H2 workforce survey 2013 online by Ben Quinton

The Global Oil & Gas Workforce Survey Expectations for Hires and Pay rates in the Oil and Gas Industry, Second Half 2013

Contents

Introduction 1 Survey Summary

Africa 3 Americas 4-5 Asia Pacific

6-7

Australasia 8 FSU - Caspian

Europe 10 Middle East 11 Regional Comparisons

12-13

Staffing Projections

Air Energi Overview

OilCareers Overview

Contacts

Disclaimer: The Air Energi, OilCareers.com H2 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.

Introduction Welcome to the H2 2013 Global Workforce Survey, created by Air Energi and OilCareers.com. This is an exciting period for the industry, with construction yards busy and billions of dollars being invested in exploration activity across the world. The biggest challenge facing the sector now is the lack of experienced technical talent on a global level which is beginning to impact projects and schedules. Attracting todayâ&#x20AC;&#x2122;s highly mobile workforce to operate in difficult locations is an issue faced by many companies, which is why our talent search and attraction services for global candidates is more important than ever. Shale gas is causing a global stir, both in terms of new discoveries and the environmental issues surrounding its development. Having the right technology, policy and personnel in place will be vital to making the most of this energy resource.

Ian M Langley Group Executive Chairman ilangley@airenergi.com on behalf of Air Energi

energy demands. In the future we expect to see more international co-operation on knowledge and technology sharing to access new discoveries. These agreements will be strategically important for countries with little experience working in challenging exploration and production environments. As technologies become more advanced the emergence of remote technology will come to the fore and could dramatically change the workforce landscape. The outlook for the oil and gas industry remains bright but there are many challenges to overcome and that makes it an interesting sector

As oil and gas extraction goes deeper and more unconventional,

to watch over the coming years.

innovative technology is key to meeting the increasing global

At OilCareers.com we are delighted to introduce the second Workforce Survey of 2013 in partnership with Air Energi, with results showing a distinctly positive outlook in the oil and gas sector worldwide. Unconventional reserves, particularly shale, have been thrust firmly into the spotlight with Bob Dudley, chief executive officer for BP, commenting that the US may be close to self-sufficiency by 2030. The UK has also announced new discoveries backed by government, and the Middle East continues to be recognised as housing the majority of

experienced professionals to provide a vital passage of information for the next generation. With an ageing workforce it is business critical for organisations across the supply chain to achieve this so that when workers reach retirement age their expertise is not lost. At OilCareers.com we recognise that people are at the heart of the operation. With 800,000+ searchable CVs we continue to support oil and gas companies in their search for expertise, as well as providing candidates with 18,000+ vacancies per month spanning the entire oil and gas supply chain.

the worldâ&#x20AC;&#x2122;s natural gas reserves. This changing landscape has exerted additional pressure on energy majors who are trying to capture expertise in what is already a widening jobs pool. A focus on shale means a need for more specialised skills, with roles in geology for example ever-increasing. This is leading to an expected rise in salaries accompanied by growing investment in training and development to best encourage new entrants and those with transferable skills into the industry. While it is important to encourage new and qualified talent into the industry, it is also crucial for companies to capture the knowledge of

ÂŠ Air Energi 2013

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Mark Guest Managing Director mguest@oilcareers.com on behalf OilCareers.com

H2 (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

Australia 2%

Middle East 30.7%

APAC 20.9%

Americas 9.2%

UK - Europe 4.5% FSU Caspian 2.8%

Africa 22%

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

100

2010

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Hiring Rate

2010

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2011

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2013

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Africa

Regional Overview The outlook is bright for East Africa which is experiencing an investment boom as companies migrate to the oil and gas discoveries in regions such as Kenya, Mozambique and Ghana. Investment in sustainable power, communication and transportation infrastructure will be key to countries attracting international investment and coping with the growth in exportation. A shortage of skilled workers remains a challenge for Africa, there needs to be a clear focus on attracting and retaining local talent to ensure the skills are available for future mega-projects. Security will be high on the agenda for international operators and expats looking to move into the country to avoid any potential unrest.

Mozambique Mozambique is enjoying its biggest upsurge in investors with the discovery of over 100 trillion cubic feet of natural gas and the potential for substantial oil discoveries still to come. Operators looking to move into the country will benefit from a clearer legal framework later this year when the ratification of a new petroleum law is expected. One of the country’s major developments is the advancement of a large scale LNG park in the Rovuma Basin off the northern coast of Cabo Delgado Province, which Anadarko have stated could produce 50 million tonnes of LNG per annum. Anadarko has now awarded multiple FEED contracts which marks a significant milestone for the project. Ensuring that sufficient skilled Mozambican LNG personnel are available for these developments could prove a time-consuming problem for operators however with restrictions currently in place on the number of foreign personnel that can be hired and the limited amount of LNG expertise available globally.

the coming years it’s expected that there will be an influx of greenfield upstream projects which will require the full lifecycle of upstream personnel and the civil infrastructure to support them. A significant deal was signed in late June between Kenya and landlocked neighbour Uganda to extend the Mombasa - Eldoret (Kenya) pipeline to Kampala (Uganda) and Kigali (Rwanda) and build a new pipeline that will transport oil from Uganda’s oil fields to Kenya’s Lamu port. Construction of the pipelines aims to boost the oil industry and to reduce the local cost of oil.

