We had a solid operating performance in 2Q19, especially in the pre-salt fields, which accounted for 57% of our oil production. In May, we completed ten years of pre-salt production in the Santos Basin, with efficiency and productivity indicators above the offshore industries average. In just one decade, the accumulated operated production (Petrobras plus partners) in the Santos Basin pre-salt reached 2.5 billion boe, a significant volume, which corresponds to all proven reserves in Argentina, for example.

The unique features of the Santos Basin pre-salt, such as the location in ultra-deep waters, the 2 km thick salt layer and the 300 km distance from the coast, were an unprecedented challenge in the oil and gas industry. Ten years after Tupi's first oil, we not only developed unprecedented solutions to overcome pre-salt challenges by employing the highest technical expertise, but we also proved its economic viability and set a sequence of records.

Oil, NGL and natural gas production reached 2,633 kboed in 2Q19, 3.8% up on 1Q19. Pre-salt production increased by 12.7%, reaching 1,168 kboed in 2Q19. However, production in the post-salt fields decreased by 4.1% from 730 kbpd in 1Q19 to 700 kbpd in 2Q19, mainly due to the definitive shutdown of production on platforms P-33 and P-37. Shallow water and onshore production, which is the focus of our active portfolio management, decreased by 10% compared to 1Q19.

Pre-salt growth is due to the ramp-up of platforms that started-up in 2018 and 2019. These platforms, whose production capacities total 1.05 MMbpd (952 kbpd attributable to Petrobras), contributed with 436 kboed in 2Q19.

Despite the growth perspective, which will materialize with the continued ramp-up of newly installed pre-salt platforms, production volumes were lower than expected in 2Q19.

Our commitment to transparency and respect for investors obliges us to revise our production target for 2019. We have changed our year target from 2.8 MMboed to 2.7 MMboed plus or minus 2.5%. The projected oil production is 2.1 MMbpd with a variation of plus or minus 2.5%. The revised target is supported by the resolution of commissioning problems in the Buzios platforms gas plants, which already resulted in an operational improvement in July, with average production returning to 2.7 MMboed, and by the replanning of operational efficiency and the scheduling of wells start-up in Búzios, based on the results obtained so far.

In relation to refining segment, oil products output increased in 2Q19 by 1.4% over the first quarter as a result of lower maintenance, higher domestic demand for oil products and higher availability of conversion units. It is important to highlight that, associated with the increase in production, there was an improvement in the profile of oil products output, with a higher share of diesel, jet fuel and gasoline in total production. We also highlight, as part of the movement to develop new markets and add value to pre-salt oil exports, the opening of a crude oil tanking capacity at Qingdao Port in China's Shandong province. The choice of location is strategic: in 2019 China was the destination of approximately 75% of the volume of crude oil we export, most of which is destined for independent refiners from Shandong and surrounding regions. Through this initiative, we seek to solidify our presence in the promising Chinese market, one more step in the journey towards diversification of our oil sales.