Contents                                 Introduction			1                                 Africa				2                     ...
Introduction      Some 2.5 million people are                                                 Just how thin is the veneer ...
Africa      “ Whereas localisation policies are                                      This will prove to be a double dose o...
Americas       “Efforts are now on managing                                           Brazil                              ...
Americas      Canada                                                                    felt as companies are being held a...
Asia Pacific       “Some IOCs have been observed                                            The law, expected to be in eff...
Asia Pacific      Singapore                                                                “Fabrication and construction i...
Australasia       “Strong union representation, an                                        projects only. In terms of overa...
Caspian       “2011 is forecast to get off to a slow                                    and mounting tensions with neighbo...
Europe       “Europe is still the global go-to for                                   In what may be the first retreat from...
Middle East       “Major demobilisation of many                                              UK. Corporations with deep en...
Regional Comparisons      Key              Increase                                      Decrease                         ...
Regional Comparisons     Key               Increase                                     Decrease                          ...
Contacts                                Americas                                                                       Cas...
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  1. 1. Contents Introduction 1 Africa 2 Americas 3 Asia Pacific 5 Australasia 7 Caspian 8 Europe 9 Middle East 10 Regional Comparisons 11 Contacts 13 Copyright @ Air Energi Group Limited Disclaimer: The Air Energi, Oilcareers.com H1 Workforce Survey 2011 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. www.airenergi.com
  2. 2. Introduction Some 2.5 million people are Just how thin is the veneer of global economic stability we’re basing current decisions on? 2011 may not hold the answers to currently employed in the energy all of these questions, but the experience gained and cooperation sector, producing 88.5 million fostered throughout 2010demanddoubt set us up for a prosperous creating an increased will no for qualified personnel, whether barrels of oil per day and local or expat. Subsea talent remains in high demand and likely to and prudent decade ahead. We are, if nothing else, the wiser for it. increase once Angola gets its own pre-salt exploration programs responsible for $490 billion in underway. New labour reform measures have been implemented global exploration and production On behalf ofgeared towardOil Careers, we wish allconditions and recently, Air Energi and improving working of our industry improving government transparency in the oil and gas sector, the clients, contractors and other business partners the very best for this budget in 2011. backbone of the Angolan economy. coming year. Thank you all for your continued contributions to this report. As always, we welcome your comments and suggestions. In spite of these massive numbers or perhaps because of them, Nigeria as we embark on what looks to be a very busy year the focus The Nigerian government has recently approved a $3.5 billion national electricity grid to put an end to the country’s chronic has once again come down to the individual: the right person power shortages. Ironically, Nigeria seeks to raise much of the for the right project at the right price. Concerns over immigration capital required through foreign policies, administrative backlogs and labour cost and availability partners, in exchange for which the are familiar echoes which our clients are making concerted, government promises increased operational transparency and cooperative efforts to mitigate. Ian M Langley above-board administration. Group Executive are to have the Proposed timelines Chairman Will we see the return of $100 per barrel oil? Will the real cost of ilangley@airenergi.com 2014; new ‘supergrid’ completed by future exploration and production post-Macondo be known? How specialised subsetsEnergi local oil on behalf of Air from long will we be able to hold out against another labour crunch? and gas exploits may migrate to this groundbreaking project. 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 Global Regional Comparison more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy H1 = statistics/predictions for the first half of the year, H2 = surrounding the Bill will result second half of in some major projects, statistics/predictions for the in a slowdown the year. operators opting to remain in holding pattern until it is known what Salaries and pay rates Hires Increase Decrease No Change© Air Energi 2011 www.airenergi.com 1
  3. 3. Africa “ Whereas localisation policies are This will prove to be a double dose of cost increases for local operators, now faced with Niger locals’ demands for higher rates relaxing in other parts of the world, once paid to their expat peers as for qualified personnel, whether creating an increased demand well as potential slow-downs in they are becoming increasingly operations due to a sudden void in expertise. demand and likely to local or expat. Subsea talent remains in high increase once Angola gets its own pre-salt exploration programs stringent here, adding to the underway. New labour reform measures have been implemented The much anticipated Petroleum Industry Bill (PIB) will take effect complexities and challenges of in recently, geared with someimproving working brought forward early 2011, yet toward 120 amendments conditions and over the course of its inception uncertainties oil and gas terms and improving government transparency in the as to fiscal sector, the doing business in Africa.” royalty arrangements still economy. IOCs operating in Nigeria. backbone of the Angolan remain for Additionally, the PIB will also usher in the Nigerian National Regional Overview Petroleum Corporation (NNPC), the question remains how the Nigeria Regional energy superpowers Nigeria and Angola have recently government will government has allowed to do what a $3.5 billion The Nigerian legislate who is recently approved and to what been joined by Ghana with its much-anticipated Jubilee field extent. national electricity grid to put an end to the country’s chronic having come online in late 2010. Anxious to avoid the internal power shortages. Ironically, Nigeria seeks to raise much of the corruption, violence and diplomatic tensions experienced by its Presidential elections are once again aroundin