Patrick Schorn: So there’s obviously a variety of things that we look at when we consider contracts. It is in which area of the world it is. It has to do with contract length, but it also has to do with specific equipment, we would have to put on it to get a rig ready to operate. Because it’s not only the investment you make in new equipment, obviously, associated with that is certain downtime for the rig as well that needs to be calculated into the price. However, if you want a general kind of number, then I would say that’s today, in all areas, we are seeing prices for fixing for that long period. You would probably have to think about between the $130 million to $165 million would be the rates that are being tendered. We have been announcing contracts in just about every geography in excess of the 120, 130 already.
So I think that it is clearly something that is that rates are going up, and it is not just limited to one or two areas. You see it across the board. But I would say, if I would have to make a comment around leading prices that people are putting on it would be anywhere in the 130 to 165 at this moment. But this is a continuously moving target. And as less rigs get available obviously, that is something that will continue to go up. Any other question online?
Operator: Yes, we have one more. What upfront payment are you asking to put the newbuild order for $300 million? And what day rates and contracts would lead to this?
Patrick Schorn: So I don’t want to be perceived as the experts of dealing with yards on newbuilds at this moment. Because as we have stated before, we are not anticipating to lean into this cycle and start building assets because we think there is other options for us. However, from what we understand, the pricing to be is that rapidly, it is increasing towards the $300 million. We understand that about 50% will have to be paid down before start, which is just in comparison of the past is very different, which clearly then becomes of a large down payment. And if you think about rigs costing that kind of initial investment, you would have to think about day rates in excess of $200,000 to actually justify a rig in the high 200s, and you would probably have to have a contract in hand or something like seven years before somebody gets into it.
So I think from the speculative behavior of our industry in the past where people would build rigs without having contracts in hand because the capital intensity increasing as much as it’s doing today, I don’t think people will do that, but it will require contracts of seven-year plus, and I would say day rates well over $200,000 per day for that to make sense. Once we reach that point, we’ll have to see how the market behaves, but that is what you would have to get before you would want to get in dose type day rates. Any other questions on online.
