsea manifold to converge and connect all of the wells and send production through multi-phase pumps to the FPSO of Frade. This tieback is expected to be 30 km-35 km long, but this will be detailed after we conduct more thorough evaluations. We will be producing in principle 10,000 bbl per well. We'll give you more info in the coming months. With that, I end my part of the presentation. Thank you very much, and I turn the floor to Milton. Thank you, Francilmar. Good afternoon, everyone. To continue our presentation on the next slide, we'll go over the main financial highlights for the year, starting with our net revenue of BRL 1.9 billion in 2020. Our Adjusted EBITDA of BRL 876 million, net income of BRL 528 million. Numbers excluding the impacts of IFRS 16. Another relevant point is the continuous reduction in the company's leverage, expressed by net debt over Adjusted EBITDA, now down to 1.2 x at year-end. We also highlight our hedging operations along the year, particularly in the beginning of the year, when we were able to hedge our selling price at $65 per barrel in Q1 and for part of Q2, thus preserving the company's cash generation at a very critical moment of the COVID-19 pandemic in 2020. Additionally, we also renegotiated our debt with Chevron and extended the terms of our Prisma debt to be explained momentarily. We completed our follow-on operation in the beginning of 2021 after we closed 2020. This reinforced our cash by more than BRL 2 billion. Also in the beginning of 2021, in February, we completed the acquisition of the remaining 30% stake of Frade and now own 100% of the field. On the next slide, our financial performance. We start talking about the fourth quarter. We can see that Q4 2020 was very strong due to an increase in offtakes. We sold approximately 3.9 million barrels compared with 2.3 million barrels in the fourth quarter of 2019. We also highlight Adjusted EBITDA in the fourth quarter 2020, which is an EBITDA that excludes all non-cash and non-recurring items, which totaled BRL 465 million in the fourth quarter, and with an EBITDA margin in keeping with the fourth quarter of 2019, as we can see on the bottom of the slide. In the full year 2020, our revenues totaled BRL 1.9 billion, the highest revenue ever reported by PetroRio. It is important to note that although the average Brent price dropped from $64 per barrel in 2019 to $43 in 2020, even so, mainly because of a higher number of barrels sold, because of the growth of the company, we were able to post significant growth both in revenue, EBITDA, and cash generation in a year that was very challenging, as was the case in 2020. We also observe a relevant increase in the amortization depreciation line item, basically because of the FPSO Bravo and Tubarão Martelo field, as well as the full recognition of the depreciation of Frade, which was partially recognized in 2019. Regarding our annual Adjusted EBITDA, we also reported the highest amount ever posted in the history of the company, which comes to show how resilient the company was in such a difficult year. On the next slide, we'll speak about funding. Here, I'd like to highlight two relevant credit events. First, the refinancing of the vendor finance of Frade with Chevron, which allowed us to improve the company's liquidity in a moment when the oil price was plummeting on account of the pandemic. As a result, we now have still two installments to be paid. One whose principal of $30 million is due in May of 2021, and the other, $97 million payable in November 2021. The second event was the rollover of our Prisma debt, that loan linked to the acquisition of FPSO Bravo and TBMT Field. We were able to execute well the extension plan, which was originally planned in our agreement with Prisma. At the end of 2020, we managed to convert the bridge loan that we carried in our balance sheet into a more long-term loan. Now we have four installments of $25 million payable every six months until January 2023. We highlight that we conducted an extremely successful equity operation, a follow-on, raising more than BRL 2 billion in the very beginning of February or end of January, which reinforces the company's cash, preparing us for our future growth and giving us a lot of liquidity comfort. Moving to the next slide. Talking about leverage, we can see the track record of the company. We can see that in 2018, we had a negative leverage. In other words, the company had net cash, and we only had the assets of Polvo and Manati. In 2019, the debt increased because of the acquisition of Frade, that working interest from Chevron in the first quarter of 2019. Another relevant event was the acquisition of FPSO Bravo and TBMT in Q1 2020. These are periods when we observe a climb of this indicator of net debt over Adjusted EBITDA. We also note that after each one of these acquisitions, the company's leverage tends to reduce as we start to have cash generation from these assets. This is not immediately recognized at the moment of an acquisition. When we acquire an asset, we recognize the full debt taken on for the deal, but cash generation starts being recognized in the following quarters. That's why we see this characteristic