exchange for which capital required through foreign partners, the corner in Nigeria, sub-Saharan neighbours, Ghana is taking its time with drafting and with incumbent President Goodluck Jonathan being the first the government promises increased operational transparency and its own oil revenue policies. Meanwhile, security risks escalate leader from the militant-ravaged Niger Delta, fears ofto have the above-board administration. Proposed timelines are increased in Nigeria in the face of yet another presidential election and militant activity are mountingby the nomination or subsets from local new ‘supergrid’ completed if 2014; specialised ticketing process chronic administrative opacity continues in Angola where state is oil and gasas unfair.may migrate to this groundbreaking project. perceived exploits run Sonangol appears to be ever more controlling of the country’s petroleum resources, commerce and wealth. Whereas localisation Youranother federal election a Region Yet Expectations as is threatening to backburner the policies are relaxing in other parts of the world, they are becoming proposed Petroleum Industry Bill (which would effectively rewrite increasingly stringent here, adding to the complexities and the legal and fiscal basis of Nigeria’s relationships with IOCs) once challenges of doing business in Africa. Africa Salaries more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy Angola 20% surrounding the Bill will result in a slowdown in some major projects, Blessed with some of the world’s largest energy and mineral operators opting to remain in holding60% pattern until it is known what reserves yet cursed with blistering inflation, poverty and a highly real effect the bill will have on corruption and security concerns. 20% corrupt government, new US-based legislation and pressure from international watchdogs for full disclosure of resource based Increase Decrease No Change revenues may soon force increased transparency on behalf of the Angolan government and NOC Sonangol. These measures have been proposed to not only improve domestic distribution of revenues but also to provide better risk assessment data for Africa Hires future investment and operations. 20% FEED, subsea and safety work remains in high demand into 2011, with job vacancies being filled by both local and expat personnel. 20% Operators are hopeful that new labour reform measures will make 60% Angola a more attractive destination as it competes for highly technical talent with similar exploits in Brazil, Asia Pacific and the Increase Decrease No Change North Sea. Nigeria Despite chronically limited numbers of local skilled personnel, the pressure for nationalisation has only increased of late with the recent implementation of Nigeria’s Local Content Policy, which will see expats released and replaced by qualified nationals.© Air Energi 2011 www.airenergi.com 2
  4. 4. Americas “Efforts are now on managing Brazil Brazil’s economic makeover continues full steam into 2011. As project activity and growth so as itscreating anheats up, fueled in particular by the prospect of its economy increased demand for qualified personnel, whether to prevent yet another labour multi-billion barrel subsalt remains in demand for likely to local or expat. Subsea talent finds, the high demand andsuitable infrastructure also escalates.its ownispre-salt exploration programs increase once Angola gets This being underscored by the meltdown, driving rates and infrastructureNew labour reform measures have been implemented underway. requirements forecasted within the energy sector, the project costs out of control.” recently, geared toward improving working conditions and lack of which will drive up production costs in country significantly. Inimproving government transparency in announced gas $1 trillion response, the administration has the oil and a sector, the backbone of the Angolan economy. infrastructure investment plan. Regional Overview Major plays continue to unfold across the Americas in spite of Government involvement in the energy sector will increase, giving Nigeria regulatory uncertainty, technological challenges, and political more ownership government of projects to state-owned $3.5 billion The Nigerian and control has recently approved a Petrobras, and economic instability. Investments in the exploration and however this will be offsetto put an end to to encourage foreign national electricity grid by tax incentives the country’s chronic production of South American reserves are coming in by the private investment. Ironically, Nigeria seeks to raise remains on power shortages. Nonetheless, the emphasis much of the billions, yet common concerns behind labour standards and utilising local service companies and construction equipment as capital required through foreign partners, in exchange for which availability and ageing (or simply non-existent) infrastructure are much government promises increased operational transparency and the as possible throughout, with foreign operators invited under increasingly coming to the fore. Where feasible, corporations joint venture agreements in order to fulfill local content requirements. above-board administration. Proposed timelines are to have the have undertaken to establish technical training centres in-country, new ‘supergrid’ completed by 2014; specialised subsets from local however these will not address labour shortages in the near term. Brazil’s shipbuilding industry is also making a blazing comeback: its oil and gas exploits may migrate to this groundbreaking project. For now, the mantra remains “local, local, local”, but as projects naval yard workforce has doubled in just three years in response to gain traction and pressure mounts to get production going and hundreds of orders for drill rigs, FPSOs and other production units. Yet another federal election is threatening to backburner the repay massive debts, there may be a loosening of borders to There is potential for a new LNG Bill (which commissioned off rewrite proposed Petroleum Industry plant to be would effectively Brazil accept the outside expertise required to keep projects on track. mid-2011 and auctions of of Nigeria’s relationships with happen as the legal and fiscal basis the first pre-salt finds could IOCs) once from international watchdogs for full disclosure of resource-based early as next year. Engineering expertise dollars multiple disciplines more, potentially delaying billions of across in energy industry revenues may soon force increased transparency on behalf of will be in very high demand in response to all this activity, however investments. Until fully revealed and understood, the controversy the Angolan government and NOC Sonangol. These measures Brazilian immigration will result not anticipatedin some major projects, surrounding the Bill policy is in a slowdown to sway