complete oil & gas global salary guide 2011

THE OIL & GASGLOBAL SALARYGUIDE 2010Global salaries and recruiting trends.

Oil & Gas Salary Guide 2010 | 02

Contents

04 Managing Director Reports

05 Regional Overview

Section One - Salary Overview

07 Average annual salary for permanent staff by country08 Average annual salary for contract staff by country09 Average annual salary by experience 10 Overview

10 The last 12 months10 The next 12 months

Section Two - Industry Benefits

12 Typical benefits by company type

12 All12 Consultancy12 Contractor12 EPCM13 Equipment manufacturer & supplier13 Global super major13 Oil field services13 Operators

Section Three - Industry Employment

15 Experience & tenure

15 Years of experience16 Time in current role16 Employment by company type17 Movement of workforce

17 Imported workforce v local workforce17 Working overseas v working in home country18 Staffing levels

18 In the next 12 months19 Percentage of staff employed on temporary/contract assignment20 Job seeking

Section Four - Economic Outlook

22 Economic outlook

THANK YOUWe 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 certainlyoverwhelming. This has ensured that we can produce an informative document to help supportyour 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 andcompilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced intotal or by section without written permission from Hays.


7,000+PEOPLE RESPONDED TO THE SURVEY

1,900+RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

800+ RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

30+ COUNTRIES WORLDWIDE RESPRESENTED

20+DISCIPLINE AREAS COVERED

SURVEY SUMMARY


THE BEST DECISIONS ARE INFORMED DECISIONS

Managing Director Reports

Matt Underhill & Duncan Freer

“The past year has seen change of unprecedented levels in the oil and gas industry, through previouslyunforeseen highs in the oil price, followed by an equally significant drop. Then through the later part ofthe year, we began to see a steady sustained recovery. And all over the course of 12 months! This surveyis 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 hassurely never been in such demand. As such this survey aims to assist our stakeholders to make informeddecisions on their staffing needs for the coming year.

When comparing many of the factors influencing what employers pay their staff, the results areinteresting and in the most part expected but in some cases completely unexpected. With such a largeresponse we are however confident that the figures are a fair reflection on the industry we work in. Inthis regard we are indebted to our partners; Oil and Gas Job Search, without whom we would not havebeen 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 currentemployment market as positive. And long may it continue, for it is those who work within this industrythat 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

“When Hays requested oil and gas job search’s assistance with the salary survey, it was with a great dealof excitement that we accepted the challenge. We knew that we had access to a wide enough selectionof 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 thefeedback from our customers, particularly job seekers was that the site was a life line to many in such adifficult year. Being in touch with the industry globally was seen as essential and these same userscontributed 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 atrue snapshot of the state of the industry at the start of a new decade. Despite the doom and gloom ofmost of 2009, towards the latter half of the year we experienced a renewed optimism amongst clientswhich translated into more jobs on the website. The results of the survey very much back this up andevery 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 andoilandgasjobsearch.com deliver such an informative document. We wish you all the best for a verysuccessful 2010.”

Duncan Freer, Managing Director, Oil and Gas Job Search

Managing Director, Hays Oil & Gas

Matt Underhill

Managing Director, Oil and Gas Job

Search Duncan Freer


The past 18 months saw one of the biggest down turns the industry hasknown but the beginning of a steady recovery is now taking place.

The results of our global oil and gas salary survey reveal a somewhatcautious outlook with more than one third of respondents indicatingthey believe the recovery will take more than 12 months. Despite this,confidence is returning – 43.6 per cent describe their confidence in thecurrent employment market as positive.

While some salaries have decreased in comparison with the rates of07/08, they have now levelled out and most working in this industryremain extremely well paid in comparison to those in other industries.The overall average salary is a little over $75,000* (based on annualsalaries of all permanent staff). Australians working at home are at thetop of the ladder, averaging more than $138,000 a year while salaries forlocally based staff in Kazakhstan are propping up the table.

For those working abroad, expat packages are not what they were a fewyears ago. This said, contract rates are averaging more than $700 perday. Norway and the USA are paying some of the highest rates, withcontractors earning more than $900 per day.

In terms of the best paid discipline areas, subsea/pipeline leads the waywith 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 equipmentmanufacturers & suppliers, averaging less than $65,000.

