Workforce Survey H1low Res

Expectations for hires and pay rates in the
oil and gas industry ( H1 ) January - June 2012

Contents

Introduction 1

Survey Summary 2

Africa 3

Americas 4-5

Asia Pacific 6-7

Australasia 8

FSU - Caspian 9

Europe 10

Middle East 11

Regional Comparisons 12-13

Air Energi Overview 14

OilCareers Overview 15

Contacts 16

Copyright @ Air Energi Group Limited
Disclaimer: The Air Energi, OilCareers.com H1 Workforce Survey 2012 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 another edition of the Air Energi and The responses are innovative and wide-ranging: internships, virtual
Oilcareers.com Workforce Survey of trends and mentorship, supplementary offsite education programs, more
predictions for the energy sector. As we enter our flexible government allowances towards working retirees, and a
fourth year of this publication, it is remarkable to general re-think of what retirement and retirement age needs to be
reflect on the changes we have undergone as are just some of the moredemandtrends observed.
creating an increased recent for qualified personnel, whether
an industry in such a short time: from an industry local or expat. Subsea talent remains in high demand and likely to
increase once Angola gets its own pre-salt exploration programs
brought to its knees all the way to boom time, new As you read through this edition perhaps contemplate that it is our
underway. New labour reform measures have been implemented
technologies emerging seemingly daily, and exciting youth who will be the custodians of some of the most costly and
recently, geared toward improving working conditions and
new frontiers to conquer from unconventional gas to complex exploits the world has ever seen. We and gas sector, the
improving government transparency in the oil urge our clients to
ultra-deepwater pre-salt exploration. do all they canthe Angolan economy.
backbone of to give young professionals the tools they need to
succeed, starting now.
If it feels as if we are reeling as an industry, we probably are. Nigeria
The Nigerian government has recently approved a $3.5 billion
Commodity values have recovered on paper but remain tenuous, At Air Energi we are rising to face the exciting demands before us
national electricity grid to put an end to the country’s chronic
political tensions in key locales are flaring up, we are on the mend into 2012. We have expanded our operations and are pleased to
power shortages. Ironically, Nigeria seeks to raise much of the
from two massive environmental disasters, and the risks and introducerequired throughParis, Den Haag and South Koreawhich
capital Moscow, Iraq, foreign partners, in exchange for into
associated costs of today’s megaprojects are higher than ever the Air Energi Group. As always, we are absolutely committedand
the government promises increased operational transparency to
before. helping our clients find the global workforce solutions they have the
above-board administration. Proposed timelines are to need.
new ‘supergrid’ completed by 2014; specialised subsets from local
oil and gas exploits may migrate to
Air Energi’s commodity is the exceptional talent we place into the this groundbreaking project.
most challenging projects worldwide every single day. We know
that with them we are all in good hands. But we need to prepare Yet another federal election is
Ian M Langley
threatening to backburner the
ourselves for the next generation of technical professionals who Group Executive ChairmanBill
proposed Petroleum Industry
will be replacing the thousands anticipated to retire over the next ilangley@airenergi.com
(which would effectively rewrite the
few years. How will the industry overcome these challenges? legal and fiscal Air EnergiNigeria’s
on behalf of basis of
relationships with IOCs) once
more, potentially delaying billions of dollars in energy industry
investments. Until fully revealed and understood, the controversy
We are again delighted to work with Air Energi on Recognising the vast skills base slowdownto capitalise on these
surrounding the Bill will result in a required in some major projects,
the first Workforce Survey of 2012. developments, OilCareers.comholding pattern until itan known what
operators opting to remain in will be undergoing is expansion
programme theearly 2012. on corruption andour UK HQ to new,
real effect in bill will have We are moving security concerns.

Despite the economic downturn being experienced globally, 2012 bigger premises in Aberdeen, while we will also be opening new
is set to be an exciting year for companies operating in the oil and offices in Perth and Brisbane to cover our Australian clients, which
gas industry. There is a real sense of optimism, not just in the UK, will be quickly followed by Calgary in Canada.
but around the world.
We’re delighted to be working with Air Energi once again to produce
This buoyancy is reflected in the jobs market too, with OilCareers. this bi-annual Global Workforce Survey. Its regional commentary
com enjoying record numbers of new applicants and vacancies, will bring valuable insight to the whole industry.
a telling sign of confidence within the energy sector. Despite the
various challenges last year, including uncertainty over regulation
and the well-documented Arab Spring, our industry is nothing
short of vibrant.

Mark Guest
Unconventionals are revolutionising North America’s gas sector, Managing Director
while operators continue to invest in the UKCS. Australia too is mguest@oilcareers.com
one to watch, with a significant future role as an exporter of LNG. on behalf OilCareers.com

© Air Energi 2012 www.airenergi.com 1

H1 (2012) 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.

• 10,000 + oil and gas professionals were invited to participate

• 6,500 + were either direct recruiters or senior decision makers

• Over 50 countries represented in seven major oil and gas producing regions

Regional Responses Chart

UK - Europe 22%
Africa 6%
Australia 18%

FSU Caspian
9%

Middle East 11% Americas 18%

APAC 16%

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.