reduction in leverage that we can appreciate here. We ended Q4 2020 with a ratio of 1.2 x, which is a level that shows a lot of financial discipline, which shows that we have the right strategy to maintain a healthier company and to have a company with an optimal level of debt. Here we highlight how strong that reduction was from 1.9 x in Q3 to 1.2 x in Q4 of 2020. Also, I'd like to underscore, as was mentioned before, the follow-on operation that happened in the beginning of 2021. There's no impact here on this graph coming from the follow-on deal. We will see a positive impact already in the first quarter of 2021, given the substantial increase in the company's cash. With this, I turn the floor back to Roberto, who will talk about the next steps. Thank you very much. Thank you, Milton. Well, on slide 19, let's speak about the next steps for the company in 2021. As expected, we continue to focus on safety and health of our employees. Well, the first reason for this is because this is one of the core principles of our company, and secondly, because it seems that we still have a long way to have this pandemic behind us. Our main focus remains the health and safety of our people. This has always been our focus, and it will continue to be even more so while we continue to live through this pandemic. Having said that, I bring you four projects for the company. Projects which we will be executing along 2021. In my opinion, all of them are transformational projects for the company, and that's why they are here as our next steps. The first project is the tieback between Polvo and Tubarão Martelo, which we expect for the middle of the year in July. This is one project, the tieback between Polvo and TBMT. The next one is part of our organic growth, i.e., to have one well producing TBMT-10 in the second half of the year. We are also considering the possibility of including in our operating agenda the drilling of another well in the Eocene. Francisco Francilmar Fernandes showed earlier that there is a possibility to do more in the Eocene. That would be our idea. The expectation here could be similar to the previous one, could be something around 2,500 bpd, something around that, and we are trying to include this in our operating agenda. Another point that we would like to begin this year is the drilling campaign at Frade. We had planned to start it last year, but with the COVID-19 pandemic, we had to revisit our plans. Now we are resuming the Frade drilling campaign agenda, and we would like to start drilling this year. Another interesting project, which is also transformational, is the tieback project between Wahoo and Frade. This year, we have to move forward a lot with this tieback project and the development plan for the field, so that as soon as we have ANP's approval, we can proceed with the trade declaration and possibly start the execution of the project. After that, of course, I included here one last point, inorganic growth. We will continue to be extremely focused on M&A opportunities. One of the main allocations of the proceeds that we raised in January in the follow-on operation is exactly M&A deals. We see a lot of opportunities out there in the market, and we want to be well-prepared, capitalized, and ready to take advantage of even more opportunities for inorganic growth M&A deals. Well, with that, I close, and I would like again to say a big thank you to our team for their energy and determination in some decisive moments for the company. Now I would like to open the floor to questions. Thank you very much. Ladies and gentlemen, we will now begin the question and answer session for analysts and investors. If you have a question, please dial star one on your touch tone phone now. If at any time your question has been answered and you would like to remove yourself from the questioning queue, please dial star two. Our first question is from Christian Audi with Santander. Go ahead, sir. Thank you, Roberto and the whole management. I have a couple of questions. Number one, going back to slides eight and nine, when you speak about what happened with Frade and Polvo, I'd like to get a sense of what you expect will be the lifting cost for 2021, given that many of the problems you faced have been resolved. That's question number one. My second question, Roberto, when you talked about the outlook, you mentioned Polvo to Tubarão Martelo tieback to be completed by June. You mentioned TBMT-10. Perhaps you could elaborate on the level of difficulty and complexity that you can expect from this operation. Is it something straightforward, or is it something that keeps you awake at night? My third question has to do with Frade and the campaign at Frade. Do you know when you will be starting the drilling campaign? Third quarter, fourth quarter? Finally, Roberto, do you have an update regarding the continuous conversations you're probably having regarding Wahoo with IBV, Total? Any news you can share with us? Good afternoon, Christian. Hope you're well. Thank you for the questions. There are four topics here, and I will try to address them all. Regarding the lifting cost, our expectation for the lifting cost this year is something close