Middle East & AfricaBoth regions remain the focus of the majority of employers, and continueto attract oil and gas professionals from around the world. Given almost50 per cent of respondents stated the regions will be a key focus forthem 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 newprojects and new exploration activities get the green light.

In the downstream arena there will be a number of shutdowns in the firstquarter of 2010, along with significant expansion activity planned. Both willgenerate increased demand within Integrity, Maintenance and Planning.

We expect an increase in the number of barrels per day (bpd) for theGCC region. As a result new plants are being commissioned with go livedates set for the near future. This will see increased demand forcandidates within production/operations within the downstream sector.

EuropeThe Oil and Gas market has started to shake off the negativity from lastyear and demand is picking up quickly. The return of market confidence,clear signs of the recession ending and the sustained improvement inthe oil price has allowed many to push on with their planned projects.

Hotspots

Geoscience and Exploration Engineers, Health and Safety specialists aswell as Mechanical, Structural, Electrical and Chemical Engineers remainin demand in many locations. Larger projects are already struggling tohire the numbers they require so there will be more opportunities forEngineers moving into the regions.

There remains a solid demand in Aberdeen and London for senior level exploration Geophysicists and Reservoir Engineers with 10 to 15years experience.

North AmericaWith the price of oil hovering around the $75 bbl mark in the past sixmonths, Canadian focused companies have begun to announce theirHeavy Oil & SAGD projects are back on the table. However the spotlight

this year is firmly on natural gas with some major developments on thedrawing board.

Hotspots

There is high demand for Exploitation, Production and Reservoir Engineersas operators are undertaking economic evaluations of existing assets.

There is a growing need for knowledge of shale gas plays, as well as anumber of heavy oil and oilsands projects coming on line. This iscreating demand for Facility Engineers, Power Engineers, Steam Chiefs,Maintenance Coordinators, Control System specialists, Process Engineersand Electricians to pipe fitters.

South AmericaThe current market is placing a great deal of strain on retention of seniorexecutives with pressure on two fronts. Firstly from competing industriessuch as mining and civil/heavy construction as they consider oil and gasprofessionals to be accomplished, well trained and used to dealing withsizable budgets. Secondly is the trend to ‘succession plan’ expatriateexecutives out of leadership positions in multinational companies andreplace with suitable local talent. Both trends ensure that competitionfor locally bred talent in South America remains significant.

Hotspots

Geologists, Geophysicists, Equipment/Drilling Specialists, are being targetedwith continual salary increases. Employers are also investing in training andproviding housing assistance and other benefits as an incentive.

Candidates fluent in English will be in high demand given the massivepresence of international/foreign firms and the global market.

AsiaHiring intentions are very positive and employers have indicated anincrease in vacancies across the board. We expect this to continue for atleast the first half of the year. Since a large percentage of these roles areto work on specific projects, the majority will be contract assignments.

There’s also been an increase in the number of executive level positionssuch as Managing Directors and Regional Managers as internationalbusinesses expand their coverage in the region.

Hotspots

Engineers with subsea construction and installation experience are inhigh demand due to the number of new fields that are coming onlinethis year. In order to secure these skills, employers are starting toincrease salaries. They are also more willing to consider internationalcandidates from regional territories.

Project services candidates, specifically estimators, proposal engineersand cost engineers are also in demand.

AustralasiaEmployers are expressing an intention to recruit more selectively andwith a longer-term view than they have during the past two years. Notsurprising given there is more than $200 billion of work due to come online in Australia’s gas infrastructure over the next 12 months. This is setto re-energise the job market back to pre recession levels if not more so.We therefore anticipate a much stronger trend towards permanentrecruitment this year.

New vacancies are expected to be created in New Zealand in the comingmonths in response to both growth and the replacement of departingstaff to new opportunities. We expect a strong increase in candidatemovement 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 demandin this region. There is also significant demand for candidates with priorLNG experience, in particular Drilling Engineers, Construction Managersand Civil Engineers.

“Confidence is returning – 43.6 per cent describe their confidencein the current employment market as positive.”

A GLOBAL PERSPECTIVERegional overview

*All figures are quoted in US dollars.