Contract Pay Rates Permanent Salaries
100 100
90 90
80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10

H1 H2 H1 H2 H1 H1 H2 H1 H2 H1
2010 2010 2011 2011 2012 2010 2010 2011 2011 2012

Increase Decrease No Change

2 www.airenergi.com © Air Energi 2012

Africa

“Through testing over the past 50 Nigeria
years results show that countries up Though local content legislation here may seem over the top, when
put into context, Nigerian oil productionqualified personnel, whether
creating an increased demand for commenced in 1957 yet the
the coast of Africa have natural gas Nigerian Oil and Subsea talent Content Act wasdemand and likely in
local or expat. Gas Industry remains in high only just passed to
2010. The local content targets are a pre-salt the right direction for
increase once Angola gets its own step in exploration programs
in abundance and data collected by underway. New labour reform measures have been implemented
Nigerian service companies, who have since been given primary
industry experts also suggest the consideration for new toward improving working conditionssome
recently, geared projects. The Act also purports to create and
300,000 new jobs as a result of more contracts beinggas sector, the
improving government transparency in the oil and retained here
presence of massive offshore oil as opposed to being farmedeconomy.
backbone of the Angolan out overseas, and Nigerian banks have
deposits.” provided incentives to local suppliers to enable them to become
Nigeria
viable project partners. Long-time Nigerian business partners like
Regional Overview Total are rightly government has recently approved a content as
The Nigerian proud to boast majority levels of local $3.5 billion
well as laying the foundation for local technical training programs.
A massive natural gas find in Mozambique (hitherto a relatively
minor regional player) could catapult it into the company of
Angola, Nigeria and Ghana. Security concerns are still present, That’s the good news. The bad news is that labour strikes which
capital required through foreign partners, in exchange for have
but international confidence in the region is on the rise. This may recently brought promises increased operational transparency and
the government operators and government to their knees. At
be a matter of fact or simply an acceptance on behalf of energy the core of the administration. Proposed timelines are to have for
above-board dispute was the sudden end to fuel subsidies the
supermajors prepared to assume the risk for the rewards on offer Nigerians, which completed by 2014; specialisedgas at afrom local
new ‘supergrid’ keeps the price per litre of subsets meager
here. Successes are indeed triumphant, such as Total’s Pazflor $0.41. Nigeria’s economymigrate to this groundbreaking project.
oil and gas exploits may is heavily dependent on oil exports,
and CLOV projects offshore Angola, and Ghana’s Jubilee, which and the world is also highly dependent on Nigerian oil supply. If
have recently come online and are each capable of producing in an agreement cannot be reached, threatening to out of the blue
Yet another federal election is the seemingly backburner the
excess of 100,00 bpd. subsidy issue could plunge the country intowould effectively rewrite
proposed Petroleum Industry Bill (which anarchy.
the legal and fiscal basis of Nigeria’s relationships with IOCs) once
Inmore, potentially delaying billions of dollars usual, and industry
the meantime, offshore E&P is business as in energy a $5.5
Angola billion LPG plant should go into construction phase thethe first half
investments. Until fully revealed and understood, in controversy
Unlike Nigeria, Angola boasts strong manufacturing and
ofsurrounding the Bill will result in a slowdown in some major projects,
this year.
fabrication services to support energy-related projects. Local
operators opting to remain in holding pattern until it is known what
content rates have jumped from 70 to 90 per cent, which some
IOCs have remarkably been able to achieve. Better education Expectationswill have on corruption and security concerns.
real effect the bill for Africa

and technical training has been recognised as a core requisite,
but these measures will not be an immediate solution. So, in spite
Contract Pay Rates
of poor amenities, threats to personal security, and swallowing
the highest cost of living anywhere (in Angola’s capital, Luanda), 30%
expats are helping keep the energy industry, which accounts for 40%
85 per cent of Angola’s GDP, going.
30%

As elsewhere in Africa, what appears sound on paper may vary
widely from reality. No matter what the intent of local officials or
foreign investors, something in the deal inevitably goes pear-
shaped. Were Angola and Nigeria not sitting on 40 per cent of
Permanent Salaries
the continent’s oil and 67 per cent of its gas, and were the price
of oil not so positive, the backhand dealings may not have been
50%
tolerated for so long. But with billions of oil and tons of natural gas
in reserves, nobody is pulling the plug on exploration here. 28%

22%
Angola’s massive pre-salt deposits will continue to be explored,
and a gas liquefaction plant is scheduled to be commissioned in
2012, keeping FEED, Subsea & Safety personnel in high demand.


