Expectations for hires and pay rates in oil and gas industry H1 2011

Expectations for hires and pay rates in the
oil and gas industry ( H2 ) July - December 2011

Contents

Introduction 1

Survey Summary 2

Africa 3

Americas 4-5

Asia Pacific 6-7

Australasia 8

Caspian 9

Europe 10

Middle East 11

Air Energi Overview 12

OilCareers Overview 13

Regional Comparisons 14-15

Contacts 16

Copyright @ Air Energi Group Limited
Disclaimer: The Air Energi, OilCareers.com H2 Workforce Survey 2011 is representative of an added value service
to clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey report is
interpretive and indicative not conclusive. Therefore information should be used as a guideline only.

www.airenergi.com

Introduction

Welcome to the second 2011 edition of the Workforce Economically, we have sustained sector growth at a manageable

Survey and Report produced in partnership with pace. Environmentally, we have scrutinized operations and
regulations for riskier projects worldwide. Our shared responsibility
Oilcareers.com, we are pleased to inform our
tocreating an and share resources, knowledge personnel, whether
cooperate increased demand for qualified and best practices
readers that through this partnership we have nearly local or expat. Subsea talent remains in high demand and likely to
will be especially important enter a new era of energy production,
increase once Angola gets its own pre-salt exploration programs
tripled the number of survey responses over the last markets and New labour is in this spirit thathave been implemented
underway. demand: it reform measures we present this edition
edition., our sincere thanks to all those who took the ofrecently, geared toward improving working are proud of this
our Global Oil and Gas Workforce Survey. We conditions and
publication government transparency in the to and gas sector, the
improvingas it represents our commitment oil thought leadership
time to respond.
backbone of the Angolan economy.
and involving our clients closely in everything we do.

The familiar refrain of “recruitment and retention,” long the Nigeria
cornerstone of HR policies worldwide, will need to add a third The Nigerian government has
component in the coming years: “training.” Emergent technologies recently approved a $3.5 billion
national electricity grid to put
in LNG and increasingly technical offshore plays in relatively
an end to the country’s chronic
remote corners of the world will demand the very best from
power Ianshortages.
M Langley Ironically,
today’s senior project teams and skilled trades. We’ve observed
Group Executive Chairman
Nigeria seeks to raise much of the
several unique contingency plans being rolled out by international capital required through foreign
ilangley@airenergi.com
and national oil companies to ensure the requisite workforce is partners, in exchange for which the
on behalf of Air Energi
government promises increased
available, but it’s universal that more needs to be done.
operational transparency and
above-board administration. Proposed timelines are to have the
new ‘supergrid’ completed by 2014; specialised subsets from local
oil and gas exploits may migrate to this groundbreaking project.
We are delighted to work with Air Energi once again has resulted in the import and export of skilled personnel but where
in the past this has lead to contractors demanding increasingly
to produce this second, mid-year edition of the Yet another federal election is threatening to backburner the
higher fees, Petroleum IndustryUS, the candidate-driven market is
proposed in the likes of the Bill (which would effectively rewrite
Workforce Survey.
forcing a cap on contractor rates as operators are with IOCs) staff
the legal and fiscal basis of Nigeria’s relationships favouring once
positions potentially delaying billions of dollars in energy industry
more, and building strategic alliances with specialist recruiters
The global oil and gas industry continues to experience something
in investments. Until fully revealed and understood, the controversy
order to implement project teams more quickly.
of a rollercoaster journey – not just in terms of fluctuating oil and surrounding the Bill will result in a slowdown in some major projects,
gas prices, but also with regard to political unrest and natural operators opting to remain in holding pattern until it is known what
Where we move now is into a period where the established
disasters - all of this impacting on hiring trends. This latest report
oil and gas centres of the past 10 – 20 years are competing for
does reflect that the guarded optimism experienced across the
skilled personnel with emerging markets where governments are
industry in 2010 is set to continue as worldwide investment is
embracing new industry. However, the challenge that remains is
ramped up across the remainder of 2011.
how to ensure that the next generation is trained and ready to take
advantage of these opportunities.
As a result of this upturn in activity, oil and gas employers are
looking to fill new positions, particularly in the fields of specialist
engineering and in the subsea sector. Venturing into new frontiers
in shale gas and deep water, matched with increasing demand
for LNG and the huge potential reserves identified in the likes
of Columbia, Angola and the Barents Sea brings a number of
cultural, environmental and skill-based challenges. Mark Guest
Managing Director
The shortage of technical skills across the industry and the ability mguest@oilcareers.com
to train the next generation is vitally important. Global demand on behalf OilCareers.com

© Air Energi 2011 www.airenergi.com 1

H2 (2011) Survey Summary

Air Energi and OilCareers.com would like to thank all organisations and participants
who took the time to respond to and influence our survey and report. The returns
clearly show a substantial response from decision makers and industry insiders
across all the oil and gas producing regions. We are pleased to present the findings
in this report for our industry partners to utilse in their future decision making.

• 13,000 + oil and gas professionals were invited to participate

• 5,500 + were either direct recruiters or senior decision makers

• Over 45 countries represented in 7 major oil and gas producing regions

Regional Responses Chart Regional Responses

Australasia Middle East
16% 19%
Caspian/FSU
8%

Africa Americas
8% 17%

Europe APAC
20% 12%

Percentage of responses from each geographical region

Global Regional Comparison
H1 = statistics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.

