We were granted the "Corporate Liability Management of the Year" award by LatinFinance magazine, late Thursday evening, in New York, for having been considered the company with the best debt management operation on the international capital markets in 2016.
Our average oil output in Brazil set an annual historical record in 2016, coming in at 2,144,256 barrels per day (bpd), 0.75 percent more than a year ago and in line with the 2,145,000 bpd target for the period. We met our planning for the second year in a row, underpinning our commitment to the predictability of our projections.
We completed the sale transaction of 100 percent of Petrobras Chile Distribuición Ltda (PCD) to the Southern Cross Group. The deal had been signed on July 22, 2016. The value of the cash inflow resulting from the transaction was $470 million. Of the total, $90 million derived from the distribution of PCD dividends net of taxes, on December 9, 2016, and the Southern Cross Group paid the remaining amount of $380 million today. This figure is still subject to final adjustments.
Yesterday, we completed the sale of 100 percent of our stakes in Nansei Sekiyu (“NSS”) to Taiyo Oil Company (“Taiyo”). The transaction was completed with the payment of $165 million by Taiyo, after all conditions precedent stipulated in the contract signed on October 17, 2016 had been met. This figure is still subject to final adjustments.
We closed two asset sales totaling $587 million today. The Petrobras Biocombustível subsidiary (PBIO) sold to Tereos Participations - a company belonging to French group Tereos - all its stakes in Guarani, corresponding to 45.97 percent of the company's capital, for $202 million. Our Board of Directors (BoD) also approved the sale of Companhia Petroquímica de Pernambuco (PetroquímicaSuape) and of Companhia Integrada Têxtil de Pernambuco (Citepe) to two subsidiaries of Mexican outfit Alpek. The transaction was worth $385 million.
We signed a Master Agreement with French outfit Total today related to the strategic collaboration set forth in the memorandum of understanding signed on October 24 by our CEO Pedro Parente and Total CEO Patrick Pouyanné.
The international organization Carbon Disclosure Project (CDP) has included us for the first time in a select list of companies that lead the Annual Climate Change Report ranking in commitment to reducing emissions. We have been granted the Leading Company certificate for standing out for good environmental management practices.
On Thursday (Dec. 15), we signed a 10-year funding agreement worth $5 billion with the China Development Bank (CDB). The funding is the outcome of a Term of Commitment entered into between the parties, as disclosed on February 26, 2016.
We analyzed 12,000 suppliers through the due diligence process (integrity assessment) this year. The procedure is the primary measure among several improvements in our procurement and hiring processes and in audit services third parties provide to the company. The stage, which in 2015 became part of the process used to include and update companies in the Corporate Supplier Register, sets new classification requirements to mitigate Petrobras’ risks related to fraud and corruption in its relationship with the supplier market, meeting the requirements set forth under Petrobras’ Corruption Prevention Program (PPPC). This and other data were presented at the third edition of the internal “Petrobras in Compliance” seminar, held at the company's headquarters on Friday (Dec. 9), the date on which the International Day Against Corruption is celebrated.
Today we celebrate with our partners a historical milestone: a billion barrels of oil produced in the pre-salt. This cumulative production occurs only six years after the first production system went on stream in the Santos Basin, in the Lula field, and ten years after the first discovery, made in 2006, and demonstrates the company’s technical capability and achievements.
This performance is unparalleled in the world history of offshore oil production. Compared to other major oil producing regions in the world, in the American portion of the Gulf of Mexico, this level was reached 14 years after commercial production got underway there, while in the North Sea it took eight years. In Brazil, this mark was only reached in the Campos Basin after 15 years of commercial production.