Ghana The outlook for Ghana as an oil producer remains strong with the Jubilee field expected to reach peak output in 2013, and first oil from the Tweneboa-Envenra-Ntomme (TEN) deep-water project anticipated in 2016. The Jubilee field has a reserve potential of about 5bil barrels of oil, the discovery of which triggered a flurry of exploration activity in the neighbouring countries of Sierra Leone, Liberia and Gabon with the hope of finding similar Jubilee-type giants. Ghana and its Jubilee oil partners have said recently that they will be investing $20bil over the next ten years to develop the Jubilee field and other discoveries. As with other countries in the region, investing in the development of the Ghanaian workforce is vital to ensuring that they are equipped to deal with the highly technical projects due to take place. Expectations for Africa

Kenya Kenya is one of those emerging oil producing nations that investors and oil exploration companies are focussing on as Africa moves beyond the traditional five. The International Monetary Fund believes that Kenya could be the next commercial oil producing African nation in only six to seven years. Although there is some caution around this figure, Tullow Oil has achieved almost commercial quantities of oil in its successful flow tests at Twiga South-1 well, producing 2,812 barrels of oil per day. Exploration will ramp up throughout 2013 with up to 11 test wells planned in Kenya’s Great Rift Valley, which Tullow have said could keep Kenya supplied with crude for three centuries. Over

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Amount of Hires

51%

14.8%

34.3%

Increase

Decrease

No Change

Contract + Salary Pay Rates

65.2%

4.7%

30.1%

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Decrease

No Change 3

Americas REGIONAL OVERVIEW Home to nearly a quarter of the world’s proven oil reserves and driven by energy-hungry markets in Asia Pacific, the Americas continue to be a major draw for oil and gas expertise from around the world. The reality of US shale gas development has begun to sink in, increasing design work out of Houston and attracting the attention of international project partners. Latin America is similarly asserting its presence on the global petroleum resources stage, and as elsewhere the labour shortage is becoming ever more acute. North American engineering graduates are being lured to industries outside of oil and gas, and may not find an easy transition back to the petrochemical field later on in their careers. But the specialised talent required for today’s highly technical exploits takes years to develop, particularly as today’s exploits only continue to go deeper and become more unconventional.

ARGENTINA Argentina has earmarked billions of dollars for shale gas E&P between now and 2017, with several large fields either having been identified or just entering production. Argentina’s YPF plans to drill hundreds of exploratory wells in the resource-rich Nequen province. But billions more in investment and infrastructure are required, along with the expertise to run these highly technical and demanding projects. As with other regional neighbours, labour unrest continues to plague the oil and gas industry here, costing billions of barrels of oil equivalent in lost productivity annually. And local content regulations will further temper the speed with which these plays are brought online. However, Argentina has recently introduced an incentive designed to enable foreign NOCs to sell current and future gas production at competitive global market rates rather than the currently heavily subsidised domestic rates. Argentina’s shale gas reserves are the third largest in the world.

BRAZIL

The labour market is increasingly complex here. The rapid increase in the number of professionals retiring or soon-toretire will an exert particular pressures on countries likewhether Brazil creating increased demand for qualified personnel, whose petrochemical are both highlyand technical local or expat. Subseadevelopments talent remains in high demand likely to and in relatively early stages: as these workers move on to increase once Angola gets its own pre-salt exploration programs their golden years they leave behind a vacuum of expertise underway. New have been that will not belabour easilyreform filled.measures Manufacturing in implemented support of recently, geared exploits toward has improving working conditions Brazil’s offshore put significant pressure and on improving government transparency in the oil and gas sector, the both manpower and physical capacity. Compounding this, the oil andof gas industry can expect greater competition backbone the Angolan economy. from construction and infrastructure-related projects as the 2016 Olympic Games draw closer. Nigeria

The Nigerian CANADA

government has recently approved a $3.5 billion national electricity grid to put an end to the country’s chronic Optimism among operators is rising, andtoasraise a result power shortages. Ironically, Nigeria seeks much hiring of the levels have somewhat capital required throughincreased. foreign partners, in exchange for which the government promises increased operational transparency and Key concerns in Canada remain export capacity for Alberta’s above-board Proposed timelines are to the oil, and the administration. press to advance LNG projects in have British new ‘supergrid’ completed by 2014; specialised subsets from local Columbia before the perceived window of opportunity in this oil andPipeline gas exploits may migrate to this groundbreaking project. closes. capacity and a surplus of barrels coming out

of Northern Alberta oil sands has been a major concern, with Keystone the issue. Yet the another federalproject electiontheis lightening threateningrod to for backburner the Simply put, there is too much oil and not enough proposed Petroleum Industry Bill (which would effectivelyexport rewrite capacity to handle it. Operators have turned to domestic the legal and fiscal basis of Nigeria’s relationships with IOCs) once outlets in Eastern Canada to absorb some of the excess, and potentially delaying of dollars energy industry bymore, creating pipelines east billions and west out ofinFort McMurray investments. Until fully revealed and understood, the controversy operators also gain port access to resource-hungry markets the Bill will result in a slowdown in some major projects, insurrounding Asia and Europe. operators opting to remain in holding pattern until it is known what