to what we had in Q3 and Q4 2020. We expect the same level for the first six months of this year. For Q1 and Q2 of 2021, we should expect a lifting cost similar to what we saw in Q3 and Q4 of 2020. Why Q3 and Q4? Because we have an FPSO at Polvo that has lower efficiency, and every now and then it causes trouble. These are one-time off things. In terms of the lifting cost, it should be at that level. With the tieback project completed in June, July, we should reduce the lifting cost. I'm going to give you a wide range. Okay. It's rather wide. I believe it will be between $10 and $12 per barrel. I'm sorry for this wide range. I don't want to be too assertive regarding that. We will be gaining a little, improving our lifting cost. Of course, together with that, we are going to have the effect of the integration of Frade. When I say we're going to be performing similar to Q3, Q4, it would be Q3 and Q4 including Frade. It would be between $12 and $14 per barrel. With the start-up of TBMT, I believe the range will be between $10 and $12, perhaps more towards $10 than $12. This is what should happen along this year regarding the lifting cost. As for the tieback project, the project is unfolding very well. The flexible lines are being manufactured. In the end of last year, in Q3, around Q3, we were a little concerned about the COVID-19 situation in the U.K. because our umbilical is being manufactured in Scotland, if I'm not mistaken. Yes, Scotland. We were a little concerned, but now that the situation is more under control, this is no longer a problem. The flexible line is being manufactured on schedule. The main equipment, the spools, we showed a photo of that in the presentation. Well, the spools are being manufactured. We already have a hook in the fixed platform to be able to pull the line, so it's all unfolding well. I think it is a challenging project because we have to integrate a number of things. We have several parts and pieces having to arrive on site at the right timing. From the engineering standpoint, it's not that challenging. It is a project that we're implementing for the very first time. We have to look at a number of things that need to be synchronized. We are very confident and very comfortable with the project as a whole. I think that by middle of the year in July, that would be the expected completion date, and I think that we're going to get there. Regarding when we will start drilling at Frade, Christian, we want to begin this year. Of course, expecting first oil in 2021 is a little more challenging. We would like to start drilling in Q4. That depends on the contracting of the drilling rig. That includes the equipment that we need. We have to review the Christmas tree. A number of things that we are already working on so that we can effectively start drilling in Q4 2021. If we do really well, if we are able to start drilling in the beginning of the fourth quarter, if everything unfolds perfectly, we might even flow first oil this year. I think this is unlikely. Most likely, we will start drilling in Q4, but first oil would be expected for the first quarter of next year. Finally, an update on Wahoo. Of course, we have been talking constantly, particularly with Total, as I have always been saying. I think that we are progressing in our relationship. Total now is our partner at the field. We are building a closer relationship with them. We are having more and more constructive conversations with them, with Total. We also started talking with IBV. We are now talking about M&A deals with IBV. We're getting closer to IBV. They are partners of ours at the field. We're interested in, yes, having some kind of conversation related to M&A deals. That's all I can say for now. It's not that we are not talking with them, that we are radio silent. No, we are talking with them. They are our partners. Perfect, Roberto. Very clear. If I may ask a follow-up question regarding Albacora. Has Petrobras given you an update regarding when you could expect an answer from them, whether what you submitted was acceptable or was accepted? Any timing that we could expect to have an answer from Petrobras? Well, Christian, informally, I can tell you, and that's very informal, okay? We estimate that along the month of March, we might hear back from Petrobras. We might expect that. Again, this is off the record, okay? We haven't received a deadline from Petrobras or an advisory saying, "We'll get back to you by such a date." That hasn't happened. Okay, perfect. Thank you very much. You're welcome. Of course, now with the change in the Petrobras management, they have a lot of big things to discuss. March is an expectation for us. Okay, perfect. Thank you. Our next question comes from Pedro Soares with BTG Pactual. Mr. Soares? Good afternoon, everyone. Most of my questions have been asked and answered. Quickly, I'd like to ask about the Frade drilling campaign. I'd like to confirm with you, after you drill the first well, which should happen, as Roberto mentioned, in Q4 of this year. Those other wells to be drilled, when will this happen? After the tieback with Wahoo? Is this the plan? Has the plan changed? I'm just trying to rephrase Christian's