Salaries and pay rates Hires

Increase Decrease No Change

2 www.airenergi.com © Air Energi 2011

Africa

“ Nigerian rates have typically been infrastructure promises to create up to 500,000 jobs for Nigerians, as
well as bolstering and diversifying domestic energy production and
on the high side for the region but supply. Nigeriaincreased to have the largest natural gas reserves in
creating an is known demand for qualified personnel, whether
are falling now due to the influx of Africa, though it lacks adequateremains in high demand and likely to
local or expat. Subsea talent infrastructure to capitalise on them;
with its “Master Gas Plan”, Nigeria aims to position itself among the
candidates from the Middle East” world’s top naturallabour reform measures have been implemented
underway. New gas producing countries.
recently, geared toward improving working conditions and
Regional Overview Oil majors government transparency in the oil and gas sector,the
improving continue to observe Nigerian prospects from the
One thing remains certain in Africa, uncertainty. As far as emerging backbone of the Angolan economy.
sidelines until the impact the infamous Petroleum Industry Bill (PIB)
regions go, there is tremendous potential scope in Ghana, South will have on revenue and taxation arrangements are known. Recent
Africa, Mozambique, Nigeria, Angola and elsewhere, but most elections and a new senate threatened to pull the debate over the
Nigeria
places continue to experience a track record of poor infrastructure, Bill back to square one, causing recently approved a exceptions
The Nigerian government has additional delay, but $3.5 billion
corruption in the ranks, civil unrest and violence. Basic day-to-day were made to allow grid legislation to continue along its current
national electricity the to put an end to the country’s chronic
challenges such as quality of life, living costs, personal security course. shortages. Ironically, Nigeria seeks to raise much of the
power
are major barriers to mobilising personnel here, and the poor capital required through foreign partners, in exchange for which
rates, almost on par with the North Sea, are not helping attract Following a relatively quiet increased operational transparency and
the government promises quarter one leading into the elections,
better paid personnel. Even for those thrill-seekers up for the activity has since picked up dramatically. Besides pressure have the
above-board administration. Proposed timelines are to for local
experience of a stint in Africa, localisation policies restrict transfer content, the challenge faced by most corporations is convincing
across much of the region. qualified gas exploits may migrate to this groundbreaking project.
oil and expat personnel to accept contracts in Nigeria. Once
passed, the PIB will usher a major influx of work in the region,
increasing demand across the threatening to backburnerand
Yet another federal election is board. Subsea, Safety the
Angola
Environmental expertise remains in(which would effectively rewrite
proposed Petroleum Industry Bill high demand, and expect the
In what should be a seamless process, many EPCs are reporting
budding local naturalbasis industry to be a further tap on qualified
the legal and fiscal gas of Nigeria’s relationships with IOCs) once
to be experiencing difficulty getting paid out of their Angolan
LNG personnel in already short supply worldwide. energy industry
more, potentially delaying billions of dollars in
clients. Corruption and opacity is seemingly pervasive, according
to a recent World Bank report, nearly 76% of firms (the second- investments. Until fully revealed and understood, the controversy
most in the world) operating in Angola identify corruption as a Your Expectations as aslowdown in some major projects,
surrounding the Bill will result in a Region
major constraint to doing business there. operators opting to remain in holding pattern until it is known what
real effect the bill will have on corruption and security concerns.
In spite of these challenges, discovery announcements keep Africa Salaries
pouring out of Angola as rapidly as the oil itself, so there appears
to be no shortage of work ahead for the country. Exploration in 38%
Angola’s pre-salt reserves continues apace, competing with 54%
Brazil for the highly specialised experience in this emergent field.
Other discoveries and major fields are coming into production, 8%
notably Total’s deepwater Pazflor field. ExxonMobil and state-
owned Sonangol were recognised for their industry leadership Increase Decrease No Change
at this year’s Offshore Technology Conference. Their “Design
One, Build Multiple” approach has yielded both operational
efficiencies as well as provided solid opportunities for local
Africa Hires
Angolan employment. FEED, Subsea and Safety work remains in
high demand into 2011.
58%
Nigeria 30%
Nigerian National Petroleum Corporation recently ranked rock-
12%
bottom by two corporate transparency watchdog groups. Yet
Nigeria is making small steps to ground its energy sector and
improve administrative transparency. A recently announced plan
to construct extensive gas, fertilizer and petrochemical plants and


