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The Global Oil & Gas Workforce Survey

Expectations for Hires and Pay rates in the oil and gas industry H1 2013

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 Staffing Projections Air Energi Overview OilCareers Overview Contacts 12-13 14 15 16 17

Disclaimer: The Air Energi, OilCareers.com H1 Workforce Survey 2013 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.

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Introduction
Welcome to another edition of the Air Energi and OilCareers.com Workforce Survey of trends and predictions for the energy sector. Now in our fourth year of this publication, we have to look at how much we have developed and grown to accommodate the vast changes that have occurred over the past few years. We are moving into an innovative period where we can offer new tools to companies we work with and are seeing us pull away from our competitors throughout the industry.
Within the oil and gas industry, there is much change afoot. Advances in technology are opening up new production methods, new frontiers are being explored and as always, people are the critical component required to advance the ball. Without the right expertise for the job, nothing comes out of the ground. Given the scale and scope of todays mega projects, one announcement can have a ripple effect on the operations of the entire industry worldwide, as we have recently witnessed in Australia and the United States. The demand for LNG and subsea personnel is being acutely felt the world over, having a direct impact on project costs and delays. Its a fascinating time to be in the industry right now, though certainly not an easy or predictable one, and arguably those with the right combination of funding and agility will best survive. Thank you for your ongoing interest in this publication. As always, we welcome your comments or suggestions. Wishing you a very prosperous, safe and exciting 2013.

Ian M Langley Group Executive Chairman


ilangley@airenergi.com on behalf of Air Energi

At OilCareers.com, we are delighted to introduce the first Workforce Survey for 2013 in partnership with Air Energi. The survey remains in line with predictions from H2 2012, showing that regardless of the challenges and concerns, the industry continues to build towards a positive outlook for the economy worldwide.
With both security and HSE issues dominating news headlines, the energy sector has been thrust into the spotlight, with many left wondering how it will respond. However, with increased security measures and political backing accompanied by growing opportunities related to unconventional reserves, oil majors refuse to allow this to divert from the penetration of new frontiers, while stepping up efforts to encourage talent to higher risk areas with an inflation of salaries into 2013. Potentially counteracting this excitement and anticipation around renewed opportunities, is an issue which still presents an uncertain overcast for the sector, the global skills gap, which sees a lack of young people willing to delve into the industry, potentially counteracting its view to sustainability.

Despite this much documented concern, in true fashion, the statistics suggest that the industry is fighting back, with an increase in both salary and hiring rates across much of the world. As a longerterm view to continuous development, we see the industry has also responded with investments in both educational programmes and local labour in order to ensure a constant filter of new talent. As the worlds largest online dedicated oil and gas job board, our objective is to provide our candidates with access to a variety of positions spanning the entire oil and gas supply chain. With more than 20,000 new candidate registrations per month and 750,000+ searchable CVs, we in turn help recruiters and organisations in their continued quest to source the best solutions.

Mark Guest Managing Director


mguest@oilcareers.com on behalf OilCareers.com

Air Energi 2013

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H1 (2013) Survey Summary


Air Energi and OilCareers.com would like to thank all organizations 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 utilise in their future decision making.
170,000 + oil and gas professionals were invited to participate 15,500 + were either direct recruiters or senior decision makers Over 50 countries represented in seven major oil and gas producing regions
Percentage of responses from each geographical region

Americas 22% Middle East 13% Africa 9% FSU Caspian 10%

Australia 13% APAC 16%

UK - Europe 17%

Global Survey Report


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

Salary and Pay Rates


100 90 80 70 60 50 40 30 20 10
2010

Hiring Rate
100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Increase

Decrease

No Change

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Africa

BP chief executive said: PSVM is one of the largest subsea developments in the world and was one of BPs key project start-ups for 2012 as we grow higher-margin production. Over the coming decade, we expect Angola, where we have extensive interests from exploration through to production, to be one of the main hubs delivering growth for BP.
Regional Overview
Labour and operational challenges persist in Africa. In spite of very positive discoveries coming out of countries like Mozambique, Congo and Gabon there are confidence-shaking events taking place in places like Nigeria and Algeria. Yet for oil and gas exploration to continue, new frontiers have to be met and challenges dealt with; civil, regulatory, technical or environmental. International oil majors continue to invest and succeed here despite these hurdles.

NIGERIA
More than 12 years in the making, Nigerias proposed Petroleum creating an increased demand for qualified personnel, whether Industry (PIB) maytalent be passed soon as March 2013. local or Bill expat. Subsea remains as in high demand and likely to This highlyonce complex and controversial legislation would see a increase Angola gets its own pre-salt exploration programs
underway. New labour reform measures have been implemented significant increase in royalties to the Nigerian government over recently, geared toward improving working conditions and current levels. Oil majors operating in Nigeria have warned the improving government transparency in the oil and gas sector, the $100+ Billion earmarked for CAPEX here through to 2025 will be backbone of the Angolan economy. rendered unviable and that E&P activity could dramatically decline

as a result. Under the current structure, the promise of reduced Nigeria government corruption, a fairer for the Nigerian and The Nigerian government hasshare recently approved a public $3.5 billion national investment electricity grid to put the countrys chronic sustained in the oil an andend gasto sector are simply not power shortages. Ironically, Nigeria seeks to raise much of the adding up according to IOC spokespeople. 2013 may see ongoing capital required through foreign partners, in exchange for which international divestment from the area under the threat of this the government promises increased operational transparency and legislation, andadministration. alongside declining exports to major consumer above-board Proposed timelines are to have the new supergrid by 2014; specialised subsets from local markets like the completed United States, Nigeria may be in for a bumpy oil and gas exploits may migrate to this groundbreaking project. transition.
Yet another federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigerias relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, Expectations for Africa operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