question regarding Albacora and an update from Petrobras. Have you felt in any way that the process is now lagging behind, perhaps impacting other assets as well because of these changes that happened at Petrobras or not? Pedro. Hello, good afternoon, and thank you for the questions. First, to speak about Wahoo field. We talk about Frade plus Wahoo, right? I wrote down Wahoo, we are going to speak about both. For Frade, we will start drilling in Q4 of this year. The idea is that we will finish the first producer well in the first quarter of 2022, and then soon after, we'll start drilling the two water injection wells at Frade. The sequence will be, we are going to lease a drilling rig, and the sequence is one producer well at Frade, two injection wells at Frade, and then that rig would be moved to Wahoo to drill the four producing wells at Wahoo. That would be the ideal sequence for the drilling rig. That is the sequence that would optimize our operation. Most likely, we will lease the rig for perhaps not all seven wells. It will really depend on how idle the drilling rig is and its capacity. In our base case, we will drill all seven wells, three at Frade and then four at Wahoo sequentially. After these four Wahoo wells, Francilmar Fernandes is reminding me, then we will take the rig back to Frade for the second phase at Frade, another three or four wells. Why do I say three or four? Because the producer well might need a water injection well or not. Depending on what happens, we will be drilling a fourth well or not. This is what we are envisioning for the drilling campaigns. It is a long agenda. When we lease the rig, we will have a long agenda in deep waters. Also, Pedro, that is why we are thinking of including another well at Polvo at the Eocene. Our original idea was to have the Polvo Tubarão Martelo tieback and have TBMT-10 put into production. That was our original plan. Now, what Francisco Francilmar Fernandes is trying to do is include another Eocene well before we actually move to deep waters, because when you move to deep waters, the whole team tends to focus on that. We don't want to have two teams, one handling deepwater drilling and the other team looking at Polvo. That would be our idea. Regarding Albacora, we didn't sense any delays. Maybe it's too early to say, but we haven't felt anything yet. The process with Petrobras apparently is the same. We expect an answer in March. We had the expectation to learn the companies that would move to the second phase still in March, and that expectation still holds, but it's just an expectation. It might be too early to tell. Okay. Very clear, Roberto. Thank you. I thank you, Pedro. Our next question comes from Vicente Falanga with Bradesco BBI. Mr. Falanga, go ahead. Roberto, Milton, Francisco Francilmar Fernandes, the whole team, thank you for taking my questions. I have two questions. First, can you ask for indemnity from BW given all of the issues at Polvo? Just out of curiosity, a technical curiosity. The Tubarão Martelo FPSO, what does it have that the current FPSO does not have to stabilize production at Polvo? The second question is regarding that temporary increase in the lifting cost. Is it possible for you to break it down to how much came from Frade, how much came from Polvo, and which one was the offender here? Thank you. Thank you, Vicente. Hello. I'm going to answer questions number one and three, and then Francilmar will speak about the FPSO of Tubarão Martelo. Regarding BW, yes, there are discussions ongoing regarding the contract. You see, every FPSO contract is like this. There is an allowance of downtime days, once we go over this downtime days, downtime allowance is over, there is a fine. We had a downtime of around 10 days. Once the allowance is over, we can recover part of that financial loss. In addition, there is a possible arbitration for the future. That's reserved for the future, depending on what happens when the contract ends. There are a number of legal mechanisms that can play in our favor. In addition to the fact of that downtime allowance, which is set forth in the contract. Regarding the increase in lifting costs, I would say then 95% of that came from Polvo. If not more than 95%. At Frade, yes, there was a problem with well MUP-03, when we put it all together, that's negligible. We get Polvo with an operation of close to 10,000 bbl daily, and you compare times 12 days of downtime. We're talking about 120,000 bbl of loss. During the downtime, we're talking about 120,000 bbl. At Frade, it was a well that had a downtime, but it was producing 400 bbl. The effect is negligible. Frade was producing more than budgeted. The decline was smaller, the effect of Frade was very limited. The problem was Polvo. I'm going to turn the floor to Francilmar Fernandes, and he will speak about the Tubarão Martelo FPSO and why it is a lot more efficient than the FPSO of Polvo. Let me try to detail this a little more. The Polvo FPSO, in addition to being older, its design, it uses a steam generation boiler to supply and generate energy. The TBMT FPSO is a lot more modern. It uses a turbine to burn diesel and then gas. We're going to have a whole system that