SECTION ONESALARY OVERVIEW

Confidence is returning to the market - two thirds of employers surveyed intend toaward salary increases in the next 12 months.

Oil & Gas Salary Guide 2010 | 07Notes: All figures are base salaries, quoted in US dollars.

Salaries

Average annual salary for permanent staff by countryResults from our survey indicate those working in oil and gas are wellpaid. With an average permanent staff salary of more than $75,000globally (based on the combined total of local and imported labour)those in this industry are earning a premium compared to most otherindustries. There is however still a vast divide between those countries atthe top of the table and those at the bottom and for this reason it’s nothard to understand why easily transferrable skills continue to migratearound the world in search of higher returns.

Of all the countries on the list only three pay less for skills they importcompared with what they pay their local resident employees - Norway,Canada and Australia. All other countries import skills from overseas at apremium, and in some cases at a significant premium. There does nothowever appear to be any correlation between home salaries and thoseimported, with Indonesia being at the bottom of the scale in terms of theaverage salary for local workforce, however it is the second highest payerfor those it imports. The same can be found in Azerbaijan.

At the other end of the spectrum, Oman pays its local workforce anaverage ‘mid table’ rate of just over $58,000. However it is the lowestpayer of imported labour on the list. (With a highly concentrated

number of employers there is some evidence that this is a reflection ofan efficient overseas recruitment policy).

If we combine both figures for each country - the five highest payingcountries are Australia, USA, Azerbaijan, Canada and Netherlands. Thosepaying the least are Kuwait, Oman, Libya, India and Kazakhstan.

Background

Only where the sample size is large enough have we listed countries inthis table.

Permanent staff salaries are the figures returned by respondents as theirpackage in US dollar equivalent figures excluding one-off bonuses,pension, share options and other non-cash benefits, and for thoseworking on a monthly or yearly payroll. Those on a weekly or dailypayroll are extracted and included in the figures for contracting overleaf.

The first column represents the average salary for respondents based intheir country of origin, the second column for those who are working inthat country although originate from another. Where not enoughresponses were received, entries are returned as N/A.

Salary overview

92,200 94,200114,700 101,000104,200 112,000

65,600 105,70030,700 88,10053,300 144,500

50,200 88,50067,600 86,40035,900 91,40058,400 67,800N/A 83,50032,600 N/A37,300 89,300

46,000 78,70053,600 118,90033,800 107,800

117,900 128,100112,800 112,500

72,300 113,70072,500 125,20065,000 N/A

N/A N/A56,700 102,90043,100 131,000N/A 144,100N/A N/A32,000 136,30050,000 77,80051,600 102,900

138,100 133,70099,700 112,700

Imported LabourLocal Labour

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

Europe

Russia & CIS

Middle East

Africa

North America

South America

Asia

Australasia

Country

Average annual salaryAverage annual salary

Oil & Gas Salary Guide 2010 | 08Notes: All figures are base salaries, quoted in US dollars.

Salaries

Average annual salary for contract staff by countryWith an average annual contractor salary of more than $95,000 forthose working locally and more than $168,000 for imported labour, thereis a considerable premium placed by employers on this method ofworking. However it should be noted that this figure and all othersalaries listed assume that the individual works a full 240 days a year (or48 weeks) which is clearly not always possible, or in many cases desired.

Clearly the trade off between security and guarantee of work versus anincrease in rate for contracting is very much at work in the oil and gasindustry. This is further accentuated where candidates work overseas oncontract with the average return increasing to an impressive $168,500per annum. In all but two cases, countries are employing contractorsfrom overseas at a premium (it can be assumed the skills required donot exist or are not available in the local workforce).

Whilst Australia’s imported rate for labour is marginally below that forlocal staff, the UK shows a clear differentiation between the two. Thismay reflect a trend in the UK to import cheaper labour to combatmargin decline in a difficult market. As the market improves however, itwill 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 discrepancybetween contracting rates and equivalent permanent salaries is mostpronounced in those countries with extensive permanent employmentlegislation i.e. The Netherlands. Here we can assume that this valuationof contractors is driven by employers avoiding expensive permanentemployment costs.

Background

Contractor salaries are those working on daily or weekly payroll. Theannual salary equivalent assumes they work for 240 days a year, or 48weeks respectively. Where not enough responses were received, entriesare returned as N/A.