Amount of Hires

ANGOLA
Design offices and fabrication yards in Luanda are being kept relatively busy, providing FEED and construction work in support of Angolas significant offshore E&P activities in spite of strict local content regulations. Through various channels such as operating local offices, apprenticeship programs and job site training, IOCs are able to demonstrate their commitment to the local economy, though in order to qualify for permission to bring in foreign expertise it must be proven that the company has tried everything possible to find a national with the appropriate skill sets. With such a strong offshore component to its reserves, Angola is competing directly with the likes of Brazil and the North Sea for top expertise, particularly in Subsea and HSE disciplines.
Increase Decrease No Change Increase Decrease No Change

62.5%

10.7%

26.8%

Contract + Salary Pay Rates

69.6%

3.6%

26.8%

Air Energi 2013

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Americas
America is almost self-sufficient in oil production and is now turning down offers from traditional overseas oil suppliers.
Regional Overview
Things are rarely status quo in the Americas. Seemingly overnight, Colombia and Argentina are asserting themselves among the major energy players on the continent, the future of Canadas oil sands is shifting, and impacts from the quick development of shale gas and shale oil plays in the United States have changed the world energy spectrum even over the past six months. Offshore E&P has kicked into high gear in the Gulf of Mexico, and Canada and Alaska are getting a glimpse of what may be in store as the development of Arctic reserves becomes a reality. Rates and labour supply in North America are reasonably stable, though it remains to be seen where the offshore and LNG expertise (in short supply the world over) will come from to support projects in South America.

in Brazil. But local content regulations sometimes as high as 70 per cent have brought home a number of jobs that were slated tocreating be completed in Asia Pacific. Brazils strong unions are ensuring an increased demand for qualified personnel, whether itslocal members (in Subsea the tenstalent of thousands) well represented and or expat. remains inare high demand and likely to able to take advantage of the swift economicprograms growth, increase once Angola gets its countrys own pre-salt exploration pushing for wage ofreform as much as 15 per cent. These combined underway. New hikes labour measures have been implemented pressures content, steep wage hikes) have placed recently, (capacity, geared local toward improving working conditions and Brazil in a pinch as it tries to keep the spotlight its vast offshore improving government transparency in the oil on and gas sector, the pre-salt deposits. backbone of the Angolan economy. And so new E&P activity is on deck to commence quarter two of this Nigeria year, first time offshore licensing rounds have been held billion here Thethe Nigerian government has recently approved a $3.5 since 2008. Everyone is hopeful all royalty disputes can be settled national electricity grid to put an end to the countrys chronic between Brazilian states by the time they goto up for bidding, power shortages. Ironically, Nigeria seeks raise much oflest the foreign investors thosepartners, based in in North America) capital required(particularly through foreign exchange for return which home in search of promises more stable, less technically challenging plays. the government increased operational transparency and
above-board administration. Proposed timelines are to have the new supergrid completed by 2014; specialised subsets from local CANADA oil and gas exploits may migrate to this groundbreaking project. For the last two years, operators in Canada have been bracing themselves for federal 2014 as being a is peak year, however this has not Yet another election threatening to backburner the materialised to the extent anticipated, lending to overall stability and proposed Petroleum Industry Bill (which would effectively rewrite a the more sustainable pool. Project activity is still albeit legal and fiscallabour basis of Nigerias relationships withbusy, IOCs) once down a couple notches from the frantic pressure experienced more, potentially delaying billions of dollars being in energy industry in investments. other markets. keyrevealed elementand in understood, the cooling the here (besides UntilAfully controversy the infamous Canadian winter) is down to ongoing uncertainty surrounding the Bill will result in a slowdown in some major projects, surrounding Canadas nearly pipeline which operators opting to remain in maxed-out holding pattern until capacity, it is known what has operators asking whether to increase production or maintain real effect the bill will have on corruption and security concerns. current levels. Alberta is scrambling to find ways of getting product to market, along with identifying which markets those may be. The government is concurrently trying to develop strategies to support the industry and turn around the somewhat softened demand for Canadian crude. Large players with deep pockets are continuing apace, but if an apparent solution does not materialise soon then smaller developers may get left behind.

ARGENTINA

Billions are already being shovelled into E&P in Argentina in an attempt to boost production and reduce dependency on oil and gas imports. But a further estimated $250 Billion will be required to fully develop its vast shale gas reserves, so the courtship of private investors has begun in earnest from Houston to Norway to Moscow. Shale gas and vast reserves of shale oil have been confirmed here, so besides dollars Argentinas YPF will require the technology, know-how and personnel to bring these developments into full swing. US-based IOCs are stepping up with recent experience in these deposits in their own backyard. The stakes are high: with domestic issues like high inflation and a crippling energy subsidy, the Argentine people and strong unions will most certainly be exerting pressure on the government for a favourable, equitable energy future.

BRAZIL

In contrast to the prairies, there is a heightened interest in E&P activity offshore Atlantic Canada, with several new blocks having been snapped up recently. While this is forward momentum, the impact to recruiters desks is several quarters out. Overall, hiring activity in Canada is at a measured pace for the moment, with a natural transition from design through to construction, field and optimisation areas being observed. Demand for commodity disciplines such as electrical and piping engineers has reduced, but all that could change with hoped-for west coast LNG terminal and pipeline project announcements.

Brazils burgeoning offshore explorations are resulting in massive industrial spin-offs onshore. Shipyards and fabrication yards are themselves in as high demand as the components they are scheduled to build. Even with the huge increase in fabrication capacity here, however, there are a number of Petrobras projects still being executed in Singapore and China due to lack of capacity

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Americas

COLOMBIA

Colombias petroleum industry needs every bit of good news it can get following years of guerilla attacks, labour unrest, and dwindling reserves, but exploration is slated to continue at a brisk pace through 2013. The country now ranks third only behind Brazil and Australia in terms of E&P potential and activity. Chevron, Shell and ExxonMobil have all pledged significant interest and investment in Colombias unconventional gas reserve exploration, and given a successful outcome to the peace talks currently underway between the government and rebel factions, that trajectory will only increase. Shale gas technical expertise will be in high demand and short supply here, competing with similar projects in Australia and more recently the United States.