Americas

“Even with some government knock either work with relatively inexperienced local entities, establish
branch office operations, or attempt to navigate Brazil’s notoriously
backs on advancement the Americas thick bureaucracy. Inflation is increasing dramatically here, with two
creating an increased demand for qualified personnel, whether
are still growing their oil and gas oflocal or expat. Subsea talent in the top 12 highest cost oflikely to
Brazil’s biggest cities now remains in high demand and living.
Hiring is universally expected its pick up sharply, but despite all the
increase once Angola gets to own pre-salt exploration programs
community.” activity Brazil’s rates mayreform measures areas for the time being.
underway. New labour lag behind other have been implemented
The repatriation trend observed in Latin working may help filland
recently, geared toward improving America conditions in
Regional Overview some of the governmentlocal content regulations will gas sector, the
improving blanks, but transparency in the oil and have to relax,
Project activity is booming in the Americas, from the tip of Alaska and grant permits to non-Brazilians with the necessary senior-level
backbone of the Angolan economy.
to the tail of Argentina. Asia Pacific, Australia, the Middle East and experience required by such technologically demanding projects.
to some extent the United States have grabbed the LNG spotlight Nigeria
in recent months, but Latin America is not lagging far behind, Asia Pacific willgovernment has a key fabrication contributor to
The Nigerian continue to be recently approved a $3.5 billion
posting significant import volumes as well as commissioning a Brazil’s offshore developments, an end to the country’s chronic
national electricity grid to put but construction activity has
second LNG export terminal. Going into 2012, Latin American increasingly been undertaken by Brazilian shipyards, a much thatthe
power shortages. Ironically, Nigeria seeks to raise trend of is
countries should be in better shape to take on the development of expected required through 2012 and beyond in exchange for which
capital to continue into foreign partners, creating thousands of
their own megaprojects following the repatriation trend observed much-needed onshore construction jobs. Though transparency and
the government promises increased operational the government
here in 2010/11, but may also experience higher rates as a result. is above-board administration. Proposed timelinesgrowth in check,
attempting several measures to keep economic are to have the
Rig counts are up significantly over 2010, but rig workers (and Brazil’s inflation sits at a hefty 7 per cent. This, combinedfrom local
new ‘supergrid’ completed by 2014; specialised subsets with the
equipment) remain in critically short supply here and elsewhere. high and gas exploits may migrate to this groundbreakingincreasing
oil risks associated with ultra-deepwater drilling, is project.
With so many vast untapped reserves and relatively stable pressure from labour unions who are demanding wage increases
politics (as compared to Africa and the Middle East), the region ofYet another federal Qualified Subsea, Environmental, HSE and
some 17 per cent. election is threatening to backburner the
will continue to be an attractive destination for investment dollars. Quality personnel will be critical to (which would effectively rewrite
proposed Petroleum Industry Bill ensure projects are delivered
timelylegal and fiscal basis of Nigeria’s relationships with IOCs) once
the and to spec.
Argentina more, potentially delaying billions of dollars in energy industry
Argentina recently announced its largest ever shale oil discovery Canada Until fully revealed and understood, the controversy
investments.
in the Nequen province, good news for a country whose domestic Though Canada remainsresultof the most sought-after destinations
surrounding the Bill will one in a slowdown in some major projects,
reserves have been forecasted to run out in as little as eight years. for industry opting to remain in holding seen a until it is known what
operators professionals, it has also pattern voluntary departure
This find holds the potential to significantly increase Argentina’s rate in effect the bill will have on corruption and security concerns.
real excess of 40 per cent. Even here, employers are capitulating
energy self-sufficiency but will require highly skilled drilling to the increased rates, innovative incentives and even counteroffers
technicians in order for it to proceed, and with very few other shale that top talent has come to expect from competing projects both
oil exploits in the world this is a significant variable. And then there in Canada and from abroad. The recruitment sector is busy here
remains the question of who’s to do it: typically oil majors are too supporting the employment needs of projects ranging from in
risk-averse for experimental technologies, yet the more daring situ oilsands to shale gas to offshore, and searches for the right
independents likewise have to have the financial and technological personnel often span across the globe.
backing to succeed. Government price caps on domestic oil and
gas pricing (approximately 25 per cent below market value) hinder Canadian immigration regulations are notoriously thick, slow to
international majors from rushing to develop either its shale oil react, and enforce rate standardisation among peers. Strategies
or massive shale gas deposits, reported to be the third largest in for most clients with larger international recruitment programs is to
the world. Here, as in Colombia and Brazil, construction trades focus on mobilisations into staff roles from markets where Canada
will be in high demand as the requisite infrastructure to support a is considered to be a key long term opportunity for their families.
maturing domestic energy sector is developed. These include India, the Philippines, South America and the United
Kingdom. For these programs, core issue remains the strength of
the relocation package and level of settlement support for the family,
Brazil
the actual cost of living in Canada relative to wage structures, and
For all its promise, Brazil will prove to be a highly demanding
residual concerns over the strength of the Canadian market with
business environment for international corporations, forced to
lingering memories of the 2009-10 downturn.
balance highly risky plays, astronomical development costs, and
perhaps most challenging, to accommodate Brazil’s steep 80 per
Overall, the Canadian oil and gas industry is anticipated to remain
cent local content legislation. Work-around options are slim: it’s
on an upward trajectory through 2012-2013, peaking through 2013


Americas

in western Canada based on current forecasts. Roles currently are anticipating more layoffs than hires at the end of 2011, which
targeted over the next 12-18 months include core Engineering and may be welcome news to US-based corporations looking to man up
Design disciplines, Project Controls, Subsurface and Operations. on various an increased demand for qualified personnel, whether
creating projects.
local or expat. Subsea talent remains in high demand and likely to
Colombia Experienced personnelgets itsaown pre-salt exploration programs
increase once Angola are top commodity regardless of
Employers in need of expat talent for local projects can expect to specialisation. “Five to fifteen” is measures number: with this comes
underway. New labour reform the magic have been implemented
pay a pretty premium over rates in other countries, upwards of 30 a recently, incentivestoward improving including raises, bonuses,
roster of geared to stay on board, working conditions and
per cent more than average rates in Australia, Asia Pacific or North new assignments and promotions. Contractorsand gas sector, the
improving government transparency in the oil are now regularly
America. Contracts arising from Colombia’s licensing rounds in backbone of the Angolan economy.
tapped by agencies and corporations alike, in sharp contrast to
2010 are being finalised, so expect FEED work to pick up as a 2009 where almost any job offer was welcome. Clients are looking
result. And there is more to be done: more than 6.5 billion barrels for ways to enhance their staffing capabilities internally or looking to
Nigeria
are in place in just two of Colombia’s largest fields, but developers outsource the hiring process to help win the war on talent.
have done little to expand their E&P activity to other areas. So national electricity grid to put an end to the country’s chronic
why not here? With the majority of reserves being inland, lack
Venezuela
of infrastructure has become a strong deterrent to a faster pace
Struggling to boost output foreign partners, in exchange for which
capital required through for several years yet sitting on some of
of development. Improvements such as major refinery upgrades
the largest oil reserves in the world, operational will be unable to
the government promises increased Venezuela transparency and
and transportation are underway, though. State-run Ecopetrol is
move forward without the estimated $80 billion requiredto have the
above-board administration. Proposed timelines are to develop
putting Colombia first, having dedicated some 90 per cent of its
its heavy oil-richcompleted belt. Worse still, thesubsets from local
new ‘supergrid’ Orinoco by 2014; specialised flow of cash in
2012 capex to local E&P and construction projects. oil and gas exploits may migrate to this groundbreaking project.
Venezuela has become outbound: recent arbitration settlements
between PdVSA and ExxonMobil over nationalised assets may
Colombia has also been unable to avert the contagion of labour
prove another federal a long line ofthreatening to backburner the
Yet to be the first in election is payouts owing to international
unrest that has hit the oil industry in Latin America recently. Strikes
entities whose assets have been seized in would effectively rewrite
proposed Petroleum Industry Bill (which recent years.
and protests have flared up of late, labourers citing environmental the legal and fiscal basis of Nigeria’s relationships with IOCs) once
concerns, wage disparity and unfair distribution of oil revenues more, potentially delaying billions of dollars in energy industry
With elections on the horizon, complicated by reports of his own
as the main causes. The catalyst for industry development in
failing health, Chavez is revealed andcourting popular favour with
investments. Until fully once again understood, the controversy
Colombia is not production (which has doubled over the last four
broad-reaching social programs. Inslowdown in some major projects,
surrounding the Bill will result in a the absence of new international
years) but transportation bottlenecks. Here, the cooperation of
investment opting to significance, Venezuela until it is known what
operators of any remain in holding pattern recently signed an
local labourers is a more critical factor than high-end engineering
agreement with bill will have on corruption and security concerns.
real effect the Iran to build 10,000 housing units, a move that will
expertise. Security remains an ongoing concern for operators and
surely create construction employment for some time, though well
their employees in remote regions.
short of the 3.5 million in job creation initiatives promised.