in the favour have been proposed to not only improve domestic distribution of ofoperators opting to remain in holding pattern until it is known what foreign talent for the moment. revenues but also to provide better risk assessment data for future real effect the bill will have on corruption and security concerns. investment and operations. Colombia Argentina Brazil may be in South America’s energy spotlight at the moment, Argentina continues to enjoy sustained economic growth, and but Colombia’s Ecopetrol is also forecasted to invest billions in the energy sector continues to develop new sources in a quest exploration and production, downstream and pipeline projects for energy self-sufficiency. A recent major shale gas find is being in 2011. Though an otherwise foreign business friendly climate, heralded as the potential future of Argentine energy security, which shortages of skilled labour and lingering strict immigration policy could bring a spike demand for related disciplines, however with so are putting a damper on any real momentum within the Colombian much gas exploration and development work underway worldwide energy sector. With significant pick-ups in other South American it is questionable whether Argentina will become a destination for economies and sectors, Colombia has the potential to position skilled labour, particularly given the country’s strict immigration itself as a prime destination for skilled expats seeking a term in the controls and pressure from local unions. region. Locals have simply not had the experience from exploration to commissioning to the same extent as those within western IOCs; Falklands exploration continues, though recent reports question the issue will therefore hinge very much on immigration policies, the extent of resources to be found in the region. Major IOCs which are at once protectionist and somewhat arcane. have yet to wade into either the debate or the development of the region; for now it is the smaller exploration corporations taking up this task. Rates are anticipated to hold or increase in Argentina, particularly as local unions are once again flexing their muscle, using the rising local economy and recent political instability as bargaining chips.© Air Energi 2011 www.airenergi.com 3
  5. 5. Americas Canada felt as companies are being held accountable to deliver on staffing The Canadian energy sector continues to move down a timeline: plans, resulting in an overall preference for staff over contractors 2010 saw responsible recovery, 2011 is widely forecasted to atcreating an increased demand for qualified personnel, whether the moment. Key talent put on extended leave because of the be busy, but industry execs are speculating that 2012 will bring recent or expat. Subsea talent remains in high once theand likely to local downturn are being brought back and demand deepwater another peak in activity for which labour will be a key factor. Efforts increase once Angola gets its own pre-salt exploration programs drilling moratorium is lifted, expect a sharp increase in demand from are now on managing project activity and growth so as to prevent oil service companies. reform measures have been implemented underway. New labour yet another labour meltdown, driving rates and project costs out of recently, geared toward improving working conditions and control. The challenge is in finding the balance between acceding Venezuela Angolan economy. in the oil and gas sector, the improving government transparency backbone of the to fiscal and administrative pressures (i.e., favourable oil pricing To nationalise or not to nationalise, that remains the question in and timelines set during approval processes) without landing Venezuela. Despite the nationalisation of some 200+ foreign back in the gold rush mentality and creating a wage race for the Nigeria operations across multiple sectors in 2010 and legal battles with entire sector once again. ExxonMobil andgovernment has recently approved a $3.5tighten The Nigerian ConocoPhillips, Venezuela continues to billion its grip onelectricity grid to sector with proposed new legislation national the oil services put an end to the country’s chronic Eastern Canada is becoming an increasing force not only on power shortages. Ironically, Nigeria seeks to raise much of the that would allow government to circumvent current legal channels Canada’s energy scene but as a research frontier for exploration currently required to nationalise foreign assets. exchange for which capital required through foreign partners, in and production activity for the local Atlantic region, Greenland and the government promises increased operational transparency and farther north. Major projects in the area continue their expansions Major loans from China and Russia will timelines are to have the above-board administration. Proposed help kickoff development as major operators continue to build out research teams and ofnew ‘supergrid’ completed bybelt, a specialised subsets from local Venezuela’s vast Orinoco 2014; welcome investment in light centres there, keen to develop drilling programs and become local of declining exploits may migrate to this groundbreaking project. oil and gas production volumes from mature fields, maintenance operators on their own. Pressures on the local labour market are stoppages and overall weakened infrastructure. EPC work also being exerted from an increasingly strong mining sector and continues in support ofelection is threatening maybackburner the Yet another federal Orinoco projects and to soon increase the multi-billion dollar Lower Churchill Dam hydroelectric project. proposed Petroleum Industry Bill (which would effectively rewrite as the development of Venezuela’s largest gas discovery gets Otherwise, there is high demand for Project Controls, Project underway in conjunction with Nigeria’s relationshipsmanyIOCs) once the legal and fiscal basis of Italy’s Eni. Despite its with obstacles, Services and Construction Management disciplines as well as Venezuela may be delayingfew countries to enjoy energy industry more, potentially one of billions of dollars in the luxury of a Pipeline Engineers and conventional field roles. investments. Until fully revealed and understood, the controversy sufficient local talent pool to support its major projects into 2011. surrounding the Bill will result in a slowdown in some major projects, “The pressure to resume offshore operators opting to remain in holding pattern until it is known what Your Expectations ascorruption and security concerns. real effect the bill will have on a Region operations is mounting as the USA loses strategic ground to major Americas Salaries energy exploits being built up 42% worldwide.” 52% 6% USA Industry remains skeptical in the wake of Macondo, with several Increase Decrease No Change offshore projects both within the Gulf of Mexico and elsewhere postponed into 2011. The pressure to resume offshore operations is mounting, however as the USA loses strategic ground to major energy exploits being built up worldwide. Americas Hires Upstream design work has increased in Houston largely in 68% support of projects in Eastern Canada and abroad, creating a 32% rapid constriction on EPC talent locally and nudging rates upward. With talent availability and rates once again becoming significant 0% factors in project feasibility studies, companies are in some cases choosing to shelve projects for which staff will be either in short Increase Decrease No Change supply or too costly. Tremors of the HR panic of 2008 can still be© Air Energi 2011 www.airenergi.com 4
