Olivier Le Peuch: Yeah. I think that I’m contrasting, I think, some offset cases, so there will be increase. There was a plan that has not changed for Saudi to accelerate the gas expansion program, what has accelerated, what has improved, is the pace of this expansion program, driven by the raise of 50% to 60% target by 2030. And as a consequence of that, the whole year that was based on previous plans that now boosted by this accelerated expansion program will result into total rigs year-on-year that will, from beginning of the year to the end, add 35-40 (corrected by company after the call) rigs in total to the gas market, all onshore. So that’s the reality of the market. Some of it in unconventional, up to 10 to 15 rigs in unconventional, some of it in the gas conventional, some of it in intervention and workover, so that’s a total activity that gas is a strong market for Saudi, is becoming a significant market going forward.
So that’s where we expect activity to continue to grow going forward. And we are essentially favorably exposed to this activity set as we have an exposure that goes above, we are long on gas as we explained. And hence, we benefit from technology that we have deployed in Saudi that is fit for the Jafurah project, technology such as coiled tubing, underbalanced coiled tubing drilling solution, that is being used on Gabon gas and the technology that we use across for conventional gas is either integrated or discrete contracts. So that’s the benefit we see, and that’s the total rig that we see going forward.
Scott Gruber: Thanks. It’s encouraging, thanks for clarifying that. And then turning back to well construction margins. Should we be expecting those to come in about flat for the year. I know they’ll improve seasonally and are always strong in the second half. Should we be thinking about kind of flat year-on-year and just thinking about the mix in that business, historically, with greater offshore activity and weaker U.S. onshore activity, I would just expect those margins to be grinding higher. So maybe if you could comment on what’s kind of keeping those flat year-on-year? Maybe the mix just isn’t that impactful any more with the new sales strategy in the U.S., but just some color on the year-over-year margins in Well Construction would be great.
Stephane Biguet: So look, we were flat indeed in Q1 year-on-year. But for the full year, you should actually see margin expansion in Well Construction, what the headwind we have a bit is the lower activity in North America, so that kind of masks the margin expansion internationally, but as we go through the year, you will see year-on-year growth in Well Construction. You have timing of certain stuff and adjustments on a quarterly basis. But on a year-on-year basis, you will clearly see margin expansion coming from international.
Olivier Le Peuch: Maybe for clarity of the split on the net addition in the gas market in Saudi. The net addition due to the expansion acceleration is about 20 rigs.
Scott Gruber: Okay. Great. Thanks. [Multiple Speakers]
Olivier Le Peuch: A bit more than half of that in a little bit more than half of that in unconventional and the rest in the conventional. So that’s the resulting effect of this acceleration of gas expansion into Saudi. Hence, the shift indeed from offshore to onshore and from oil to gas characterized by this accelerated expansion translating to 20 rigs and the reduction of the net offshore from end of year last year to the end of the year this year that is above 10%, plus the mix changing for clients.
Scott Gruber: Okay. Got it. I appreciate that. Thank you.
Stephane Biguet: Thank you.
Operator: Next, we go to Kurt Hallead with Benchmark. Please go ahead.
Kurt Hallead: Hey. Hey, everybody. Thank you for sliding me in here. I appreciate that. So given the fact that you are currently in Kuala Lumpur and Asia seems to be one of your growth vehicles and something that really hasn’t gotten a lot of airtime. Just kind of curious as to what you see is driving that growth and what regions within Asia you is standing out to you?
Olivier Le Peuch: Great question. I think, indeed, we had a reason to come here. And the reason why, first, the team has delivered and have been delivering a resilient growth and resilient margin expansion over the last two years since the rebound from the COVID time. And I think we have been observing, supporting the team, but I think spending two weeks in a region, I think, is clearly giving us a little bit more spotlight on to the strength of the region. I think, first and foremost, I have to say, this region is characterized by the critical resources they are putting to support security of supply, particularly gas, and investment they are going to, I would say, to support and stabilize oil production and prevent further decline.
So stabilizing oil production and accelerating gas is certainly the feeling that has come on to the entire region. And I think it’s further accentuated by energy security and is translating into a new wave of investments. It was very telling to see that in Indonesia, in Malaysia, in South — in offshore China, in Bangladesh, in India. We are seeing new round of exploration appraisal that have not been seen with new entrants into this market that were not there, certainly a few years back. And I think this is creating a new set of opportunity, both offshore primarily and some of them in deepwater assets, and I think that will create further opportunity for Subsea. And at the same time, as I said, and I stress, there is also a focus independently onto supporting and preventing production decline for oil.
And this is visible across all assets, both onshore and offshore, and hence, intervention recovery technology is being pulled to add investment. So you combine this wave of new investment for accelerating gas from exploration to development projects with this intervention recovery-focused production on the existing declining assets that exist here in all markets across the region, and we get the recipe for a significant investment and a steady investment in every country from Indonesia to Malaysia, to Thailand, China offshore and onshore, India, Bangladesh, as I said, a new country. And I think this is very interesting and very exciting for the team, and we are responding to this by deploying assets to bring the resources and creating fit technology for the market to help us grow and continue to succeed in this region.