VENEZUELA

USA

2013 will be a big year for operators involved in shale gas plays throughout the United States, buoyed by increasing demand for LNG (for domestic and export markets) as well as significant international investment interest. Assets that were once used to import petrochemicals are being flipped into export hubs, and several downstream refineries and related infrastructure are also underway (such as a $17 billion Gas To Liquids plant near Lake Charles, estimated to employ some 17,000 people). Engineering and construction work is readily available across all stages and disciplines. Fortunately for the US, thanks to its long-standing refinery and manufacturing sectors it has a relatively solid domestic pool from which to recruit for the moment. As expected, the high levels of activity underway have created a candidates market, though rates remain stable and the trend toward permanent hires versus contractors observed in 2012 continues. What becomes of labour availability as LNG projects well and truly get into full swing (as in Australia) remains to be seen. Though shale gas may be in the spotlight at present, activity is also picking up within unconventional oil plays (especially those with gas deposits) as well as offshore projects, with new E&P work underway and increasing rig count in these areas. Already this year there appears to be more job orders than qualified candidates, particularly those related to downstream disciplines and eligible for direct hire as companies seek to expand their headcount.

Venezuelan president Hugo Chavez is urging state petroleum and metals industries to work together, invest billions, build cities, bring employment to hundreds of thousands of workers, and achieve Complete Oil Sovereignty in the long-awaited full development of its Orinoco heavy-oil belt. Yet Venezuelas track record for nationalisation of international assets has left both mining and oil and gas investment-starved for years, and in this poor economic position, labour unrest has further plagued these industries. Staterun PDVSAs employee rosters have grown by more than 100,000 people over the last few years, yet production has historically come up shy of the lofty volumes projected by the government. A forthcoming election could bring a new regime, industrial reform, and renewed confidence from the private sector in short, a much more positive outlook for its resident technical and engineering personnel.

Expectations for Americas

Amount of Hires

41.7%

6.7%

51.6%

Increase

Decrease

No Change

Contract + Salary Pay Rates

56.7%

5%

38.3%

Increase

Decrease

No Change

Air Energi 2013

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Asia Pacific

Senior Industry professionals are optimistic about the near-term outlook for Asia Pacific, but with the rising operating costs and changes as the region transitions to deal with more complex and costly projects, they are cautious saying that the biggest challenge will be growth.
Regional Overview
Asia Pacific is the hub for much of the worlds shipbuilding and offshore fabrication work, and all the major yards in the region (Singapore and Korea in particular) have been stretched to maximum capacity going into 2013. Given the modularization of some projects, some of the spill-over work has even landed in China, Thailand, Indonesia and Philippines. Project delays are a certainty this year, becoming a question of how many months rather than weeks in some cases. Besides the physical space required to meet these orders, labour is most certainly becoming scarce; many companies are starting to cast their nets further in the search for manpower with campaigns taking place continually in FSU and Middle East. Across the entire region, the following disciplines are in increasing demand: Naval Architects, Subsea Engineers, Construction Advisors, Project Controls specialists, QA/QC, Safety Engineers and Process Engineers.

exclusively dependent on LNG for its domestic energy supply, so is also grabbing up stakes in high-yield ventures in Australia and creating an increased for demand for qualified personnel, whether elsewhere in exchange drill-ships and other components built local expat.Orders Subsea talent remains in high demand and likelyof to here ator home. are in place here in the tens of billions increase once Angola gets its own pre-salt exploration programs dollars, securing employment for everything from engineering to underway. disciplines New labour reform measures have years been at implemented construction for the next two to three minimum. recently, geared working conditions and Given the tidal rise in toward offshore improving activity worldwide within both mature improving government transparency in the oil and gas sector, the and emerging markets, operators will welcome whatever capacity backbone of the Angolan economy. and assistance South Korea can provide.

INDONESIA Nigeria

Indonesia too isgovernment feeling the has spark of increased investment in its The Nigerian recently approved a $3.5 billion domestic reserves, offering new blocks for bidding, approving national electricity grid to put an end to the countrys chronic dozens oil and gas development plans, asto well as much announcing power of shortages. Ironically, Nigeria seeks raise of the ambitious plans to through maximise output from current fields measures capital required foreign partners, in exchange for which through which an estimated 3,000 operational new jobs will be created. the government promises increased transparency and Partnerships being signed with regional and above-boardare administration. Proposed timelines areinternational to have the developers, providing a much-needed boost to Indonesias lagging new supergrid completed by 2014; specialised subsets from local output so as to keep up with domestic demand and export targets. oil and gas exploits may migrate to this groundbreaking project. Unlike wide-sweeping NOC regulatory changes elsewhere, Yet another federal election is threatening to backburner the Indonesias recent shift from BP Migas to SKK Migas hasrewrite been proposed Petroleum Industry Bill (which would effectively relatively low with of the government ensuring that all PSC the legal andimpact, fiscal basis Nigerias relationships with IOCs) once contracts will not be delaying affected and any new foreign investment is still more, potentially billions of dollars in energy industry welcome. Foreign IOCs will continue to understood, enjoy the latitude they need investments. Until fully revealed and the controversy tosurrounding operate as required. the Bill will result in a slowdown in some major projects,

MALAYSIA

operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

JAPAN

LNG accounts for more than 80 per cent of Japans domestic energy imports, so it stands to reason that the country is heavily involved in several diverse and strategic LNG plays around the world. Here, as elsewhere, energy self-sufficiency is paramount, but with few domestic reserves the best Japan can do is to lend its investments and strong technical expertise to the projects it partners itself with. Both Japan and Korea have long-standing experience and expertise in the type of projects currently coming out of Australia, and will each reap the rewards from their investments in these multi-billion dollar projects both in terms of domestic job creation as well as the securement of future energy supply.