  6. 6. Asia Pacific “Some IOCs have been observed The law, expected to be in effect in May 2011, will affect both exploration and transport rigs and ships, hampering activity in the paying top dollar to ensure the area given an insufficient demand for domestic vessels andwhether creating increased inventory of qualified personnel, lack of requisite team members are on experienced personnel. talent remains in high demand and likely to local or expat. Subsea increase once Angola gets its own pre-salt exploration programs deck to meet project demands.” FEED work in support of several measures have been implemented underway. New labour reform local natural gas plays is expected torecently, geared toward teams required to meet high order increase. Construction improving working conditions and improving government transparency in the oil and gas sector, the volumes of FPSOs, drill rigs, and drillships are in high demand and Regional Overview proving difficultthe assemble. backbone of to Angolan economy. After months of nationalistic tensions and uncertainty on behalf of IOCs operating in Asia Pacific, there seems to be a return to relative ease of operations in the area. Borders have loosened Malaysia Nigeria somewhat, workarounds to formidable regulations have been New tax incentives aimed has recently approved a investment The Nigerian government at generating foreign $3.5 billion found and confidence has returned to the future stability of the are helping Malaysiagrid to up for aend to 2011.country’s project national electricity gear put an busy the Recent chronic energy sector here. Fabrication and construction in support of announcements include massive investments raise much of the power shortages. Ironically, Nigeria seeks to in infrastructure, LNG plays here and abroad (such as shipbuilding and construction plans to build two nuclear power plants, development of new which capital required through foreign partners, in exchange for LNG of modularised LNG components) is chief among industry activity regasification facilities and increased operational hub inclusiveand the government promises a new oil and gas transparency of and subsequent draw on personnel, in particular FEED positions fabrication yards and storage terminals. timelines are to have the above-board administration. Proposed and project teams in support of modularised construction work. All new ‘supergrid’ completed by 2014; specialised subsets from local in all, 2011 looks to be extremely positive throughout the region. Localisation and state ownershipto(or control) of majorproject. oil and gas exploits may migrate this groundbreaking projects continues, however, and with strong competition for investment Japan and E&P from elsewhere in the is threatening to government will Yet another federal election region the Malay backburner the Japan remains a powerhouse in the global oil and gas scene, likely be forced to turn a blind eye to(which would effectively rewrite proposed Petroleum Industry Bill its notoriously stiff regulations. lending its engineering expertise and cash investments to projects FEEDlegal and fiscal basis of Nigeria’shigh demand, with IOCs) once the and EPC disciplines will be in relationships and faced with worldwide. However it has been evident for several years that it strong global competition for top talent these skillin energycontinue more, potentially delaying billions of dollars sets will industry is critical for the oil and gas industry of Japan to make sure that toinvestments. Until fully revealed and understood, thesubsea and be in short local supply. As elsewhere in the region, controversy there is some stability regarding supply of oil and gas resources. construction related will result in a slowdown in some Managers, as surrounding the BillProject Managers, Construction major projects, Evidence of this diversification is the joint venture with Russia well as Quality andto remain in holding pattern until it is known what operators opting Safety personnel are in high demand. real effect the bill will have on corruption and security concerns. which will see a $300 million investment in the development of three oil and gas sites in the north of Russia’s Irkutsk region. The Thailand reserves of North Mogdinsk are estimated at around 14.8 million Political instability may be on the horizon once again in Thailand tons; however they may in fact amount to as much as 50 million on reports of the monarch’s failing health. The Thai government tons. The first oil from the deposits would enter Japan on the East has made positive steps to improve the transparency of foreign Siberia - Pacific Ocean (ESPO) oil pipeline in three to four years’ investment regulations creating an influx of foreign interest and time. investment in Thailand of late, though regulatory watchdogs have yet to be officially formed and appointed. With strong competition Indonesia for talent, investment and resources from neighbouring Malaysia, Lacking local technical expertise and financial backing, the Indonesia and Singapore, true momentum within Thailand’s energy Indonesian government has become more accepting of foreign and industrial sector may not be had until its political unrest and talent, investment and project management to get projects flowing regulatory uncertainties are resolved. As elsewhere in Asia Pacific, and all important post recession revenue generated sooner. Thailand will also be a draw for any available subsea expertise Localisation is still key but because of the scale and project control and an ambitious expansion of its massive petrochemical refinery requirements of projects underway here IOCs have made clear complex are expected to spike demand for EPC-related disciplines that expat expertise must be in place to ensure timely delivery. into 2011. In spite of sagging domestic production and regulatory hurdles, a new maritime law requiring Indonesian flagged vessels for the transport of goods domestically will further threaten Indonesia’s ability to keep pace with the region’s thriving energy industry.© Air Energi 2011 www.airenergi.com 5