USA Expectations for the Americas
Shale gas development is gaining momentum here, supported by
positive market trends, improved public opinion towards shale gas Contract Pay Rates
exploration and the promise of much-needed jobs and economic
recovery. This recent enthusiasm will be highly contingent upon 55%
gas pricing in the months ahead. Several new discoveries 42%
have been announced since E&P activity resumed in the Gulf
of Mexico. With 3800 rigs currently active in the GoM, Drilling 3%
and Completions personnel are in particularly high demand (a
shortage being felt the world over). Companies are having a Increase Decrease No Change
harder time finding people across the board, given the breadth of Permanent Salaries
exploration and project work in the industry there is no such thing
as a glut of any particular skillset. Rates are subsequently slowly
64%
creeping up here as elsewhere.
30%
Several US majors are back in full swing, having announced 6%
capex budgets in excess of pre-2009 levels, yet manufacturing
remains cautious; according to a recent report, sector employers Increase Decrease No Change


Asia Pacific

“2010 was the largest reduction in Australia. Local design firms are extremely busy at the moment
both in finding solutions to their own domestic energy emergency
oil demand in history. The economic as well as in support of the long roster qualified personnel, whether
creating an increased demand for of megaprojects abroad.
downturn saw oil consumption drop local or expat. Subsea talent remains in high demand and likely to

by 3 million bpd. In 2011 we saw Indonesia Angola gets its own pre-salt exploration programs
increase once
Though the New labour reform measures have been implemented
underway. focus in Indonesia may not be on exploration and
the global market start back towards upstream-related investments, its downstream sector boastsand
recently, geared toward improving working conditions a
robust increase in investments of nearly $2.5and gas over 2011
improving government transparency in the oil billion sector, the
relative normality, offering investment backbone of the Angolan economy.
thanks to fabrication and refinery demand from abroad. As such,
opportunities across the industry. Project Managers and Construction personnel remain in high

This looks to continue into 2012 with demand. Indonesia remains committed to increasing output
Nigeria
from its current government has recently approved a $3.5 billion
The Nigerian projects as well as exploring and fast-tracking
the rising demand and new projects developments in conventional and unconventional natural gas.
launching globally.” LNG extraction hereIronically, Nigeria seeks to of its much of the
power shortages. is as competitive as any raise neighbours;
the massive Genaldo-Gehem deep waterinnatural gasfor which
capital required through foreign partners, exchange project
is the government promises increased operational transparency and
expected to enter construction phase in early 2012 and once
Regional Overview online will produce a staggering 1.1 billion cubic are to have the
above-board administration. Proposed timelines feet of natural
2012 promises to be a record-breaker in Asia Pacific once again. gas daily. 2011’s completed by 2014; specialised increased activity
new ‘supergrid’ licensing rounds have created subsets from local
Asian economies are expected to represent half of the world’s in oil and gas exploitsas well. Participating IOCs enjoy long-term
the EPC sector may migrate to this groundbreaking project.
growth over the next five years and 75 per cent of the global working relationships with Indonesia, and given the incentive to
increase in energy demand. Local and regional companies boost domestic federal election is threatening given the latitudethe
Yet another production are for the most part to backburner to
continue to figure prominently in overall industry activity, though operate as required. Construction work on LNG and fixed platforms
proposed Petroleum Industry Bill (which would effectively rewrite
somewhat in decline under a modest relaxing of nationalisation is the legal and fiscal basis of Nigeria’s relationships with IOCs) once
driving demand for related disciplines.
policies. There is a seemingly limitless appetite for engineering more, potentially delaying billions of dollars in energy industry
and technical expertise all over the region, particularly as
Malaysia Until fully revealed and understood, the controversy
investments.
China tries to play catch-up with fabrication and construction surrounding the Bill will result in a slowdown in some major projects,
Malaysia’s strong engineering talent base amd oil and gas
powerhouses in Singapore and Korea, as well as develop its operators opting to remain in holding pattern until it is known what
experience have made Petronas an attractive joint venture partner.
much-needed domestic energy reserves. Refineries, chemical real effect the bill will have on corruption and security concerns.
In efforts to diversify its energy portfolio and secure long-term
and power processing are also growing at unprecedented
growth, Petronas has been both investing in several projects
rates. APAC experienced the biggest jump in salaries into 2011,
abroad as well as aggressively courting international partners with
supported by strong regional commitment to boost production.
which to build massive refinery projects to support the burgeoning
Across the entire region, the following disciplines are in increasing
activity across the region. This, coupled with attractive federal tax
demand: Naval Architects, Subsea Engineers, Construction
incentives for exploration and production, keep Malaysia at the
Advisors, Project Controls specialists, QA/QC, Safety Engineers
forefront of industry activity worldwide.
and Process Engineers.

