Complete Oil & Gas Global Salary Guide 2011

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THE OIL & GAS GLOBAL SALARY GUIDE 2010
Global salaries and recruiting trends.

Contents
04 Managing Director Reports 05 Regional Overview Section One - Salary Overview 07 Average annual salary for permanent staff by country 08 Average annual salary for contract staff by country 09 Average annual salary by experience 10 Overview 10 The last 12 months 10 The next 12 months Section Two - Industry Benefits 12 Typical benefits by company type 12 All 12 Consultancy 12 Contractor 12 EPCM 13 Equipment manufacturer & supplier 13 Global super major 13 Oil field services 13 Operators Section Three - Industry Employment 15 Experience & tenure 15 Years of experience 16 Time in current role 16 Employment by company type 17 Movement of workforce 17 Imported workforce v local workforce 17 Working overseas v working in home country 18 Staffing levels 18 In the next 12 months 19 Percentage of staff employed on temporary/contract assignment 20 Job seeking Section Four - Economic Outlook 22 Economic outlook

THANK YOU
We would like to express our gratitude to all those organisations who participated in the collection of data for this year’s survey. More than 7,000 people responded which was certainly overwhelming. This has ensured that we can produce an informative document to help support your business decisions.
Disclaimer: The Oil & Gas Global Salary Guide 2010 is representative of a value added service to our clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced in total or by section without written permission from Hays.

Oil & Gas Salary Guide 2010 | 02

SURVEY SUMMARY

7,000+ 1,900+ 800+ 30+ 20+
PEOPLE RESPONDED TO THE SURVEY DISCIPLINE AREAS COVERED

RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

COUNTRIES WORLDWIDE RESPRESENTED

Oil & Gas Salary Guide 2010 | 03

Managing Director Reports

Matt Underhill & Duncan Freer

THE BEST DECISIONS ARE INFORMED DECISIONS
Managing Director, Hays Oil & Gas Matt Underhill “The past year has seen change of unprecedented levels in the oil and gas industry, through previously unforeseen highs in the oil price, followed by an equally significant drop. Then through the later part of the year, we began to see a steady sustained recovery. And all over the course of 12 months! This survey is therefore of particular interest to many in the industry following a period of such upheaval. Understanding and insight into the current and forecasted cost of labour throughout the world has surely never been in such demand. As such this survey aims to assist our stakeholders to make informed decisions on their staffing needs for the coming year. When comparing many of the factors influencing what employers pay their staff, the results are interesting and in the most part expected but in some cases completely unexpected. With such a large response we are however confident that the figures are a fair reflection on the industry we work in. In this regard we are indebted to our partners; Oil and Gas Job Search, without whom we would not have been able to map the industry as we have done. A big thank you to all the team there. Clearly there is renewed optimism in the industry with many describing their confidence in the current employment market as positive. And long may it continue, for it is those who work within this industry that make it such a rewarding, exciting and fulfilling experience. We hope you enjoy reading the survey and trust it provides you with the information you are seeking.” Matt Underhill, Managing Director, Hays Oil & Gas

Managing Director, Oil and Gas Job Search Duncan Freer

“When Hays requested oil and gas job search’s assistance with the salary survey, it was with a great deal of excitement that we accepted the challenge. We knew that we had access to a wide enough selection of oil and gas professionals to make the survey a success, and this has indeed proved to be the case. The last 12 months has seen a significant amount of uncertainty in the industry. Not surprisingly the feedback from our customers, particularly job seekers was that the site was a life line to many in such a difficult year. Being in touch with the industry globally was seen as essential and these same users contributed massively to the survey by submitting their responses in the thousands. The level of interest generated by the survey has been phenomenal and the data generated provides a true snapshot of the state of the industry at the start of a new decade. Despite the doom and gloom of most of 2009, towards the latter half of the year we experienced a renewed optimism amongst clients which translated into more jobs on the website. The results of the survey very much back this up and every indication is that this trend is set to continue. Finally I’d like to thank those who contributed to the survey. This has certainly helped Hays and oilandgasjobsearch.com deliver such an informative document. We wish you all the best for a very successful 2010.” Duncan Freer, Managing Director, Oil and Gas Job Search