  7. 7. Asia Pacific Singapore “Fabrication and construction in Singapore continues the expansion of its diverse LNG operations portfolio with the construction of a new LNG terminal and support of LNG plays,qualified personnel, whether creating an increased demand for here and connecting pipeline infrastructure off Jurong Island, both of abroad is Subsea talent remains in high demand and likely to local or expat. chief among industry which are targeted to be completed in early 2013. Expansion of its chemical and refining industry is also planned into 2011, activity NewAngola gets its measures draw on programs increase once underway. own pre-salt exploration and subsequent have been implemented labour reform including a second ethylene cracker and new butyl rubber plant, personnel.” toward improving working conditions and recently, geared taking advantage of the ample feedstock made available through improving government transparency in the oil and gas sector, the Singapore’s vast petrochemical storage facilities. backbone of the Angolan economy. Your Expectations as a Region EPC and Project Management contracts arising from these Nigeria opportunities will also compete for talent with Singaporean The Nigerian government Salaries Asia Pacific has recently approved a $3.5 billion shipyards, which are grappling with high order volumes of FPSOs national electricity grid to put an end to the country’s chronic and other rigs. Subsea and Safety will be two areas competing power shortages. Ironically, Nigeria seeks to raise much of the for personnel with similar projects worldwide, particularly 43% capital required through foreign partners, in exchange for which as Singapore seeks to position itself as a centre of subsea 57% the government promises increased operational transparency and engineering excellence in the wake of the Macondo spill. Though above-board administration. Proposed timelines are to have the 0% ostensibly a job seekers’ market, local industry is keeping rates new ‘supergrid’ completed by 2014; specialised subsets from local in check, yet some IOCs have been observed paying top dollar oil and gas exploits may migrate to this groundbreaking project. Increase Decrease No Change to ensure the requisite team members are on deck to meet project demands. Otherwise, expat packages are being trimmed Yet another federal election is threatening to backburner the somewhat as corporations recognise the value of the quality of proposed Petroleum Industry Bill (which would effectively rewrite life that Singapore has to offer combined with attractive longer the legal and Asia basis of Nigeria’s relationships with IOCs) once fiscal Pacific Hires term contracts. more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy 57% “Construction teams required to surrounding the Bill will result in a slowdown in some major projects, 0% operators opting to remain in holding pattern until it is known what meet high order volumes are in real effect the bill will 43% on corruption and security concerns. have high demand and proving difficult to assemble.” Increase Decrease No Change Vietnam In response to a dramatic increase in natural gas consumption, Vietnam will embark on construction of its first domestic LNG import terminal and regasification facility: state-run Petro Vietnam Gas is targeting the facility to come online within an ambitious 12 to 24 months. Further efforts to bolster critical energy self sufficiency include a $1.2 billion thermal power plant, with construction planned to commence in early 2011. Whilst the doors to foreign investors have been opened for bidding on these contracts, Vietnam’s employment regulations keep its borders closed to foreign talent. As throughout 2010, existing expat contracts are not being renewed and contracts on any new projects are being offered almost exclusively to Viet nationals.© Air Energi 2011 www.airenergi.com 6
  8. 8. Australasia “Strong union representation, an projects only. In terms of overall global supply of LNG expertise, Australia may benefit from soon to be unemployed personnel on abundance of resources and an location inan increased demand for qualified personnel, whether creating Qatar, as many of the Middle Eastern country’s LNG overall healthy local economy, local or expat. Subsea talent remains in high demand and likely to projects will near completion across 2011. increase once Angola gets its own pre-salt exploration programs labourers are increasingly forcing underway. New labour reform measures have been implemented the hand of operators for wage PNG geared toward improving working conditions and recently, With its mining resources and massive deposits of natural gas, improving government transparency in the oil and gas sector, the increases.” oil and gasof the Angolan economy. backbone companies and the government are investing heavily in infrastructure construction activities, including road and bridge Regional Overview works, telecommunications and camps to house the large Nigeria The long awaited inquiry into Australia’s 2009’s Montara spill was construction workforces expected. The Nigerian government has recently approved a $3.5 billion published in late November. Among the recommendations is a national electricity grid to put an end to the country’s chronic designated, unified body responsible for all offshore HSE controls, Commitments are being made to support theraise much of the power shortages. Ironically, Nigeria seeks to National Content and while not yet ratified by government or industry the demand Plan, with companies ramping uppartners,nationals, transferwhich capital required through foreign to train in exchange for skills for Safety expertise will continue to rise into 2011. Infrastructure and government promises increased operationalThis is supported the to utilise local contractors and suppliers. transparency and construction continues at a rapid pace in PNG with several by the launch administration. Proposed timelines strategic plan to above-board of the government’s medium term are to have the companies committed to upskilling the local PNG workforce and develop workforce and supplier capability in PNG. It is from local new ‘supergrid’ completed by 2014; specialised subsets expected supporting the National Content plans. High demand also remains that and gas exploits may migrate to this groundbreaking project. oil substantial funds will be committed. for Project Engineering, Quality, Procurement and Construction personnel throughout the region. Though still a developing country with residual to backburner the Yet another federal election is threatening security and safety risks, these developments along (whichthe frontier environment proposed Petroleum Industry Bill with would effectively rewrite continue to make PNG anNigeria’s relationships with IOCs) once the legal and fiscal basis of attractive location for the industry’s Australia pioneers. more, potentially delaying billions of dollars in energy industry Since rattling the mining industry several months ago when it was investments. Until fully revealed and understood, the controversy first proposed, a first draft of the mining supertax legislation is Your Expectations as aa Regionsome major projects, surrounding the Bill will result in slowdown in expected to be presented to parliament in early 2011. Operators operators opting to remain in holding pattern until it is known what can still expect a headline rate of between 38 and 44 per cent, real effect the bill will have on corruption and security concerns. depending on revenues and the type of resources being mined Australasia Salaries for. Climate change remains a key concern in Australia, though Prime Minister Gillard recently announced the postponement of a 33% carbon trading scheme until 2012, good news for heavy industry 67% but angering valuable allies within the Green party. 