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THE OIL & GAS GLOBAL SALARY GUIDE 2012

Global salaries and recruiting trends.

SURVEY SUMMARY
DISCIPLINE AREAS COVERED

24 53 1,200+ 5,400 14,400+

COUNTRIES WORLDWIDE REPRESENTED

RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

PEOPLE RESPONDED TO THE SURVEY

THANK YOU
We would like to express our gratitude to all those organisations and individuals who participated in the collection of data for this years survey. More than 14,000 responded , which is almost 30 per cent up on last year and this has once again ensured that we can produce an informative document to help support your business decisions.
Disclaimer: The Oil & Gas Global Salary Guide 2012 is representative of a value added service to our clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced in total or by section without written permission from Hays.

CONTENTS
From boom times in Australia and Brazil to unrest in North Africa, our report on salaries once again displays the many trends, events and forces that shape the complex world of how people are paid in the oil and gas industry. We are often very aware of remuneration within our own regional industry (it is one of those topics that impacts us all in some way), however very few of us have a good handle on how remuneration changes as we move around the world. This is the endearing quality and attraction of this document and we are pleased to say the main reason why it receives so much interest throughout the industry. In general the trend in remuneration for 2011 was up; driven on by a buoyant oil price and most countries around the world seeking to explore for, or extract the energy resources they need to advance their own economies. Indeed it was a year that stood out from others in the breadth of geographic coverage. Whilst South America and Asia Pacific continued to lead the way in new investment, two of the traditional power houses of the industry, the North Sea and the Gulf of Mexico, also came back on line in terms of hiring. This added to an already busy market, where very few areas of the globe were left untouched. This wider participation was also reflected in those completing our survey, both in their geographic coverage and their number. To have over 14,000 respondents this year was a tremendous number which exceeded all expectations. This large response has allowed us to drill down into more specific roles, disciplines and regions. In this regard individuals can more clearly identify their own situation whilst at the same time we can ensure that the figures we produce are an accurate portrayal of the market. Whilst assessing our own individual package against the figures is an emotive and often interesting activity, it is the movement of remuneration and employment trends over the last three years that provide the most fascinating insights. In general the market in 2010 reflected the tail end of the global recession of the previous year and was further weighed down by the oil disaster in the Gulf of Mexico. In 2011 we have seen these issues left behind and the market regain most of those losses, particularly so when it comes to permanent salary packages and benefits. Contractor rates are still below the highs of 2008, and with the general drift towards permanent staffing it remains to be seen whether they will return in the near future. Whilst the markets have softened towards the end of the year in the face of intense negative sentiment around Europe, the data shows an entrenched confidence that should prevail through 2012 and beyond. Last years Salary Guide was downloaded by over 150,000 people. With a further 10,000 hard copies distributed at various industry exhibitions and conferences, it is fast becoming the reference of choice for those wishing to compare remuneration globally. This continues to be our driving ambition, and we will continue to work hard in improving the content to ensure that it remains as such. There are numerous people to thank in the compilation of this document, not least of which are the many industry professionals that took valuable time to complete the survey. We would also like to thank those in our respective teams at Hays Oil & Gas and Oil and Gas Job Search that spent many an hour analysing the data and designing the format. Once again their hard work and the time taken by those responding have combined to produce a great reference document for our industry. 2 A global perspective Section one - salary information 6 Overview and salaries by country 7 Salaries by discipline area 8 Salaries by company type 9 Contractor day rates by region

Section two - industry benefits 2 Overview of benefits 3 Benefits by company type 4 Benefits by region

Section three - industry employment 7 Staffing levels 8 Diversity and movement of workforce 20 Experience and tenure 22 Employment mix

Section four - economic outlook 26 Industry outlook 27 Most significant issues

Matt Underhill Managing Director, Hays Oil & Gas Duncan Freer Managing Director, Oil and Gas Job Search


A GLOBAL PERSPECTIVE
WESTERN CANADA
Buoyant oil prices bring oil sands projects back on line and drives up salaries.

NORTH SEA
Hiring returns to the region following a difficult recession.

GULF OF MEXICO
The region sees a strong recovery in employment following the Horizon disaster of the year before.

PRE-SALT FIELDS, BRAZIL


The Brazilian government pursues its ambitious plans to develop the deep water pre-salt fields with multi-billion dollar investments.

WEST AFRICA
Further discoveries and a lack of social disruption continue to serve the region well. Salaries rise for both imported talent and a growing body of local skills. 2 OIL & GAS SALARY GUIDE 2012

POLAND
Emerging shale market attracts foreign multinationals to the many opportunities on offer.

CHINA
Chinese operators extend their activities overseas, whilst at home they aggressively expand operations to keep up with supplying the countries mounting energy requirements.

AUSTRALIA
Limited human capital, multiple mega-projects underway and a new emerging Coal Seam Gas industry drive salaries to the top of the global league table.

MIDDLE EAST
Iraq proves to be the major draw card in the region for new projects as the country starts to develop its extensive oil reserves.

SECTION ONE SALARY INFORMATION


Permanent salaries rose 6.% over the last 2 months.