Asreal in the United Australia and Europe, thereconcerns. has been effect the billStates, will have on corruption and security considerable public opposition and concern surrounding the development of domestic shale gas reserves as well as construction of the pipelines to transport it. In Canada, these corridors impinge on environmentally sensitive areas, so cautious, well-informed proceedings are a must for these projects to be supported and granted approval. Until then, the market remains somewhat soft until such time as Keystone, Energy East, and Northern Gateway can advance.

Brazil’s future economic recovery and stability rests squarely on the development of its vast and highly challenging petroleum reserves: the stakes are high for everyone. Brazilian labourers take the opportunity to assert their stance through periodic strikes, costing operators tens of thousands of barrels per day in lost productivity. Global competition for foreign investment remains stiff and there is an ongoing stream of new countries vying for capital and expertise. Any improvement in local labour relations will help attract much-needed foreign investment.

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Americas

COLOMBIA

VENEZUELA

Colombia may not boast the largest reserves in the region, but it has been a leader in creating a transparent and favourable climate for foreign investors. However, all this progress is repeatedly hindered by leftist guerrilla attacks on Colombia’s pipelines and transportation corridors. These attacks were nearly daily occurrences even as recently as 2011, and whilst they have slowed in frequency the pipeline targets are becoming more remote and more difficult and costly to repair. An estimated 75 per cent of Colombia’s reserves remain untapped, left dormant because of such security issues. However peace talks are underway and the energy ministry is hopeful an agreement can be met. Onshore drilling is expected to pick up considerably over the next six months as new oil fields are developed, bringing with them employment opportunities in related support services and infrastructure as well.

The death of Venezuelan president Chavez has brought with it a period of uncertainty. Venezuela’s 220+ billion barrels of proven reserves may have piqued interest from IOCs, but the risk of asset expropriation remains high, particularly as others in the region (namely Argentina) have recently flexed their nationalistic muscle. When demands to boost output are not met, the Venezuelan oil ministry threatens to revoke contracts. In spite of this, funding continues to come in from China and Russia, increasing crude oil output accordingly in recent months. Venezuelan banks have also been called upon to provide funding and loans to boost local oil and service providers and provide employment for Venezuelan technical and engineering personnel.

USA The big story in the United States has been shale gas, and the world market has just begun to understand what the full impact of the development of this industry here will mean not just in terms of domestic energy supply but the export potential as well. Employment potential surrounding the full-scale development of projects like Eagle Ford, Bakken and Marcellus will be good news to the US economy, and fortunately for operators there should be a strong pool of engineering and construction expertise to pull from. Geologists and engineers are currently among the highest in demand and in some cases are also enjoying salary increases as a result. Other disciplines are holding steady in terms of rates.

Expectations for Americas

Looking northward, attractive tax incentives are now on offer designed to attract exploration and investment to Alaska’s sizeable and technically recoverable oil and natural gas reserves. Activity is also picking up in highly technical, unconventional oil plays. Offshore work in the Gulf of Mexico is picking up considerably, and operators there are gaining confidence, pushing exploration and production work into deeper and deeper waters. Job order boards are full throughout and companies are seeking to increase headcount, but it has not yet become a full-blown candidates’ market.

Amount of Hires

35.8%

11.8%

52.4%

Increase

Decrease

No Change

Contract + Salary Pay Rates

56.1% Increase

Increase © Air Energi 2013

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6.6% Decrease

Decrease

37.3% No Change

No Change 5

Asia Pacific

REGIONAL OVERVIEW

INDONESIA

With its considerable depth in fabrication capacity and technical expertise, Asia Pacific is a major support hub for the oil and gas industry worldwide. Yet in addition to meeting international contract demands, several countries in the region are investing considerably in cementing the future of their own energy supply, be it from domestic sources or overseas. Collaboration and the sharing of personnel and expertise between APAC, Latin America and Africa are occurring among NOCs with greater frequency, and large IOCs continue to recruit some of the region’s best talent to other projects abroad. 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.