Oil & Gas Salary Guide 2010 | 04

Regional overview

A GLOBAL PERSPECTIVE
“Confidence is returning – 43.6 per cent describe their confidence in the current employment market as positive.”
The past 18 months saw one of the biggest down turns the industry has known but the beginning of a steady recovery is now taking place. The results of our global oil and gas salary survey reveal a somewhat cautious outlook with more than one third of respondents indicating they believe the recovery will take more than 12 months. Despite this, confidence is returning – 43.6 per cent describe their confidence in the current employment market as positive. While some salaries have decreased in comparison with the rates of 07/08, they have now levelled out and most working in this industry remain extremely well paid in comparison to those in other industries. The overall average salary is a little over $75,000* (based on annual salaries of all permanent staff). Australians working at home are at the top of the ladder, averaging more than $138,000 a year while salaries for locally based staff in Kazakhstan are propping up the table. For those working abroad, expat packages are not what they were a few years ago. This said, contract rates are averaging more than $700 per day. Norway and the USA are paying some of the highest rates, with contractors earning more than $900 per day. In terms of the best paid discipline areas, subsea/pipeline leads the way with higher than average salaries across all levels of experience. Production Management and Geoscience are also highly paid areas. While average salaries by company type were fairly evenly spread, ranging between $78,000 and $87,000, the one exception is equipment manufacturers & suppliers, averaging less than $65,000. this year is firmly on natural gas with some major developments on the drawing board. Hotspots There is high demand for Exploitation, Production and Reservoir Engineers as operators are undertaking economic evaluations of existing assets. There is a growing need for knowledge of shale gas plays, as well as a number of heavy oil and oilsands projects coming on line. This is creating demand for Facility Engineers, Power Engineers, Steam Chiefs, Maintenance Coordinators, Control System specialists, Process Engineers and Electricians to pipe fitters.

South America
The current market is placing a great deal of strain on retention of senior executives with pressure on two fronts. Firstly from competing industries such as mining and civil/heavy construction as they consider oil and gas professionals to be accomplished, well trained and used to dealing with sizable budgets. Secondly is the trend to ‘succession plan’ expatriate executives out of leadership positions in multinational companies and replace with suitable local talent. Both trends ensure that competition for locally bred talent in South America remains significant. Hotspots Geologists, Geophysicists, Equipment/Drilling Specialists, are being targeted with continual salary increases. Employers are also investing in training and providing housing assistance and other benefits as an incentive. Candidates fluent in English will be in high demand given the massive presence of international/foreign firms and the global market.

Middle East & Africa
Both regions remain the focus of the majority of employers, and continue to attract oil and gas professionals from around the world. Given almost 50 per cent of respondents stated the regions will be a key focus for them over the next 12 months, this is not likely to change any time soon. Hotspots Within the upstream sector, Reservoir Engineers, Geologists, Drilling, Safety, Process Engineers & Project Engineers are all in demand as new projects and new exploration activities get the green light. In the downstream arena there will be a number of shutdowns in the first quarter of 2010, along with significant expansion activity planned. Both will generate increased demand within Integrity, Maintenance and Planning. We expect an increase in the number of barrels per day (bpd) for the GCC region. As a result new plants are being commissioned with go live dates set for the near future. This will see increased demand for candidates within production/operations within the downstream sector.

Asia
Hiring intentions are very positive and employers have indicated an increase in vacancies across the board. We expect this to continue for at least the first half of the year. Since a large percentage of these roles are to work on specific projects, the majority will be contract assignments. There’s also been an increase in the number of executive level positions such as Managing Directors and Regional Managers as international businesses expand their coverage in the region. Hotspots Engineers with subsea construction and installation experience are in high demand due to the number of new fields that are coming online this year. In order to secure these skills, employers are starting to increase salaries. They are also more willing to consider international candidates from regional territories. Project services candidates, specifically estimators, proposal engineers and cost engineers are also in demand.

Europe
The Oil and Gas market has started to shake off the negativity from last year and demand is picking up quickly. The return of market confidence, clear signs of the recession ending and the sustained improvement in the oil price has allowed many to push on with their planned projects. Hotspots Geoscience and Exploration Engineers, Health and Safety specialists as well as Mechanical, Structural, Electrical and Chemical Engineers remain in demand in many locations. Larger projects are already struggling to hire the numbers they require so there will be more opportunities for Engineers moving into the regions. There remains a solid demand in Aberdeen and London for senior level exploration Geophysicists and Reservoir Engineers with 10 to 15 years experience.