Americas

“When senior staff retire they are be in the right job and you can very quickly have a less-than-optimal
local workforce. Will this in fact be the reality for Brazil as it seeks
almost always backfilled by tocreating an last opportunity for itself out of its natural resource
eke every increased demand for qualified personnel, whether
contractors.” bounty.or Unemployment talent remains in high demand and several
local expat. Subsea is at an all-time low, and whilst likely to
commitments by Angola gets its own pre-salt exploration programs
increase once foreign corporations to create local operating and
technologicalNew labour reformhave been have been implemented
underway. training centres measures made, the demand for
Regional Overview engineering geared toward expertise in-country isconditions and
recently, and construction improving working staggering.
Overall, the Americas are riding the wave of high oil prices and improving government transparency in the oil and gas sector, the
high global demand, with many countries seeing double-digit Demand for of the Angolan economy. in Brazil are set to increase
backbone major offshore installations
growth in rig activity year on year. Of note, particularly for the as Petrobras tries to trim as much as possible from its pre-salt
region, is a more resilient US economy, buoyed by increased exploration costs, the majority of which will likely be constructed
Nigeria
activity and confidence in the energy sector in terms of oil prices atThe Nigerian $1.7 billion shipyard, the largest of its kind in the
Brazil’s new government has recently approved a $3.5 billion
and domestic production with the moratorium lifted in the Gulf of Americas. The shipyard is to put an endcreate 3,500 construction
national electricity grid anticipated to to the country’s chronic
Mexico and increasing momentum in shale gas plays. jobs with shortages. Ironically, during the construction phase. Local
power an additional 10,000 Nigeria seeks to raise much of the
content (of 55% tothrough foreign partners, firm focus here, to the
capital required 65% overall) remains a in exchange for which
Regional NOC’s have all announced aggressive investment plans extentgovernment promises increased operational transparency and
the that even state-owned Petrobras was reported to have been
to boost production and domestic supply out of the Americas fined by authorities for not utilising adequate Brazilian-supplied
totaling some $440 billion over the next five years. Heavy Chinese materials. In spitecompleted by 2014;other incentives being offered
new ‘supergrid’ of tax breaks and specialised subsets from local
investment continues here, particularly in support of Venezuela’s tooil and gas exploits maypartners to is ultimately up to industry to
international business migrate it this groundbreaking project.
vast Orinoco reserves and Brazil’s burgeoning pre-salt exploration. find a way to play by the rules in Brazil’s massive pre-salt game.
If momentum in shale gas exploration and extraction continues,
Yet another federal election is threatening to backburner the
expect to see Argentina and Colombia move in for their share
of the South American energy spotlight. FEED and construction Canada Petroleum Industry Bill (which would effectively rewrite
proposed
the legal and fiscal basis of Nigeria’s relationships with IOCs) once
Development of Canada’s exploits offshore east coast have slowed
work in support of new exploration and production facilities and
more, potentially delaying billions of dollars in energy industry
back to typical levels with the delays on the Hebron project, the
pipelines is driving employment in the region.
investments. Until fully revealed and understood, the controversy
vibe is still positive though somewhat less manic. Activity will ramp
up dramatically in 2012 when a slowdown in some major detailed
surrounding the Bill will result in the project moves into projects,
Argentina engineering,opting to the work back into pattern until it from Houston.
operators bringing remain in holding local markets is known what
Just 10 years following a serious economic meltdown, Argentina
Although things bill will have on corruptionis still continuing, and the
real effect the have been delayed, work and security concerns.
now ranks at Latin America’s number three economy, its nine
press to bring Newfoundlanders back home from Alberta and other
per cent growth in 2011 the product of strong manufacturing and
global points is ongoing.
automotive sectors. The outlook may well be even rosier in the
coming months: several major discoveries made late last year
Western Canada continues its upward trend, albeit also building
signal an extremely busy time ahead for Argentina’s energy sector.
later than anticipated in early 2011, but the net result is that the
Home to vast reserves of unconventional gas and shale oil, the
trajectory will be steeper over the next six to 12 months. As with
Neuquén basin is the current hotspot in Argentine energy E&P.
other markets on swift rebound such as Australia, the level of
Analysts suggest the technologies being developed here may
activity post-recovery is expected to eclipse that of pre-recession.
prove to be industry trend-setting. Musings of relaxed immigration
Labour markets at both ends of the country are continuing to
policies to allow for full technical support of these explorations have
tighten, with subsequent rate expectations creeping upward. It is
yet to surface, though with sector activity picking up so dramatically
becoming increasingly a candidates’ market. Employers, however,
across South America it’s unlikely Argentina will allow itself to
are doing all they can to keep downward pressure on rates; those
be left in the dust. The next round of federal elections is due in
that are holding tighter to this strategy are losing more and more
October, and whilst left-leaning president Cristina Fernandez may
potential starts to other opportunities either in Canada or elsewhere.
not have the full support of unions and public sector workers, she
Project Controls and Project Services remain in high demand, as
also cannot afford to alienate much-needed foreign investment.
do Construction, Civil and Electrical disciplines. Subsea expertise
here, as elsewhere, is in dire need.
Brazil
Overly protectionist labour policies have been found to deter Colombia
employment growth more so than protect against unemployment, Colombia is not the only nation to have fallen victim to natural
compound this with the risk that the right people may not in fact disaster this year, the damage caused by months of heavy rains,


Americas

one of Columbia’s worst natural disasters, has been estimated number of direct hires to manage these costs near and long term.
to cost billions and take years to rebuild. Everything from towns Several EPCs have also been trending towards ‘recruitment process
to roads, agriculture to mining has been affected. Civil unrest outsourcing’ as temporary extensionsqualified HR departments to
creating an increased demand for of their personnel, whether
may be further fuelled if proposed reforms to alter the distribution ramp up project Subsea talent remains inefficiently.
local or expat. teams more quickly and high demand and likely to
of oil and mining revenues among provinces are successfully increase once Angola gets its own pre-salt exploration programs
passed, posing a potential threat to industry operations here.
Rebels are still flexing their muscles against energy and mining
Venezuela labour reform measuresworking conditions and
underway. New
recently, geared toward improving
have been implemented