OIL & GAS SALARY GUIDE 2012

CHANGES TO SALARIES IN THE LAST 12 MONTHS 2012


Increase more than %

49.%

6.6%

29.7% 4.2% 100


100 100 100

Increase up to % Remain static Decrease

0 0 0 0 0 0 0 0

20 20 20 20

40 40 40 40

60 60 60 60 60 60 60 60

80 80 80 80 80 80 80 80

29.4%

20.4%
40 40 40 40

39.7%

0.%

20 20 20 20

100 100 100 100

ExPECTED SALARY CHANGE IN THE NExT 12 MONTHS


Increase more than 0%

2012
0 0 0 0 0 0 0 0

32.4%
20 20 20 20 20

40 40 40 40 40

30%

60 60 60 60 60

20.9%

80 80 80 80 80 80 80 80

.7%

100 100

Increase between -0% Increase up to % Remain static Decrease

% 100
100 100

2011
2.6%

20 20 20

2.3%

40 40 40

28%
60 60

60

2.9%

100 100

3.2% 100

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

2011

SECTION TWO - INDUSTRY BENEFITS

Almost 50 per cent of respondents experienced an increase of more than 5 per cent to their salary compared to just under 30 per cent of respondents in 2011. A higher number of respondents also expect salaries to increase more than 10 per cent in the new year.

SECTION ONE - SALARY INFORMATION

SALARY INFORMATION SALARIES

SALARY

The headline figure in this data is the average permanent salary across the whole sample, which has risen this year to $US80,458 from last years figure of $US75,813. This is a significant increase for salaries across such a large sample and reflects the general buoyancy of the market following the down turn of 2008/9. The year saw a flurry of activity from most corners of the globe as countries sought to take advantage of a high oil price and pushed through new developments, and rejuvenated the old. The general well being was unique in comparison to previous upturns both in its scale and global coverage, leaving very few countries not playing some role in the rush for energy. This in turn drove up vacancies, hiring and salaries. The world was not without its share of economic worries, however (and without wishing to tempt fate) even the recent concerns in Europe have failed to impact the oil price significantly. This more than any other factor ultimately influences hiring intentions in the industry and its resilience led to a project rich environment for vacancies across deep water development, LNG and a range of non conventional plays. Adding to this buoyant outlook was a number of significant new field discoveries, and carbon capture also started to make its way from government funded research to live commercial projects. The hotspots around the world which saw significant salary rises included Brazil, Australia, China and Iraq. All were driven by huge projects underway, which added further pressure to the already stretched skill pool. Regionally, West Africa had a good year, as did South East Asia, Northern Europe (including Poland) and North America. When we break the figures down by local and imported we also noted an increase in those countries that actively encourage hiring local nationals. This took the form of significant increases in local pay whilst the imported figure remained relatively steady. Such examples included Saudi Arabia, Oman, Brazil and Venezuela. The list of those countries importing skills at a lower cost to the local market rates have grown markedly since last year and now includes the UK, Norway, Netherlands, Saudi Arabia, Brunei, New Zealand, Canada, the United States and Brazil. All sought to reduce their cost base by importing lower cost options from overseas. Perhaps more interestingly, are the countries that have seen falling salaries. Many of these are in two regions, Northern Africa and mainland Europe. Both are a reminder that whilst the demand for energy remains high the industry is not immune to what is going on in the world around us on a regional basis, be it social conflict or economic pain. For those looking from the outside in, the situation in Europe is of most concern. At the time of writing, the situation continues to weigh heavily on equity markets and trading conditions within the wider global economy. The impact of this sentiment has been felt already with some recruitment markets softening in the last few months of 2011, and day rates struggling to maintain previous levels.

ANNUAL SALARIES BY COUNTRY


Algeria Angola Argentina Australia Azerbaijan Bahrain Brazil Brunei Canada China Colombia Denmark Egypt France Ghana India Indonesia Iran Iraq Italy Kazakhstan Kuwait Libya Malaysia Mexico Netherlands New Zealand Nigeria Norway Oman Pakistan Papua New Guinea Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Singapore South Africa South Korea Spain Sudan Thailand Trinidad and Tobago Turkey United Arab Emirates United Kingdom United States of America Venezuela Vietnam Yemen

Local average annual salary 40,600 48,400 68,800 64,000 40,400 N/A 9,600 40,00 28,700 ,700 69,000 06,300 3,300 92,00 40,200 39,300 4,000 2,200 36,900 68,400 39,700 N/A 44,00 46,800 43,600 38,00 6,00 4,600 80,300 68,000 3,600 29,600 37,00 6,000 49,400 N/A 34,400 9,00 02,900 79,700 79,200 N/A 70,700 29,200 40,300 6,300 67,00 N/A 87,00 24,000 7,00 47,600 30,000

Imported average annual salary 89,200 07,700 N/A 73,00 39,200 77,900 06,700 94,400 23,300 43,700 22,600 2,400 32,300 8,400 39,900 0,600 7,200 93,900 3,000 9,800 28,00 73,000 69,200 28,400 7,300 N/A 2,400 23,200 22,800 80,300 ,300 89,900 ,300 29,300 6,600 72,300 23,000 38,200 67,00 99,300 9,000 47,00 73,00 79,400 37,200 62,400 89,300 69,400 80,900 9,200 09,400 ,900 7,00

