Global salaries and recruiting trends.

000+ It is with great delight that we introduce this year’s global oil and gas salary guide. The fragile nature of this scenario has dominated the economic backdrop. We would like to take this opportunity to thank all of those individuals that gave up their valuable time to respond to this survey. With nearly every country around the world striving to secure its own energy future.economic outlook 26 Industry outlook 27 Most significant issues THANK YOU We would like to express our gratitude to all those organisations and individuals who participated in the collection of data for this year’s survey. Aberdeen and Perth are still important. Matt Underhill. Lastly. There were some environmental challenges to overcome and for some countries or regions this was a bridge too far. Whilst every care is taken in the collection and compilation of data. As the year came to a close the oil price edged slowly lower. This year’s survey saw more than 25. reflecting continued negative sentiment around the general global economy.200+ 25. This in turn impacted manufacturing output. we would like to thank our consultants and staff for their valuable insights which undoubtedly bring the document to life. however. demand for the oil and gas professional. it would seem. Despite the general upward trend there were headwinds to overcome. at least not in their own country. Managing Director. converting foreign currency into US dollars at the time of responding. Hays Oil & Gas Duncan Freer. once again allowing us to produce such a valuable document. This was seen by many nations as the route to energy independence and saw a wave of hiring.000 responded. That is significant for an industry employing some five million people worldwide. most notably in China. not least of which was a proliferation of non-conventional field developments. Such an increase now accounts for a 14 per cent rise in base salary in two years alone. Therefore information should be used as a guideline only and should not be reproduced in total or by section without written permission from the producers of this guide. There were numerous developments contributing to this rise through 2012. This was namely to produce some meaningful data on how salaries and remuneration change as we move around the world of work in the oil and gas industry. Oil and Gas Job Search CONTENTS 2 A global perspective Section one . Our headline figure for the average base salary has once again grown to now sit at $87. Most roads led back to Europe in this regard and their continuing debt issues weighed down consumer demand. The same cannot be said for too many other industries and it would not be stretching the truth to state that more wealth has been created in the oil and gas industry than any other over the last 12 months. As with previous years. was most definitely high. 2012 was a good year for many in the oil and gas world with an increase in salaries. This said. (Development stalled and salaries with it.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 . it is the trends and movements within the data that make for such interesting reading – indeed every figure tells its own tale! With so much data it can become a question of what to present and publish. The likes of Houston. just not as important as they were. the survey is interpretive and indicative.industry benefits 12 Overview of benefits 13 Benefits by company type 14 Benefits by region Section three . benefits and conditions. increased production or developing infrastructure. The other change that this sector saw was an expansion into cities/regions previously untouched by the industry. This is then complemented with some informed insights as to what industry events and activities are contributing to the outcomes. More than 25. 2013 Oil & Gas Salary Guide | 1 . albeit guarded. *Respondents were asked to provide their base salary only in US dollars equivalent. This is the fourth year we have published the document and each year we have seen an increase in the number of respondents taking their time to give us such valuable information and insights into their world of work. Disclaimer: The Oil & Gas Global Salary Guide 2013 is representative of a value added service to our clients and candidates.SURVEY SUMMARY DISCIPLINE AREAS COVERED COUNTRIES WORLDWIDE REPRESENTED RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY PEOPLE RESPONDED TO THE SURVEY 24 53 2. and more importantly it is of assistance to you in your employment dealings.000 professionals and skilled employees in the oil and gas industry respond. This was consequently.industry employment 17 Staffing levels 18 Diversity and movement of workforce 20 Experience and tenure 22 Employment mix Section four . confidence from those taking this survey has remained high and at least in the oil and gas world.5 per cent increase on the previous year. trends that are easily spotted within our data). forecasts are for continued optimism. in all its guises. We would also like to thank those people in our marketing departments for helping collate and design the guide.500+ 8. but by no means least. showing an 8. we have tried to stay true to the goals that we set ourselves when first embarking on such a document. We hope you enjoy reading the document. and appears likely to continue well into 2013. for some. giving us more than one million separate pieces of information to collate into findings. Managing Director. Indeed many countries eagerly embarked on this path only to discover that the skills didn’t exist. and the impact this may have.300*. either through exploration. not conclusive. which is approximately 74 per cent up on last year and this has once again ensured that we can produce an informative document to help support your business and employment decisions. their first steps onto the global recruitment market.

