So I think you’ll see that kind of ebb and flow as we go forward. But yes, for the most part, that probably — little adjustments like that make a lot of sense. And certainly, our position has always been — we are not in a hurry to reactivate the rigs. We are only going to do it when it makes economic sense when we have the contract that generally justifies spending the money to do that. So again, I think the only real consequence of any shortness of work in the near term is that those rigs will be delayed from coming out of the yard. And certainly, we will not be reactivating speculatively. So we’ll still work to contract on that.
Operator: And we have our final question from David Smith with Pickering Energy Partners.
David Smith: And a little bit big picture question. Just focusing on some of these 5-year plus programs that operators are looking to build. I expect they’re looking for a discount to leading edge rates. And maybe they could get those discounts with rigs that gives really solid returns for a reactivation, right, or one of the newbuilds that were bought from a yard earlier this year. But when I look at those 7, 10 rigs that are still stacked or previously stranded, I only count that aren’t owned by you. I’m not including the Libra, that newbuilds, I think those are going to cost a lot more. My question to you is, just given your view of demand, when do you think we see these last 6 incremental 7 [ph] drillships absorbed, those ones not owned by you? And then what happens to the cost of incremental supply when those are gone?
Jeremy Thigpen: So don’t take my word for it. But I think Westwood Energy had an article out recently that they expect utilization to reach 100% in the kind of late ’24, ’25 time frame. And then the following year in ’26, they were projecting 104% or 105% utilization. So what that tells you is that’s the time frame in which you would expect to see all of those rigs reactivated. So in their projection you’ve basically got all of the stranded assets being brought out of the yard, put to work and there’s a call on 5 to 6 additional cold stacked assets in that timeframe. So again, my crystal ball is a little biased but I would say, if you follow some of the comments today elsewhere, you’ll probably point to the ’25 time frame as being completely sold out of active rigs.
Most all of the stranded assets, either being deployed or about to be contracted for future deployment and then we’ll start thinking about when is the right opportunity to bring out the stacked assets. I would also say the first part of your question, to address the multiyear tenders, that’s clearly the case is that operators are looking to secure capacity at a day rate that they feel is acceptable and works for the projects. And there are some compromises in that. One of the compromises being, it’s a lot easier to do a lower day rate if you have the surety of a long-term contract. But also, I would not count that as being seventh gen rigs only. I think you’re going to see that the sixth gen rigs are quite attractive for those. So if you see what happened in Brazil, basically, a lot of the sixth gens went to work for long periods of time in Brazil because they’re perfectly adequate for those campaigns.
I think you’re going to see the same thing on some of these long-term 5-year deals. It’s not necessarily the top spec rigs that are going to do it. They’re going to be fit for purpose rigs because, again, that’s how you get the right day rate for that asset for a long period of time.
Operator: And we have now reached the allotted time for our Q&A session. I will now turn the call back over to Alison Johnson for closing remarks.
Alison Johnson: Thank you, Mike and thank you, everyone, for your participation on today’s call. We look forward to talking with you again when we report our fourth quarter 2023 results. Have a good day. This does conclude today’s program. Thank you for your participation. You may now disconnect.