Salary overview

163,800 630 134,900 520222,300 850 226,900 870186,500 720 210,300 810

146,000 560 203,600 78076,300 290 191,500 740129,200 500 202,500 780

78,600 300 123,900 48055,100 210 103,700 400N/A N/A 166,300 64060,500 230 183,200 700N/A N/A 125,700 48053,000 200 178,500 69060,800 230 159,000 610

83,800 320 188,000 72073,200 280 169,100 65084,000 320 166,300 640

214,300 820 220,800 850205,400 790 206,700 790

106,300 410 154,000 590159,000 610 176,000 680N/A N/A N/A N/A

82,800 320 163,500 63071,700 280 175,800 680134,500 520 160,200 620N/A N/A 201,500 770N/A N/A 84,400 32051,900 200 203,200 78058,400 220 166,200 64078,600 300 189,800 730

207,400 800 204,000 780155,300 600 182,700 700

Imported LabourLocal Labour

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

Europe

Russia & CIS

Middle East

Africa

North America

South America

Asia

Australasia

Country

Average

annual salary

Average

daily rate

Average

annual salary

Average

daily rate


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.

Salaries

Average annual salary by experienceBy discipline area

Those working within subsea/pipelines, production management andgeoscience came out on top in this survey, with subsea leading the wayon an average of $109,000 per annum. Downstream operationsmanagement, reservoir/petroleum engineering, piping, mechanical andtechnical safety were the lowest paid, with an average annual salary fordownstream operations management of $65,800 per annum.

Apart from the abovementioned, all other discipline areas came in withan average salary between $70,000 and $90,000.

These figures also allowed us to track how experience is valued, and insome disciplines it is greatly; notably, subsea, production management,marine/naval, estimating/cost engineering and logistics. These areas allshowed accelerated salaries as the experience grew.

Project controls, reservoir engineering and HSE showed less thanaverage growth in salaries as experience levels increased.

By company type

When comparing by company type, figures were consistently betweenan average salary ranging from $78,000 to $87,000. Equipmentmanufacturers and suppliers fell below this level, with an average annualsalary of $63,700.

Those working with a contractor were rewarded most for their increasingexperience while those in their first four years with an operator wereremunerated above their peers in other company types when firstembarking on their career.

Background

These figures are based on permanent staff salaries returned byrespondents as their package in US dollar equivalent figures excludingone-off bonuses, pension, share options and other non-cash benefits,and for those working on a monthly or yearly payroll. Those on a weeklyor daily payroll have been extracted from this comparison.

Salary overview

47,800 61,900 98,500 126,60047,200 76,900 100,500 119,90040,000 53,600 79,100 90,50043,500 55,100 91,500 135,50046,800 58,800 85,800 122,90037,500 53,700 110,600 140,40052,300 73,700 110,700 138,90049,400 62,300 91,900 121,50045,000 59,500 85,700 133,70054,100 68,600 99,900 140,40042,700 60,600 94,400 107,70048,900 56,500 80,200 111,90043,900 60,000 93,200 122,60050,500 77,600 133,800 154,20045,000 58,000 99,300 120,10041,700 60,600 90,600 127,20039,700 59,200 79,700 109,00039,900 53,700 94,200 136,20057,300 75,800 141,300 162,70043,500 56,800 90,900 121,80046,800 66,800 83,800 113,600

47,000 73,300 96,400 114,20039,600 53,100 100,600 145,80037,100 64,900 83,300 131,40034,300 48,300 75,600 96,80051,800 65,900 102,500 119,00050,500 66,400 82,300 115,50060,700 78,400 88,100 121,600

Years of experience

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

Discipline area

Company type

10 to 19 20 +0 to 4 5 to 9


Salary trends

The last 12 months

The recession of 2009 was clearly reflected in the fact that 12 per centof respondents indicated their salaries were reduced over the last 12months. Those most affected worked with consultancies and contractors,were in the 0 to 4 years experience bracket and had been in theircurrent 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 ofemployees receiving an increase (16% + 28%).

Of those that received an increase of more than 5 per cent over half werepermanently 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 byemployers for 2010 with two thirds expecting to increase salaries, andvery few expecting any decrease. Those working within oil field servicescould be the big winners with many employers in this area indicatingthey expect salaries to increase by more than 10 per cent.