But with tens of billions of dollars in investments earmarked for
Japan new Malaysian industrial refining projects, infrastructure delays in
Japan’s still-battered energy sector is making great strides in a projects of this scale can create costly bottlenecks, as has been
quest to fill the 10 gigawatt shortfall in domestic power supply experienced by certain vendors. Given the breadth and scale of
following the disaster at Fukushima Daiichi. The ensuing spike projects underway, there is virtually no discipline not in demand
in LNG demand was almost immediately felt and responded both upstream and downstream, but with several projects expected
to within the region, significantly adding to the growth of LNG- to move from FEED to construction in 2012, expect Construction
related infrastructure. With little in local or regional reserves, Project Managers, Quality and Safety personnel to be most acutely
Japan quickly joined forces with other NOCs on projects such needed. Significant offshore developments will also be underway
as Rosneft and Sinopec’s development of the massive Sakhalin into 2012, spiking demand for drilling exploration expertise. Fixed
3 LNG project. Japanese operator Inpex has also achieved a platform and LNG engineering and construction personnel are also
major milestone, becoming the first-ever Japanese operator for highly sought after.
the colossal Ichthys LNG project recently announced offshore


Asia Pacific

Singapore more easily recoverable resources they can easily find themselves
Nearly $15 billion in rig builds from Brazil alone are anticipated in sticky situations where even the terms of agreement may later
to be announced in early 2012, for which Singapore’s Keppel be contested ifincreased demand forenough to personnel, whether
creating an the find proves large qualified warrant the flexing
and SembCorp Marine figure prominently. Also in the mix are a oflocal or expat. Subsea talent remains in high demand and likely to
political muscle.
potential 200 shipyard orders from semisubmersibles to floating increase once Angola gets its own pre-salt exploration programs
production units. And this is before taking into account the Following the post-recession exodus ofhave been implemented
underway. New labour reform measures skilled expat labour,
real impact the Ichthys megaproject will have on construction Vietnam hasgeared toward improving working conditions toand
recently, adjusted its thinking to enable foreigners to return fill
and fabrication yards here. With the technical know-how and gaps in expertise and mentor young Vietthe oil andstudents along
improving government transparency in technical gas sector, the
construction capacity required to support hundreds of billions the way. Similar sharing of economy. equity (including innovative
backbone of the Angolan intellectual
in project investments worldwide, the nationality of a contractor working visa exchanges) has been formally initiated between
has become of little concern. Several projects (LNG, refinery and Vietnam NOCs and India’s ONGC Videsh Limited. Construction
Nigeria
FPSO) are either in the design engineering phase or construction of multiple refineries is expected to commence here as well in the
and commissioning phases. coming months.
Thailand capital required through foreign partners, in exchange for which
Despite declining production in neighbouring Asia Pacific the government promises increased operational transparency and
countries, a new wave of discoveries in Thailand are helping insure
Expectations for APAC
above-board administration. Proposed timelines are to have the
its economic stability as well as continued foreign investment. new ‘supergrid’ completed by 2014; specialised subsets from local
The commencement of Chevron’s Platong II natural gas project Contract Pay Rates
oil and gas exploits may migrate to this groundbreaking project.
should ease earlier concerns over domestic energy supply: this
project alone stands to increase Thai energy production by 10 Yet another federal election is threatening to backburner the
53%
per cent. The country’s first LNG receiving terminal is expected proposed Petroleum Industry Bill (which would effectively rewrite
41%
to begin operations in 2012, for which the much-needed domestic
supply infrastructure is already in construction. And in a textbook more, potentially delaying billions of dollars in energy industry
6%
example of the increasingly geopolitical nature of offshore investments. Until fully revealed and understood, the controversy
exploits, Thailand has recently engaged in talks with neighbouring surrounding the Bill will result in a slowdown inChange major projects,
Increase Decrease No some
Cambodia to develop significant crude and natural gas deposits operators opting to remain in holding pattern until it is known what
along their long-contested maritime border. Agreements are real effect the bill will have on corruption and security concerns.
already in place with Chevron and Total. Though not the hotspot
in the region, there remains strong demand for Subsea and LNG Permanent Salaries
expertise, as well as Construction/Project Managers and EPC
disciplines. 61%
30%
“The Asia Pacific oil and gas industry
9%
consists mainly of cash rich national
oil companies with unrivalled access Increase Decrease No Change

to domestic oil and gas resources.”

Vietnam
Concerns over declining domestic production were allayed
somewhat with several recent finds in the South China Sea, but
there’s a catch: Vietnam believes the reserves to belong to them,
whereas China claims all of the South China Sea. This is not an
isolated occurrence. As energy companies struggle to find new,