KOREA

Malaysias monster Pengerang Integrated Petroleum Complex (PIPC) could be one of the biggest prospects in the coming years and definitely the largest of its kind to come out of Malaysia. More than 20 EPC contracts are expected to be announced by mid-2013 with construction scheduled to commence later in the year. This $20 Billion project alone will swallow up any and all available Project Management Teams from around the world, and once in full swing an estimated 70,000 workers from all disciplines will be required. But a warming trend is being observed on behalf of Malaysian foreign investment regulations: more Risk Sharing Contracts are being awarded, resulting in a number of smaller operators now getting in on some of the marginal action in Malaysia. As previous, demand remains extremely high here for FEED personnel, Construction Project Managers, Quality and Safety, and HSE. Expertise in drilling exploration, fixed platform and LNG engineering and construction is also highly sought after.

Suppliers in shipyard powerhouse South Korea will also enjoy full order books across 2013. Like Japan, South Korea is almost

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Asia Pacific
SINGAPORE Depleting crude oil reserves:

Capacity at Singapores shipyards has gone from maxed out to simply overloaded. Billions of dollars in contracts have been awarded for everything from jack-ups to semi-submersibles to FPSOs late last year, leaving fabricators reeling and wondering where to put the extra work. Its no longer Australia exerting the pressure here; orders are coming in to support offshore endeavours in Brazil, the North Sea and Africa. Engineering and design work on these new FPSO projects are being done in USA, Europe, and within the Asia Pacific region, however the majority of the construction work is being carried out in Singapore and Indonesia. The CAPEX woes in Australias LNG plays has obviously had a trickle-down effect to operators involved, resulting in major delays due to design changes and increased scope across a number of EPCs. Additional manpower is in high demand across multiple fabrication and construction locations here.

The majority of the oil and gas companies in the Asia-Pacific region continue toan face either flatdemand or depleting growth inpersonnel, crude oil reserves. creating increased for qualified whether local or expat. Subsea talent remains in high demand and likely to Regulated environment: increase once market Angola gets its own pre-salt exploration programs Major players in the region are state-owned and operate in a highly underway. New labour reform measures have been implemented regulated environment. Stateowned companies have limited recently,market geared toward improving working conditions and operational improving flexibility. government transparency in the oil and gas sector, the backbone of the Angolan economy.

Price volatility:

Volatility Nigeria in oil and natural gas prices continuosly impact operations ofThe the major companies within APAC. Nigerian government has recently approved a $3.5 billion
national electricity grid to put an end to the countrys chronic to raise much of the Stringent environmental regulations (that are globally) capital required through foreign partners, in applicable exchange for which tothe curb GHG (green house increased gas) emissions will result in additional government promises operational transparency and capital expenditure, especially on refineries and emission-intensive above-board administration. Proposed timelines are to have the exploration technologies. new supergrid completed by 2014; specialised subsets from local oil and gas exploits may migrate to this groundbreaking project.

Environmental regulations: power shortages. Ironically, Nigeria seeks

THAILAND

Thailand and Indonesia are capturing some of the spillover fabrication capacity from neighbouring Singapore. These regional cross-over benefits are helping Thailand make its own moves toward securing future energy supply, such as engaging in strategic merger and acquisition activity. But the doors to exploration and production remain open to foreign investment, as well as open diplomatic relations with its neighbours in the Gulf of Thailand over potential overlapping development rights. Subsea and LNG expertise, as well as Construction/Project Managers and EPC disciplines remain in strong demand.

Yet another federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigerias relationships with IOCs) once Expectations for APAC Region more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

Amount of Hires

VIETNAM

There have been several stories published over the last couple of years warning the industry of the major void that will be created once the 50-somethings retire in the coming decade, leaving behind not only a raft of empty chairs but a serious gap in seniorlevel technical expertise. Among the players in the regions oil and gas industry, Vietnam may be particularly well-positioned for the future through a strong engineering graduate and training program (unlike in the UK, for example, where it has been particularly challenging to attract youth to the industry). In terms of a foreign investment climate, however, there has been no major change for the good. To complicate further, mounting tensions between Vietnam and China over sovereignty in the South China Sea, estimated to contain 200+ billion barrels of oil, are driving exploration costs up and potentially keeping foreign investment dollars out.