Retention of key staff through careful salary management is likely tobecome a prominent issue for employers this year.

Background

Only employers were asked to provide their intentions with regard tosalaries in the next 12 months, whereas the figures for the previous 12months were taken from the employees experience.

Salary trends

Salary overview

In the last 12 months has

your salary:

Remained static

Risen less than 5%

Reduced

Risen more than 5%

28%

16%

12%

44%

In the next 12 months, do you

expect salaries to:

Remain static

Increase up to 5%

Decrease

Increase more than 5% but less than 10%Increase morethan 10%

28%

23%

19%4%

26%


SECTION TWOINDUSTRY BENEFITS

The types of benefits offered will most likely be a key attraction and retention strategy foremployers in 2010.


Benefits

Typical benefitsBy company type

All company types returned consistent results in terms of those receivinghealth care and bonuses. When comparing with the industry average (All)those working with a Global Super Major receive the most benefits, whereresults were higher for all benefit types except commissions.

It is not surprising that only 25 per cent of those working with anequipment manufacturer and supplier receive home leaveallowance/flights and that this is much lower than the industry averageof 40 per cent.

Share schemes are still relatively underutilised in comparison to otherindustries as is the use of monthly commissions.

On average, one quarter of respondents received no benefits over theirbase and statutory pay. Those working for a consultancy firm were theworst off in this regard with nearly 40 per cent receiving no benefits.This said just less than one fifth of respondents working for a globalsuper major, an operator or EPCM stated they receive no benefits abovestatutory requirements.

With the market improving, competition for the best talent will onlyincrease. Many companies will likely use any number of these benefits toattract and retain the staff in addition to the base salary. The results ofour next survey will therefore be eagerly awaited providing a valuablecomparison to these figures.

Industry benefits

Do you receive any benefits?

All

Contractor

Consultancy

EPCM

0%

10%

20%

30%

40%

50%

60%

No

bene

fits

Tax

assi

stan

ce

Pens

ion

Bon

uses

Com

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Car

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0%

10%

20%

30%

40%

50%

60%

No

bene

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Tax

assi

stan

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Pens

ion

Bon

uses

Com

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Car

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0%

10%

20%

30%

40%

50%

60%

No

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assi

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Pens

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Bon

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Com

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0%

10%

20%

30%

40%

50%

60%

No

bene

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Tax

assi

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Pens

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Bon

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Com

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Car

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Benefits

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

Industry benefits

Do you receive any benefits?

Equipment manufacturer & supplier

Oil field services

Global Super Major

Operators

No

bene

fits

Tax

assi

stan

ce

Pens

ion

Bon

uses

Com

mis

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Hea

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lan

Car

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0%

10%

20%

30%

40%

50%

60%

0%

10%

20%

30%

40%

50%

60%

No

bene

fits

Tax

assi

stan

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Pens

ion

Bon

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Com

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0%

10%

20%

30%

40%

50%

60%

No

bene

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Tax

assi

stan

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Pens

ion

Bon

uses

Com

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No

bene

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Tax

assi

stan

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Pens

ion

Bon

uses

Com

mis

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Hea

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Car

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0%

10%

20%

30%

40%

50%

60%


SECTION THREEINDUSTRY EMPLOYMENT

More than half of employers surveyed expect toincrease staffing levels in the next 12 months.


Experience & tenure

Experience & tenureIndustry experience

The majority of respondents are in the early stages of their career. Whencomparing the years of experience by discipline, more than 50 per centof those working within subsea/pipelines, geoscience,reservoir/petroleum engineering and estimating/cost engineering fallwithin the first bracket. Subsea in particular is attracting more and moreattention from engineering students/graduates. An exciting andchallenging field offering high salaries, this is hardly surprising.

Within both the construction/installation and mechanical engineeringfields, years of experience was fairly evenly spread. These are the moretraditional fields and hence remain well represented through all levels.

Skills gap

There has been widespread concern in the past few years about animminent skills shortage within the industry. With an ever-increasingnumber of study options, fewer people are choosing the oil and gasindustry as a career path. Some operators have also citied poor trainingduring and after graduation as a major issue.