President Chavez finds himself in a dilemma at the moment as its
operations: pipeline and railroad bombings and kidnappings have improving government transparency in the oil and gas sector, the
election year. Desperate for investments to fully ignite development
all been reported in recent weeks. Government interventions to backbone of the Angolan economy.
of its vast Orinoco reserves, particularly when oil prices are so high,
keep inflation low, redistribute the wealth earned from resource
the administration must maintain some veneer of being cooperative
royalties, and amend relations with its labour unions – and in
toNigeria outside financial commitments. Still, there is the persistent
entice
general maintain a favourable investment climate are just a few of
threat Nigerian government has recent cash grab ina the form of
The of nationalisation, and a recently approved $3.5 billion
the obstacles to overcome in the months ahead. national windfall taxes onto put an end to the country’s chronic
electricity grid revenue earned by foreign oil companies
additional
with operations in Venezuela are majorseeks to raise much ofat a
power shortages. Ironically, Nigeria deterrents, particularly the
In spite of this, oil production hit record highs in Colombia at the capital required through foreign partners, in exchange for which
time when regional neighbours Colombia, Argentina and Brazil hold
end of quarter one of this year, and is in sight of a targeted one
great government promises to be far safer choices.transparency and
the potential and appear increased operational
million barrels per day by the end of the year. Colombia has also above-board administration. Proposed timelines are to have the
set ambitious goals for coal exports, putting plans in place to
Promises to create 3.5 million jobs in construction, from local
new ‘supergrid’ completed by 2014; specialised subsets oil, and
improve infrastructure and reduce shipping bottlenecks. Having
farming are resonating well with the this groundbreaking project.
oil and gas exploits may migrate to still-beleaguered Venezuelan
auctioned off dozens of blocks and signed hundreds of E&P
population. Hikes to minimum wage have also been made recently.
contracts, Colombia is more than prepared to accept outside
Nationalisation federal election is threatening to backburner the
Yet another has historically been Chavez’ preferred method
investment, the question remains whether its immigration policies
ofproposed Petroleum Industry foreign companies setting up shop
job creation, but with fewer Bill (which would effectively rewrite
will be equally accepting of foreign expertise to operate and
across all sectors, his administration relationships with IOCs) once
the legal and fiscal basis of Nigeria’s may actually have to roll up
manage these developments in a timely fashion.
their sleeves and figure out abillions of dollars in energy industry
more, potentially delaying way to get the job done themselves.
investments. Until fully revealed and understood, the controversy
Increasingly, mainstream candidates out of Venezuela such as
USA Project Controls have been lessaprominently coming to market of
surrounding the Bill will result in slowdown in some major projects,
operators opting to remain in holding pattern until it is known what
late.
Following a host of recent economic and public relations
batterings, it’s finally good news for the energy sector on many
fronts in the United States. The industry breathed a heavy sigh Your Expectations as a Region
of relief as a notable increase in drilling permits for the Gulf of
Mexico have been issued of late, though much of the equipment Americas Salaries
has since been deployed elsewhere in the world. Design work
out of the US has thus picked up significantly, both in support of
47%
offshore new builds as well as LNG projects here and abroad.
51%
North American natural gas reserves may not be sharing the
2%
spotlight to the same extent as those in Qatar or Australia, but
with the massive increase in global appetite for LNG developers
in the US are getting in front of the trend as much as possible.
LNG import terminals onshore United States that have sat largely
idle for the past several years are now being converted to export
Americas Hires
terminals. Here, as elsewhere, top LNG expertise is sorely needed
to develop the massive Marcellus fields and related production
and supply infrastructure. 64%
28%
Overall, the US is becoming more of a candidate-driven market,
8%
though rates remain largely balanced for the moment. Employers
are taking a more guarded approach to manpower costs, rather
than enforcing caps on contractor rates, many are increasing the


Asia Pacific

“Mentoring of local staff is helping arduous licensing processes and other administrative hurdles have
historically been to blame. In response, the Indonesian government
nationalise the workforce.” has openlyan increased demand for expertise personnel, whether
creating enlisted foreign technical qualified to help Pertamina
undertakeexpat. technologicallyremains in high demand and Among
local or new, Subsea talent challenging developments. likely to
the incentives onAngola gets its own pre-salt exploration programs
increase once offer are opening up new acreages for exploration
Regional Overview
and a commitment to fast-trackmeasures have been implemented
underway. New labour reform the completion of pipelines and
APAC is a madhouse of activity at the moment. The global hub for
related infrastructuretoward improving Having taken an overall
recently, geared to boost output. working conditions and
LNG design and component construction, as well as the largest
improving government transparency in the oil and gas sector, the
more balanced approach to foreign investment and involvement
consumer of natural gas by region, APAC’s fabricators, shipyards,
than other Asia Pacific countries, Indonesia and Pertamina are at
engineering firms, and industrial complexes are all hands on deck.
this point relatively well-positioned to maximise the opportunities
Unequivocally, the major concern across the board is workforce.
that currently exist for the region. A new round of licensing tenders
Nigeria
Already stacked with activity late 2010 and into 2011, it was the
has created significant FEED has recently approved ato construct
The Nigerian government work, as has a new plan $3.5 billion
disaster in Japan that pushed the limit in terms of capacity here.
eight smaller LNG terminals and two FPUs. Project Managers and
national electricity grid to put an end to the country’s chronic
Local content, once a major driving force in everything from staff
Construction personnel across all levels are in especially of the
power shortages. Ironically, Nigeria seeks to raise much high
to suppliers, now seems somewhat utopian in the reality of today’s
demand. required through foreign partners, in exchange for which
capital
sheer demand. Overflow of construction work in South Korea is
spilling over into China, whilst workforce is in abundant supply the government promises increased operational transparency and
there, language and lack of technical experience are barriers Malaysia administration. Proposed timelines are to have the
above-board
to more efficient, high-quality builds. Given the volume of work Malaysia is homecompleted by 2014; specialised subsets from local
new ‘supergrid’ to several major LNG engineering projects, and
underway, clients are choosing their business partners much nearly all gas exploits may migrate to this groundbreakingor Rasgas
oil and clients are asking for candidates with Qatargas project.
more strategically, appointing those whom they are confident experience. Whether by concession or by force, Malaysia’s borders
have the capacity to fulfill their needs and offering better rates as are being thrown open to candidates with the backburner the
Yet another federal election is threatening to right technical
incentives for more dedicated service. Construction teams and expertise from all over the world, (which would corporations are
proposed Petroleum Industry Bill and foreign effectively rewrite
FEED personnel are most acutely in short supply across APAC. finding Malaysia an basis of Nigeria’s relationships with IOCs) once
the legal and fiscal easy partner with which to do business. As
mentioned in the section introduction, the big turning point both
Japan in investments. region was the disasterunderstood, thesubsequent
and for the Until fully revealed and in Japan and controversy
The March 2011 earthquake and tsunami decimated Japan’s urgency for LNG Bill will Add in this major activity out of Australia
surrounding the supply.resultto a slowdown in some major projects,

energy sector resulting in the need to import up to 10 million (for which Malaysia, remain in holdingSingapore areiskey support
operators opting to Indonesia and pattern until it known what

megatonnes (mt) per year of LNG in the long term to offset lost centres) andthe bill will have regardless of ethnicity, take immediate
real effect staffing levels, on corruption and security concerns.