51.4%

11.1%

37.5%

Increase

Decrease

No Change

Contract + Salary Pay Rates

73.6%

1.4%

25%

Increase

Decrease

No Change

Air Energi 2013

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Australasia
Coal Seem Gas will be a key part to securing Australias energy security now and into the future.
Regional Overview
Dealing with the cost of labour, there seems to be no let-up in the short term. As Gorgon, Wheatstone and the three Coal Seam Gas (CSG) projects in Queensland progress towards the back end of execution (post 50 per cent complete), hiring rates and earnings for construction, commissioning, completion and start up personnel will increase in the next two years due to the expected market pinch. For corporate and technical personnel more likely to be engaged in the front and mid stages of projects, the short term seems reasonably stable with the operator and supply chain involved in the CSG projects, Ichthys and Prelude in particular still hiring at expected rates. From an employment perspective, the post-2016 picture is also complicated by the current number of transient oil and gas contractors working in Australia, mostly on 457 or PR visas. From creating an for qualified whether West Africa toincreased the Middledemand East to Australia, this personnel, European engineer local or expat. talent remains in high hot demand likely to community has Subsea followed oil and gas project spotsand around the increase once Angola gets its own pre-salt exploration world for the last 15 years. Within Air Energi, a brief programs overview underway. labour reform measures have been implemented models that New this is circa 20 per cent of our current on-hired contract recently, geared toward working conditions and population, which we feel isimproving a fair representation of the current improving government transparency the oiloverall and gas sector, the market. Market share indicators pointin to this population in backbone of the Angolan economy. Australia that relies on a booming contract employment market to be in excess of 10,000 people.
Nigeria Add all of thegovernment above a potential leadership changea at$3.5 the federal ThetoNigerian has recently approved billion government level and a slight softening in the mining sector, the big national electricity grid to put an end to the countrys chronic question is will the oil and gas Nigeria operators gamble on the reduction in power shortages. Ironically, seeks to raise much of the LNG project demand to substantially increase productivity, capital required through foreign partners, in exchange forreduce which cost of execution promises and a more assured time schedule or be a case the government increased operational transparency and of once bitten, administration. twice shy... above-board Proposed timelines are to have the

AUSTRALIA

There are currently 15 LNG trains in construction across Australia with a mode average start-up date (subject to no further schedule delays) of 2015. As we head into 2013, the Australian oil and gas industry continues to feel the pressure of this large suite of LNG projects. Gorgon has been the latest to announce a cost blowout of $9 Billion to a total CAPEX of $52 Billion, owing to labour costs, the strong Australian dollar, logistics and continued local productivity challenges. In Queensland, all stakeholders in the CSG space seem committed for the long haul regarding the ongoing OPEX / developments required to fuel at least two LNG trains for 25 years. Whether or not Arrow Energy goes it alone or finds a collaborative solution, the upstream aspect and two pipelines involved in the project will have to be executed. It is also worth noting that train 3 of PNG LNG and the Gulf LNG project should both be sanctioned in 2013, helping feed oil and gas employment prospects out of Brisbane. 4,344 kilometers to the west in Perth, Prelude is leading the way. Current FLNG project opportunities seem to tick the operating sponsors longer-term boxes as costing and scheduling becomes more assured. These projects bring benefit to Australia not only from a federal tax perspective, but also reasonable career opportunities within the corporate, logistics infrastructure, project management, procurement, contract management, training and operations areas. The second and third FLNG projects (Bonaparte and Scarborough) also seem to be making positive noises.

PNG oil and gas exploits may migrate to this groundbreaking project.

new supergrid completed by 2014; specialised subsets from local

Despite heavy environmental and regulatory pressures here, exploration investments continue to be made in Papua New Yet another federal election is threatening to backburner the Guinea by several oil majors, themselves forming positive relations proposed Petroleum Industry Bill (which would effectively rewrite with and local Brisbane would a natural the government legal and fiscal basis ofoperators. Nigerias relationships withbe IOCs) once siphoning-off point delaying for technical expertise, butintoenergy pull personnel more, potentially billions of dollars industry from an already-taut labour market to move to a more investments. Until fully revealed and understood, the adventurous controversy post in PNG may prove challenging. surrounding the Bill will result in a slowdown in some major projects,

Expectations for Australasia real effect the bill will have on corruption and security concerns.
Amount of Hires

operators opting to remain in holding pattern until it is known what

36.8%

15.8%

47.4%

Increase

Decrease

No Change

Contract + Salary Pay Rates

63.2%

10.5%

26.3%

Increase

Decrease

No Change

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Air Energi 2013

FSU - Caspian
Kazakhstan is planning to increase oil production to 82 million tons in 2013.
Regional Overview
Whereas elsewhere in the world technological advances are helping kickoff the development of discoveries made decades ago, it appears that even for mega projects like the Shtokman natural gas field (which holds an estimated 3.8 trillion cubic meters of gas) the project costs remain too high to be commercially viable. However, as Russia slowly begins to open its doors to foreign oil and gas partners to offer project partnerships, technical collaboration and federal incentives, these investments will eventually bear out to the benefit of the entire region.

RUSSIA

Its boomtown in Moscow these days, with Russia reporting that oil creating an increased demand qualified personnel, whether output is at an all-time high, evenfor to the point that it is claiming to localdisplaced or expat. the Subsea talent remains in high as demand and likely to have long-reigning Saudi Arabia the worlds biggest increase once Angola gets its ownswagger, pre-salt exploration programs oil producer. With uncharacteristic administrations here underway. labour reform have been implemented and across New the Caspian region measures are opening their doors to foreign recently, geared toward improving Even working conditions and investments and project partnerships. the Russias colossal improving government the oil and gas sector, the Rosneft and Gazprom transparency have joined in forces under a cooperation backbone of Angolan economy. agreement to the enable the two companies to share technology and infrastructure to drive offshore exploration. Here, as elsewhere, demand Nigeria (particularly out of Europe) will drive the pace at which these projects are able to proceed, despite the best of The Nigerian government has recently approved a intentions $3.5 billion the administration and NOCs. national electricity grid to put an end to the countrys chronic
power shortages. Ironically, Nigeria seeks to raise much of the Yet in spite of mega projects currently underway that are for prepared capital required through foreign partners, in exchange which to pay top dollar for good people, there is still a significant skills and gap the government promises increased operational transparency here. Russian administration. technical graduates are keen to secure contracts in above-board Proposed timelines are to have the the West, whereas Russia (in particular, Moscow) is becoming an new supergrid completed by 2014; specialised subsets from local increasingly cosmopolitan and attractive employment destination oil and gas exploits may migrate to this groundbreaking project. for Western professionals seeking experience abroad, but Russian bureaucracy significant Yet anotherremains federal aelection is hindrance. threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigerias relationships with IOCs) once more, potentially delaying billions of dollars in energy industry Expectations for FSU - Caspian investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, operators opting to remain in holding pattern until it is known what real effect the bill willAmount have on corruption and security concerns. of Hires