Australasia
Employers are expressing an intention to recruit more selectively and with a longer-term view than they have during the past two years. Not surprising given there is more than $200 billion of work due to come on line in Australia’s gas infrastructure over the next 12 months. This is set to re-energise the job market back to pre recession levels if not more so. We therefore anticipate a much stronger trend towards permanent recruitment this year. New vacancies are expected to be created in New Zealand in the coming months in response to both growth and the replacement of departing staff to new opportunities. We expect a strong increase in candidate movement both in the local market and to/from Australia. Hotspots Subsea Engineers, Development and Exploration Geologists, Petroleum/Reservoir Engineers and Geophysicists are all in high demand in this region. There is also significant demand for candidates with prior LNG experience, in particular Drilling Engineers, Construction Managers and Civil Engineers. Oil & Gas Salary Guide 2010 | 05

North America
With the price of oil hovering around the $75 bbl mark in the past six months, Canadian focused companies have begun to announce their Heavy Oil & SAGD projects are back on the table. However the spotlight
*All figures are quoted in US dollars.

SECTION ONE SALARY OVERVIEW
Confidence is returning to the market two thirds of employers surveyed intend to award salary increases in the next 12 months.

Oil & Gas Salary Guide 2010 | 06

Salary overview

Average annual salary for permanent staff by country
Results from our survey indicate those working in oil and gas are well paid. With an average permanent staff salary of more than $75,000 globally (based on the combined total of local and imported labour) those in this industry are earning a premium compared to most other industries. There is however still a vast divide between those countries at the top of the table and those at the bottom and for this reason it’s not hard to understand why easily transferrable skills continue to migrate around the world in search of higher returns. Of all the countries on the list only three pay less for skills they import compared with what they pay their local resident employees - Norway, Canada and Australia. All other countries import skills from overseas at a premium, and in some cases at a significant premium. There does not however appear to be any correlation between home salaries and those imported, with Indonesia being at the bottom of the scale in terms of the average salary for local workforce, however it is the second highest payer for those it imports. The same can be found in Azerbaijan. At the other end of the spectrum, Oman pays its local workforce an average ‘mid table’ rate of just over $58,000. However it is the lowest payer of imported labour on the list. (With a highly concentrated number of employers there is some evidence that this is a reflection of an efficient overseas recruitment policy). If we combine both figures for each country - the five highest paying countries are Australia, USA, Azerbaijan, Canada and Netherlands. Those paying the least are Kuwait, Oman, Libya, India and Kazakhstan. Background Only where the sample size is large enough have we listed countries in this table. Permanent staff salaries are the figures returned by respondents as their package in US dollar equivalent figures excluding one-off bonuses, pension, share options and other non-cash benefits, and for those working on a monthly or yearly payroll. Those on a weekly or daily payroll are extracted and included in the figures for contracting overleaf. The first column represents the average salary for respondents based in their country of origin, the second column for those who are working in that country although originate from another. Where not enough responses were received, entries are returned as N/A.

Salaries
Country Local Labour Average annual salary Europe UK Norway Netherlands Russia Kazakhstan Azerbaijan UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran Libya Angola Algeria USA Canada Venezuela Brazil Argentina Vietnam Singapore Malaysia Korea Japan Indonesia India China Australia New Zealand
Notes: All figures are base salaries, quoted in US dollars.

Imported Labour Average annual salary 94,200 101,000 112,000 105,700 88,100 144,500 88,500 86,400 91,400 67,800 83,500 N/A 89,300 78,700 118,900 107,800 128,100 112,500 113,700 125,200 N/A N/A 102,900 131,000 144,100 N/A 136,300 77,800 102,900 133,700 112,700 Oil & Gas Salary Guide 2010 | 07

92,200 114,700 104,200 65,600 30,700 53,300 50,200 67,600 35,900 58,400 N/A 32,600 37,300 46,000 53,600 33,800 117,900 112,800 72,300 72,500 65,000 N/A 56,700 43,100 N/A N/A 32,000 50,000 51,600 138,100 99,700