OIL & GAS SALARY GUIDE 2012

SALARY INFORMATION SALARIES


ANNUAL SALARIES BY DISCIPLINE AREA
Business Development/ Commercial Commissioning Construction/ Installation Downstream Operations Management Drilling Electrical Estimator/ Cost Engineer Geoscience HSE Instrumentation, Controls & Automation Logistics Maintenance Marine/Naval Mechanical Piping Process (chemical) Production Management Project Controls QA/QC Reservoir/ Petroleum Engineering Structural Subsea/ Pipelines Supply Chain/ Procurement Technical Safety Operator/ Technician ,700 6,300 2,900 38,700 60,900 ,900 28,000 6,700 6,900 ,300 3,900 47,00 62,900 ,400 47,400 48,200 ,300 4,200 ,000 42,00 43,700 6,000 40,00 4,400 Graduate 38,400 N/A 47,300 33,800 30,900 28,600 29,600 3,00 3,200 33,900 3,000 N/A 38,300 30,400 28,400 30,00 3,800 42,400 37,000 37,900 3,600 38,600 29,00 32,00 Intermediate ,800 68,00 7,400 37,700 7,00 47,400 39,000 8,700 8,700 48,000 42,00 N/A ,000 4,00 43,00 47,00 9,300 49,000 48,700 6,400 44,900 9,00 48,600 44,300 Senior 60,700 76,800 78,000 62,700 98,000 67,800 67,00 09,000 79,600 7,300 72,00 4,600 8,00 66,700 9,000 68,00 67,00 78,600 68,300 97,800 9,200 0,200 8,200 8,00 Manager Lead/ Principal 94,700 6,200 8,00 03,600 42,00 98,400 07,900 40,00 9,900 07,800 82,400 84,600 ,200 02,700 96,900 04,800 07,700 2,000 94,400 23,400 0,800 46,900 98,00 0,000 VP/ Director 88,400 N/A 73,200 66,300 N/A 36,000 N/A 9,00 28,00 N/A 99,000 68,700 22,300 N/A 39,900 260,700 34,00 28,900 0,000 N/A 22,000 80,000 ,900 N/A

SECTION FOUR - ECONOMIC OUTLOOK

How much difference a year makes in the oil and gas industry is demonstrated by the rise in salaries within drilling. Last years figures showed those in this sector of the industry were sitting in the middle of the pack. This year they are level pegging with subsea engineering as one of the hotspots for salaries. With demand for onshore drilling on non conventional sources at an all time high, and rig utilisation offshore rising, labour demand in this sector is obviously buoyant.

Core engineering disciplines didnt fare so well with electrical, mechanical, structural and process engineers all flat in comparison to last year. These core disciplines are where most engineering professionals will start their careers, and may suggest why headline salaries have not increased beyond the levels seen.

SECTION THREE - INDUSTRY EMPLOYMENT

Undoubtedly we are delicately poised when it comes to salaries within the industry for next year. Without a European induced collapse in the global economy we will inevitably be faced with skill shortages in more than just a few select locations. This will drive salaries up further, and in this scenario we would expect a larger increase than the rise we have seen in 2011. With this said, and when considering the alternative, it would be a nice problem to have.

With drilling activity up, it is not unexpected that salaries for others in the exploration and production field are also strong this year. Geosciences and reservoir/petroleum engineers showed good increases and production management and logistics were also strong. Subsea engineering repeated its increases of last year and project controls and construction and installation proved that there was plenty of new projects under construction.

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

SALARY INFORMATION SALARIES


ANNUAL SALARIES BY COMPANY TYPE
Consultancy Contractor EPCM Equipment Manufacture and Supply Global Super Major Oil Field Services Operator Manager Lead/ Principal 20,300 0,900 20,600 73,800 29,400 89,400 49,200

Operator/ Technician

Graduate

Intermediate

Senior

VP/ Director 46,800 42,00 72,300 29,00 222,800 ,200 22,400

2044,600
46,300 49,00 42,900 60,200 49,300 ,000 20

40

32,700 60 3,300 36,400 28,300 48,300 3,00 48,700

80 46,800
,300 ,700 38,900 70,300 ,300 72,300 80

100 76,000
6,800 79,400 9,700 93,00 69,200 97,400 100

40

60

In line with the increase in project work those working in an EPCM company saw a rise in salary as did anyone working for an operator. The most significant rises however came for those with the least experience within any of the company types, and reflected the increasing competition for entry

level talent compared to the year before. We also saw a rise for the most experienced end of the market as companies sought to put their increasing profits to good use, both in rewarding that talent, and also in attracting new strategic hires.

YEARLY SALARY CHANGES BY COMPANY TYPE

Consultancy

202 $90,200 20 $8,700 202 20 202 20 202 20 202 20 202 20 202 20 $74,800 $7,600 $9,200 $87,000 $6,600 $62,900 $02,000 $00,800 $67,300 $64,00 $03,300 $97,00

+5%

Contractor

-1.1%

EPCM

+4.6%

Equipment Manufacture and Supply

-2.2%

Global Super Major

+1.1%

Oil Field Services

+4.8%

+5.6%

Operator

20000

40000

60000

80000

100000

120000

With the market on the increase, in general it was a year in which most company types saw increases in salary of around the 5 per cent mark. The exceptions to this trend included both general contractors and equipment manufacturers, both of which have a high level of local employees (as opposed to imported talent). In this respect both groups will be more aligned to local economies than any global forces and may explain the lack of growth. 8

The third group to experience little movement in comparison to last year is the global super majors. This may be the effects of localisation/nationalisation drives within the workforce, reducing average salaries. Indeed we have noted an increase in local employees within this group from 47 per cent last year to approaching 55 per cent this year.