is newer. The manufacturing is a lot better. The total system has more redundancy. If a piece of equipment fails, we have another to operate, and the power generation system is a lot better, a lot more reliable. Given the history of FPSO Polvo, we expect that TBMT FPSO will be a lot more reliable. Once we tie back to TBMT and Polvo, and once they operate from a much better vessel, the operation's going to be a lot more round and reliable, and that will help us lower our lifting cost. Very clear. Roberto, follow-up question. You said that in the past, the BW FPSO was 10 days stopped. Did I understand that right? Vicente, I don't remember exactly. Perhaps a little more than 10 days. It went beyond the allowance. I was thinking about November. It was 11 days of downtime. Okay. It went beyond the allowance. It did go beyond the allowance for other problems, but in November, that's what impacted the lifting cost, and that was 11 days of downtime. When production stops, it's 11 days of downtime, but in practice, it requires a ramp-up of the wells. 11 days of downtime at the FPSO, but in terms of production, we lose 11 and a half days or 12 days. Okay, perfect. Clear. I'd like to remind you that if you want to ask a question, just dial star one. Our next question comes from the webcast by Diogo. He asks, "Good afternoon. Congratulations to all of you for the results. I would like to ask two questions. The first, have you any idea in which quarter you will start the revitalization campaign for Polvo, Frade, and TBMT? Second question, are you thinking about issuing more shares? Thank you. Hello, Diogo. As regards the revitalization campaign, what I can tell you is Polvo and TBMT. That will happen by the third quarter of this year. We have the tieback that is being executed. We have TBMT- 10 that will start producing, and the possibility of drilling in the Eocene. All of that will happen by the third quarter. In Q4, we should start the Frade campaign, as we've said before. Regarding issuance of shares we don't have any action undergoing for that or happening for that. Depending on the performance of the company, and the performance has been very positive, this is definitely going to be considered in due time. Today, as we speak, there are no plans, no actions being taken to issue more shares. Thank you. Our next question also comes via webcast by Andre Luis Padilla. He asks: Oil price has been increasing, perhaps leading to an increased valuation of new fields. How does the company intend to maintain financial discipline to use the proceeds? Any negotiations undergoing for new M&A deals? Thank you. Hello, Andre. Yes, oil price has been increasing, we have to pay attention when we speak about that. We shouldn't think about the spot price of oil, which is the Brent price, the price with which we sell our offtakes. You have to look at oil future price. Spot price is around $63, $64. Future, around $55. That's what you need to look at the long-term future oil price, if it's increasing. It's not increasing as much as the spot price. The spot price is increasing more. It is true that with oil prices going up, the price of the assets will go up. It's not as much as we would imagine if we look only at the oil spot price. Our financial discipline is focused on return. We will continue with the same financial discipline, and we will continue looking for the same levels of return on investment. Of course, if the future price of oil increases, the asset that we buy will be appreciated. We'll try to buy these assets for a price that will give us perhaps a higher return because we are buying it at a moment when the oil price is higher. Indeed, what we look at is the return on investment, and the financial discipline will continue for sure. It is what brought us this far, and it is what will keep us going in the future. Regarding the pipeline for M&A, you asked about that, but I cannot give you a lot of detail on that. The company continues with a solid pipeline. We have opportunities in our portfolio, some conversations going on here and there. Again, every time you ask me about this is how I'm going to answer. Every time you ask me, I'm excited about M&As. These are the only two things that I can disclose right now. Thank you. I'd like to remind you that if you want to ask a question, please dial star one. There are no more questions. This concludes today's question and answer session. I'd like to turn the floor to the management for their closing statements. Mr. Monteiro, go ahead. Thank you. Well, with this, we conclude our earnings conference call. I would like to thank all of you for joining us. I would like to particularly thank the discipline and dedication of our team. Once again, they delivered and showed the resilience of PetroRio, the resilience of our business model, and of our culture. I am hugely proud to present these results. Of course, I want to thank the investors who have supported us all along and the new investors that joined our investor base during the follow-on operation. Thank you very much to all of you. That does conclude PetroRio's conference call for today. Thank you very much for your participation, and have a good day.