A GLOBAL PERSPECTIVE NORTH SEA The drain of talent to overseas markets intensifies skill shortages IRAQ Flurry of hiring as a range of new mega-projects kick off SOUTH KOREA Korean ship yards seek to monopolise vessel and rig fabrication work UNITED STATES Energy self-sufficiency now in sight for the US with extensive shale gas developments AUSTRALIA Australia dominates the LNG market with a multitude of projects under construction BRAZIL A long awaited round of field auctions announced. breathing life back into the market EAST AFRICA East Africa becomes the next big focus for oil and gas majors 2 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 3 .

6% 1% 2012 32.5% Increase between 5-10% 29. CHANGES TO SALARIES IN THE LAST 12 MONTHS Increase more than 5% 2013 49.9% 15.7% SECTION ONE: SALARY INFORMATION 2012 49.3% Remain Static 30.5% 16.7% 4 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 5 .7% Increase up to 5% 16. With almost 50 per cent of those responding experiencing an increase of 5 per cent or more to their salary.6% 29.8% Increase up to 5% 24% Remain Decrease Static 1.SECTION ONE SALARY INFORMATION Permanent salaries rose 8.3% 4.4% 30% 20. this was the second consecutive year of significant rises for the industry.5% over the last 12 months.7% EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS Increase more than 10% 2013 27.1% 17.2% Decrease 3.

600 96. However.900 110.200 42.400 68.600 32. the environment.800 54.100 101.300 81. As the markets continue to become more efficient. At other levels. and it is in both the downstream operations and upstream production management figures that we saw this effect – both sets of figures climb.400 42.800 40.800 128.600 75.600 N/A 35. with those at the top of the table seeing salaries plateau or in some cases ease slightly. Nigeria.100 49. The major headwind in the world economy in late 2012 was the slowdown in growth within the Chinese manufacturing sector. At the time of writing the oil price remained above $80 bbl and at this level we should see salaries continue to rise as we progress into and through 2013. two hot spots for the region. Some parts of Europe continued to suffer from the debt crisis with relatively flat demand.800 130.800 77.900 47.800 63. we find Russia’s arctic exploration driving imported skills.500 107.600 85.200 50.800 113. The relative low salary levels in the UK clearly contribute to this effect. In general the year saw increases for most countries as the global energy industry remained buoyant.900 75.300 41. where experienced managers of projects in these disciplines were hard to find. the economy or in some cases armed conflict.000 N/A 123. The delay in auctions in Brazil saw a drop in their previously spiralling salaries (to some this would be a welcome respite).400 57. although both would appear to have met some sort of ceiling.700 87.900 93.400 N/A 174.600 Manager Lead/ Principal 100. Along with Australia.400 47.600 36.800 108.200 55. Representing a mix of danger money and hardship allowance in these base salaries.600 111.600 46. We also expect to see more ‘flattening’ of the market as skills move around the world to alleviate pockets of acute demand.e.300 54.300 N/A N/A 230.000 139. and it will take further significant rises domestically before we see the trend reversing. particularly in the more junior ranks.Salaries Salaries Once again we saw the average permanent salary for those in the oil and gas industry rise by a significant amount.000 37.500 118.800 142.800 51.100 81.700 53.300 51.500 55.300 104.700 40.700 98.900 34.600 72.400 72.400 168.500 SECTION ONE: SALARY INFORMATION SALARY INFORMATION SALARY INFORMATION . Iran and Venezuela being the obvious standouts.100 65. Trinidad & Tobago.100 43.000 123.300 191.400 55.700 58. implying volume recruitment.100 43.500 161.800 52. 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 Local average annual salary 45. salaries for operators/technicians also saw rises of 9 per cent.500 84.700 70.000 123.500 37. than any immediate increase in domestic energy demand. At the top of this year’s table we once again see Australia and Norway. which in turn raises salaries.300 191.500 34. However we saw the biggest increase in graduate salaries rising by more than 12 per cent to just under US$40.000 103.100 240.200 52.100 38. Be they issues stemming from politics. each country’s salary tells a story. an uncertain economic environment.200 87. the disciplines associated with exploration were somewhat flat after sizeable rises in 2012.400 123.800 146.000 68. This was also mirrored in HSE and commissioning specifically in the more senior roles.200 59.900 75.500 N/A 142.100 38. the individual country figures once again portray the numerous forces shaping remuneration in the industry.600 117.500 80.400 66. and those at the bottom seeing higher demand for cheaper talent.700 41.400 73. Netherlands and Canada.300 96.900 92. the core disciplines of electrical.300 56.100 122.200 47.800 127.400 102.100 124.900 124.200 149. It is therefore somewhat surprising that their local and imported salary figures exhibit such growth.900 79.100 50.200 79.100 102.200 46. 