With annual oil output levelsforjust shy personnel, of half that of creating an increased demand qualified whether 1995, Indonesia still struggles to find thedemand right balance local or expat. Subsea talent remains in high and likelyto to allow it to become a net oil exporter. However, recently increase once Angola gets its own pre-salt exploration programs implemented regulatory changes are helping protect the underway. New labour reform measures have been implemented position of foreign IOCs, reduce bureaucratic hurdles, recently, gearedthetoward improving working conditions This and and give them freedom to operate as required. improving transparency in thejobs oil and sector, the has helpedgovernment create thousands of new andgasmake E&P activity in Indonesia more attractive, encouraging operators backbone of the Angolan economy. to work directly with ministries to create a smooth working relationship. This is a timely turn of events as Indonesia Nigeria seeks to join several other nations in the development of The Nigerian has In recently approved a $3.5 every billion domestic shalegovernment gas reserves. addition to exploring nationaltoelectricity gridand to put an end to the country’s chronic avenue expanding maximising domestic production, Indonesia’s NOC Pertamina is also seeks out intothe global market power shortages. Ironically, Nigeria raise much of the looking acquire oil blocks in in order to bolster its capital to required through foreignabroad partners, exchange for which energy supply. promises increased operational transparency and the government

JAPAN

above-board administration. Proposed timelines are to have the MALAYSIA

Fueled by unprecedented government economic stimulus, Japan is enjoying a relatively swift recovery from the disaster that struck at the Fukushima Daiichi nuclear plant a year ago. Though the country is still heavily reliant on LNG imports to compensate for the decline in availability of nuclear power, it also retains a strong footing in numerous LNG plays abroad, lending both personnel and capital investment to projects in Brazil, Africa, Russia and elsewhere. Japanese technical expertise remains highly sought-after, particularly as first class engineering expertise is a high commodity amongst deepwater and LNG projects worldwide.

and gas exploits mayrecently migrate todisclosed this groundbreaking project. A oil government report the intensity with which Malaysia, one of the earliest petrochemical producers inYet theanother region,federal intends to pursue its energy production election is threatening to backburner the targets. Malaysia would also like to branch out as an oilfield proposed Petroleum Industry Bill (which would effectively rewrite services hub for the region. In order to do so, it will need the legal and fiscal basis of Nigeria’s relationships with IOCs) once to recruit 60,000 personnel over the next seven years, more, potentially delaying billions of dollars in energy industry with approximately 40 per cent of those individuals coming investments. Until fully revealed Put and in understood, the controversy from highly-skilled disciplines. perspective, there are surrounding the50,000 Bill will result in a slowdown in some major projects, approximately graduates from post-secondary and graduate engineering United operatorspetroleum opting to remain in holding programs pattern until in it isthe known what States per year. the on constraints personnel real effect the billWith will have corruption on andqualified security concerns. growing ever tighter worldwide, operators in Malaysia will need to go the extra mile to attract the people required.

new ‘supergrid’ completed by 2014; specialised subsets from local

KOREA 2014 looks to be every bit as busy as this year among shipyards and fabricators in South Korea. With billions of dollars’ worth of orders currently in place (and projects just getting underway in a number of new locations worldwide), employment is more or less guaranteed for engineering disciplines and construction personnel for the foreseeable future. The timely delivery of highly specialised equipment to support offshore and LNG project activity has become a global priority, and operators will rely on fabrication expertise in Singapore and South Korea to meet the demand.

SINGAPORE Shipyards in Singapore are filled to the brim with no signs of slowing in the foreseeable future, particularly as demand is only increasing for jackups, semisubmersibles and FPSOs for new projects around the world. Keppel alone is expected to deliver in excess of $4 billion in orders this year. This is creating significant design work out of hubs in the USA and Europe, and shipyards in the region are benefitting from the spillover from backlogged orders. In addition to a high demand for fabrication and construction manpower, there is also a dire need for drilling and HSE-related personnel, particularly those with deepwater expertise.

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Asia Pacific THAILAND

APAC FACT SHEET

Thailand’s energy demands have increased sharply in recent years, and as with so many other nations on the quest for energy self-sufficiency, securing a reliable, cheap source of natural gas has increased in priority. New shale gas projects in North America and Latin America are being jointly pursued by PTTEP and the Thai energy ministry, with agreements to share information and human resources. At home, fabrication activity is ever increasing thanks to increased project demands worldwide. Subsea and LNG expertise, as well as Construction/Project Managers and EPC disciplines remain in strong demand.

Depleting crude oil reserves: creating an increased demand for qualified

VIETNAM Following an extended period of protectionism against foreign operators and expat personnel, the borders and regulations seem to be softening somewhat here. Petrovietnam is aggressively pursuing involvement in projects overseas, having reportedly invested more than $1 billion in plays in Russia, Africa and Latin America. Talisman and Exxon Mobil have also agreed to back Vietnam in the future development of its domestic gas reserves. There are seventeen new LNG import terminals slated to be built to service Asia Pacific and countries along the Indian Ocean and South China Sea, up to four of which will be located in Vietnam. Shale gas and shale oil exploration, as well as the construction of an additional downstream refinery are also underway; each of these projects will require foreign technical expertise and personnel. Fortunately, there are strong engineering and training programs available for students here, and a wide range of projects through which to gain valuable experience at home.

personnel, whether The majority of the oil andtalent gas companies in thedemand Asia-Pacific region local or expat. Subsea remains in high and likely to continue to once face either or depleting growth exploration in crude oil reserves. increase Angolaflat gets its own pre-salt programs underway. New labour reform measures have been implemented conditions and Major players in the region are state-owned operate a highly improving government transparency in theand oil and gas in sector, the regulated market Stateowned companies have limited backbone of theenvironment. Angolan economy. operational flexibility.

