Question-and-Answer Session
Operator
[Operator instructions] Your first question is from Neal Dingmann from Wunderlich Securities.
Neal Dingmann - Wunderlich Securities
John or maybe Patrick a couple of questions. First, for you John, as far as on the guidance, a couple of things. One, I assume that doesn’t bake in any? some of the contracts that Patrick mentioned that’s out there and secondly, I know when Andy talked about the assumptions behind there, obviously, the rate count seems to be, maybe, going a bit lower than the assumptions and if oil prices don’t return the oil might be a bit lower. Would that have to factor into play, later in the year, as well?
John Clarke
Yes, let me address guidance a little bit. The reason that we have put those assumptions in there is to let you know, exactly, what we are thinking about, in terms of what the market may look like. On the rig count front, we are talking about average rigs and not the absolute level drop from the peak. So I think the jury is out as to where both rate count ends up and commodity prices settle out. To the extent they are different than our assumptions, up or down, then they will obviously influence where our results finally come out.
In terms of the assumptions around bookings, we have made as good a guess as we can as to what we believe a core level of bookings will be for 2009 and that’s what’s baked into or baked into our forecast. So at this time, as we said, we’ve made no changes to that forecast, but we are watching the markets evolve and, certainly it is not a time to be heroic in looking at raising numbers, but yet we’ve got confidence, certainly, in first the first half of the year that allows us to defend the numbers that we’ve got.
Neal Dingmann - Wunderlich Securities
Sure John and then one other question, John. As far as, some of the assumptions on additional contracts for additional work, you mentioned the possibilities in Brazil. I was wondering how much or what you see for that market, at least, near term or is that more of a latter ’09 environment and then, secondly, I haven’t heard much lately on Modac, Japan on the offshore business, what’s going on there?
John Clarke
I will take Brazil and then Patrick can address Modac and mop up on Brazil, as well. I think a general commentary about where our global business is, is activity continues to progress, but it clearly has slowed in terms of pace of awards.
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