OIL & GAS SALARY GUIDE 2012

SALARY INFORMATION SALARIES


CONTRACTOR DAY RATES BY REGION
Northern Europe Western Europe Eastern Europe CIS Middle East North Africa West Africa East/South Africa Southern Asia South East Asia North East Asia Australasia North America South America Operator/ Technician 40 30 260 300 220 280 30 280 90 20 30 630 40 300 Intermediate 440 370 290 30 320 380 330 30 220 260 300 680 430 320 Senior 670 690 380 630 360 380 480 380 270 440 440 970 690 0 Manager Lead/ Principal 840 80 00 730 40 00 660 670 380 720 780 20 80 60 VP/ Director 380 00 900 830 820 70 90 N/A 60 300 30 0 830 830

Most contractor day rates have progressed through the year; however there were conflicting pressures on this market making it a complex back drop in which to extract any trends. In many ways employers were shifting their employment mix away from contractors to a more permanent staff base. This reduced the overall requirement for temporary employment and followed the increasing confidence employers felt throughout the year. Evidence of this can be clearly found within our results on pages 22 and 23. Countering this trend is a general increase in the practice of using contractors in new regions and countries. The flexibility to be found for both employers and employees is a compelling driver for those seeking to match the cost base with fluctuating revenues. Those regions experiencing skill shortages are most prone to hikes in contractor rates and it is no coincidence that both Australia and Brazil have seen the highest increases since last year. North Africa and Western Europe were relatively subdued reflecting weaknesses in their local economies.

Whilst the exchange rate movements through the year can account for some of the rise in the Australasian figures it is the local project led environment that is really driving the numbers. The same can be said for South East Asia, which continues to import a high level of expatriate skills. We also noted the rise of rates in West Africa as the region continued to expand.

Background for this section


Only where the sample size is large enough have we listed figures in these tables. Where not enough responses were received, entries are returned as N/A. Permanent staff salaries are the figures returned by respondents as their base salary in US dollar equivalent figures (respondents were asked to convert their salary into US dollars using xe.com at the time of responding) excluding one-off bonuses, pension, share options and other non-cash benefits, for those working on a yearly payroll. Those on a daily payroll are extracted and listed separately. The average salaries listed under local labour are representative of respondents based in their country of origin. Salaries listed under imported labour are representative of those who are working in that country but originate from another. Contractor rates are listed as US dollar equivalent day rates as listed by respondents.
Notes: EPCM - Engineering, procurement and construction management; HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

SECTION TWO INDUSTRY BENEFITS


Benefits rise in the form of incentives.

0

OIL & GAS SALARY GUIDE 2012

Those benefits on the rise reflected the increasing confidence in the market and the desire of companies to provide an environment that incentivised growth. Consequently bonuses, commissions and share schemes all made the top five increases.

5 LARGEST INCREASES IN BENEFITS

Value of the benefit as a percentage of the overall package

202

20

Increase

Bonuses Pension Commission Hardship allowance Share scheme

4.78% .94% 0.78% .26% 0.87%

3.2% .44% 0.30% 0.80% 0.48%

1.27% 0.50% 0.48% 0.46% 0.39%



INDUSTRY BENEFITS OVERVIEW OF INDUSTRY BENEFITS

SALARY INFORMATIONbenefits for this years Last year, we forecast an increase in


survey and our data has confirmed this prediction as correct. Somewhat surprisingly it was not the number of respondents receiving benefits that increased but how much they were getting. It appears that as companies have grown out of the recession then the increasing wealth has been shared - but not with all. In terms of numbers receiving benefits there were a few notable exceptions from the downward trend. These were share schemes, commissions and pensions, all of which rose compared to last years figures. These rises followed a global trend of wider company ownership within a companys employees, and more immediate returns for those tasked with selling their products and services. In line with these trends we saw once again bonuses were prevalent in terms of the make-up of allowances and benefits overall.

Those allowances that dropped included health care, home leave and housing allowance, which suggests fewer experienced expatriates. We also noted a reduction in overtime, a trend following the wider working population. Whilst the number of people receiving benefits returned a mixed bag of results in comparison to last year, the amount each of those benefits was worth was in positive territory across the board. Bonuses and commission payments led the way as we would expect given the market conditions, however a raft of other allowances also increased as more cash was available to meet specific requirements. These included allowances for meals, hardship, share schemes, schooling and training.

OVERVIEW OF INDUSTRY BENEFITS

50 40 30 20 10

Percentage that receive the benefit Average percentage of their total package

Schooling

Car/transport/petrol

Commission

Tax assistance

Health plan

Home leave allowance/flights

Hardship allowance

Hazardous/danger pay

Meal allowance

Share scheme

2

Background: The bar chart shows two figures related to benefits that employees in the oil and gas industry receive. The first figure represents the percentage of respondents that receive that particular benefit, i.e. 3% of respondents receive some sort of bonus. The second figure represents the value of that benefit stated as a percentage of their overall package for those that receive it, which in the case of bonuses is 3.7%.

OIL & GAS SALARY GUIDE 2012

No benefits

Bonuses

Pension

Housing

Overtime

Training

35% 13.7%

8.9% 8.8%

10%

11%

17.2% 11.3%

28.8% 11.4%

17.6% 10.7% 17.8% 17.6%

15.6% 12.8%

8.5% 14.8%

7.2% 14.9%

14.1% 12.2%

7.3% 11.9%

8.1%

14%

10.9% 12.7%

14.8% 16.5% 40.2%

INDUSTRY BENEFITS COMPANY BENEFITS


SECTION ONE - SALARY INFORMATION

In terms of company type, operators and the 40majors continued to distribute more benefits to 40 50 50 30their workforce than any other group at just over 30 40 40 2029.5 per cent of overall package. 20 30
50 50 30 10 10 20 20 00 10 10 00
TOP BENEFITS BY COMPANY TYPE EPCM/CONTRACTOR
50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 42% 20 20 0 0 10 10
No benefits