Australasia

Regional Overview or it may prove an expensive mistake by compromising export
Australia’s labour crunch just tightened a couple of notches with revenue through delays and cost over-run penalties on the oil and
the go-ahead of the Ichthys LNG project in January 2012. This gas projects. increased demand for qualified personnel, whether
creating an
mammoth $34 billion development will require an estimated 4,000 local or expat. Subsea talent remains in high demand and likely to
construction workers once in full swing. This announcement may Otherwise,once Angola gets its own the latitude from government
increase corporations here enjoy pre-salt exploration programs
have come as a sucker-punch to other competing megaprojects in underway. New labour reform measures have been implemented
to test different programs to fast-track import of foreign labour or
the region, themselves contending with serious labour shortages retrain non-energy personnel with aligned skills conditions and
recently, geared toward improving working through unique
and resultant delays and cost overruns. In true pioneering fashion approachesgovernment transparencyprograms and training centres
improving like adult apprenticeship in the oil gas sector, the
however, Australia is creating solutions to remain competitive in designated of the Angolan economy.A specialised coalbed methane
backbone for indigenous peoples.
spite of the king-size hurdles in front of them. training centre has also been recently established to ensure
projects are staffed with the right kind of local expertise; this centre
Nigeria
alone Nigerian government has recently approved a $3.5 billion
The is anticipated to provide employment for 1,000 people.
Australia national electricity grid to put an end to the country’s chronic
Ichthys, Gorgon, Wheatstone, Gladstone. The sheer volume and With the pendulum shifting once again to a candidates’ market,
scale of current projects in Australia should place an extraordinary expect top talent to give up posts in developing areas in favour
capital required through foreign partners, in exchange for which
premium on Engineering personnel as well as Construction, of competitive packages, quality of life and opportunities for
the government promises increased operational transparency and
Quality, Project Management and Safety disciplines. There is now advancement within Australia’s titan projects.
a global recognition of the quality of talent that can be found here,
new ‘supergrid’ completed by 2014; specialised subsets from local
making it a prime hunting ground to man up competing projects
PNG gas exploits may migrate to this groundbreaking project.
oil and
locally and globally.
Day rates here are among the highest in the world, owing to
challenging living conditions andthreatening to backburner the
Yet another federal election is strong competition from
As of 2009, the Australian Government dis-incentivised Australian
mining sector. Labour Industryas well as availability, are a serious
proposed Petroleum costs, Bill (which would effectively rewrite
residents to seek contracts in lower tax locations such as the
concern to operators in Papua New Guinea. Sourcing labour either
Middle East, Asia Pacific & Africa through the 23AG tax legislation
from other less-developed areas, training localsin energy industry
more, potentially delaying billions of dollars (a requirement for
requiring them to pay the relatively high Australian income tax
national content quotas revealed and understood, the controversy
investments. Until fully anyway), as well as retaining the expat
even when working out of the country. Along with the slow-
expertise to manage it all is ain a slowdown in somejuggling act. As
surrounding the Bill will result precarious ongoing major projects,
down of LNG and infrastructure projects in the Middle East, a
with challenging environments holding pattern until it is known what
operators opting to remain in elsewhere, PNG’s massive deposits
good number of Australian contractors have indeed returned or
makeeffect the billeffort.
real it worth the will have on corruption and security concerns.
stayed at home for the abundance of work and relatively high
remuneration awaiting them, their skills immediately transferable
and completely avoiding administrative lead time or paperwork.
Expectations for Australasia

On top of this, high value state advertising, employer retention Contract Pay Rates
strategies and government-funded programs are more examples
of what is being made available to keep key personnel from being 42%
lured elsewhere, whether to a neighboring project or another 58%
destination abroad.
0%
For the expat worker, the lure of tax-free Australian quality of
life currently enjoyed under protection of the Living Away From Increase Decrease No Change
Home Allowance (LAFHA) for the duration of their four-year visa
may soon be over. Effective July 1, it is proposed that all foreign Permanent Salaries
nationals will be subject to paying tax on their total gross income,
inclusive of the allowance formerly allocated as LAFHA. For the
52%
employer, remuneration packages formerly on offer will either
simply not be enough (forcing staff and contract personnel to 46%
leave) or they will have to find means to offset their employees’
2%
increased burden (driving project costs upward). It’s a calculated
risk undertaken by the federal government to raise tax revenue Increase Decrease No Change


FSU - Caspian

Regional Overview tests revealed several trillion cubic feet of gas and associated
The Caspian region is known to have some of the richest and condensates. The scale of this project, combined with the potential
least-developed offshore oil and gas deposits anywhere, each held at Shah increased demand for qualified personnel, over the
creating an Deniz, has kick-started stalled negotiations whether
of them capable of leapfrogging the ‘Stans’ out of ramshackle Nabuccoexpat. Subsea talent remains inlinking gas supplies in the
local or pipeline, a 2,000+ mile artery high demand and likely to
FSU economic conditions and squarely into the First World Caspian with mainland gets its own pre-salt exploration programs
increase once Angola Europe. FEED and construction work is
(rampant corruption notwithstanding). Little wonder NOCs are expected toNewin high demand pending have been implemented
underway. be labour reform measures progress of these three
wading carefully into offshore developments, remaining safely major projects.
recently, geared toward improving working conditions and
within national boundaries and avoiding any potential geopolitical improving government transparency in the oil and gas sector, the
upset. Yet the proverbial bridge will one day need to be crossed, Russia of the Angolan economy.
backbone
prompted perhaps by the Nabucco pipeline whose proposed Though highly ambitious internationally in terms of projects and
route threads these international waters. investments, Russian NOCs are extremely challenging to do
Nigeria
business with within their own borders. The bureaucracy is dense
Kazakhstan and without valuable grid to put an end to the country’s can find
national electricity connections international corporations chronic
A ban on the use of employment agencies (so favoured by themselves quickly Ironically, Nigeria seeks to raise much of the
power shortages. sidelined. With the success of internationally-
international corporations desiring to bring in expat personnel) funded projects so heavilyforeign partners, in exchange directives
capital required through dependent upon the personal for which
was in place for several months near the end of 2011, and of who is in charge, much increased operational transparency and
the government promises of the activity in Russia (including the
with it forced several agencies to close up Kazakh operations. final investment decision on Shtokman)timelines are to have the
above-board administration. Proposed is on hold until after the
However pressure from IOCs, whose investment dollars are federal election scheduled by 2014; specialised subsetsre-elected,
new ‘supergrid’ completed for March 2012. If Putin is from local
gravely needed, eventually succeeded in having this legislation it’s expectedexploits maycustomarilythis groundbreaking project.
oil and gas he will be migrate to quick to green-light domestic
overturned. Fortunately for contract personnel, the government exploration and development.
allowed them to remain in-country for the duration of their work Yet another federal election is threatening to backburner the
permits, which for some proved to be enough time for the whole In terms ofPetroleum Industry Bill (which would very prominent in
proposed projects and labour supply, LNG is effectively rewrite
upset to pass. Yet thousands were not so lucky, having been laid Russia with several basis of Nigeria’s relationships widely preferred
the legal and fiscal projects on the go. Locals are with IOCs) once
off from labour-intensive projects like Kashagan. Many of these over expats because of cheaper rates, but top permanent roles and
more, potentially delaying billions of dollars in energy industry
personnel were re-absorbed into other projects with the same technical specialist contracts are still awarded to foreigners (though
investments. Until fully revealed and understood, the controversy
employer or returned to design headquarters in the Netherlands permanent staff is preferred overslowdown in some major projects,
surrounding the Bill will result in a contractors). Many Russians in
and UK. NOCs and IOCs alike are hopeful that there will be a the energy sector grew up post-Perestroika sountil it little allegiance
operators opting to remain in holding pattern have is known what
resurgence of foreign contractors back to Kazakhstan. For 2012 to theeffect the bill will have arecorruption and worldly, and are more
real old school ways; they on educated and security concerns.
the situation is back to business as usual. ambitious to build their careers in London, Canada or America.