2012 delivered another impressive increase in base pay of 8. we have seen the recruitment industry working well to iron out the extreme variations in pay.500 58.300 142. Following the downturn of 2008.000 41.400 42.200 153.000 145.400 39.600 103.200 158.400 93.600 42. Overall.600 118.700 140.900 31.400 124. Northern Europe also came through with increasing salaries reflecting a lack of skills to meet burgeoning demand.500 N/A 166. Aside from the USA which saw a relatively flat year for remuneration (all be it at a high level) we did see increasing rates in Mexico and Colombia.400 108. which continues to take its toll on the UK talent pool in particular.600 92.100 123.700 62.000 equivalent. When considering the various levels of seniority in employment.500 51.5 per cent.400 121.200 53.000 103. Thailand and Argentina.600 169.500 N/A 111.000 139.100 68.900 114.900 54. Completing the top five on local salaries. this is inevitably the outcome. As we forecast in 2011.500 107.100 38.600 57. and Thailand is increasingly home to many oil and gas professionals on rotation on offshore facilities in South East Asia or North Western Australia.900 59.900 148.800 97. Spain. It is therefore more interesting to look at some of those that fell and speculate why. and employers move to those countries at the bottom of our tables to take advantage of lower cost levels.300 51.700 74.300 117. we also see New Zealand.100 41.400 Breaking the data down into discipline areas and comparing against the previous year’s figures provides us an interesting insight into what has been driving the market. Other countries showing big increases include Iraq. and the movement of people more prevalent.000 85.600 181.700 109.500 84. in the most part. rounds off the top five importers by salary level.600 170. converting foreign currency into US dollars at the time of responding.900 57.200 151.800 76.700 75.500 42.400 54.000 N/A 114.200 52.900 86. the Caribbean hub for oil and gas.100 51.700 110.300 84.100 62. Where imported salaries are concerned.500 VP/Director 184.600 50.100 52. mechanical. piping and process engineering all had a good year.100 152.900 151.600 112. There were a number of locations that suffered from issues stemming from political fallout.500 104.900 81. and in line with the previous section.000 59.200 69. rising to $87.300 81.600 47. Argentina is playing catch up on the previous year’s sluggish growth.300* as an average US dollar equivalent worldwide.700 60.900 68.100 Imported average annual salary 92.400 N/A 93.300 Graduate 35.200 77.400 37. For an industry that has historically under-invested in entrylevel skills this is welcome news.200 77.300 ANNUAL SALARIES BY DISCIPLINE AREA Business Development/Commercial Construction/Installation Commissioning Downstream Operations Management Drilling Electrical Estimator/Cost Engineer Geoscience Health.200 131.600 68. Conversely.600 55. Controls & Automation Logistics Maintenance Marine/Naval Mechanical Piping Process (chemical) Production Management Project Controls Quality Assurance/Quality Control (QA/QC) Reservoir/Petroleum Engineering Structural Subsea/Pipelines Supply Chain/Procurement Technical Safety Operator/ Technician 53.400 Senior 65.400 62. South Korea and Malaysia joining China in those with positive increases. 6 | 2013 Oil & Gas Salary Guide Vietnam Yemen 2013 Oil & Gas Salary Guide | 7 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT SECTION TWO: INDUSTRY BENEFITS 148.700 97.300 53.300 35.500 38. as did the top end of the scale with base salaries in VP/Directors rising by the same amount. i.000 37.300 75.900 68.000 133. with national borders less restrictive to skilled migration.100 54.500 101. Both countries have limited skilled labour pools and significant workloads.700 40.700 251.800 39. the result is very high pay rates. *Respondents were asked to provide their base salary only in US dollars equivalent. although high levels of production ensured it was a busy year in drilling.500 97.000 50.900 45.900 102.900 N/A 34. as did a ‘brain drain’ of professionals overseas.600 N/A 58.800 58.600 125. Safety and Environment (HSE) Instrumentation.800 117.200 53.000 132.900 Intermediate 48. In general the Asia Pacific countries have fared well in the year with Singapore.300 76. Demographic issues contributed to this shortage. In line with more project work coming through Final Investment Decision (FID).800 68.100 47.200 47.400 106. While the headline growth is impressive.800 101.000 N/A 34. The first two reflect significant project demand. On the back of last year’s 6 per cent rise.100 70.700 94. making up for some lost ground in 2012. and China’s drive on nonconventional skills also pulling in experts on premium rates.200 163.500 92.800 144.400 121.900 105.700 49. taking a closer look at the market this is clearly a reflection of their quest to become self reliant on energy in the future driving exploration and infrastructure development. those projects put into development the following year were starting to make their way through to operational phases. it is once again the frontiers of the industry that are pushing the upper limits of pay.200 53.000 171.100 141. salaries were up.200 132.700 82.000 31. There would be few industries with such a track record of growth over the last few years in what has been.400 66. and in Poland the environmental lobby combined with a number of disappointing drilling campaigns put the brakes on shale gas developments and in turn local salaries. This rise however will be modest and we would expect the increase to be somewhere in the bracket of 4 to 6 per cert.200 108.000 68.200 141.