GLOBAL SUPER MAJOR/OPERATOR

32%
Bonuses

2%
Health plan

6%
Car/transport/petrol

7%
Housing

6%
Home leave allowance/flights

7%
Overtime

43%
Bonuses

23%
Pension

28%
Health plan

8%
Car/transport/petrol

9%
Housing

7%
Home leave allowance/flights

33%
No benefits

50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0

50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0

EQUIPMENT MANUFACTURER & SUPPLY

OILFIELD SERVICES/CONSULTANCY

4%
Bonuses

2%
Health plan

22%
Car/transport/petrol

9%
Housing

7%
Meal allowance

6%
Overtime

3%
No benefits

33%
Bonuses

6%
Pension

2%
Health plan

7%
Car/transport/petrol

7%
Housing

%
Home leave allowance/flights

42%
No benefits

Background: Graphs here show the top benefits by company type and the percentage of people who receive them.

3

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

INDUSTRY BENEFITS REGIONAL BENEFITS


Across most geographic regions we saw an increase in the value of the benefits paid, although most significantly in Africa and Asia. Australasia, Russia & the CIS, and Europe were also in positive territory. As has been the case in recent years we have seen most of the increases coming from developing nations, which is reflective of the desire of companies in these regions to retain trained staff in the face of increasing competition from overseas. While both North and South American figures fell slightly, it was the Middle East that saw the largest drop in the value of the benefits in comparison to overall package. This was from previous highs of 38 per cent the year before to just over 32 per cent. However there is some evidence to suggest that this is more reflective of employers in that region shifting the emphasis in remuneration towards higher base salaries and away from allowances. This relationship between benefits and base salary should not be ignored when considering the relative make up of employees remuneration. Whilst some regions continue to place more emphasis on either base salary or benefits, we have found that all regions are trending towards 72 per cent base salary and 28 per cent benefits.

TOP BENEFITS BY REGION AFRICA


50 40 50 30 40 20 30 10
Car/transport/petrol Home leave allowance/flights Health plan Housing Meal allowance Bonuses No benefits

On average, benefits received by those working in 50 Africa are valued at 34% of their total package.

On average, benefits received by those working in Asia are valued at 36% of their total package.

ASIA

40 50 30 40 20 30 10
33% 24% 9% 2% 8% 9% 28%
Health plan Car/transport/petrol Housing Pension Overtime Bonuses No benefits

20 0 10 0 50 40 50 30 40 20 30 10 20 0 10

20 0 10 0 50 40

42%

8%

27%

22%

23%

8%

2%

AUSTRALASIA

On average, benefits received by those working in 50 Australasia are valued at 17% of their total package.30 40 20

On average, benefits received by those working in CIS are valued at 23% of their total package.

COMMONWEALTH OF INDEPENDENT STATES

30 10 20 0 10
38%
Bonuses

Home leave allowance/flights

Health plan

Pension

Car/transport/petrol

Meal allowance

No benefits

Bonuses

Pension

Health plan

Schooling

Housing

Training

4 50OIL & GAS SALARY GUIDE 2012

Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. CIS includes Russia and the former Soviet Republics.

50 40

40

No benefits

7%

4%

%

8%

8%

3%

33%

3%

9%

3%

%

3%

37%

0 50 40 50 30 40 20 30 10 20 0 10 0

0 50 40 50 30 40 20 30 10 20 0 10 0

TOP BENEFITS BY REGION EUROPE MIDDLE EAST

50 40 50 30 40 20 30 10 20 0 10 0 50 40 50 30 40 20 30 10 20 0 10 0

On average, benefits received by those working in 50 Europe are valued at 16% of their total package.

On average, benefits received by those working in the Middle East are valued at 32% of their total package.

29%
Bonuses

2%
Pension

9%
Health plan

4%
Car/transport/petrol

8%
Meal allowance

8%
Overtime

43%
No benefits

38%
Bonuses

22%
Health plan

2%
Car/transport/petrol

26%
Housing

23%
Home leave allowance/flights

9%
Overtime

2%
No benefits

0 50

36%
Bonuses

2%
Pension

32%
Health plan

2%
Car/transport/petrol

8%
Housing

2%
Overtime

30%
No benefits

Health plan

Bonuses

Pension

Car/transport/petrol

Meal allowance

Training

No benefits

37%

%

34%

22%

3%

2%

28%



SECTION FOUR - ECONOMIC OUTLOOK

40 On average, benefits received by those working in 50 30 North America are valued at 21% of their total package. 40 20 30 10 20 0 10

NORTH AMERICA

On average, benefits received by those working in South America are valued at 33% of their total package.

SOUTH AMERICA

SECTION THREE - INDUSTRY EMPLOYMENT

40 50 30 40 20 30 10 20 0 10

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

40 20 30 10 20 0 10

40 20 30 10 20 0 10

INDUSTRY BENEFITS REGIONAL BENEFITS

SECTION THREE INDUSTRY EMPLOYMENT


Over a fifth of all employers expect salaries to increase by more than 0 per cent in the next year.