0% Though its reserves are among the largest in the world, Australia’s gas exploration and production projects are facing the reality of Increase Decrease No Change both a local labour crunch and an oversupply of LNG worldwide, serving to cool the pace of development somewhat. With strong union representation, an abundance of resources and an overall Australasia Hires healthy local economy, labourers are increasingly forcing the hand of operators for wage increases and improvement of living and working conditions; with multi-billion dollar projects at stake, 78% operators are in turn swallowing project cost increases of upwards 22% of 40 per cent. 0% An increase in labour supply is being called for across all levels Increase Decrease No Change and multiple industry sectors, in response to which the Australian government has opened exceptions to existing immigration policy to allow the in-migration of skilled personnel in support of mega© Air Energi 2011 www.airenergi.com 7
  9. 9. Caspian “2011 is forecast to get off to a slow and mounting tensions with neighbouring Armenia will keep the international community on its toes into 2011. Exploration start here, as corporations often opt and development continues apace for the moment, notably the creating an increased demand for qualified personnel, whether to halt recruitment and mobilisation expansion of Azeri pipeline networks in high demand and likely to local or expat. Subsea talent remains to various locations in the region, adding new recipients and boosting export volumes. Rates increase once Angola gets its own pre-salt exploration programs efforts until warmer weather returns will remain competitive in effortsmeasureskey staff. implemented underway. New labour reform to retain have been in the spring.” recently, geared toward improving working conditions and Russia government transparency in the oil and gas sector, the improving Amid high of the Angolan economy. backbone taxation and a subsequent fear over a drop off of oil Regional Overview production, the Russian deputy finance minister has quelled 2011 may be a more encouraging year in the Caspian region concerns by confirming Russia will introduce a new profit based tax Nigeria but the full story will not be known until the spring when hiring on new oilfieldsgovernment Russia’s economic and energy outlook The Nigerian from 2012. has recently approved a $3.5 billion and project activities resume at full speed. Home to some of the has stabilised considerably put late,end to the country’s chronic national electricity grid to of an which will likely encourage world’s largest oil reserves and gas fields, regional governments the heavy investments required to tap into to raise much of the power shortages. Ironically, Nigeria seeks its remote reserves. are openly courting international investment and undertaking Russia’srequiredreserves are eighth in the world, but it is number capital known through foreign partners, in exchange for which necessary reform measures to position themselves as cooperative two in production.promises increased operational transparency and the government Industry analysts envisage prospective reserves business partners. The next challenge will be in attracting the to be twice the estimated known reserves, but foreignto have the above-board administration. Proposed timelines are investment top level talent required to tap into the region’s remote reserves, capital will be a necessity toby 2014; specialised subsets from local new ‘supergrid’ completed meet future production goals. Breaking and given the formidable winter weather and relatively meager news in gas exploits may migrate to this groundbreaking project. oil and January has been the announcement of the joint venture standard of living, this will be no easy task. between BP and Russian energy firm Rosneft to exploit potentially huge another federal election Russia’s Arctic shelf. The “strategic Yet deposits of oil and gas in is threatening to backburner the Kazakhstan global alliance” will see the firms exchange expertise in exploring proposed Petroleum Industry Bill (which would effectively rewrite With the mercury dipping to -40 degrees during Kazakh winters, the region. the legal and fiscal basis of Nigeria’s relationships with IOCs) once the weather can make operations and deployment of personnel more, potentially delaying billions of dollars in energy industry very challenging. 2011 is forecast to get off to a slow start here, as corporations often opt to halt recruitment and mobilisation efforts Your Expectations as a Region the controversy investments. Until fully revealed and understood, surrounding the Bill will result in a slowdown in some major projects, until warmer weather returns in the spring. operators opting to remain in holding pattern until it is known what Caspian Salaries real effect the bill will have on corruption and security concerns. Nationalisation still dominates the market, with the government using any opportunity to drive down the number of expat work 20% permit quotas. Faced with frequent cost overruns IOCs are finding themselves in a Catch 22, not wishing to be too top heavy with 80% expat hires yet needing the expertise to keep projects on track. 0% Healthy oil prices will shore up optimism and positive hiring trends into the New Year, however Kazakhstan is also known to be a Increase Decrease No Change volatile market, with the ability to hire hinging on project activity abroad and government cooperation. Drilling, Safety, Welding and Structural specialists remain in highest demand. Caspian Hires Azerbaijan Azerbaijan enjoys a strategically valuable position between the 100% FSU and Europe, and European governments have already 0% pledged billions toward the development of the Nabucco pipeline from Azerbaijan to mainland Europe with a goal of reducing 0% energy dependence on Russia. It is also a key transport corridor for US military efforts in Afghanistan. Yet for all its western Increase Decrease No Change friendly arrangements, Azerbaijan continues to demonstrate corruption and authoritarian tendencies: strengthened energy trade agreements with Iran, suspicions of rigged federal elections© Air Energi 2011 www.airenergi.com 8
