So we take a 1.0 order, which is how the rest of the industry is operating. You have to spend nine months, or we would have to spend nine months doing detailed engineering, because you’re building a first article. It’s never been built before. So you have to go through that before you place a single purchase order. With the Subsea 2.0 configure to order platform, and again, you can’t just say, I have it. You have to have a platform. You have to have critical scale. That allows you to not only simplify the internal, as I talked about, putting twice the volume through our existing manufacturing footprint, but it also allows us to simplify and to secure a much more reliable and competent partners in our supply chain. So it’s really a combination of the two that lead to the quality.
In addition to that, an integrated project, we just have many more levers. We take on the full scope. We have the ability to be able to schedule activity that best works for us and that’s why it was so important to consummate the relationship and create TechnipFMC because it’s very difficult to do when you’re not a single entity with a single set of financial reporting and a single set of objectives because then you have underlying competing interests. So we have that. And then on top of that, sure, the terms and conditions of the contracts are important. Our customers understand that. We’ve talked in the past about what we’ve done to ensure that things are being shared in the most appropriate way and for instance, when it comes to inflation, we put in place several parameters that allow us to be more confident that we’re not going to be surprised on that side.
So all in all, it’s a combination of the three, but it’s very clear for us where our focus is and as you hear us announce these IEPCI and IEPCI 2.0 and 2.0 awards, it’s just very, very favourable to the future and to the assurity of our execution.
Saurabh Pant: Now Doug, that’s very helpful. Just a very quick follow-up, Doug, I know you are $30 billion in your order outlook for Subsea. That does not include any of the frontier basins, but the new flow, especially from Namibia has been particularly positive. Can you share any updated thoughts on your outlook in terms of these frontier basins? I know it’s beyond ’25, but any updated thoughts, Doug?
Doug Pferdehirt: Sure. Lots of discussion. Lots of activity. We’re using our playbook from Guyana and Mozambique, both of which we were the first mover. We understand how to do this in these emerging markets. We’re executing the same playbook in the other emerging markets and I would say net-net from most recently, the indications from our clients that they have stated publicly. I’m not saying anything that’s not public. I would say is more favorable and trending in a very favourable fashion. So we look forward to the contribution from those emerging markets in the latter part of the decade.
Saurabh Pant: Okay, perfect. Thank you. I’ll turn it back.
Operator: Our last question will come from the line of Bertrand Hodée with Kepler Cheuvreux. Please go ahead.
Bertrand Hodée: Yes. Hello, Doug. I have probably a follow-up on Namibia. Based on your early discussion, and clearly no need to mention any operator name here, but conceptually, from your understanding, do you believe it will require specific technology and/or the IEPCI model or Subsea 2.0 will be well suited for future Namibia development?
Doug Pferdehirt: Thank you, Bertrand. Look, speaking of Namibia in particular, one well-known challenge will be the water depth. So these are very deep. It’s very deep. Within the operating parameters of 2.0, so no concern there. And certainly we believe the IEPCI model as we’ve demonstrated in other emerging markets is clearly a very favourable model and one that we would expect would unlock the greatest value and accelerate time to first oil for our customers, which drives their project economics. So IEPCI 2.0, we’re working very closely with our clients. They’re obviously learning as they’re doing their extended well tests in terms of the reproducibility of the reservoirs, compartmentalization, the geochemistry. So there’s things we’re learning along the way, but we are actively engaged with them to ensure that we’ll be ready to provide them world class subsea support.
Operator: I would now like to turn the call over to Matt Seinsheimer for closing remarks.
Matt Seinsheimer: This concludes our fourth quarter conference call. A replay of the call will be available on our website beginning at approximately 8:00 P.M. Greenwich Mean Time today. If you have any further questions, please feel free to contact any member of the Investor Relations team. Thanks for joining us. You may now end the call.
Operator: This concludes today’s call. You may now disconnect.