6

OIL & GAS SALARY GUIDE 2012

INDUSTRY EMPLOYMENT STAFFING LEVELS


The confidence in the staffing markets at the point the survey data was taken was particularly high, although it is worth noting that data was taken in September and October 2011, before the world economy started to falter around European concerns. Over a quarter of those surveyed expected an increase in staffing levels by 10 per cent or more, which is an unprecedented level of confidence since this survey first started. As 2011 came to a close, it is this confidence that is most at risk from depressed sentiment engulfing the media. As mentioned earlier, the use of contractors has become more widespread in comparison to the year before. The use of expats continued to expand on the back of forecasted growth last year, and once again the market appears to believe it will grow again in 2012.
SECTION ONE - SALARY INFORMATION

4.3%
Increase more than 0%

26.% In the next 12 Months do you Increase between -0% 2% expect Staffing levels to:
Increase up to % Remain static

.3%

More than 20%

What percentage of your staff Between -20% is currently 37.2% employed on a temp/contract basis 0-% 2.9%
None

23.3%

2.3%

Decrease

29.6%

If your company employs contractors, please indicate in which areas:


Engineering Geoscience Drilling Construction/Installation Project controls

Always Sometimes Never

change in the next 12 months?

6.3% 4.9%

Increase Remain the same Decrease

37.8%

8.9% 34.9%

Increase more than 0% Increase between -0% Increase up to %

6.8%

Increase Remain the same

49.6% 43.6%

Decrease

20.6% 2.6%

None

7

SECTION FOUR - ECONOMIC OUTLOOK

currently employed on an expat What percentage of your workforce is package What percentage of your workforce is What percentage of your workforce is PERCENTAGE OF WORKFORCE What What percentage of on an expat package percentage of your expat package currently employed on anworkforce is EMPLOYED currently employed your workforce is currently employed on an expat package AS AN ExPAT currently employed on anon an expat package currently employed expat package

01 01 01

0 20 40 60 80 00 001 08 06 04 02 0 0 1 08 08 06 06 04 04 02 02 0 0 08 06 04 02 0 What percentage of your workforce is 0 1 08 08 06 06 04 04 02 02 0 0

How do you expect this to change in the next expect this How do you12you expect this to change in the How do months to change in the How do you expect this to change in the ExPECTATION How do you expect this toExPAT LEVELS How 12 months next 12 months expect this to change in the next do you THAT change in the next 12 months WILL CHANGE IN next 12 months next 12 months THE NExT 12 MONTHS

SECTION THREE - INDUSTRY EMPLOYMENT

If your company employs contractors, If your company employs contractors, If your company employs contractors, If your company whichwhich areas: If your company employs contractors, contractors, please indicate inemploys CONTRACTORS ARE please indicate in areas: AREAS in WHICH please indicate IN which areas: please indicate in which areas:areas: please indicate in which GAS EMPLOYED IN OIL AND

How you expect thisTHAT CONTRACTOR LEVELS How you expect this percentage to ExPECTATION percentage to How you expect this percentage to How you the in thisINthis percentage to How younext next 12NExT 12 change inexpectthe12 months? to MONTHS change expect THE months? WILL CHANGE percentage change in the next 12 months? change in thein the12 months? change next next 12 months? to How you expect this percentage

SECTION TWO - INDUSTRY BENEFITS

In theIn the12 Months do you you next next 12 Months do In the next 12 Months do you In theInStaffing levels levels to: the next 12 Months do do expectnext 12 Monthsto: you you LEVELS WILL expect StaffingTHAT STAFFING expectCONFIDENCE to: Staffing levels expectCHANGE levelslevels to: MONTHS expect Staffing to: Staffing IN THE NExT 12

STAFFING LEVELS

What percentage of your staff is currently What percentage of your staff is currently What percentage of your staff is currently What What percentageSTAFF is currently percentage of temp/contract employed on a temp/contractEMPLOYED ON A employed on ayour your staff basis PERCENTAGE OF ofstaff basis is currently employed on a temp/contract basis TEMPORARY a temp/contract employed on a temp/contract basis basis employed onOR CONTRACT ASSIGNMENT

INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE


This year we have seen an increase in the number of women working in the industry, however the pace of growth is not as quick as most would like. The percentage this year has risen to 7.8 per cent up from last years figure of 7.1 per cent. Sadly, to achieve parity with the wider general workforce in terms of gender diversity will take over 30 years at the current rate of growth. We have noted a small decrease in the average age of those working in the industry from 36.5 down to 35.5 years old. This is consistent with the rest of our data, which shows that while there was a good level of new entries into the industry, many of these people were experienced staff from other industries. This has reduced the average level of experience in the industry; however it has had only a marginal effect on age.

Diversity of staff

DIVERSITY OF STAFF

Diversity of staff

GENDER IN OIL AND GAS

WOMEN IN OIL AND GAS


Diversity of staff
Business development 6% 7.4% Project controls HSE Supply chain QA/QC Construction/installation Other

sity of staff Diversity of staff

0
0

20

20

40

60

40

92.2%
80

60

100

80

100

7.8%
.2% Female 100 9%
Diversity of staff

Diversity of staff

50

Male 0 Age Bracket 20

6.2%

40

60

80

5040
30 20 50

Age Bracket

.4%

4.8%

Age Bracket
0 20 40 60 80 100

40DEMOGRAPHICS
40 3010 30 0

Age Bracket

Male Female

20 20 10 0 0
10

2.9% 27.% Based in country of origin

7.2%

8.9%

7.9% 0.2%
4-49

.% 0.3%
0-4

.6% 4.3%
-24

3.% 7.7%
-9

.% .%
0-4

6.9%
2-29

7.4%
30-34

4%
3-39

2.4%
40-44

.7%
6+

Based in country of origin

WORKING AT HOME OR ABROAD 2012

Based in country of origin

Based in country of origin


7.3% 42.7%
Abroad

100 80 60
80
8 40 & GAS SALARY GUIDE 2012 OIL
Home

100

20

30 40 20 30
Since the bottom of the recession in 2009 the number of 10 20 people working overseas in oil and gas has been steadily increasing. This is consistent with employers having to search 0 10 further afield to find the skills they require. However, there is still some way to go before the levels rise to those achieved in mid 2009 of over 45 per cent. in country of origin Based Last year we reported a quick exit from the downturn in Australia, and a corresponding sharp increase in the number of Based in country of origin overseas candidates that came into the market to work on the countrys burgeoning LNG projects. This trend has continued with overseas workers now making up over 53 per cent of the market. Europe was the only other region to follow this trend as many of those imported skills previously retrenched through the downturn returned to take up roles in a rejuvenated labour market.

INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE


Elsewhere, trends showed a downwards movement regarding imports as localisation and home grown skills development programs started to come through. The regions showing the most changes were Africa, CIS and South America. In general this was accompanied by a reduction in age and experience as much of this recruitment was taking place with those at the entry level. The graphs below represent the movement of candidates and how specific regions nationals are working locally or overseas. So where we have seen the number of imports rise within the busy Australian market, we have also seen a great number of nationals returning home to take advantage of the high salaries. This was going against the trend elsewhere that saw a general drift overseas in search of better remuneration.
SECTION ONE - SALARY INFORMATION

MOVEMENT OF THE WORKFORCE IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE


Imported labour Local labour

100 80 100 60 80 40 60 20 40
Australasia Africa Asia Europe CIS North America Middle East

0 100 80 100 60 80 40 60 20 40 0 20

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

Working overseas Working in home country

South America

0 20

3.8% 46.2%

23.2% 76.8%

28.8% 7.2%

33.% 66.%

.6% 48.4%

88.4% .6%

29.2% 70.8%

27.2% 72.8%

Australasia

Africa

Asia

Europe

CIS

Middle East

North America

South America

28.3% 7.7%

42.4% 7.6%

6.9% 83.%

42.% 7.9%

28.2% 7.8%

20.7% 79.3%

29.3% 70.7%

27.3% 72.7%

9

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

INDUSTRY EMPLOYMENT ExPERIENCE AND TENURE


Within last years survey we reported a sharp decrease in those with less than four years experience in the industry. This was consistent with a drop in recruitment for those with little or no experience and was reflective of the fact the industry was recovering from the recession of previous years. In 2012, the pool of available talent has diminished significantly and this has led many companies to employ new talent and seek to retrain. As a result, the percentage of those with less than four years experience has grown from 20 per cent of the total workforce to just over 36 per cent. It is worth noting that in 2010 the figure was over 40 per cent when the market was arguably at its peak so we still have a small way to go before we hit that mark. The picture becomes more pronounced when broken down by job function, with Geo-science and Subsea/Pipelines showing little change from last year, and in some cases edging up slightly in terms of average experience. However we have seen a reduction in construction/installation and project controls. Both disciplines are clearly project led and indicate that the project development space has attracted the most newcomers. In our experience this is where most skills can be transferred into oil and gas from other industries.

Years of experience

20

40

60

80

100

Years of experience

YEARS OF ExPERIENCE
OIL & GAS INDUSTRY
36.3%
0

22.2%
40

20.9%
60 80

20.6%
100

0-4 years -9 years 0-9 years

Construction/instrallation
20

geoscience

FOR SPECIFIC DISCIPLINE AREAS


Construction/Installation

20+ years

Project controls Construction/instrallation

geoscience

Geoscience

Subsea/Pipelines 0 20 40 60 80 00

20

40

60

80

100

20

OIL & GAS SALARY GUIDE 2012

INDUSTRY EMPLOYMENT ExPERIENCE AND TENURE

0 0

Tracking last years figures, tenure has remained static with just over 25 per cent of respondents 40 60 80 possessing20less than one years experience in their 20 40 60 80 current role. Again this indicates a busy market 0 20 40 60 80 with a great deal of hiring activity taking place. 100

TIME IN CURRENT ROLE Time in current role Time in current role


Time in current role

2011

2011 2011
Less than  year

2012
26%
0 0
0

2%
20 20
20 40

28.7%
60

2%
80 80
100

8.3%
100 100

-2 years 3- years

40 40

60 60

80

24.7%
0 20

23.8%
40 60

3.%
80 100

%

9%

More than 0 years

0 0

20 20

40 40

60 60

80 80

100 100

SOURCE OF NEW EMPLOYMENT

8.%
Newspaper

3%
Company website

.%
Online job board

2.3%
Word of mouth

3.6%
Head hunted

3.6%
Agency

8.3%
Internal Move

6.6%
Other

2

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

2011

6-0 years

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

INDUSTRY EMPLOYMENT EMPLOYMENT MIx


Aside from the equipment manufacturers, the year saw a sharp rise in permanent staff as a percentage of the overall workforce. This trend continued year-on-year as companies sought to build up their core skills in a buoyant market. The increase in permanent staff was in some cases at the expense of temporary staff. However it should be noted that this does not signify a drop in contractor numbers, only a reduction in their share of the total employed. Contracting companies and consultancies appear to have been most bullish, making a strong rebound on the back of a buoyant project market. Correspondingly there was less of a fall in the use of temporary contractors within these employers as they coped with extra workload. Equipment manufacturers have reduced overall staffing levels and may be feeling the effects of the recent economic turmoil somewhat earlier in the project cycle than other companies. Should this trend flow through to other parts of the industry, we would expect the use of contractors to rise in response to uncertainty around the general economy.