nuclear power capacity. Japan, already the world’s number one priority.
importer of LNG, will now need to fill a 10 gigawatt gap in power
supply following Fukushima Daiichi. LNG is considered the most In terms of domestic development, several new federally-sponsored
reliable and flexible fuel to fill the power shortfall. Despite Russia’s tax incentives are available for foreign corporations for exploration
efforts to provide the extra LNG cargoes and the proximity of and production of new areas either on or offshore as well as to
Japan to Sakhalin Island most of the extra fuel will come from maximise production from smaller fields already developed.
Qatar. Of that extra LNG that Japan will need in the near to Downstream activity is also moving at a brisk pace. FEED and EPC
medium term, about four million mt/year will come from Qatar, with disciplines in LNG, Subsea and Construction Project Managers,
approx 1.5 million mt/year from other sources. Japan’s dilemma Quality and Safety personnel are in critically short supply.
has strengthened the position of gas on the global market for the
foreseeable future. The increased need for gas could accelerate Singapore
the implementation of the proposal to add a third train at Sakhalin The boom in construction activity in Singapore’s yards has filled
2 or the LNG project under consideration at Vladivostok. Japan capacity to the brim. The modularisation of LNG components poses
and Russia recently agreed to consider this as part of ongoing a significant drain on construction personnel, very ‘part’ may be
joint ventures and future negotiations. farmed out to different design houses and fabrication firms, for
which there must each be requisite teams of engineers, project
Indonesia managers, construction supervisors, and labourers. Orders are
The success ratio of prospecting in Indonesia is reported to be piling in for new builds, rig conversions, FPSOs, et cetera, putting
the highest in the world, yet production outputs are on the decline supervisory roles in construction, Subsea, Safety, Engineering and
and often behind target, inefficiencies to which the country’s Project Management expertise in all disciplines in peak demand.


Asia Pacific

Given the mounting pressure for subsea and LNG equipment technical schools. Vietnam has found a clever workaround to a
worldwide, timely delivery on projects has taken precedence over multitude of circumstances stacked against them, and should be
local content regulations, the right experience proving the only well on their way to a new form of energy independence within the
creating an increased demand for qualified personnel, whether
insurance against major delays and cost overruns. next few years. Subsea talent remains in high demand and likely to
local or expat.
Thailand
The woman poised to become Thailand first female prime minister
Your Expectations as measuresworking conditions and
underway. New labour reform
a Region been implemented
recently, geared toward improving
have

acknowledged huge challenges in reconciling her divided country, improving government transparency in the oil and gas sector, the
after an election landslide seen as a rebuke of the military-backed backbone of the Angolan economy.
establishment that ousted her brother. Yingluck Shinawatra’s Asia Pacific Salaries
massive winning majority will likely boost Thailand’s stability in Nigeria
the short term and reduce the chance of intervention by the coup- The Nigerian 56%
government has recently approved a $3.5 billion
prone military. Thailand’s priorities look to be shifting towards national electricity grid to put an end to 38% country’s chronic
the
extensive exploration work, potentially opening the door to more power shortages. Ironically, Nigeria seeks to raise much of the
direct foreign investment and involvement. Thailand’s Energy 6%
capital required through foreign partners, in exchange for which
Minister recently announced that Thai natural gas reserves may the government promises increased operational transparency and
run out in less than 20 years, citing overdependence on natural Increase Decrease No Change
gas for electricity generation as the primary drain on the resource. new ‘supergrid’ completed by 2014; specialised subsets from local
Given the highly technical nature of exploration and development oil and gas exploits may migrate to this groundbreaking project.
here, coupled with regulatory uncertainties and seemingly endless
political turmoil, Thailand may have a more difficult time attracting Asia Pacific Hires
foreign funding to the same degree as neighbouring industry proposed Petroleum Industry Bill (which would effectively rewrite
hotspots Malaysia, Indonesia and Singapore. Construction 42%
the legal and fiscal basis of Nigeria’s relationships with IOCs) once
of natural gas infrastructure (pipelines and import facilities) more, potentially delaying billions of dollars in energy industry
42%
continues at a brisk pace in efforts to keep up with increasing investments. Until fully revealed and understood, the controversy
domestic demand. Subsea exploration is also ongoing, though to 16%
surrounding the Bill will result in a slowdown in some major projects,
a lesser degree than other countries in the region. LNG expertise operators opting to remain in holding pattern until it is known what
here, as elsewhere, is in high demand, along with Construction/ Increase Decrease No Change
Project Managers and related EPC disciplines.

“Important to maintain workforce
during this period of stiff competition
and high turnover.”

Vietnam
The swift and thorough clearing out of expat personnel from
Vietnam was purported to be in the interest of increasing
Viet national personnel so as to save costs and drive the
local economy. Yet something of an about-face has begun to
transpire, with cash in hand and dim prospects in domestic fields,
PetroVietnam has aggressively pursued developments in several
other countries of late. Recognising the lack of high-level expertise
among Viet nationals to man up these projects, PetroVietnam has
simultaneously begun to bring top expat personnel back, this
time functioning as mentors to recent graduates of Vietnamese


Australasia

“Several major concurrent LNG and PNG
mining projects are putting strain on There is little federally-owned land in Papua New Guinea. This
may seem good news for resource extractors, except rather than
available resources.” local or expat. Subsea talent remains in high demand and likely to
dealing with one central body for licensing and permits corporations
must court the approval of individual communities prior to project
underway. New labour reform measures have been implemented
Regional Overview commencement. One glitch and the venture may collapse. This
The massive scale of projects in Australasia, in the tens of billions kind of community affairs capability with so many moving parts
of dollars in capital expenditures, only magnifies how critical labour requires a special type of development team, one that both has
cost and labour availability are against preventing mammoth cost the finesse as well as the interest to do so in what is an extremely
overruns. Corporations face significant inflammatory pressures challenging and risky environment. Once the legal affairs are
Nigeria
sorted, then comes the challenge of attracting supplemental labour
when rates are nudged up slightly or risk serious delays when
headcount is not optimised. Fortunately for Australia, energy is from abroad, training locals to meet national content a $3.5 billion
The Nigerian government has recently approved quotas, living