  10. 10. Europe “Europe is still the global go-to for In what may be the first retreat from deepwater exploration since Macondo, the UK surprised the industry and analysts by awarding technologically challenging design fewer than anticipated exploration licenses in a recent bidding round, creating an increased demand for qualified personnel, whether work.” despiteor expat. Subseaof interest in exploration in the region. With local public gestures talent remains in high demand and likely to the industry thirsty for cash injection, the holding pattern is programs increase once Angola gets its own pre-salt exploration not likely tounderway. At Blackpool reformNorth West region of the UK, drilling last long. New labour in the measures have been implemented Regional Overview isrecently,take place to extract shale gas.working conditions and due to geared toward improving This highly controversial The economic chasm is widening in the Eurozone between the operation has attractedtransparency from environmental groups improving government opposition in the oil and gas sector, the haves (such as France and Germany) and the have nots (Greece who believeof thethe high risk health concerns have not been fully backbone that Angolan economy. and Ireland), and concern is also spreading over tenuous debt explored. levels and high unemployment in Italy and Spain. Despite the Nigeria negative pressure the region has experienced of late, Europe is still the global go to for technologically challenging design work, Mainland Europe The Nigerian government has recently approved a $3.5 billion From an immigration grid to put an end to the country’s is still a national electricity and mobilisation standpoint, the EU chronic the depth of expertise providing valuable insurance that complex relativelyshortages. Ironically, Nigeria seeks to raise much of the power easy place for expats to work, though both contractors projects will be delivered on time and on budget. The UK looks capital required through foreign partners, in exchange for which and permanent staff are being forced to accept lower packages forward to a pick up in project activity worldwide, which will keep tothe government promises increased trend may reverse into 2011 keep on par with local rates. This operational transparency and design firms in London and Aberdeen busy well through 2011. as project activity worldwide Proposed timelines are to have the above-board administration. picks up, bringing technologically And North Sea exploration and development, once the silverback cutting‘supergrid’ completed byto the esteemed design firms here. new edge EPC work back 2014; specialised subsets from local of the industry, has undergone a complete revival with billions in Average gas exploits maylingers atto this groundbreaking project. oil and unemployment migrate a relatively steep 10 per cent, E&P investments pledged for the coming year. and with the exception of Germany and France, Europe’s industrial sectoranother federal election is economies worldwide. Safety, Yet lags behind many other threatening to backburner the Scandinavia proposed Petroleum Industry Bill (which would effectively rewrite Process and Planners remain the most sought-after disciplines. North Sea exploration may be decades old but it is not slowing the legal and fiscal basis of Nigeria’s relationships with IOCs) once down, with the Norwegian government having recently committed $30 million on seismic exploration on the Norwegian shelf, citing Your Expectations as a Region in energy industry more, potentially delaying billions of dollars investments. Until fully revealed and understood, the controversy many areas have yet to be fully mapped. All in all, Norway expects surrounding the Bill will result in a slowdown in some major projects, domestic upstream investments to exceed 1985 levels in efforts operators opting to remain in holding pattern until it is known what to maximise current exploits, explore fringe areas, and fully Europe Salaries real effect the bill will have on corruption and security concerns. understand the region’s potential. Return to operations following widespread maintenance outages in late 2010 is also fueling the 28% momentum here. For the moment, the workforce demographic in 72% the north remains heavily local with rates slightly lower than in mainland Europe, though the forecasted spike in activity could 0% drive demand for key personnel and ensuing rates upward. Increase Decrease No Change UK Operators here and abroad breathed a deep sigh of relief when the proposed cap on skilled migrants into the UK was amended Europe Hires to allow candidates deemed ‘exceptional talent’ (Tier 1) as well as Tier 2 candidates brought in to work under intra company transfers, providing a valuable loophole for EPC firms in London 62% and Aberdeen ramping up for a heavy design year in 2011. Though 24% the issue of skills versus nationality has not as yet been fully put 14% to bed, any immediate administrative hurdles (and costs) seem to have been averted. As the EPC market gathers speed, rates will Increase Decrease No Change increase, though these large, one off jobs will only require short duration resources.© Air Energi 2011 www.airenergi.com 9
  11. 11. Middle East “Major demobilisation of many UK. Corporations with deep enough pockets have enjoyed the luxury of keeping key staff on the payroll for several months until projects is underway with an project activity picks up once again. Personnel with valuable LNG anticipated 40 per cent of the experiencean increased demand for easy transferability of whether creating from Qatar will likely find qualified personnel, skills to other LNG hubs Subsea talentAsia and Australia. local or expat. in Southeast remains in high demand and likely to workforce leaving Qatar by the increase once Angola gets its own pre-salt exploration programs underway. New labour reform measures have been implemented end of quarter two.” UAE geared toward improving working conditions and recently, UAE is something of atransparency in the oil and gas2011, with improving government project activity hotspot into sector, the Regional Overview expansion of the Angolan economy. backbone work ongoing throughout the ADNOC group of The focus across much of the Middle East remains on diversification companies. Efforts to push production and downstream processes of its energy sector (both upstream and downstream) and on are leading to plenty of EPC and sub