Regulated market recently, geared towardenvironment: improving working

Nigeria

Price volatility: The Nigerian government

has recently approved a $3.5 billion Volatility in oil and natural gas prices continuosly impact operations national electricity grid to put an end to the country’s chronic of the major companies within APAC. power shortages. Ironically, Nigeria seeks to raise much of the capital required through foreign partners, in exchange for which Environmental regulations: the government promises increased operational transparency and Stringent environmental regulations (that are applicable globally) above-board administration. Proposed timelines are to have the to curb GHG (green house gas) emissions will result in additional new ‘supergrid’ completed by 2014; specialised subsets from local capital expenditure, especially on refineries and emission-intensive oil and gas exploits may migrate to this groundbreaking project. exploration technologies. Yet another federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigeria’s relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the willPacific result in a slowdown in some major projects, Expectations forBill Asia 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 Amount of Hires Hires

49.7%

11.4%

38.9%

Increase

Decrease

No Change

Contract + Salary Pay Rates

71.1%

Increase © Air Energi 2013

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Decrease

23.9%

No Change 7

Australasia REGIONAL OVERVIEW While Australia’s megaprojects present their share of technical, regulatory and financial challenges to operators, every ounce of natural gas is needed: according to one study, the world will need a Gorgon-equivalent project each year for 20 years in order to meet demand. There is little slack available to operators here as projects need to have the right people in place at the right time. Hiring rates will only increase and wage rates show no signs of relenting as Gorgon, Wheatstone, and other projects near completion. A number of new projects in the planning stages have guaranteed a good window of opportunities for technical personnel in front-end work.

dampen future investment in resources projects. Overall, new LNG projects cost approximately 20-30 per cent more here than elsewhere in the world. Environmental concerns are still present, and some operators havepersonnel, cited thewhether heavy creating an increased demand for qualified taxation imposed by the Australian government as being local or expat. Subsea talent remains in high demand and likely to somewhat difficult, despite the measures taken to fast-track increase once Angola gets its own pre-salt exploration programs foreign work permits to grant companies leeway to bring labourofreform measures beenfor implemented inunderway. the vast New numbers personnel theyhave require the $200 recently, geared toward improving working conditions billion dollars’ worth of megaprojects underway here. and improving government transparency in the oil and gas sector, the

Efficiency productivity, shared infrastructure and backbone ofand the Angolan economy. resources are being called for by industry representatives here in order to maintain schedules and costs to the tightest Nigeria possible. degree

The Nigerian government has recently approved a $3.5 billion electricity grid to put an end to the country’s chronic power shortages. Ironically, Nigeria seeks to raise much of the Despite relative madhouse activityininexchange nearby Australia, capital the required through foreign of partners, for which projects in Papua New Guinea proceeding at a more the government promises increasedare operational transparency and calculated rate, their pace kept in check by reasonably above-board administration. Proposed timelines are to have the steep environmental and regulatory pressures. Satisfying new ‘supergrid’ completed by 2014; specialised subsets from local these requirements and maintaining positive relations oil and gas exploits may migrate to this groundbreaking project.

PNG national

AUSTRALIA The labour shortage in Australia is as dramatic as ever. There are currently 15 LNG trains in construction, and an additional eight LNG projects are in the planning stages. With production deadlines for current projects just around the corner, the battle between cost control and contract fulfillment has reached a fervent pitch. Australia’s oil and gas personnel are already among the highest paid anywhere, and in spite of cost overruns to date and increasing competition from LNG projects in Africa and North America there is no easing up on wage demands here. Other industries are also feeling the pinch, with projects in mining being scrapped due to high labour, logistics and related costs. This trend among the resources sector broadly is having a net effect on the unemployment rate here, which has increased by about one per cent over last year.

with government officials is one thing, but attracting toplevel technical personnel to a remote corner of the world anotherparticularly federal election is threatening to for backburner the is Yet another, as those with a taste adventure proposed Petroleum Industry Bill (which would effectively have a number of other destinations to consider asrewrite LNG the legal and up fiscal Nigeria’s activity picks in basis Africaof and Latinrelationships America. with IOCs) once

more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the will result in a slowdown in some major projects, Expectations forBill Australia operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

The labour woes in Australia will not necessarily dissipate as soon as these projects come online: thousands of oilfield support, operation and maintenance personnel will need to be hired once each of these projects enters production. Chevron cites these gas plant operations as providing employment opportunities “for generations”, which is good news for local maintenance and shut-down services companies anxious to get in the game. Adding to the complexity of the labour picture is a degree of internal competition between Queensland-based projects and those in Western Australia. Beyond the specific scope of each project there is also a very high demand for personnel in civil works and construction for and around each of these facilities. Besides labour challenges, there are also concerns that the high Australian dollar and rising energy costs will