king, so if there is talent to be had generally Australian oil and gas in tough conditions, grid to put an end labour with higher rates
national electricity and competing for to the country’s chronic

ventures have deeper pockets than other local industries such on offer shortages. Ironically, Nigeria seeks to raise Despite this,
power from PNG’s well-established mining sector. much of the

as mining or infrastructure. Not so with Papua New Guinea, but PNG holds huge through foreign partners, resources andfor which
capital required potential with its mining in exchange massive

workarounds in terms of sourcing cheaper offshore labour are deposits of natural gas, and project activity is gaining traction and
the government promises increased operational transparency and

being found. quickly pickingadministration. Proposed timelines are to have the
above-board up.
oil and gas exploits may migrate to this groundbreaking project.
Your Expectations as a Region
Australia
The rate of development in Australia is blistering at the moment, Yet another federal election is threatening to backburner the
with FIDs being announced seemingly every day. This represents proposed Petroleum Industry Bill Salaries would effectively rewrite
Australasia (which
a big step-change in hiring, from remote offices overseas to the legal and fiscal basis of Nigeria’s relationships with IOCs) once
major crew mobilisations on-site; however an increasing shortage more, potentially delaying billions of dollars in energy industry
49%
in availability of local Australian and New Zealand personnel is investments. Until fully revealed and understood, the controversy
forcing corporations to look elsewhere for headcount. Fortunately, 49%
surrounding the Bill will result in a slowdown in some major projects,
the federal government has been swift to recognise the handicap operators opting to remain in holding pattern until it is known what
2%
strict localisation policies can impose, and has in turn granted real effect the bill will have on corruption and security concerns.
state-level governments the autonomy to dispense expat work Increase Decrease No Change
visas directly to corporations according to project needs specific
to their region. These efforts have thus far prevented any
significant spike in rates, though with so many projects scheduled
to go to construction phase soon the writing is on the wall in terms Australasia Hires
of potential shortages and rate increases for skilled labour. Then
consider megaprojects like Gladstone, Wheatstone and Ichthys, 75%
each in the tens of billions of dollars, and each having either been
15%
granted environmental approvals or are soon scheduled to be.
In the meantime, the slowdown of activity in the Middle East has 10%
brought many Australians home for work. With unemployment
holding at five per cent, the federal government has developed Increase Decrease No Change
a range of training and re-skilling programs aimed at bringing
expat Australian workers home. High demand remains for
LNG expertise, Project Engineering, Quality, Procurement and
Construction personnel across Australia.


Caspian

“Localisation forcing companies to moment appears to be on track with PSAs formally in place now
between each participating country. In the meantime, in a potential
release expats based solely on effort to settleincreased domestic discontent, the Azeri government
creating an bubbling demand for qualified personnel, whether
policy, leaving long-term vacancies has opened the oil-revenue remains in highvarious public works
local or expat. Subsea talent taps to fund demand and likely to
projects and related salariesits own pre-salt explorationFEED and
increase once Angola gets and employment. Expect programs
on project teams.” constructionNew labour reform the cominghave been megaprojects
underway. work to pick up in measures months if implemented
Shah Denizgeared Nabucco proceed as planned. conditions and
recently, II and toward improving working
Regional Overview improving government transparency in the oil and gas sector, the
Progress on many of the major projects in the Caspian region Russia of the Angolan economy.
backbone
has been slow across the summer, though activity is anticipated Domestically, the Russia finance minister has the nation’s oil
to pick up in six to 12 months’ time. Complexities surrounding barons in his sights once again, announcing a new regime of taxes
Nigeria
taxation, royalty rates and ownership structures have yet to be and the scrapping of some existing systems for the nation’s largest
The Nigerian government has recently approved a $3.5 billion
fully resolved, despite the massive investments made here in operators.electricity grid to a knock-on effect with oil companies
national This may have put an end to the country’s chronic
support of megaprojects such as the Kashagan offshore oil field. warning shortages. investmentNigeria is muchto raise much difficult
power of delayed Ironically, which seeks needed. It’s a of the
There has been no slowdown in the wooing of additional funding, balancing act with the Ministry anxiously looking for ways to which
capital required through foreign partners, in exchange for scrap
however, in spite of less-than-committal trading partners found athe government promises has provedoperational transparency and
hike in social taxes that increased damaging to the investment
in local oil ministries and NOCs. Yet even as IOCs like Conoco climate. To the untrained eye, the oiltimelines are to have the
above-board administration. Proposed industry appears to be
and Shell are announcing exit strategies from the region, others flourishing in Russia, but the gains mask an accelerating from local
new ‘supergrid’ completed by 2014; specialised subsets decline in
including Statoil quick to take their place. West Siberiaexploits maymost prolific production provinces, forcing
oil and gas one of the migrate to this groundbreaking project.
interested parties to venture into even more remote and difficult
Kazakhstan terrain. Russia federal election is threatening to move ahead with
Yet another has vast gas reserves but needs to backburner the
Kazakhstan is courting major international investments to fast- difficult Arctic LNG projects to boost(which would effectively rewrite
proposed Petroleum Industry Bill production output. Political and
track the development oil, natural gas and mining reserves. To economical turmoil basis of the worldrelationships withinternational
the legal and fiscal around Nigeria’s has intensified IOCs) once
do this, it must compete with the likes of Brazil and Australia, also operators resolve to make headway in Russia and the Arctic, where
keen to capture billions of dollars in funding. Kazakhstan has deals have notoriously been difficult tounderstood,win and retain.
investments. Until fully revealed and tender for, the controversy
attracted more than $150 billion in foreign investment since its surrounding the Bill will result in a slowdown in some major projects,
independence from the Russian Federation in 1991. Yet drop- Your Expectations in holding pattern until it is known what
operators opting to remain as a Region
of-a-hat changes to ownership, royalty and tax structures are real effect the bill will have on corruption and security concerns.
not uncommon, raising concerns over a potential shift toward
Caspian Salaries
resource nationalism.