Russia & CIS

Middle East

Africa

North America

South America

Asia

Australasia

Salary overview

Average annual salary for contract staff by country
With an average annual contractor salary of more than $95,000 for those working locally and more than $168,000 for imported labour, there is a considerable premium placed by employers on this method of working. However it should be noted that this figure and all other salaries listed assume that the individual works a full 240 days a year (or 48 weeks) which is clearly not always possible, or in many cases desired. Clearly the trade off between security and guarantee of work versus an increase in rate for contracting is very much at work in the oil and gas industry. This is further accentuated where candidates work overseas on contract with the average return increasing to an impressive $168,500 per annum. In all but two cases, countries are employing contractors from overseas at a premium (it can be assumed the skills required do not exist or are not available in the local workforce). Whilst Australia’s imported rate for labour is marginally below that for local staff, the UK shows a clear differentiation between the two. This may reflect a trend in the UK to import cheaper labour to combat margin decline in a difficult market. As the market improves however, it will be interesting to see whether the UK remains in a group of its own, or if they are joined by other nations seeking similar savings. The other observation from the figures shows that the discrepancy between contracting rates and equivalent permanent salaries is most pronounced in those countries with extensive permanent employment legislation i.e. The Netherlands. Here we can assume that this valuation of contractors is driven by employers avoiding expensive permanent employment costs. Background Contractor salaries are those working on daily or weekly payroll. The annual salary equivalent assumes they work for 240 days a year, or 48 weeks respectively. Where not enough responses were received, entries are returned as N/A.

Salaries
Country Local Labour Average annual salary Europe UK Norway Netherlands Russia Kazakhstan Azerbaijan UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran Libya Angola Algeria USA Canada Venezuela Brazil Argentina Vietnam Singapore Malaysia Korea Japan Indonesia India China Australia New Zealand
Notes: All figures are base salaries, quoted in US dollars.

Imported Labour Average daily rate 630 850 720 560 290 500 300 210 N/A 230 N/A 200 230 320 280 320 820 790 410 610 N/A 320 280 520 N/A N/A 200 220 300 800 600 Average annual salary 134,900 226,900 210,300 203,600 191,500 202,500 123,900 103,700 166,300 183,200 125,700 178,500 159,000 188,000 169,100 166,300 220,800 206,700 154,000 176,000 N/A 163,500 175,800 160,200 201,500 84,400 203,200 166,200 189,800 204,000 182,700 Average daily rate 520 870 810 780 740 780 480 400 640 700 480 690 610 720 650 640 850 790 590 680 N/A 630 680 620 770 320 780 640 730 780 700

163,800 222,300 186,500 146,000 76,300 129,200 78,600 55,100 N/A 60,500 N/A 53,000 60,800 83,800 73,200 84,000 214,300 205,400 106,300 159,000 N/A 82,800 71,700 134,500 N/A N/A 51,900 58,400 78,600 207,400 155,300

Russia & CIS

Middle East

Africa

North America

South America

Asia

Australasia

Oil & Gas Salary Guide 2010 | 08

Salary overview

Average annual salary by experience
By discipline area Those working within subsea/pipelines, production management and geoscience came out on top in this survey, with subsea leading the way on an average of $109,000 per annum. Downstream operations management, reservoir/petroleum engineering, piping, mechanical and technical safety were the lowest paid, with an average annual salary for downstream operations management of $65,800 per annum. Apart from the abovementioned, all other discipline areas came in with an average salary between $70,000 and $90,000. These figures also allowed us to track how experience is valued, and in some disciplines it is greatly; notably, subsea, production management, marine/naval, estimating/cost engineering and logistics. These areas all showed accelerated salaries as the experience grew. Project controls, reservoir engineering and HSE showed less than average growth in salaries as experience levels increased. By company type When comparing by company type, figures were consistently between an average salary ranging from $78,000 to $87,000. Equipment manufacturers and suppliers fell below this level, with an average annual salary of $63,700. Those working with a contractor were rewarded most for their increasing experience while those in their first four years with an operator were remunerated above their peers in other company types when first embarking on their career. Background These figures are based on permanent staff salaries returned by respondents as their package in US dollar equivalent figures excluding one-off bonuses, pension, share options and other non-cash benefits, and for those working on a monthly or yearly payroll. Those on a weekly or daily payroll have been extracted from this comparison.

