John T. Gremp: Jack/St. Malo is moving on pretty well. The tender is expected to come out within the next 30 to 60 days. So that is holding the schedule.
Dollyman is also on track for the first half of 2009. ENI Goliat, that project in Norway that one has been moving out. Then we have almost 20 projects in total that we consider major products that look like they will be in the 2009 time frame and we are tracking all of those.
Peter D. Kinnear: About a third of those are in Angola, a handful in Norway, a number in Australia. All places we have strong positions in.
Robert McKenzie (Friedman, Billings, Ramsey & Co.): What is the most likely first award that you are going to win?
John T. Gremp: There are a couple that we are chasing, St. Malo that one in the Gulf of Mexico, is the target for us. The Jubilee project in Ghana that is also a target for us and hopefully it would be awarded possibly before the end of the year.
Robert McKenzie (Friedman, Billings, Ramsey & Co.): How should we think about call-offs from your Statoil Frame Agreement for the rest of the year here?
John T. Gremp: We got four call-offs, so, we are really pleased with the Statoil Frame Agreement. We are starting to see some call-offs. In the last two quarters, our inbound was driven as much, if not more by call-offs from our various alliances.
In the first quarter we named two alliances, one with Devon and one with LOG and then this quarter, we renewed our Woodside alliance and signed another alliance with Anadarko.
So we are excited about the number of alliances that were adding to our portfolio and expect particularly in the Gulf of Mexico with rigs becoming more available, we are seeing independence call-off more and more systems and I think for the first two quarters of this year, we had healthy inbound from those call-offs.
Robert McKenzie (Friedman, Billings, Ramsey & Co.): Would do you expect backlog to be before 2009?
John T. Gremp: We expect it will be flat.
Robert McKenzie (Friedman, Billings, Ramsey & Co.): How many trees did you inbound during the quarter and what the revenue for tree came out of it?
Peter D. Kinnear: We inbounded 24 trees and in our inbound, we had a significant number of scope changes in some of our projects, which came in as variation orders or change orders to those projects.
So, that was an item and we also had a fair amount of installation service revenue in the quarter relative to the activity with our offshore activities. So, when you calculate the numbers, it is fairly large.
William Sanchez (Howard Weil Inc.): What is your Subsea Tree capacity at the moment?
Peter D. Kinnear: We have been adding globally in terms of our capacity and Brazil was in that equation. We had a fairly small high bay assembly facility and so we bought a piece of property, adjacent to our facility and probably tripled the size of our assembly space.
That was one major investment and we have added some machine tools in the factory in terms of throughput in the process. It depends on the mix of trees, but we probably put local capacity of 50 to 60 trees per year.
We do quite a bit of subsea manifold assembly in our facility and which is a little bit different strategy than we have at some of our other locations, where we subcontract quite a bit of fabrication.
William Sanchez (Howard Weil Inc.): What kind of visibility are you getting with respect to WECO/Chiksan?
Peter D. Kinnear: We have had very strong field activity with the unconventional gas activity in the marketplace. The capital side still, a little slow. We are talking to those service companies about their 2009 game plan in terms of new builds of equipment and add, but about 75% of our revenues come from the field activities and 25 from CapEx. This year, is skewed a little bit more towards the field.
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