Details of financial arrangements have yet to be resolved between 44%
the Kazakh government, its national oil and gas corporations and 56%
participating IOCs, holding up progress on several major projects
0%
here, to the extent that Shell recently demobilised staff deployed
at Kashagan for second-phase FEED work. The first phase is on
schedule to begin production in 2012, however the second, more
costly, phase may be postponed for several more years in efforts
to bring development costs down.
Caspian Hires
Azerbaijan
Mounting tensions both within Azerbaijan and between Azerbaijan 40%
and neighbouring Armenia are adding to the political sensitivities
44%
severely complicating the energy industry at present. The critical
link here is the supply of Azerbaijani gas to support construction 16%
of the Nabucco pipeline, a major supply conduit for gas between
the Caspian region, the Middle East and Europe. Construction Increase Decrease No Change
of Nabucco is scheduled to commence in 2012, and for the


Europe

“There is a shortage of trained assets, as potentially diverting investment funds elsewhere. Yet
given the higher cost of labour and operation and mature fields,
engineering staff, with training the so-called ‘tax-grab’ seems an easyqualified personnel,the more
creating an increased demand for scapegoat against whether
programs cancelled in the 70/‘80s likely driver of new major global prospects anddemandoil prices. In
local or expat. Subsea talent remains in high strong and likely to
spite of this, the UK continental shelf remains exploration programs
increase once Angola gets its own pre-salt competitive overall.
and never fully reintroduced.” underway. New labour reform measures have been implemented
Whereas new E&P activity offshore UK has been conditions and
recently, geared toward improving working on the decline
Regional Overview into 2011, decommissioning remains in the oil and gasin the UK,
improving government transparency a heavy focus sector, the
Whereas the oil and gas industry in the UK continues to lament the presenting an the Angolan economy. related Project Management,
backbone of increased demand for
seemingly punitive tax regulation changes recently implemented Engineering, Planning and site personnel. Disciplines such as
aimed at its operators in the North Sea, Norway is benefitting Structural and Process Engineers are also in short supply.
Nigeria
from an influx of investment in support of maximising the further The Nigerian government has recently approved a $3.5 billion
exploration of its offshore assets through a combination of Mainland Europe to
national electricity grid put an end to the country’s chronic
new licenses and tax incentives. Lingering concerns over the Densely shortages. Ironically, Nigeria seeks to highly much of the
power populated, environmentally aware, raise urbanised,
Eurozone debt crisis are a backdrop to some degree, but given Europe consumesthrough foreign partners, in exchange for which
capital required vast amounts of energy yet is dependent on
the international nature and focus of work done here it is unlikely foreign supplies to a larger degree than many other regions.and
the government promises increased operational transparency All
to have any direct effect over inbound design activity in London, this leaves Europe tied ratherProposed timelinesprice to have the
above-board administration. vulnerably to the are of a barrel
Aberdeen, or mainland Europe. Overall it has been a positive ofnewwith all its knock-on effects rippling throughsubsets from local
oil ‘supergrid’ completed by 2014; specialised many aspects of
first half for the region. As elsewhere, corporations are bracing the economy, most notably the value of groundbreaking project.
oil and gas exploits may migrate to this the Euro, and vice-versa.
themselves for potential rate increases, particularly for the Compounding this will be uncertainty surrounding the debt crisis out
shortage of qualified personnel in specific disciplines. ofYet another federal election is threatening to backburner the
Greece. Cost of living is high, as are taxation rates. Yet in spite
ofproposed Petroleum Industry Bill (which would effectively work in
doing some of the most technologically-advanced design rewrite
Scandinavia the legal and fiscal basis of Nigeria’s relationships with IOCs) once
the world, Europe’s engineering staff and contractors are relatively
Rapid project expansion continues in what may be termed a North underpaid. Late 2011 and 2010 may of dollars in energy industry
more, potentially delaying billions hold promise for higher rates
Sea renaissance, driving demand for project personnel across thanks to increasing fully revealed and understood, the controversy
investments. Until design activity. Safety, Process, and Planners
many disciplines locally, though North Sea fabrication activity is surrounding the Bill will result in a slowdown in some major projects,
remain the most sought-after disciplines.
largely supported by yards out of Asia Pacific. The Norwegian operators opting to remain in holding pattern until it is known what
government is crafting recommendations and policy to ensure Your Expectations ascorruption and security concerns.
real effect the bill will have on a Region
operators are given the incentives to maximise every field, with
Norway’s oil and energy minister citing that increasing recovery
Europe Salaries
out of current operations on the Norwegian shelf is “as important
as making new discoveries.” Where new developments are being
pursued, they are in the far north Barents Sea, development 58%
of which will require new technology able to withstand harsh 40%
climactic conditions (and meet Norway’s strict environmental
regulations) and the development of new shipping routes. 2%

UK
The demand for contractors is up in the UK, and unlike the
United States, EPC firms are choosing to keep permanent staff
levels unchanged and supplement with contract positions where Europe Hires
required. Rates, which were on the decline into the beginning of
2011, have begun to increase thanks to longer contract terms. 68%
With the pickup in activity worldwide many contractors who
29%
couldn’t previously enjoy the luxury of being choosy have since
returned to their favourite locations, projects or employers. 3%

Some put the blame on decreasing new activity on recent UK Increase Decrease No Change
tax structures, which have changed the book value of North Sea