Salaries
Years of experience 0 to 4 Discipline area Business development Construction/installation Downstream operations management Drilling Electrical Estimating/cost engineering Geoscience HSE Logistics Marine/Naval Mechanical Piping Process Production management Project controls QA/QC Reservoir/petroleum engineering Structural Subsea/pipelines Supply chain/procurement Technical safety Consultancy Contractor EPCM Equipment manufacturer/supplier Global Super Major Oil Field Services Operator 47,800 47,200 40,000 43,500 46,800 37,500 52,300 49,400 45,000 54,100 42,700 48,900 43,900 50,500 45,000 41,700 39,700 39,900 57,300 43,500 46,800 47,000 39,600 37,100 34,300 51,800 50,500 60,700 5 to 9 61,900 76,900 53,600 55,100 58,800 53,700 73,700 62,300 59,500 68,600 60,600 56,500 60,000 77,600 58,000 60,600 59,200 53,700 75,800 56,800 66,800 73,300 53,100 64,900 48,300 65,900 66,400 78,400 10 to 19 98,500 100,500 79,100 91,500 85,800 110,600 110,700 91,900 85,700 99,900 94,400 80,200 93,200 133,800 99,300 90,600 79,700 94,200 141,300 90,900 83,800 96,400 100,600 83,300 75,600 102,500 82,300 88,100 20 + 126,600 119,900 90,500 135,500 122,900 140,400 138,900 121,500 133,700 140,400 107,700 111,900 122,600 154,200 120,100 127,200 109,000 136,200 162,700 121,800 113,600 114,200 145,800 131,400 96,800 119,000 115,500 121,600

Company type

Notes: All figures are base salaries, quoted in US dollars. EPCM - Engineering, procurement and construction management; HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.

Oil & Gas Salary Guide 2010 | 09

Salary overview

Salary trends
The last 12 months The recession of 2009 was clearly reflected in the fact that 12 per cent of respondents indicated their salaries were reduced over the last 12 months. Those most affected worked with consultancies and contractors, were in the 0 to 4 years experience bracket and had been in their current role for less than one year. Whilst the majority of employers preferred to keep salaries static (44%), there were some signs of market improvement with an equal number of employees receiving an increase (16% + 28%). Of those that received an increase of more than 5 per cent over half were permanently employed and have been in their current role for 3 to 5 years. The next 12 months A more positive trend is appearing in the forecasted salaries returned by employers for 2010 with two thirds expecting to increase salaries, and very few expecting any decrease. Those working within oil field services could be the big winners with many employers in this area indicating they expect salaries to increase by more than 10 per cent. Retention of key staff through careful salary management is likely to become a prominent issue for employers this year. Background Only employers were asked to provide their intentions with regard to salaries in the next 12 months, whereas the figures for the previous 12 months were taken from the employees experience.

Salary trends
In the last 12 months has your salary:
28%

12%

Reduced 44% Remained static Risen less than 5% Risen more than 5%

16%

In the next 12 months, do you expect salaries to:

4% 19%

28%

Decrease 23% Remain static Increase up to 5% Increase more than 5% but less than 10% Increase more than 10%

26%

Oil & Gas Salary Guide 2010 | 10

SECTION TWO INDUSTRY BENEFITS
The types of benefits offered will most likely be a key attraction and retention strategy for employers in 2010.

Oil & Gas Salary Guide 2010 | 11

Industry benefits

Typical benefits
By company type All company types returned consistent results in terms of those receiving health care and bonuses. When comparing with the industry average (All) those working with a Global Super Major receive the most benefits, where results were higher for all benefit types except commissions. It is not surprising that only 25 per cent of those working with an equipment manufacturer and supplier receive home leave allowance/flights and that this is much lower than the industry average of 40 per cent. Share schemes are still relatively underutilised in comparison to other industries as is the use of monthly commissions. On average, one quarter of respondents received no benefits over their base and statutory pay. Those working for a consultancy firm were the worst off in this regard with nearly 40 per cent receiving no benefits. This said just less than one fifth of respondents working for a global super major, an operator or EPCM stated they receive no benefits above statutory requirements. With the market improving, competition for the best talent will only increase. Many companies will likely use any number of these benefits to attract and retain the staff in addition to the base salary. The results of our next survey will therefore be eagerly awaited providing a valuable comparison to these figures.

Benefits
Do you receive any benefits?

