Meanwhile, you will have seen that we have signed strategic agreement with Rosneft to gain access to very promising exploration licenses in the Barents Sea and in the Black Sea, increasing the potential of our portfolio and providing support to long-term growth prospects.
In gas and power, in March we completed the renegotiation of our gas supply contracts with Gazprom. The recognition of the associated economic effects was reflected to the beginning of 2011, and is included in our Q1 marketing results.
Finally, we are progressing on our strategic objective of our lock-in value from our non-core leased assets. Regarding Galp, on March 29, we signed an agreement to sell 5% of the company to Amorim for 14.25 euro per share. Once this sale is completed, we will have significant optionality on the disposal of our stake.
With regards to Snam, I’d like to remind you that the Italian government has asked legislation envisaging the completion of our exit by September 2013. The method by which the separation will occur will be defined by a government decree to be issued at the latest by the end of May.Turning now to our results, in the first quarter of 2012, the market environment was broadly positive. This was mainly driven by different price, which average $118 barrel, up 13% compared to the first quarter of 2011. The euro dollar exchange rate was also supportive at $1.31 per euro, with an appreciation of the dollar of 4.1%. However, the European refining margin Branch Euro was $3.3 a barrel, in line with the first quarter of last year. In the first quarter of 2012, adjusted operating profit was €6.45 billion, up 26.5% from the first quarter of 2011. This was due to the better operating performance reported by the exploration and production division, up 24% and to the increased results of the gas and power division, up 57% driven by stronger profits from the marketing segment. This was partially offset by weaker results in R&M and Chemicals.
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