On the ongoing saga of Kashagan, the Kazakh government is Expectations for FSU - Caspian
again holding investors under scrutiny further hindering progress.
$130 billion in capex has been invested thus far and the project, Contract Pay Rates
though huge, is barely into Phase 2 FEED. A veritable revolving
door on the project partner list has created gross inefficiencies 30%
in terms of transfer of knowledge, methodology, project team 70%
structure and so forth.
0%

Azerbaijan Increase Decrease No Change
In contrast to Kazakhstan, Azerbaijan’s well-established multi-
billion dollar projects are keeping the area solidly busy. And
Permanent Salaries
revenues from oil and gas are being properly funneled back
into the country, building infrastructure and funding universities
42%
and technical schools to create a well-educated, content, stable
middle class and a local labour pool that is both capable and 53%
happy to stay in-country.
5%

Total recently announced a major deepwater gas discovery
offshore Azerbaijan within a mere 20 miles of Shah Deniz. Initial


Europe

“The ongoing shortage of trained engineering credentials are also highly valuable and proving
difficult to find. There will be a heightened focus on Quality and
engineering staff means there is HSE positionsincreased new guidelines imposed to govern safety
creating an following demand for qualified personnel, whether
a higher demand for qualified fully standardsexpat. Subsea talent remains in high demand and likely to
local or for offshore drilling.
increase once Angola gets its own pre-salt exploration programs
trained people in the industry.” Mainland Europe
underway. New labour reform measures have been implemented
All eyes are on the toward improvingcoming months. In oneand
recently, geared Eurozone in the working conditions of
Regional Overview few cautious approaches to staffing observed,and gas sector, the
improving government transparency in the oil there has been a
European employers may have not been as competitive on slight preference Angolan economy. in Europe at the moment,
backbone of the towards contractors
the offer letters as elsewhere in the world, though they tend employers appreciating the flexibility in case rapid adjustments to
to reverse the global trend by paying local labour more than Nigeria
headcount are required. For the moment, design work is coming in
foreign personnel (on average +20 per cent). It has become atThe Nigerian government Safety, Process and Planners, which
a fast clip, particularly in has recently approved a $3.5 billion
an employee’s market here as elsewhere, particularly for high- may nudge rates upward particularly in those the country’s chronic
national electricity grid to put an end to disciplines.
demand positions such as HSE, Drilling and Design Engineers as power shortages. Ironically, Nigeria seeks to raise much of the
well as construction professionals. Scandinavia and the UK are Home to required through foreign partners, in design talent in the
capital some of the best engineering and exchange for which
booming (or on the verge thereof), whereas mainland Europe is world, Europe is promises increased operational transparency and
the government facing two competing challenges: an increase
understandably more cautious given their potentially calamitous inabove-board administration. today’s megaprojects astowell asthe
the technical difficulty of Proposed timelines are have a
economic uncertainties. In spite of better rates on offer elsewhere new ‘supergrid’ completed by 2014; specialised subsets from local
good portion of the workforce approaching retirement age. Some
in the world, the region very much remains a centre of excellence countriesgas exploitsthe Netherlands are accommodating semi-
oil and such as may migrate to this groundbreaking project.
for the industry. retirees by allowing them to draw their pension while still working.
Other another federal election is threatening to backburner the
Yet initiatives include local mentorship programs for young
Scandinavia technical professionals. In otherBill (which would effectively rewrite
proposed Petroleum Industry industries, the future of nuclear is
2011 was a banner year for Scandinavian oil and gas. The North highly uncertain here, with Germany relationships with IOCs) once
the legal and fiscal basis of Nigeria’s the first to pledge to phase
Sea accounted for half of the global increase in rig count in 2011, more, potentially delaying billions of dollars in energy industry
out its nuclear power program by 2022. Wind energy projects
creating a rush for pre-FEED and drilling expertise. Whereas even have been gaining momentum, and may begin to the controversy
investments. Until fully revealed and understood, more seriously
12 months ago the focus in the area was maximising existing impinge on the oil and gas labour pool as in some major projects,
surrounding the Bill will result in a slowdown ambitious plans have
reserves, three major finds by Statoil as well as a historically large been announced to increasein holding pattern power in known what
operators opting to remain wind-generated until it is Europe 35-
licensing round have reaffirmed offshore Scandinavia’s position fold following the nuclear disaster in Japan. security concerns.
real effect the bill will have on corruption and
as a leader in the industry. In response to industry pressure,
new operators both large and independent (42 in all) have been Expectations for Europe
awarded licenses during the last round, loosening Statoil’s
dominance. Hiring activity remains brisk into 2012 in support of Contract Pay Rates
several new North Sea exploits.