KAZAKHSTAN

Some two years after the deal was signed, the Kazakhstan government has finally agreed to allow consortium partners to recoup their CAPEX and related costs first (prior to payout of state royalties) at the massive Karachaganak oil and gas field, which is estimated to hold five billion barrels of oil equivalent. This is good news for anyone with investment in, or eyes on, Kazakhstan; signals of a more positive and cooperative administration could be all that is required for the country to unlock its vast crude oil reserves and capitalise on its strategic location between Europe and Asia. The question remains as to whether the foreign personnel required to plan and operate these projects decide to follow the investments. But Kazakh NOCs have promised to do their part to make a contract in Kazakhstan an attractive one in order to attract the thousands of foreign specialists estimated to be required to keep mega projects like Karachaganak and Kashagan moving forward to the next phase.

16.7%

33.3%

50%

AZERBAIJAN

Azerbaijans mega Shah Deniz gas field, which contains an estimated 30 trillion cubic feet of resources, has recently been given the go-ahead with project partners to extend the PSA through to 2036. With Western Europe as its number one customer, this is good news for both Azerbaijan as well as European countries seeking to diversify their energy supply. But the countrys vast oil and gas wealth has not as yet translated into jobs for the majority of unemployed Azerbaijanis, many of whom hit the streets in several centres recently over ongoing unemployment and social issues. Azerbaijan largely does not have the social infrastructure to fund universities and technical schools, so in order for projects like Shah Deniz to succeed it will be almost exclusively dependent on foreign expertise.
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Increase

Decrease

No Change

Contract + Salary Pay Rates

50%

0%

50%

Increase

Decrease

No Change

Europe
The North Sea is a vital national asset to the UK. December 2012 saw a 1 billion project for the development of two oil fields in the North Sea being given the go-ahead..
Regional Overview
Flexibility and open access to quality education and health care systems keeps EU residents at home, and for expats, Europe offers a very high standard of living. There are in addition a broad range of professional opportunities here in design work for on- and offshore projects worldwide. Some FEED work has commenced in the North Sea, but disciplines in rather short supply also include Safety, Civil / Structural and Environmental Engineers, E&P disciplines, Geophysicists and Geoscientists. Traditional areas within Process and Design are not feeling the same pinch.

right amount of people into the industry, and where good grads are found, its often a case of too little, too late. Several majors have opted to establish their own graduate training programs but these creating an increased demand for qualified personnel, whether are notor yielding the volumes personnel required to and top likely up the local expat. Subsea talent of remains in high demand to rosters of todays mega gets projects. Attrition is an ongoing challenge, increase once Angola its own pre-salt exploration programs though completion bonuses are helping have improve retention and underway. New labour reform measures been implemented settle rates. Unlike toward other comparable regions (such as North recently, geared improving working conditions and America) operators and EPCs here have experienced little traction improving government transparency in the oil and gas sector, the with driving permanent roles over contract. backbone of the Angolan economy.

MAINLAND EUROPE The Nigerian government has

Nigeria

SCANDINAVIA

Record investments in Northern European oil and gas have set a confident tone for 2013, with new EPC work destined for developments in the North Seas is keeping Norwegian / European design houses and fabrication yards busy. Whilst these projects range from enhanced production out of existing fields to the commissioning of new discoveries, most share one commonality: they are being enabled at the present moment because of technological advances. Thousands of jobs are being created because the technology required to proceed with discoveries made decades ago is at last commercially viable in todays competitive oil and gas market. And advances made and tested in North Sea waters will help pave the way for future explorations in the Arctic.

recently approved a $3.5 billion Innational this candidate-driven operators EPCs can quite electricity grid market, to put an end to and the countrys chronic easily find themselves in bidding wars for top people, as power shortages. Ironically, Nigeria seeks to raise much of the the industry during the labour crunch 2008. In response capital experienced required through foreign partners, in in exchange for which tothe thegovernment attrition merry-go-round, and in an effort to help keep rates in promises increased operational transparency and check, European design houses and operator projects have instead above-board administration. Proposed timelines are to have the elected to put healthy completion bonuses on offer to both new supergrid completed by 2014; specialised subsets from staff local and contractors. Heading into 2013, rates have largely remained oil and gas exploits may migrate to this groundbreaking project. steady. However, EPCs here are all struggling to find the right people, particularly for election FPSO design work. European residency Yet another federal is threatening to backburner the isproposed almost a Petroleum must, so companies are somewhat limited to source Industry Bill (which would effectively rewrite through traditional areas networking events, social media once and the legal and fiscal basislike of Nigerias relationships with IOCs) job boards. more, potentially delaying billions of dollars in energy industry

Expectations Europe surrounding the Billfor will result in a slowdown in some major projects,

investments. Until fully revealed and understood, the controversy operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

Amount of Hires

UK

38.8%

20.4%

40.8%

Record-setting investment and strong government support are increasing investor confidence in the region into 2013. On the one hand, new large-scale projects like Cygnus will create thousands of jobs in the region from design through to construction. But the UK is also keen to maximise efficiency out of its existing developments: the Brown Field Allowance passed in September provides tax shelter for a portion of revenues derived from mature fields on the UK Continental Shelf, prolonging the lifespan of these projects and creating thousands of jobs to support. On the personnel side, as mentioned specialist disciplines are in very short supply. Graduate programs are not attracting the
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Increase

Decrease

No Change

Contract + Salary Pay Rates

46.9%

20.4%

32.7%

Increase

Decrease

No Change

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Air Energi 2013

Middle East
The upcoming Saudi Aramco projects which are estimated at more than SR 308 billion are expected to open up huge employment opportunities for Saudis.
Regional Overview
Qatar and the UAE are still considered to be positive destinations for ex-pats, offering high quality of life, competitive rates, tax breaks and long-tenured placements to lure expertise out of design hubs like London and Houston. The concerns over a mass exodus out of the Middle East to LNG hotspots in Australia and Asia Pacific seem to have subsided, with a natural filtering-out of onshore versus offshore LNG expertise. The region continues to attract foreign investment dollars and rates have remained consistent throughout. Site construction personnel are most in demand along with senior-level engineers.