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Amount of Hires

39.1%

10.9%

50%

Increase

Decrease

No Change

Contract + Salary Pay Rates

69.6%

2.2%

28.3%

Increase

Decrease

No Change © Air Energi 2013

FSU - Caspian REGIONAL OVERVIEW Delays, regulatory pressures and a lack of local expertise are all part of the cost of doing business in the region. Stringent criteria, heaps of paperwork and legislation ‘subject to interpretation’ make it difficult to attract the talent required to create much momentum on any of the megaprojects here. These companies get there eventually, albeit slowly. Nationals on assignment abroad are enthusiastically welcomed back as they save operators from having to jump through extra hoops, though in some cases it is a matter of borrowing from one project in order to feed another. Generally we are observing an increase in recruitment activity and rates, particularly in Russia.

KAZAKHSTAN Kazakhstan continues to court and enjoy increasing foreign confidence and investment in its vast petrochemical reserves. Yet progress is slow here as well, with further delays expected at the next phase in the development of Kazakhstan’s massive Kashagan offshore field. The Kazakh government remains committed to increasing its exports of oil and natural gas to lucrative foreign markets and directly compete with energy centres in the Middle East. As with Russia, the pace of progress may in part be determined by the loosening of government regulations surrounding expat employment; though Kazakhstan has reasonable post-secondary engineering programs its industry workforce only represents about one per cent of adults ages 25-54. Expats represent a mere four per cent of the country’s total oil and gas workforce.

pipeline megaprojects, made possible through strategic joint ventures among Russian operators and western petroleum majors. partnerships given Russians access to creatingThese an increased demandhave for qualified personnel, whether much-needed foreign capital and expertise, particularly in local or expat. Subsea talent remains in high demand and likely to certain disciplines (such as safety and process engineering) increase once Angola gets its own nationals pre-salt exploration that are lacking among Russian for both programs facilities New as labour reform measures have been implemented inunderway. place as well future projects. There remains significant recently, geared toward working and bureaucracy and red tapeimproving surrounding expatconditions employment inimproving Russia government despite thetransparency shortfall inin the certain areas, though, oil and gas sector, the making it particularly challenging backbone of the Angolan economy. to recruit skillsets already in high demand worldwide. In addition to murky Russian regulations, there is a strong push underway to bring Nigeria nationals back home; these individuals know their Russian The Nigerian government has recently $3.5 billion worth, and can demand rates on parapproved with anya expat. Yet expats assignment here expect highly competitive nationalonelectricity grid to put can an end to the country’s chronic rates, benefits, accommodation allowances and access powergood shortages. Ironically, Nigeria seeks to raise much of the tocapital everyrequired amenity (despite Moscow still being classified through foreign partners, in exchange for which as a ‘hardship location’). For Russians who have not had the government promises increased operational transparency and the benefit of a stint abroad, there remains a significant above-boardinadministration. Proposed timelinesorare to have the discrepancy rates, particularly in northern more remote new ‘supergrid’ completed by 2014; fromhere, local areas. Heavy drilling activity is specialised currently subsets underway though andmigrate mechanical expertise is in oil and exploration gas exploits may to this engineer groundbreaking project. good supply. As elsewhere in the world, reservoir engineers, HSE process engineers very hightodemand. Yet and another federal electionare is in threatening backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigeria’s relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the will-result in a slowdown in some major projects, Expectations forBill FSU Caspian 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

AZERBAIJAN Following years of delays, project partners involved in Azerbaijan’s planned megapipeline, Nabucco, are still ironing out the kinks. European Union members have a significant vested interest in the success of a pipeline out of Azerbaijan’s vast gas fields (Shah Deniz in particular) as a secure, non-Russian energy supply. Shah Deniz has entered its second phase, creating a wealth of project work related to platform, terminal and pipeline planning and construction. The work being done by western oil majors is slowly helping create a depth of local expertise, though at present the bulk of the technical heavy lifting is being done in design offices abroad.

45.3%

12.5%

42.2%

Increase

Decrease

No Change

Contract + Salary Pay Rates

RUSSIA The scale and scope of Russian project activity rivals that of any other region with tens of billions of dollars committed to development of its own oilfield, gas and

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59.4%

6.3%

34.4%

Increase

Decrease

No Change 9

Europe EUROPE As in previous years, Europe remains a candidate-driven market with a lack of sufficient skills available across the region. In part this is caused by the aging population of the oil and gas workforce, creating a widening gap in mid-level jobs, and the lure of expat salaries and lifestyles from international projects. Taxation and compliance country-to-country also continues to be an ongoing challenge with operators ensuring that they are compliant on the varying European regulatory landscape. EU energy policy, particularly surrounding natural shale gas exploration, features high on the agenda for governments looking to secure the energy supply of the future. Focussing on the critical skills shortage as investment increases in this area will be paramount.