Now, with many nearing retirement age, some employers have introducedincentives such as extended annual leave or reduced hours to keep thesepeople and their highly valued knowledge in the workforce longer.

Industry employment

Years of experience

5 - 9

10 - 19

0 - 4

20 +

14.8%

21.5%

40.6%

23.1%

52.4%

9.9%

14.9%

22.8%

Subsea/pipelines

53.5%

15.7%

15.2%

15.6%

Geoscience

54.5%

8.9%

15.1%

21.5%

Reservoir/petroleum engineering

55.2%

8.3%

13.6%

22.9%

Estimating/cost engineering

27.6%

19.9%

26.7%

25.8%


30.3%

23.7%

26.1%

19.9%

Mechanical


Experience & tenure

Time in current role

While the results are relatively even across all groups, it is important tonote that close to half of respondents have been in their current role forless than two years. This would support the idea the oil and gas industryis extremely transient.

With a readily accessible job market fuelled by international job boardsand global agencies, candidates are left in no uncertainty of their valueand the number of opportunities available to them. This allowsemployees 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 ofpermanent staff (as opposed to temporary contractors) whilst thecompany types ‘contractors’ and ‘consultancies’ employed the highestcontractor 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 theexception of global super majors. Here the percentage of thosecontracted through an agency is double that of those contracted direct.

Salary overview

Time in current role

1 - 2 years

3 - 5 years

Less than 1 year

6 - 10 years

More than 10 years

27.3%

12.1%

15.6% 16.7%

28.3%

Employment mix

by company typeGlobal

Super Major

Operators

EPCM

Equipmentmanufacturer

& supplier

Oil FieldServices

Consultancy

Contractors

Permanent /part timeContracteddirect

Permanent

Contracted through agency0% 20% 40% 60% 80% 100%

Experience & tenure (continued)


Movement of workforce

Movement of workforceImported workforce

Results of the survey indicate North America uses predominantly alocally bred workforce, with very few imports compared to otherregions. The Middle East and Africa are at the other end of the spectrumimporting 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 whooriginated from elsewhere.

Working overseas

The second chart below shows how those from Australasia and Europecontinue to seek experience internationally, with significant numbersapproaching 50 per cent working overseas. Conversely, those fromAfrica (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 areworking overseas.

Industry employment

Imported workforce versus

local workforce

Aus

tral

asia

Asi

a

Afr

ica

Euro

pe

Mid

dle

East

Nor

th A

mer

ica

Sout

h A

mer

ica

Rus

sia

Imported labour

Local labour0%

20%

40%

60%

80%

100%

Working overseas versus

working in home country

Aus

tral

asia

Asi

a

Afr

ica

Euro

pe

Mid

dle

East

Nor

th A

mer

ica

Sout

h A

mer

ica

Rus

sia

Working overseas

Working in home country0%

20%

40%

60%

80%

100%


Staffing levels

Staffing levelsIn the next 12 months

Just over half of employers have indicated they expect staffing levels toincrease this year which is positive news for those currently looking foremployment. From analysing the data further we see this is particularlythe case in the Middle East and Africa.

There is still a level of uncertainty in the market and employers will takea cautious approach to hiring this year. One third of employers haveindicated they will not make any changes to their staffing levels whilesome, albeit a minority are still managing the effect of the globalrecession and are set to decrease headcount in the next 12 months.

Expat packages

There is a reasonable proportion of the workforce currently employed onan expat package. As you’d expect there is a high concentration in theMiddle East. Results indicate that many expats are working withinconstruction/installation, QA/QC and HSE.

More than one third of employers indicated the percentage of thoseemployed on an expat package will increase in the next 12 months and salaries are likely to increase slightly in this sector as marketconditions improve.

Industry employment

In the next 12 months, do you

expect staffing levels to:

Remain static

Increase up to 5%

Decrease

Increase more than 5% but less than 10%Increase greater than 10%

33.3%

13.5%

13.3% 12.5%

27.4%

How do you expect this

percentage to change in the

next 12 months?

Increase

Decrease

Remain the same

36.9%

50.8%

12.3%

What percentage of your

workforce is currently

employed on expat package?