UAE

IRAQ

Iraq continues to open its doors to foreign investment to increase production from its significant reserves (estimated to be the third largest in the world), as well as improve its lagging downstream infrastructure. Adding to the positive momentum here is an anticipated agreement between Iraq and neighbouring Kurdistan over control of shared oil resources. Whilst Iraq may not be a prime destination for ex-pats seeking assignment in the Middle East, other regions such as Dubai are establishing themselves as hubs for personnel assigned to major projects here, easing logistical concerns surrounding safety, work visas and worker accommodations. As all aspects of oil and gas production continue to advance, they bring large-scale employment opportunities for everything from unskilled to professional trades.

Abu Dhabi is the regional hotspot for project activity with offshore and refining expected pick up across the year. The creating an projects increased demandtofor qualified personnel, whether Emirates toSubsea significantly increase to meet domestic local or plan expat. talent remainsproduction in high demand and likely to requirements, investing tens its of own billions of dollars acrossprograms multiple increase once Angola gets pre-salt exploration petrochemical developments. Unlike other markets whose underway. New labour reform measures have been implemented resources are booming but are starved for talent, the UAE remains recently, geared toward improving working conditions and a improving preferred government destination for ex-pats, offering competitive rates, tax transparency in the oil and gas sector, the incentives and easy standard of living. Design offices overseas will backbone of the Angolan economy. be kept busy in support of projects here, particularly with seniorlevel engineering and construction expertise. Locally, fabrication Nigeria yards in Dubai are busy fulfilling orders destined for the North Sea The Nigerian government has recently approved a $3.5 billion and elsewhere. national electricity grid to put an end to the countrys chronic power shortages. Ironically, Nigeria seeks to raise much of the SAUDI ARABIA capital required through foreign partners, in exchange for which Saudi Arabia remains extremely busy into 2013, and activity is the government promises increased operational transparency and expected to continue a steady pace across the year as multiple above-board administration. Proposed timelines are to have the downstream and refinery projects (such as SATORP) come online. new supergrid completed by 2014; specialised subsets from local However, despite an impressive list of mega-projects underway oil and gas exploits may migrate to this groundbreaking project. attracting senior expertise to the region can prove difficult. As compared to other parts of the Middle East, rates are generally Yet another federal election is threatening to backburner the stretched as high as they can go. But for most ex-pats, there proposed Petroleum Industry Bill (which would effectively rewrite needs to be a specific reason to accept a contract in a country that the legal and fiscal basis of Nigerias relationships with IOCs) once provides few easy inroads for daily life. Lead engineers with 15+ more, potentially delaying billions of dollars in energy industry years experience are in particularly high demand here. investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, Expectations the Middle East operators opting tofor remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

Amount of Hires

QATAR

45%

13.5%

41.5%

Qatar has been in a flat state in terms of production levels since the last of its major gas trains came online two years ago and at present there are relatively few project announcements. Analysts forecast that Australia is well-positioned to overtake Qatar as the leading exporter of LNG within the next four to five years. Yet Qatar is looking to maintain its competitive position among LNG exporters by exploring opportunities to partner on major shale gas plays underway in the United States. Major onshore project Barzan should create a spike in demand for many construction and related disciplines, but is not anticipated to commence until late next year. Project activity and hiring trends are expected to remain relatively light, with operators focusing their energies on smaller projects, maintenance, and production optimisation.
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Increase

Decrease

No Change

Contract + Salary Pay Rates

60.4%

4.5%

35.1%

Increase

Decrease

No Change

11

Regional Comparisons
Key
Increase Decrease No Change

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

Africa - Contract - Salary Pay Rates


100 90 80 70 60 50 40 30 20 10
2010

Africa - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Americas - Contract - Salary Pay Rates


100 90 80 70 60 50 40 30 20 10
2010

Americas - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Asia Pacific - Contract - Salary Pay Rates


100 90 80 70 60 50 40 30 20 10
2010

Asia Pacific - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Australasia - Contract - Salary Pay Rates


100 90 80 70 60 50 40 30 20 10
2010

Australasia - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

12

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Regional Comparisons
Key
Increase Decrease No Change

H1 = statitics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.

FSU - Caspian - Contract - Salary Pay


100 90 80 70 60 50 40 30 20 10
2010

FSU - Caspian - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Europe - Contract - Salary Pay


100 90 80 70 60 50 40 30 20 10
2010

Europe - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

Middle East - Contract - Salary Pay


100 90 80 70 60 50 40 30 20 10
2010

Middle East - Hiring Rate


100 90 80 70 60 50 40 30 20 10

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

2010

H1

2010

H2

2011

H1

2011

H2

2012

H1

2012

H2

2013

H1

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13

Staffing Projections

With all of the current demands on staffing we asked what kind of solutions are in place and what the main issues are going forward.
Which specialist role is in the highest demand within your organisation?

Which roles are in highest demand

Drilling 9.4% Project Manager 26.1% Contract Administrator 9.4% Geologist 2.4% Engineer 52.6%

The biggest threat to the oil and threat gas industry What do you think is the biggest current to the Oil & Gas industry?
Safety Regulations 7% Labour Costs 4.5% Economic Instability 34.3% Capital Costs 9% Visa / Immigration 13.2% Skill Shortage 32%

What challenges do you see in your employee training program?