EMPLOYMENT MIx BY COMPANY TYPE

Global Super Major Operators EPCM Equipment manufacturers & Suppliers Oil Field Services Consultancy Contractors 0 0 20 20 40 40 60 60 80 80
Operators

Permanent Permanent / part-time Contracted direct Contracted through agency

00 100

120

Global Super Major

PERCENTAGE CHANGE FROM 2011 TO 2012 GLOBAL SUPER MAJOR


0 20 40
Global Super Major

60

OPERATORS
80
Operators

100

120

EPCM

7.% 0.7% -3.3% -4.9%

Equipment man.

.2% 0.2% -0.2% -.2%

EPCM Oil Field Services

Consultancy

Equipment man.

22

OIL & GAS SALARY GUIDE 2012

0
Global Super Major

20

40

60

80
Operators

INDUSTRY EMPLOYMENT EMPLOYMENT MIx


SECTION ONE - SALARY INFORMATION

100

120

EPCM
EPCM 0 Global Super Major 6.% 0.6% EPCM -6.8% 0.%

EQUIPMENT MANUFACTURER & SUPPLIER


20 40 60 80 Equipment man. 100
Operators -..% 0.6% Equipment man. -0.8% .3%

120

Oil Field Services EPCM

Consultancy Equipment man.

OIL FIELD SERVICES


Oil Field Services

CONSULTANCY
Consultancy

8.3% .4% -.7% Consultancy -3.9% -3.9% 0.%

7.3%

-8%

Contractor

CONTRACTOR
Contractor

8.6% 0.% -3.8% -4.9%

23

SECTION FOUR - ECONOMIC OUTLOOK

the year saw a sharp rise in permanent staff as a percentage of the overall workforce

SECTION THREE - INDUSTRY EMPLOYMENT

Contractor Oil Field Services

SECTION TWO - INDUSTRY BENEFITS

SECTION FOUR ECONOMIC OUTLOOK


It was a good year for the Oil & Gas industry with confidence being led by a robust oil price.

24

OIL & GAS SALARY GUIDE 2012

25 20As

EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET


.6%
Skills shortages

8.3% 7.% 30.6%

Economic instability Environmental concerns Safety regulations

0.%

Immigration/overseas visa program Security/safety caused by social unrest

3.3% 29%

Other

2

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

the market continued to 15heat up so did the concern for skill shortages. This has grown 10 as a percentage of the overall 5sample from 28 per cent to over 030 per cent and now represents the largest concern of those in the industry.

SECTION ONE - SALARY INFORMATION

ECONOMIC OUTLOOK INDUSTRY OUTLOOK


Employers confidence in the current employment market has seen a large increase in comparison to last years results, with the very positive share up to 26.7 per cent from last years 9.7 per cent. Whilst the majority of regions were experiencing solid growth this time last year, the Gulf of Mexico and the North Sea markets were still shaking off the effects of the recession, which consequently weighed down the overall average. Since the start of 2011, those markets came on line from a hiring perspective and this removed any negative sentiment in the market. A huge 73.5 per cent of the market is either positive or very positive. (Again it is worth noting that data was taken in the 3rd quarter of 2011, before the market experienced any negative sentiment.) With regards to where individuals believe their operational focus will be in 2012, the Middle East again leads the way, although the percentage is down slightly in comparison to last years figures. A number of other regions followed this trend with only the North American and European markets showing an increase. This appears to be in line with the comments in previous sections regarding the pick up in activity in the Gulf of Mexico and the North Sea.

EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

2012
26% 26.7%
0 20 40

Extremely positive

46.8%
60

20.8%
80

.7%
100

Positive Neutral Negative

2011
9.7% 24.7%

20

40

4.%

60

80

33.4%
60 80

100

.8%
100

20

40

25
0 20 40 60 80 100

20 15 10 5 0
EMPLOYERS GEOGRAPHICAL FOCUS OVER NExT 12 MONTHS OUTSIDE OF THEIR OWN REGIONAL AREA

0.7%
Central Asia

.7%
East Asia

0%
Australasia

7.%
Eastern and Continental Europe

0.2%
UK and Northern Europe

20.8%
Middle East

8%
North America

8%
South America

3.%
Africa

26

OIL & GAS SALARY GUIDE 2012

ECONOMIC OUTLOOK MOST SIGNIFICANT ISSUES


As the market continued to heat up so did the concern for skill shortages. This has grown as a percentage of the overall sample from 28 per cent to over 30 per cent and now represents the largest concern of those in the industry. This is being felt most acutely in Australia and South America, the two hotspots in the world where local resources are most stretched. North America and Europe are following close behind. Not surprisingly economic stability is also a concern at 29 per cent. It is only in Australasia with its booming market where this appears to be of lesser concern. Moving the other way and slowly diminishing from peoples focus is environmental and safety concerns. We can only assume, as time passes by so does the memory of the oil spill in the Gulf, and the issues surrounding the cause of that event attract less attention. This year we have included a new response which we have sought to gain an insight into, namely social unrest. As expected, we saw spikes in concern in both Africa and the Middle East. A comparison of data on this issue will make for interesting reading in subsequent years.
SECTION ONE - SALARY INFORMATION

EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET


Skills shortages Economic instability Environmental concerns Safety regulations

All

Africa

Asia

Immigration/overseas visa program Security/safety caused by social unrest Other

Australasia

CIS SECTION FOUR - ECONOMIC OUTLOOK

Europe

Middle East

North America

South America
0 20 40 60 80 00

20

40

60

80

10

27

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

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OIL & GAS SALARY GUIDE 2012

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