Nil

Nil to 5%

Above 5% but lessthan or equal to 10% Greater than 10%

28.8%17.6%

29.4%24.2%


Staffing levels

Temporary/contract staffing

Over the past 18 months, employers have favoured temporary/contractemployment as it provides a great deal of flexibility in an uncertainmarket. Only a small proportion indicated they do not currently employstaff on this basis (16.4%) however of these at least 25 per cent plan tostart to do so in the next 12 months.

Unsurprisingly engineering and construction/installation was thediscipline in which contractors were being used the most, whereasgeosciences came in with the lowest utilisation.

Industry employment

What percentage of your staff

are employed on temporary /

contract assignment?

Nil

Nil to 5%

Above 5% but lessthan or equal to 20% Greater than 20%

23.2%

28.6%

31.8%

16.4%

If your company does employ

contractors, please indicate in

which areas:

Engineering

Geoscience

Drilling


Production/operations

Projectcontrols

Sometimes

Always

Never

N/A0% 20% 40% 60% 80% 100%

How do you expect you expect

this percentage to change in

the next 12 months?

Increase

Decrease

Remain the same

33.2%

46.2%

20.6%

Staffing levels (continued)


Job seeking

Job seekingWord of mouth continues to be the predominant method of findingwork in the industry and unsurprisingly so. With the project led nature ofthe oil and gas employment market, it is often former colleagues thatcan best promote individuals skills and availability. Equally the data alsoshows that agencies and head hunting play a more prominent role formoves overseas, whilst at home traditional newspapers and internalcompany mechanisms are in greater use.

Industry employment

How did you find your

current role?

New

spap

er

Com

pany

web

site

Onl

ine

job

boar

d

Wor

d of

mou

th

Age

ncy

Inte

rnal

mov

e

Oth

er

Hea

d hu

nted

Working countryof origin

Working abroad0%

5%

10%

15%

20%

25%

If you are not working in your

country of origin, how do you

keep abreast of job

opportunities at home?

0%

20%

40%

60%

80%

100%

Inte

rnet

Intr

anet

and

othe

rin

tern

alm

echa

nism

s

Wor

d of

mou

th

Age

ncy

cont

act

Oth

er


SECTION FOURECONOMIC OUTLOOK

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


Economic outlook

Economic outlookMarket recovery

Whilst only seven per cent of those surveyed saw the recovery takinghold in the near term (within three months) there was undoubtedly amore positive mood through the latter half of the year. The majority ofrespondents believe the market will recover in less than 12 months whichwould suggest the second half of 2010.

Employment market

This optimism is yet to be fully realised within the employment marketwith half of respondents either neutral or negative toward the currentsituation. Business confidence will always lead an individual’s assessmentof 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 themarket is picking up and confidence is higher than we’ve seen it since2008. There is however still a good deal of slack to take up in availablecandidates, and 7 to 12 months may well be the time frame in which jobseekers, once again gain the ascendancy.

Geographic focus

Somewhat surprisingly the Middle East appears a stand out in terms ofemployers focus for 2010. This said the region remains a significant partof the world market, still employing over half of the world’s oil and gasexpatriates. As such it will always be near or close to the forefront ofplans for many in the industry.

Economic outlook

In your opinion, how long will

the market recovery take?

Less than 3 months

Between 3 & 6 months

Between 7 & 12 months

More than 12 months

22.3%35%

35.8%

6.9%

Which geographic areas will be

a key focus for your operations

over the next 12 months?

Cen

tral

Asi

a

East

Asi

a

Aus

tral

asia

East

ern

and

Con

tinen

tal E

urop

e

UK

and

Nor

ther

n Eu

rope

Mid

dle

East

Sout

h A

mer

ica

Nor

th A

mer

ica

Oth

er

Afr

ica

0%

10%

20%

30%

40%

50%

How would you describe your

confidence in the current

employment market?

Negative

Neutral

Positive

Extremely positive

34.1%

43.6%

6.5%15.8%

270,000+TEMPORARY AND CONTRACT STAFF ENGAGED EACH WEEK

50,000+PEOPLE PLACED IN PERMANENT JOBS EACH YEAR

6,000+ RECRUITING EXPERTS WORLDWIDE

345+OFFICES ACROSS 28 COUNTRIES

33+YEARS OF EXPERIENCE


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