35%
UK
61%
Not far behind Scandinavia, the UK has also handed out 46 new
production licenses during its most recent round. These will come 4%
as welcome news to an industry in need of revived domestic
activity to ward off attrition pressure from other projects around Increase Decrease No Change
the world, Australia in particular. Permanent staff are increasingly
preferred over contractors: less flight risk, slightly lower rates, Permanent Salaries
and more easily mobilised within the organisation either in terms
of succession planning or to other postings abroad. As project 30%
developments ramp up, there may be a swing back toward the
66%
contractors’ favour near the end of the year.
4%
Fabrication, technicians, operations and production personnel are
among the highest in demand, but given the increasingly technical Increase Decrease No Change
nature of offshore exploration here, professional sciences and


Middle East

Regional Overview Though historically a contractor’s market like no other, there has
With expats outnumbering locals 9:1, employers in the Middle been a shift in preference to permanent staff here keeping agencies
East continue to offer some of the world’s most competitive day busy with new recruitment activity.
creating an increased demand for qualified personnel, whether
rates and attractive incentive packages to ensure expat talent
local or expat. Subsea talent remains in high demand and likely to
remains in the region. Competition within the Middle East and
UAE once Angola gets its own pre-salt exploration programs
increase
from potentially more attractive and lucrative markets elsewhere
The UAE is New labour busy. Offshore fabrication work in Dubai
underway. constantly reform measures have been implemented
will put retention strategies at the forefront for many employers.
isrecently, geared toward the next 18-24 months in supportand
expected to grow over improving working conditions of
improving government transparency in the oil and gas sector, the
Nexen’s Golden Eagle project, with most contractors coming out
There has been an overall pickup in activity into 2012 versus last
ofbackbone of the Angolan economy.
UK centres in London and Aberdeen. Here, as elsewhere in
year. For the moment, industry has only slowed somewhat in
the region, there is an increasing trend of permanent or direct hire
countries like Syria and Egypt who are experiencing civil unrest
over contract staff. Dubai has also become a landing post for staff
Nigeria
within their own borders, but other countries in the Middle East
destined to transition to workhas projects in Iraq, creating both an
The Nigerian government on recently approved a $3.5 billion
remain largely unaffected. NOCs are keen to push projects ahead
easier transition for the newly-landed employee ascountry’s chronic
national electricity grid to put an end to the well as providing
and international majors are happy to go along.
practical shortages. Ironically, Nigeria seeks Iraq are too small the
power benefits where on-site facilities in to raise much of to
accommodate extra personnel. FEED, Projectexchange for which
capital required through foreign partners, in Management, and
Iraq a the government promises increased operational transparency and
significant rise in Piping, Pipeline and Process Engineers are
Though the exploration of Kurdish regions remains officially currently most required.
‘verboten’ by the Iraqi government, IOCs who have ventured new ‘supergrid’ completed by 2014; specialised subsets from local
there are netting significant natural gas finds. Development in this Saudi gas exploits may migrate to this groundbreaking project.
oil and Arabia
region is something of a free-for-all; time will tell how long until Though its reserves are still considered to be the greatest in the
the region is officially opened for exploration or regulations are world, anotherArabia may not attract significant foreign investment
Yet Saudi federal election is threatening to backburner the
meaningfully enforced. inproposed Petroleum Industry Bill (which would effectively rewrite
the near term, thanks to regional instability, lack of financial
incentives,and fiscal basis of Nigeria’s compliance regulations.once
the legal and strict environmental relationships with IOCs) But
Foreign operators, many of whom are well-established with this has potentially delaying confidence dollars in Aramco,industry
more, not deterred the billions of of Saudi energy boldly
decades of experience in Iraq, are providing easy contract announcing several fully revealedoil and gas as well ascontroversy
investments. Until new finds in and understood, the increasing
opportunities for service companies. Fortunately for them, the output to the highestwill resultdecades as if to some major projects,
surrounding the Bill level in in a slowdown in declare “we are still
local content regulations are more relaxed here than elsewhere in open for business.” Indeed, some $385 billion until it is known what
operators opting to remain in holding pattern in Saudi investment
the world, though in contrast to other countries they are expected opportunities across numerous sectors weresecurity concerns.
real effect the bill will have on corruption and recently presented
to double over the next two years. But demand is not slowing at a US-Saudi investment forum. The Saudi government has also
down, Iraq’s major energy projects will require tens of thousands recently announced major allocations for hand-outs and a boost to
of engineers and workers, and we expect competition for qualified public spending in an effort to keep social peace.
expats to be fierce. Currently there is a decent pool of skilled and
unskilled labour to hire from, benefitting the culturally disaffected Expectations for the Middle East
unemployed.
Contract Pay Rates
Qatar
31%
Many contractors from Qatargas and Rasgas have shifted to
EPC agencies in Australia under the promise of better rates 68%
and longer-term contracts (the higher rates a necessity for the 1%
contractor leaving an area of tax-free income to one of the world’s
highest taxed populations). In spite of the dramatic pickup in LNG Increase Decrease No Change
work in Asia Pacific, contractors have thus far not gone there in
any significant quantity; people tend to get pigeonholed in certain Permanent Salaries
kinds of projects and Australia’s are more akin to those in the
Middle East. 30%
65%
Activity is steady here with an expected increase now that the $6
billion Barzan onshore project has moved into construction phase. 5%
Pre-FEED and feasibility studies for projects into 2013 such as
Shell’s new petrochemical refinery complex are also underway. Increase Decrease No Change


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