NORWAY The world’s eighth-largest oil exporter’s prospects have improved following major discoveries in the North Sea, including a gross 269-foot oil column at Norway’s Johan Sverdrup field. The field is one of the largest discoveries on the Norwegian Continental Shelf since the 80s and has the potential for thousands of personnel requirements over the coming years as it moves into production. To offset declining production in the North Sea, the Norwegian government has agreed to open up an offshore Arctic zone in the east Barents Sea to exploration, which is estimated to contain 1.9 billion barrels of oil equivalent. This previously untapped sweet spot could open up political challenges however as the area borders with Russia and has previously been part of lengthy disputes between the two countries. The area is expected to be open in the next oil and gas licensing round later this year.

growth in the industry. This is especially prevalent following recent shale gas discoveries which could transform the future of energy in the demand UK afterfor new figurespersonnel, show estimates creating an increased qualified whether oflocal at least 1,300tn cubic feet of shale gas in England. The or expat. Subsea talent remains in high demand and likely to amount commercially gasexploration however programs remains increaseofonce Angola getsrecoverable its own pre-salt unknown, does thereform environmental impact, so the underway. as New labour measures have been and implemented true value of the deposits lay hidden until exploration recently, geared toward improving working conditions and and development of the sites take place. improving government transparency in the oil and gas sector, the backbone of the Angolan economy.

NETHERLANDS Nigeria

The Netherlands Nigerian government $3.5tobillion The remainshasa recently hub ofapproved activity adue its national electricity grid toand put offshore an end to the country’s chronic combination of onshore projects, vibrant EPC and design houseIronically, market Nigeria and large downstream market. power shortages. seeks to raise much of the Demand for project services, maintenance, reliability and capital required through foreign partners, in exchange for which turnaround / shut down personnel will increase significantly the government promises increased operational transparency and over the next administration. 12 months as Proposed over 40 turnaround above-board timelines areprojects to have are the scheduled at various refinery sites in the Europoort new ‘supergrid’ completed by 2014; specialised subsets fromarea. local Despite its relatively high taxes, the Netherlands remains a oil and gas exploits may migrate to this groundbreaking project. consistently popular destination for industry professionals to work, both for locals and expats. Competition for talent Yet another federal election is threatening to backburner the remains high here, particularly around niche disciplines proposed Petroleum Industry Bill (which would effectively rewrite such as wells, drilling and geosciences, however the three the legal and fiscal basis with workforce IOCs) once temporary contract ruleof Nigeria’s helps torelationships stabilise the more, potentially delaying billions of dollars in energy industry market.

investments. Until fully revealed and understood, the controversy

surrounding the will result in a slowdown in some major projects, Expectations forBill Europe 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 Amount of Hires

39.1%

17.4%

43.5%

Increase

Decrease

No Change

UNITED KINGDOM After years of low investment and taxation uncertainty, Britain is expecting investment of at least £13bil by the UK’s offshore energy industry this year, according to a report by Oil & Gas UK. To make the most of this investment, Aberdeen will need to find up to 120,000 oil and gas personnel to replace the mature workforce as they retire over the coming decade. Government ministers have assured business leaders that tax certainty, supply chain support and bridging the skills gap will ensure continued

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Contract SalaryPay PayRates Rates Contract + + Salary

46.2%

9.2%

44.6%

Increase

Decrease

No Change © Air Energi 2013

Middle East REGIONAL OVERVIEW The long line of megaprojects in the Middle East has made it an international hub of experience and expertise. Yet in spite of this long track record (as well as being home to the majority of the world’s oil and natural gas reserves), even the Middle East has needed to accept that there is no such thing as easy oil anymore. Veteran producers like Saudi Aramco have become pioneers in the development of new technologies to extract shale gas, for example. Expats who have chosen to remain in the region will continue to be rewarded with some of the luxuries on offer here such as good quality of life, strong tax incentives and long-term placements.

IRAQ With seemingly endless reserves, Iraq remains very much central to the region’s energy activities. Iraq has also set ambitious oil output production levels in place for next year, and energy authorities welcome heavy investments from Petronas and Japex to help bring new oil fields on stream here. The infrastructure required to deliver feedstock to refineries in Iraq and across borders will require new pipeline and transportation corridors, creating numerous large-scale opportunities in FEED and construction work. Site construction personnel are most in demand along with senior-level engineers, though recruitment of expats is complicated somewhat owing to logistical challenges surrounding worker visas, safety and accommodation.

QATAR

new oil fields and new technologies (such as the extraction of sour gas, of which the Emirates have considerable capacity). is stilldemand considered to be apersonnel, top destination creating anUAE increased for qualified whether for expats, offering high quality of life, competitive rates, local or expat. Subsea talent remains in high demand and likely to tax breaks and long-tenured placements to lure expertise increase once Angola gets its own pre-salt exploration programs out of design hubs like London and Houston. Design offices underway. New with labour reform have expertise been implemented here are busy 15+ yearmeasures engineering in high recently, here geared improving working and conditions and demand as toward elsewhere. Construction fabrication activity continues at atransparency brisk pace.in the oil and gas sector, the improving government backbone of the Angolan economy.

