Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jim Carndell – Barclays Capital.
James Carndell - Barclays Capital
First question I have is on the Subsea area. Jack, if you look at the outlook for Subsea orders now, do you see the projects that you originally thought that might happen in late '09 or the first half '10 pushed out until much later as well so everything sort of moves to the right or is it just that the project that you thought would happen in '09 had been pushed out?
Jack Moore
Jim, if it would have been at the first of the year I would have said, based on what we saw at the beginning of '09, I would have said yes. We've seen projects move to the right. Nothing really surprises me where we're at today. We continue to see most every major project shift to the right given just the amount of uncertainty around the stability of price, and some of it's not just price, some of it's partners in politics.
So, really it's hard to say in this environment whether moving them to the right is a function of the current environment or just the state of big projects. We see all of them move to the right, more so now I guess in this environment than we have in the past. So, yes, we have far less projects in '09. I think if you look at the current Quest numbers they're predicting 400 trees for '09 plus or minus what happens with Petrobras here on the next lot. That's probably a lower number than we all thought it would be going into this year, but not surprising where we sit today.
James Carndell - Barclays Capital
Do you think that the awards that are taking place, Jack, are becoming more price competitive?
Jack Moore
I would say just based on some the feedback we've gotten a recent project in the North Sea would suggest that.
James Carndell - Barclays Capital
A couple of questions about just specific fields, where do you stand now on the next phase of block 31, do you think that will be an order during 2010? And how about – you mentioned the large tenders in Brazil. How about the pre-salt fields in Brazil?
Jack Moore
As far as block 31 the next phase, as I stated in the last call, we're working closing with BP, looking at the next developments in terms of how do we work with them to take cost out of these projects. I think given, again, their outlook on price being maybe a little less bullish than maybe they were a year ago, a year and half ago, my guess is that we may see something at the end of '10 but probably most likely it's a 2011 event. I think it just kind of depends on how their outlook over the next six months goes.
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