All

Consultancy

60% 50% 40% 30% 20% 10%
Housing Home leave allowance/flights Hardship allowance Share scheme No benefits Tax assistance Bonuses Other/s Pension Health plan Commission Schooling Car/transport

60% 50% 40% 30% 20% 10%
Housing Home leave allowance/flights Hardship allowance Tax assistance Share scheme No benefits Bonuses Pension Commission Health plan Car/transport Schooling Schooling Other/s Other/s

0%

0%

Contractor

EPCM

60% 50% 40% 30% 20% 10%
Housing Home leave allowance/flights Hardship allowance No benefits Tax assistance Bonuses Share scheme Pension Other/s Health plan Commission Car/transport Schooling

60% 50% 40% 30% 20% 10%
Housing Home leave allowance/flights Hardship allowance No benefits Tax assistance Bonuses Share scheme Pension Commission Health plan Car/transport

0%

0%

Oil & Gas Salary Guide 2010 | 12

40%

40%

60%

60%

50%

50%

30%

30%

20%

20%

10%
No benefits Tax assistance Pension Bonuses Commission Health plan Car/transport Housing Home leave allowance/flights Hardship allowance Share scheme Schooling Other/s

10%

Oil field services

Other benefits

No benefits

Industry benefits

Tax assistance

Pension

Do you receive any benefits?

Bonuses

Commission

Equipment manufacturer & supplier

Health plan

Car/transport

Housing Home leave allowance/flights Hardship allowance

Share scheme

Schooling

Other benefits noted include mobile phone, laptop, petrol/parking, meals, overtime, additional annual leave, hazardous/danger pay and training.

Other/s

No benefits Tax assistance Pension Bonuses Commission Health plan Car/transport Housing Home leave allowance/flights Hardship allowance Share scheme Schooling Other/s

Global Super Major

Tax assistance

Pension

Bonuses

Commission

Health plan

Car/transport

Housing Home leave allowance/flights Hardship allowance

Share scheme

Schooling

Oil & Gas Salary Guide 2010 | 13

Other/s

0% 40%
Operators

0%

40%

60%

60%

50%

50%

30%

30%

20%

20%

10%
No benefits

10%

0%

0%

Benefits

SECTION THREE INDUSTRY EMPLOYMENT
More than half of employers surveyed expect to increase staffing levels in the next 12 months.

Oil & Gas Salary Guide 2010 | 14

Industry employment

Experience & tenure
Industry experience The majority of respondents are in the early stages of their career. When comparing the years of experience by discipline, more than 50 per cent of those working within subsea/pipelines, geoscience, reservoir/petroleum engineering and estimating/cost engineering fall within the first bracket. Subsea in particular is attracting more and more attention from engineering students/graduates. An exciting and challenging field offering high salaries, this is hardly surprising. Within both the construction/installation and mechanical engineering fields, years of experience was fairly evenly spread. These are the more traditional fields and hence remain well represented through all levels. Skills gap There has been widespread concern in the past few years about an imminent skills shortage within the industry. With an ever-increasing number of study options, fewer people are choosing the oil and gas industry as a career path. Some operators have also citied poor training during and after graduation as a major issue. Now, with many nearing retirement age, some employers have introduced incentives such as extended annual leave or reduced hours to keep these people and their highly valued knowledge in the workforce longer.

Experience & tenure
Years of experience
14.8%

40.6%

21.5% 0-4 5-9 10 - 19 20 + 23.1%

9.9% 15.7% 14.9%

15.2% 53.5% 52.4%

22.8%

15.6%

Subsea/pipelines

Geoscience

8.9% 13.6% 15.1%

8.3%

54.5%

55.2%

21.5%

22.9%

Reservoir/petroleum engineering

Estimating/cost engineering

19.9% 27.6%

23.7% 30.3%

26.7% 26.1% 25.8% 19.9%

Construction/installation

Mechanical

Oil & Gas Salary Guide 2010 | 15

Salary overview

Experience & tenure (continued)
Time in current role While the results are relatively even across all groups, it is important to note that close to half of respondents have been in their current role for less than two years. This would support the idea the oil and gas industry is extremely transient. With a readily accessible job market fuelled by international job boards and global agencies, candidates are left in no uncertainty of their value and the number of opportunities available to them. This allows employees to pursue careers that have many and varied experiences, often at the expense of tenure with one particular employer. Employment mix Equipment manufacturers employed the highest percentage of permanent staff (as opposed to temporary contractors) whilst the company types ‘contractors’ and ‘consultancies’ employed the highest contractor base likely due to the project led nature of their work. The results suggest that there is very little part time work done in the industry. There is an even mix between agency and direct contracting, with the exception of global super majors. Here the percentage of those contracted through an agency is double that of those contracted direct.

