In Europe and North America, we will see a broadly unchanged production level with high natural decline compensated by new projects, and in particular the screw guard and have these start-ups in the Barron Sea, which will contribute around 70,000 barrels per day by 2021.

All of this heads-up to the strongest project pipeline in our history. Claudio will give you some additional detail later on this afternoon, but given the breath of the portfolio, we will also organize a specific upstream seminar in the early autumn.

Let’s now turn to Gas & Power. The timing and terms of the disposal of our State in R&M will be addressed later in this presentation and I’m sure in the Q&A. However, I would like to take this opportunity to highlight how the perimeter of our Gas & Power division is going to change following the consolidation of R&M and of our interests in international pipelines, target temp and transit gas.

The resulting business will be made up of two main parts. The first is a semi-regulated business which is composed of our other international pipelines and some local distribution. This part of Gas & Power which in 2011 accounted for around €600 million of pro forma EBITDA we provide steady profitability over the coming years.

The second is our gas and power marketing business which has a stronger diversified portfolio of long-term gas supply contracts, power generation capacity of around 5,500 Giga-watt and a leading position in the European gas market. This is the portion of our Gas & Power which has been affected by the negative market environment including the continued availability of lower priced L&G spot cargos and the significant falling demand in particular, in the second half of 2011.

In this difficult and volatile market, the key issue is supplied. Long-term contract are essential to guarantee stable supplies to our customers. But they also need to be different from what they used to be. Their price needs to be competitive with spot gas, volumes need to offer the flexibility to cope with demand volatility and terms need to adapt when market conditions change. These are the pillars along which we have renegotiated with Libyan NOC in 2010 with Sonatrach in 2011 and with Gazprom in 2012.

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