Fredrik Stene: Thank you. That’s a very comprehensive and very helpful. That’s it for me. Thank you very much and have a good day.
Robert Eifler: Thank you.
Operator: Our next question comes from the line of Kurt Hallead with Benchmark. Please go ahead.
Kurt Hallead: I just wanted to maybe extend the conversation of your prior answer there, right? So we’ve heard quite a bit that there’s increasing duration, as you referenced and others have referenced, and that longer duration contract period has, I guess, also translated in terms of a longer negotiation period to finalize those contracts. So kind of taking what you said about pricing, taking what’s going on with respect to longer negotiation periods, I’m just kind of curious how much of that longer negotiation period is related to a bid app spread on pricing.
Robert Eifler: Oh, gosh. Well, actually, I think what’s happened here is in 2024, you had the dynamic I just mentioned where some programs start dates were pushed back to allow for some reactivations, and we actually thought some of those programs were going to go to existing supply. And then at the same time, I think several operators have recognized the discount in the market for longer-term contracts and decided to try to pull together their various different programs into grouped contracts, so that they can go out for more term. And so a few wells that may otherwise have been drilled in 2024, perhaps got pushed to 2025 or later in order to group here for some term. And that’s created a little bit of this white space in 2024. And also the perceived kind of longer negotiation period is a piece of that as well. I don’t know that it’s a significant bid ask as much as the dynamics that I’ve just described.
Kurt Hallead: That’s great. That’s great color. I appreciate that. My follow-up is on the synergies. I’m kind of curious where those synergies are going to land. That can be mostly OpEx or GA or some — or G&A or some combination.
Richard Barker: Yes, Kurt, it’s going to be both candidly, I’d say from a G&A perspective, most of that was probably was realized in 2023. I think going forward; we’ve obviously increased the target from $125 million to $150 million. I think you should think about those incremental synergies sitting more in OpEx.
Kurt Hallead: Okay. That’s great. And if I squeeze one more in, you mentioned supply chain bottlenecks. So, Robert, when do you see those supply chain bottlenecks easing or not getting any worse.
Robert Eifler: Well, I mean I think the same, I mentioned the numbers of reactivations that we’re going through on top of that last year and this year for the industry are peak SPS years. And it starts to slow down a little bit next year and then more substantially in 2026. So I would anticipate that we’re probably at peak bottleneck on the equipment side but there’s strikes in Europe and obviously shipping issues. And so there’s some complicating factors as well, I think that are affecting 2024 and our specific situation right now on the FECO’s [ph] Act that are out with just normal manufacturing supply chain issues.
Operator: Our next question comes from the line of David Smith with Pickering Energy Partners. Please go ahead.
David Smith: I know a decent chunk of Norwegian semi work in the past has taken place in depth that a CJ70 could address. And with all of the semis that have left Norway, I wanted to ask if you’re seeing an operator interest for programs in the next year or two that might otherwise want a semi, but will take a jackup because that’s what’s available.
Robert Eifler: Yes. Yes, there is a good question, David. There — I would characterize it as there is absolutely interest. There is no tangible demand right now. We have done a lot of work on using a CJ70 over subsea template, and we are hoping to get showcased some of that at some point soon. But it’s a little bit too early to claim success in some of the work that we’ve done right now. But for sure, we have conversations all throughout the country and there is interest in exploring that going forward. One thing I will say is that the floater tight — the harsh floater tightness has been known for quite some time. And so I think there’s been also a push by operators there not — well, to fill any white space they can with the rigs they have under contract, so as not to lose a rig to use.
So to the extent that perhaps we had an opportunity to go showcase the CJ70 in some of this transition zone, we probably missed out on a couple of those because operators wanted to make sure they didn’t lose access to preferred harsh floaters. So it’s a continuing, although kind of yet to launch story, I think for the CJ70s, but we remain hopeful.
David Smith: I appreciate that color. And the follow-up, I guess there’s been some media reports that the operator using the Noble Venture of Ghana might want to release that early. Just wanted to ask if you could tell us anything about what kind of termination fee that contract might have and whether an early release is contemplated in the guidance provided.