Experience & tenure
Time in current role
15.6% 16.7%

12.1%

Less than 1 year 27.3% 1 - 2 years 3 - 5 years 6 - 10 years 28.3% More than 10 years

Employment mix by company type

Global Super Major Operators EPCM Equipment manufacturer & supplier Oil Field Services Consultancy

Permanent Permanent / part time Contracted direct Contracted through agency

Contractors

0%

20%

40%

60%

80%

100%

Oil & Gas Salary Guide 2010 | 16

Industry employment

Movement of workforce
Imported workforce Results of the survey indicate North America uses predominantly a locally bred workforce, with very few imports compared to other regions. The Middle East and Africa are at the other end of the spectrum importing the majority of their workforce from overseas. Background ‘Imported workforce’ shows the makeup of the workforce by region, comparing those working in their country of origin against those who originated from elsewhere. Working overseas The second chart below shows how those from Australasia and Europe continue to seek experience internationally, with significant numbers approaching 50 per cent working overseas. Conversely, those from Africa (81%) and the Middle East (72%) mostly remain at home. Background ‘Working overseas’ shows the regions where respondents originate from, comparing those who are working locally against those that are working overseas.

Movement of workforce
Imported workforce versus local workforce

100%

80%

60%

40%

20%

Imported labour Local labour
Australasia Europe North America South America Africa Russia Asia Middle East

0%

Working overseas versus working in home country

100%

80%

60%

40%

20%

Working overseas Working in home country

0%
Australasia Europe Asia Africa Russia North America South America Middle East

Oil & Gas Salary Guide 2010 | 17

Industry employment

Staffing levels
In the next 12 months Just over half of employers have indicated they expect staffing levels to increase this year which is positive news for those currently looking for employment. From analysing the data further we see this is particularly the case in the Middle East and Africa. There is still a level of uncertainty in the market and employers will take a cautious approach to hiring this year. One third of employers have indicated they will not make any changes to their staffing levels while some, albeit a minority are still managing the effect of the global recession and are set to decrease headcount in the next 12 months. Expat packages There is a reasonable proportion of the workforce currently employed on an expat package. As you’d expect there is a high concentration in the Middle East. Results indicate that many expats are working within construction/installation, QA/QC and HSE. More than one third of employers indicated the percentage of those employed on an expat package will increase in the next 12 months and salaries are likely to increase slightly in this sector as market conditions improve.

Staffing levels
In the next 12 months, do you expect staffing levels to:

13.3%

12.5%

13.5%

Decrease 33.3% Remain static Increase up to 5% Increase more than 5% but less than 10% Increase greater than 10%

27.4%

What percentage of your workforce is currently employed on expat package?
29.4%

24.2%

Nil Nil to 5% 17.6% 28.8% Above 5% but less than or equal to 10% Greater than 10%

How do you expect this percentage to change in the next 12 months?

36.9%

50.8%

Increase Decrease 12.3% Remain the same

Oil & Gas Salary Guide 2010 | 18

Industry employment

Staffing levels (continued)
Temporary/contract staffing Over the past 18 months, employers have favoured temporary/contract employment as it provides a great deal of flexibility in an uncertain market. Only a small proportion indicated they do not currently employ staff on this basis (16.4%) however of these at least 25 per cent plan to start to do so in the next 12 months. Unsurprisingly engineering and construction/installation was the discipline in which contractors were being used the most, whereas geosciences came in with the lowest utilisation.

Staffing levels
What percentage of your staff are employed on temporary / contract assignment?
31.8%

16.4%

23.2% Nil Nil to 5% Above 5% but less than or equal to 20% Greater than 20%

28.6%

How do you expect you expect this percentage to change in the next 12 months?
33.2% 46.2%

Increase Decrease 20.6% Remain the same

If your company does employ contractors, please indicate in which areas:

Engineering

Geoscience

Drilling

Construction /installation Production /operations

Never Sometimes Always

Project controls

N/A

0%

20%

40%

60%

80%

100%

Oil & Gas Salary Guide 2010 | 19

Industry employment

Job seeking
Word of mouth continues to be the predominant method of finding work in the industry and unsurprisingly so. With the project led nature of the oil and gas employment market, it is often former colleagues that can best promote individuals skills and availability. Equally the data also shows that agencies and head hunting play a more prominent role for moves overseas, whilst at home traditional newspapers and internal company mechanisms are in greater use.