construction work at the Nigeria solidifying domestic energy supply, ironic given the region is home moment. The Nigerian government has recently approved a $3.5 billion to some of the largest deposits of oil and gas in the world. With oil national electricity grid to put an end to the country’s chronic prices holding at a comfortable $80-$90 and beyond, international Though the UAE like much ofNigeria seeks to raise much of the power shortages. Ironically, the post recession world has strict interest and investment may once again pick up in the Middle nationalisation programs in foreignthe region is very keen on keeping capital required through place, partners, in exchange for which East into 2011. For the moment, relatively easy immigration, low oil and gas revenues flowing, particularly with the transparency and the government promises increased operational Dubai debt crisis taxation, steady rates and long-term contracts (and direct hires) inabove-board administration. Proposed timelines are to have the the not too distant past. Workarounds to immigration policies have will make the Middle East an attractive destination for those therefore been found at all levels, to the extent that the vast majority new ‘supergrid’ completed by 2014; specialised subsets from local interested in a term here. ofoil and gas exploits may migrate toof internationals. Nonetheless, the workforce here is comprised this groundbreaking project. with the sheer volume and scale of projects underway, the help isYet another federal election is threatening to backburner the needed and the UAE is certainly accomplishing its ambitious Iraq production increase and energyBill (which would effectively rewrite proposed Petroleum Industry diversification goals. Iraq is home to an estimated 110 billion barrels of proven oil the legal and fiscal basis of Nigeria’s relationships with IOCs) once reserves, the third largest in the world. Iraq’s true resource potential Disciplines highest delaying billions of Project Controls personnel more, potentially in demand include dollars in energy industry may be greater than expected, as deeper oil bearing formations (Cost, Planning and Scheduling and understood,well controversy investments. Until fully revealed Engineers) as the as various located mainly in the Western Desert region could yield additional discipline engineers.will result in a slowdown in some major projects, surrounding the Bill Construction and Commissioning personnel resources. As a turbulent peace is held together by foreign and are expected to beto remain in into quarters three andis known what operators opting in demand holding pattern until it four. domestic security forces, Iraq’s oil ministry has signed deals with real effect the bill will have on corruption and security concerns. foreign companies to develop its Mansuriyah and Siba natural gas fields. As it tries to boost its energy production and break Your Expectations as a Region into global gas markets, Iraq awarded contracts for development of three fields in its third energy bidding round since the 2003 Middle East Salaries invasion. The first commercial production from the gas fields achieved by the contractor “will be 25 per cent of the production 20% target within the first three years”, announced the Head of the ministry’s licensing and contracting office. He also stated that he 80% “hoped that the total output targets would be achieved within six 0% years.” The Iraqi government has said the priority for the gas will be domestic consumption, but stressed the possibility of allowing Increase Decrease No Change exports. More than seven years after the U.S and British led invasion, Iraq’s national grid only supplies a few hours of power each day. Middle East Hires Qatar 60% With its LNG super trains either onstream or soon to be, major demobilisation of many projects are underway at the moment with 20% an anticipated 40 per cent of the workforce leaving Qatar by the 20% end of quarter two. EPC personnel may be retained in support of the Barzan and Ras Laffan projects, though much of the Increase Decrease No Change design work is anticipated to be done out of design houses in the© Air Energi 2011 www.airenergi.com 10
  12. 12. Regional Comparisons Key Increase Decrease No Change H1 = statistics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year. Africa - Salaries and Pay Rates Africa - Hires Americas - Salaries and Pay Rates Americas - Hires Asia Pacific - Salaries and Pay Rates Asia Pacific - Hires Australasia - Salaries and Pay Rates Australasia - Hires© Air Energi 2011 www.airenergi.com 11
  13. 13. Regional Comparisons Key Increase Decrease No Change H1 = statitics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year. Caspian - Salaries and Pay Rates Caspian - Hires Europe - Salaries and Pay Rates Europe - Hires Middle East - Salaries and Pay Rates Middle East - Hires© Air Energi 2011 www.airenergi.com 12
  14. 14. Contacts Americas Caspian Air Resources Americas LLC Air Energi Caspian LLP 6002 Rogerdale Floor 7, 23 Kulmanov Street Suite 340, Houston 060011, Atyrau Texas, 77072, USA Kazakhstan Tel: +1 281 983 3463 Tel: +7 7122 270 126 Fax: +1 281 983 3468 Fax: +7 7122 270 128 americas@airenergi.com caspian@airenergi.com Asia Pacific UK, Europe & Africa Air Energi Group Singapore Pte Ltd Air Resources Ltd 1 North Bridge Road The Exchange, 3 New York St #06-03/04 High Street Centre Manchester, M1 4HN Singapore, 179094 United Kingdom Tel: +65 6511 1060 Tel: +44 (0)870 112 9444 Fax: +65 6511 1050 Fax: +44 (0)870 112 9445 asiapacific@airenergi.com europe@airenergi.com Australasia Middle East Air Consulting Australia Pty Ltd Air Resources Qatar Level 4, 46 Edward Street PO BOX 2953, Darwish Building 87604 Brisbane, QLD, 4000 Area 48, Doha Airport West Australia Doha, Qatar Tel: +61 (0)7 3056 0900 Tel: +974 4462 0886 Fax: +61 (0)7 3112 2601 Fax: +974 4462 6675 australia@airenergi.com middleeast@airenergi.com United Kingdom North America Middle East Westhill Business Centre, OilCareers Inc, OilCareer.com Arnhall Business Park, 11490 Westheimer Road, Dubai Media City Westhill, Suite 850 Building 9, Office 23 Aberdeenshire Houston, PO Box 500643, AB32 6UF TX 77077 Dubai, United Kingdom USA UAE Tel: +44 0870 870 4564 Tel: +1 713 425 6316 Tel: +9 714 299 3678 Fax: +44 0870 870 4563 Fax: +1 713 783 0067 Fax: +9 714 299 3946 info@oilcareers.com info@oilcareers.com info@oilcareers.com The Air Energi and OilCareers.com Global Oil & Gas Workforce Survey © 2011 For more information on this report and its findings, please see information below. Contributors Public Relations: Ian Langley Coordination and Distribution: Chris Grundy Artwork & Design: Ben Quinton Research and Editorial Services: Sounder Communications Inc, Edmonton, Alberta, Canada© Air Energi 2011 www.airenergi.com 13

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