Middle East

“Most contractors 55+ would rather Australia and Asia Pacific. Of the demographic outbound from
Qatar, a good number are native Australians returning home where
retire than work for a substantial pay similar major project work has opened up during their time away. In
decrease, leaving a gap, which will spite of a universal Qatarisation program for major employers, the
quotas or expat. Subsea talent remains in high demand and likely to
local are impossible to fill, so almost all the work is being done
in turn push rates up.” by expats. once Angola gets its own pre-salt exploration programs
increase
underway. New labour reform measures have been implemented
Regional Overview UAE
The political instability felt across much of the Middle East
Interest in reinvesting in Dubai has increased in light of political
has fortunately not affected all producing countries. What is
unrest elsewhere in the region, in spite of a debt load in excess of
noticeable is an increasing number of candidates coming from
some 140% of GDP, Dubai is by contrast a relatively safe haven for
Nigeria
Libya and Bahrain into safer zones in Qatar and the UAE. With oil
international investment. It has also remained well insulated against
The Nigerian government has recently approved a $3.5 billion
prices on average higher than in 2010, the region is as attractive
violence and unrest felt across much end toMiddle East and North
national electricity grid to put an of the the country’s chronic
as ever given it’s relatively low cost of development and operation
Africa. An influx of candidates released from recently completed
power shortages. Ironically, Nigeria seeks to raise much of the
and massive supply, ample supply routes and supporting
projects in Qatar (as well as a smallpartners, seeking safer contracts
capital required through foreign number in exchange for which
infrastructure.
outside of Saudi Arabia or Bahrain) has been noticed, however key
the government promises increased operational transparency and
talent is being placed almost immediately into other roles elsewhere
Iraq without ever coming to market. 2014; specialised subsets from local
new ‘supergrid’ completed by
Iraq has started a multi-billion dollar upgrading of its oil export oil and gas exploits may migrate to this groundbreaking project.
pipelines, a vital element in its plans to boost production. The Even in a nation as wealthy as this, social spending and an acute
modernisation of Iraq’s dilapidated energy infrastructure destroyed sensitivity to the general happiness of its population has spurned
or rendered useless by years of conflict, sanctions and neglect, is a proposed Petroleum Industry Bill (which wouldloans to shore up
commitment of nearly $2 billion for housing effectively rewrite
essential to boosting production and exports. Safety and security shortages and fiscal basis of Nigeria’s relationships with IOCs) once
the legal felt by Emeratis. Pledges for increased infrastructure
remain the biggest problem in Iraq and further measures need spending have alsodelaying billions of dollars in energy projects
more, potentially been made recently. These domestic industry
addressing by the coalition government. The recent surges of will certainly Until fully revealed and understood, the controversy
investments. increase demand for construction and project
bloodshed cast doubts on their ability to control this. Despite the management the Bill will result in alikely not to the detriment of the
surrounding personnel, though slowdown in some major projects,
problems Iraq is moving ahead with plans that include a new energy sector. FEED,remain in holding pattern untilsignificant rise in
operators opting to Project Management, and a it is known what
network of pipelines through neighboring countries. In 2010, Iraq Piping, Pipeline bill will have on corruption and security concerns.
real effect the and Process Engineers are currently most required.
and Turkey signed an agreement to expand the operation of the
twin pipelines that carry circa 400,000 barrels of oil a day from the Your Expectations as a Region
Kirkuk oilfields in northern Iraq to Turkey.
Middle East Salaries
Qatar
The completion of megaprojects like Shell’s Pearl Gas-To-Liquids 39%
plant has resulted in the demobilisation of tens of thousands of
56%
workers recently, mainly construction personnel, though some
must remain on-hand for maintenance related work. 5%

Senior LNG expertise without contracts are being snapped up by Increase Decrease No Change
Rasgas and Qatargas in support of future LNG expansion projects,
and any remaining candidates finding immediate employment in
Asia Pacific or Australia. A massive petrochemical refinery project Middle East Hires
announced by Shell is expected to revitalise employment statistics
in Qatar, though for the moment much of the design work is being 54%
handled elsewhere and major staff increases are not expected
27%
until eight to twelve months from now.
The demobilisation of significant numbers of expats in LNG and 19%
construction is welcome news for expertise hungry areas like


Regional Comparisons

Key Increase Decrease No Change
H1 = statistics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.

Africa - Salaries and Pay Rates Africa - Hires

Americas - Salaries and Pay Rates Americas - Hires

Asia Pacific - Salaries and Pay Rates Asia Pacific - Hires

Australasia - Salaries and Pay Rates Australasia - Hires


Regional Comparisons

Key Increase Decrease No Change
H1 = statitics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.

Caspian - Salaries and Pay Rates Caspian - Hires

Europe - Salaries and Pay Rates Europe - Hires

Middle East - Salaries and Pay Rates Middle East - Hires


Air Energi is a truly global workforce • Recruitment In-sourcing - Experienced oil and gas recruitment
experts assigned into client organisations to enable large scale
services company operating
recruitment programs
exclusively in the oil and gas sector. • Search - Contingent & retained permanent recruitment
With over 30 years experience in assignments
the sector our goal is to become the • Project HR Support – Tax and payroll immigration, transport,

recognised, foremost provider of health, security, accommodation and ongoing care
• Vendor Management – Recruiter vendor supply chain
trusted expertise to the international
oil and gas industry. Key Stats
• 1500 consultants currently assigned to major projects
Headquartered in Manchester UK, Air Energi has regional Hubs • Workforce 60% local/regional hires and 40% Western Expats
in Houston, Doha, Singapore, Brisbane and Manchester with • Present in 30 global locations
offices in 30 locations worldwide. • Experience in a total of 50 countries
• Major clients include ExxonMobil, ConocoPhillips, Shell & Total
Air Energi’s core values of passion combined with innovation • EPC clients include Worley Parsons, Wood Group, AMEC,
and pragmatism are evident across the group as is our deep Bechtel and KBR
knowledge of the industry, our inclusiveness and desire to go that
extra mile. But above all, we deliver!
Our range of services includes:
• Technical Workforce Consulting - The identification,
mobilisation and support of technical consultants assigned to
major oil and gas projects worldwide
• Commissioning and Inspection Resources - Fully equipped,
multi disciplined teams for major oil and gas capital
development projects


Expectations for hires and pay rates in oil and gas industry H1 2011

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Expectations for hires and pay rates in oil and gas industry H1 2011