Job seeking
How did you find your current role?

25%

20%

15%

10%

5%

Working country of origin Working abroad
Company website Online job board Internal move Newspaper Word of mouth Head hunted Agency Other

0%

If you are not working in your country of origin, how do you keep abreast of job opportunities at home?

100% 80% 60% 40% 20%
Intranet and other internal mechanisms Word of mouth Agency contact

0%
Internet

Oil & Gas Salary Guide 2010 | 20

Other

SECTION FOUR ECONOMIC OUTLOOK
More than a third of respondents describe their outlook in the current employment market as positive.

Oil & Gas Salary Guide 2010 | 21

Economic outlook

Economic outlook
Market recovery Whilst only seven per cent of those surveyed saw the recovery taking hold in the near term (within three months) there was undoubtedly a more positive mood through the latter half of the year. The majority of respondents believe the market will recover in less than 12 months which would suggest the second half of 2010. Employment market This optimism is yet to be fully realised within the employment market with half of respondents either neutral or negative toward the current situation. Business confidence will always lead an individual’s assessment of the employment market, so this should come as no great surprise. Our own experience at the end of 2009 and the start of 2010 is that the market is picking up and confidence is higher than we’ve seen it since 2008. There is however still a good deal of slack to take up in available candidates, and 7 to 12 months may well be the time frame in which job seekers, once again gain the ascendancy. Geographic focus Somewhat surprisingly the Middle East appears a stand out in terms of employers focus for 2010. This said the region remains a significant part of the world market, still employing over half of the world’s oil and gas expatriates. As such it will always be near or close to the forefront of plans for many in the industry.

Economic outlook
In your opinion, how long will the market recovery take?
6.9%

35%

22.3%

Less than 3 months Between 3 & 6 months Between 7 & 12 months More than 12 months 35.8%

How would you describe your confidence in the current employment market?

6.5% 15.8%

43.6% Negative 34.1% Neutral Positive Extremely positive

Which geographic areas will be a key focus for your operations over the next 12 months?

50% 40% 30% 20% 10%
Eastern and Continental Europe UK and Northern Europe Central Asia East Asia Australasia North America South America Middle East Africa Other

0%

Oil & Gas Salary Guide 2010 | 22

ABOUT HAYS

270,000+ 50,000+ 6,000+ 345+ 33+
PEOPLE PLACED IN PERMANENT JOBS EACH YEAR RECRUITING EXPERTS WORLDWIDE OFFICES ACROSS 28 COUNTRIES YEARS OF EXPERIENCE

TEMPORARY AND CONTRACT STAFF ENGAGED EACH WEEK

Oil & Gas Salary Guide 2010 | 23

Hays Oil & Gas
Australia Perth T: +61 8 9226 5766 E: [email protected] Melbourne T: +61 3 9670 2066 E: [email protected] Brisbane T: +61 7 3137 6400 E: [email protected] Sydney T: +61 2 9249 2299 E: [email protected] Brazil Rio de Janeiro T: +55 21 2430 6600 E: [email protected] Canada Calgary T: +1 403 269 4297 E: [email protected] Edmonton T: +1 403 269 4297 E: [email protected] China Beijing T: +86 10 6598 9122 E: [email protected] India Mumbai T: +91 22 4248 2500 E: [email protected] Netherlands Rotterdam T: +31 0 20 13 700 E: [email protected] New Zealand Wellington T: +64 4 473 6860 E: [email protected] Russia Moscow T: +7 495 967 9379 E: [email protected] Singapore Singapore City T: +65 6303 0152 E: [email protected] United Arab Emirates Dubai T: +971 4 361 2882 E: [email protected] United Kingdom Aberdeen T: +44 12 2459 2870 E: [email protected] London T: +44 20 7580 0243 E: [email protected] Newcastle T: +44 19 1222 0044 E: [email protected] Southampton T: +44 23 8063 9036 E: [email protected]

Oil and Gas Job Search
United Kingdom Manchester T: +44 161 975 6026 E: [email protected] United States Houston T: +1 832 277 5603 E: [email protected]

oilandgasjobsearch.com

To find your local office please visit the Hays website: hays.com

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