SAUDI ARABIA

Nigeria With large, proven resources and established infrastructure, The Nigerian government has recently approved a $3.5 billion Saudi Arabia remains a reliable business partner to foreign investors. Exploration hasend nottoslowed in either oil national electricity grid towork put an the country’s chronic or natural gas, and in spite of the country’s power shortages. Ironically, Nigeria seeks to raiselong muchhistory of the of petroleum there are vast areas yet be capital requiredproduction, through foreign partners, in exchange for to which developed. As testimony to Saudi expertise and tenacity, the government promises increased operational transparency and Saudi Aramco’s Manifa oil field development has recently above-board administration. are and to have the been completed months Proposed ahead oftimelines schedule under new ‘supergrid’ completed by 2014; specialised subsets from local budget. Rates have remained consistent (though not oil and gas exploits may migrate to this groundbreaking necessarily competitive as compared to the restproject. of the region) with site construction personnel among the highest in with senior-level engineers. Yetdemand anotheralong federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigeria’s relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the will result Expectations forBill Middle Eastin 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.

With production levels stable and the last of its major gas trains having come online two years ago, Qatar has recently been lending its expertise and financial backing to shale gas projects in the United States and Canada. Yet Qatar’s flat state of production may soon reverse with the discovery of an offshore gas field containing 2.5 trillion cubic feet of natural gas, its first major discovery in decades. We expect hiring trends to remain in holding pattern until this discovery and the onshore Barzan project are underway. Until then, the focus for operators will remain on maintenance work, smaller projects and production optimisation.

UAE As one of few countries in the Middle East that invites direct international exploration and production within its borders, Abu Dhabi is well-positioned to meet its ambitious crude output goals for the coming years. Billions of dollars are being invested in the exploration and development of

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Amount of Hires

44.3%

12%

43.7%

Increase

Decrease

No Change

Contract + Salary Pay Rates Contract + Salary Pay Rates

62.7%

5.9%

31.4%

Increase

Decrease

No Change 11

Regional Comparisons Key

Increase

No Change

Decrease

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

Africa - Hiring Rate

100

2010

2011

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Americas - Contract - Salary Pay Rates

2010

100

2010

2011

2012

2013

2010

2013

Asia Pacific - Contract - Salary Pay Rates

100

2010

2011

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2010

2013

Australasia - Contract - Salary Pay Rates

100

2010

2011

2012

2013

2011

2012

2013

2010

2011

2012

2013

2010

2011

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Australasia - Hiring Rate

100

2010

2011

Asia Pacific - Hiring Rate

100

2010

Americas - Hiring Rate

100

2010

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2010

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Regional Comparisons Key

Increase

No Change

Decrease

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

FSU - Caspian - Hiring Rate

100

2010

2011

2012

2013

2010

2013

Europe - Contract - Salary Pay

100

2010

2011

2012

2013

2010

2013

Middle East - Contract - Salary Pay

100

ÂŠ Air Energi 2013

2010

2011

2012

2011

2012

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2010

2011

2012

2013

Middle East - Hiring Rate

100

2010

2011

Europe - Hiring Rate

100

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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 11.1% Project Manager 17.7% Contract Administrator 4.4% Geologist 4.6% Engineer 62.3%

The biggest threat the oil and threat gas industry What do you think is theto biggest current to the Oil & Gas industry?

Safety Regulations 6.6% Labour Costs 2.7% Economic Instability 45.7% Capital Costs 7.3% Visa / Immigration 14.5% Skill Shortage 23.1%

Training issues

What challenges do you see in your employee training program?

Lack of Budget 28.7% Not getting quality candidates 18.1% Lack of skilled trainers 24.9% Canâ&#x20AC;&#x2122;t offer the full selection of training 28.4%

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Our range of services include:

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 five 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 workforce. 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.

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 Energi’s 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

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OilCareers.com 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.com offers one of the industry’s most visited websites

global industry hubs of the North Sea, US, Canada, Middle East 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.com is a vital resource for all companies recruiting in Oil & Gas. Key Stats •

OilCareers.com receives over 1.4 million visits per month

•

Over 800,000 unique visitors per month

•

More than 1.3 million registered users

•

Over 20,000 new candidates registering each month

•

A CV database of over 830,000 searchable CVs

•

Over 18,000 new vacancies posted each month

with over 1.4 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

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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.com Unit 22, Abercrombie Court Arnhall Business Park Westhill, Aberdeenshire AB32 6FE United Kingdom Tel: + 44 01224 548080 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.com Level 3, 130 Commercial Rd, Teneriffe, Qld 4005 Australia Tel: +61 07 3872 6000 Australia, Perth OilCareers.com 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

Public Relations and Design: Ben Quinton, Introductions from Ian Langley and Mark Guest

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