Operator: Next, we go to Luke Lemoine with Piper Sandler.
Luke Lemoine: Olivier, you noted the booking and backlog at OneSubsea. In last call, you talked about some of the commercial and operational objectives. And I wanted to see if you could just talk about how customer engagement and dialogue has progressed with the enhanced offering you now have?
Olivier Le Peuch: Thank you, Luke. I think, let me please first with the first quarter of the subsea joint venture we have with Aker and Subsea7. I think the results speak for themselves. I think it was a direct contributor to the PS, the pollution system, performance in the fourth quarter, both on the top line and the margins. So we are very pleased. And I think as I said, I could not be more pleased than this. Now going forward, I think our objective continues to be to extract more value to synergy and to fully seize this deepwater offshore cycle that is in full fledge happening and where we see, as I said earlier, a strong outlook. So our priority is still benefit from integration capability, and as you have seen that we have announced some alliance and one of them with BP, where I think customers are approaching us organizing that subsea integration capability across the SPS and SURF are augmented by our ability to deliver and understand the reservoir as well as deliver well construction.
So hence, opportunity to have integrated asset development, integrated tieback delivery and more opportunity in the space that is a full intake subsea and beyond to extract better economics and to extract more importantly — equally importantly, a higher recovery combining our reservoir subsurface domain expertise are well placement and our subsea boosting and processing capability, all combined to extract and create a little bit of more value for subsea market going forward from economics and from production recovery. So that’s where we see trends coming. And we have a portfolio that is unique with the portfolio partially on the boosting and processing and tieback capability that is unmatched in the market. And we have digital reservoir technology and our core portfolio that complements this and help and will support this alliance integration capability.
So I can only be pleased with the prospects ahead of us and the feedback from our customers so far is very positive on our capability.
Operator: Our next question is from Saurabh Pant with Bank of America.
Saurabh Pant : Olivier, maybe I want to touch on exploration a little bit. You talked about that on the call today. You highlighted Asia. I think you talked about China, Malaysia, India, some of the other countries exploring for gas. I know you’ve talked about the exploration in the past. So, we are seeing at least a little bit of a tangible recovery happening on the exploration side. Maybe you can expand on that a little bit. What do you expect over the next couple of years on both the gas and the oil side. And just maybe remind us how impactful that is for SLB?
Olivier Le Peuch: Yes, thank you. I think, yes, we have commented before that we have seen resurgence and rebound of exploration activity solution appraisal in the last two or three years. This cycle has added exploration activity back to the cycle. And I think it has been driven by the desire to find new gas reserves to respond to the gas supply security concerns. And also, it has benefited from the continued exploration of oil around the existing offshore hubs in the form of infrastructure-led exploration. And also, in New Frontier replicating the success that Exxon had in Guyana and over basins. So when you look at it from where it is happening, what is unique in this cycle, it’s happening everywhere. We have exploration activity, mostly offshore, that’s where I think the actual success of new reserves have been mostly and in all offshore basins, both shallow and deepwater, infrastructure-led exploration in existing mature or deepwater markets and in New Frontier.
So you have seen New Frontier happening in Namibia. You have New Frontier in Suriname and upcoming Brazil control margin. You have exploration in East — West Colombia side. You have a furthermore in West Africa South. And you have what is maybe a little bit new this cycle, more exposure coming back in Asia from India, as I said, to Malaysia, China. And I think this is what constitutes a little bit of the unique cycle is broad. And it is here in our opinion to stay because the economics of offshore have improved significantly over the last couple of cycles and attribute of reserves, both gas and oil with low carbon intensity and the ability to deliver a long plateau of production is unique. So access to offshore acreage, better economics, better quality of potential geological reserves have all driven this, and we have increased the success.
And we have exposure in reservoir performance with reservoir performance evaluation segments that are benefiting from it and has introduced technology that are really in high demand like Ora. And we have a lot of exposure, obviously, as well in the digital segment with our seismic data capability processing and our digital geoscience offering that both benefit from this as a consumption. So we are pleased with the market position we have, and we believe that this exposure appraisal is here to stay because it’s very broad, diverse and across many basins partly in offshore.
Saurabh Pant: Fantastic. Okay. I have one very quick follow-up, if I may, on the Middle East side. I know you talked about that on the prepared remarks and the Q&A early on. But just to go back to that, I think one thing you noted in the press release was that you expect the record Middle East growth to continue beyond 2025. If you can elaborate a little bit, Olivier, on what gives you the confidence, the line of sight beyond 2025? Maybe part of that is just the gas side of things, not just oil, right, but elaborate a little bit on the light of sight you have beyond 2025 on the Middle East.