Training issues

Lack of Budget 31.8% Not getting quality candidates 26.5% Lack of skilled trainers 20.3% Cant offer the full selection of training 21.4%

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Our range of services include:


Technical Contractor/Consulting - The identification, mobilization and support of technical consultants assigned to major oil and gas projects worldwide. Global Mobility Services - Tax and payroll, immigration, transport, health, security, accommodation and on-going care. Project Teams - Fully equipped, multi-disciplined teams for major oil and gas capital development projects. Search - Bespoke contingent, retained and volume recruitment campaigns for permanent staff needs. Recruitment Process Solutions - Experienced oil and gas recruitment experts working to deliver highly efficient resources to projects around the globe. Strategic Consulting (trusted expertise) - Air Energis expertise and knowledge is increasingly being sought to develop and deliver workforce solutions to a range of challenging situations. Key Stats 3000 consultants currently assigned to major projects Workforce 60% local/regional hires and 40% Western Ex-pats Present in 35 global locations Experience in a total of 50 countries Major clients include ExxonMobil, ConocoPhillips, Shell & Total EPC clients include Worley Parsons, Wood Group, AMEC, Bechtel and KBR

Air Energi is the trusted supplier to the oil and gas industry. With over 30 years experience in the sector our goal is to become the recognised, foremost provider of trusted expertise to the international oil and gas industry.
The Air Energi Group has ventures in over thirty countries across the globe and deploys engineering professionals in over fifty countries. Our clients are driven by the need to reduce costs, improve efficiency of recruitment and to concentrate on delivering major projects on time and to budget. Increasingly our clients want to outsource the recruitment, pay rolling and logistical support for a growing percentage of their workforces. Air Energi provides a comprehensive range of services which allow us to deliver a total personnel solution on any scale, at any point in your project life cycle or field development and at all your locations. With offices in 35 locations worldwide, and through our company values: Safe, knowledgeable, innovative, passionate, inclusive and pragmatism, WE DELIVER, each and every time.

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15

OilCareers was launched in 1999, and has become the giant of online recruitment within the Oil & Gas industry. We provide job seekers with an easy and effective way of searching for a new job or career across all specialisms in the Oil & Gas industry.
Our heritage, size and global reach, mean we are best placed to match professionals to the right job, and provide recruiters with the best value and a wide range of advertising opportunities to access the largest global talent pool of job seekers. OilCareers offers one of the industrys most visited websites with over 1.5 million visits each month. The site already helps some of the biggest and most reputable employers in the Oil and Gas industries to advertise their vacancies. We provide instant job advertising for the Oil and Gas industry to both local and worldwide audiences, with offices serving the

global industry hubs of the North Sea, US, Canada, Middle East, Asia and Australia, bringing employers, agencies and candidates together efficiently and confidentially. With an unparalleled web presence, continuous online and offline marketing, and a dedication to matching the best candidate to the right job as easily and effectively as possible, OilCareers is a vital resource for all companies recruiting in Oil & Gas. Key Stats OilCareers receives over 1.5 million visits per month Over 800,000 unique visitors per month More than 1.2 million registered users Over 20,000 new candidates registering each month A CV database of over 750,000 searchable CVs Over 18,000 new vacancies posted each month

16

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Contacts

Americas Air Resources Americas LLC 6002 Rogerdale Suite 340, Houston Texas, 77072, USA Tel: +1 281 983 3464 Fax: +1 281 983 3468 americas@airenergi.com Asia Pacific Air Energi Group Singapore Pte Ltd 1 North Bridge Road #06-03/04 High Street Centre Singapore, 179094 Tel: +65 6511 1060 Fax: +65 6511 1050 asiapacific@airenergi.com Australasia Air Consulting Australia Pty Ltd Level 8, 46 Edward Street Brisbane, QLD, 4000 Australia Tel: +61 (0)7 3056 0900 Fax: +61 (0)7 3112 2601 australia@airenergi.com Caspian Air Energi Caspian LLP 6 office, 4 floor, 113 Kulmanov st. Atyrau, Kazakhstan 060011 Tel: +7 7122 306033 caspian@airenergi.com UK, Europe & Africa Air Resources Ltd 4th floor, Delphian House, Riverside New Bailey Street, Manchester M3 5FS United Kingdom Tel: +44 (0)870 112 9444 europe@airenergi.com Middle East Air Resources Qatar 3rd floor, Qatar First Investment Bank / Al Jazeera Finance Building, PO BOX 2953 C Ring Road, Doha, Qatar Tel: +974 4462 0886 Fax: +974 4462 6675 middleeast@airenergi.com

United Kingdom OilCareers Ltd Unit 22, Abercrombie Court Arnhall Business Park Westhill, Aberdeenshire AB32 6FE United Kingdom Tel: + 44 0122 454 8080 United States OilCareers.com Inc 11490 Westheimer Suite 850, Houston Texas, 77077, USA Tel: +1 713 425 6316 Dubai OilCareers.com Al Thuraya Tower II, Executive office No. 18 6th floor P. O. Box 500643 Dubai, UAE Tel: +971 4 4280618 Australia, Brisbane OilCareers Pty Ltd Level 3, 130 Commercial Rd, Teneriffe, Qld 4005 Australia Tel: +61 07 3872 6000 Australia, Perth OilCareers Pty Ltd 464 Hay Street, Subiaco, WA 6008, Australia Tel: +61 08 9489 5400 Canada OilCareers.com 1333 8 St Sw Calgary, Alberta T2R 1M6, Canada Tel: +1 403 209 3551

The Air Energi and OilCareers.com Global Oil & Gas Workforce Survey 2013 Contributors
Public Relations and Design: Ben Quinton, Introductions from Ian Langley and Mark Guest

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