vessels. and these companies also saw a good return in 2012 with an increase of 11 per cent. we saw the largest rise at more than 16.com at the time of responding) excluding one-off bonuses. it is probably no coincidence that this industry was the ‘least well paid’ of the company types surveyed in 2011.500 181. safety and environment. There is some conjecture as to why this is happening. The other ‘under achievers’ historically in terms of salaries are the service contractors.000 2013 $73.200 2013 $83.000 2012 $74.900 2012 $91.900 Manager Lead/ Principal 119.800 57.100 54.600 72.000 50.600 53.500 131.300 107.Health. Contractor rates are listed as US dollar equivalent day rates as listed by respondents.110 N/A This data is fascinating. the need for senior engineering talent is driving up rates.800 53. Our data shows healthy rises in day rates for most disciplines across all levels.300 75.4% Contractor +11% EPCM Equipment Manufacture & Supply Global Super Major +8. The average salaries listed under local labour are representative of respondents based in their country of origin. it was a surprise to see the global super majors lagging their competition with only a 6 per cent rise.330 840 630 VP/Director 1. Notes: EPCM .400 58. This aside. entries are returned as N/A. HSE .6% Background for this section Only where the sample size is large enough have we listed figures in these tables.300 126. Those on a daily payroll are extracted and listed separately. The other significant rise was in the manager/ lead/principal level. As highlighted in this report it is the construction/installation companies along with the large EPCMs that have most need for contractors.000 166.7% SECTION THREE: INDUSTRY EMPLOYMENT SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION SALARY INFORMATION SALARY INFORMATION .700 105. The latter region saw good rises across all levels for contractor rates being led in the most part by large engineering firms out of South Korea (with China not far behind).200 252.800 50.600 71.600 2013 $107. Where not enough responses were received.Salaries Salaries ANNUAL SALARIES BY COMPANY TYPE Consultancy Contractor EPCM Equipment Manufacture & Supply Global Super Major Oil Field Services Operator Operator/ Technician 56.300 2013 $115.000 N/A N/A 790 1.200 2013 $71.4% Oil Field Services Operator 8 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 9 SECTION FOUR: ECONOMIC OUTLOOK +16.300 +11.700 2012 $102.700 172. share options and other non-cash benefits.000 CONTRACTOR DAY RATES BY REGION Northern Europe Western Europe Eastern Europe CIS Middle East North Africa West Africa East/South Africa South East Asia North East Asia Australasia North America South America Operator/ Technician 430 390 300 350 250 310 320 310 330 240 690 420 340 Intermediate 490 360 250 440 320 300 350 270 320 340 700 490 320 Senior 720 550 340 580 400 440 610 450 450 630 940 760 480 Manager Lead/ Principal 850 770 460 830 610 560 750 820 750 940 1. Much of the onus for meeting these demands rests with those in this sector and this in turn is driving talent needs and the salaries needed to recruit effectively. 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.000 Senior 82. global super majors and other operators continue to lead the market as we would expect.900 49. Constructing and fabricating FPSOs.800 2013 $98.590 1.100 68. The operator/technician level saw some of the largest rises and at these lower levels this implies volume hiring with plenty of project work available.800 48.800 VP/Director 162. for those working on a yearly payroll. however. YEARLY SALARY CHANGES BY COMPANY TYPE 2013 $96.900 70. particularly in East/South Africa and North Asia.800 Intermediate 50.7 per cent within the equipment manufacturers. and also saw them elevated to the top of the table for importing talent (see table on page 6).300 153. Consultancy +6. procurement and construction management. however the relative levels between these two groups makes for some interesting reading in itself.000 Graduate 36.000 61.130 940 N/A 880 1.400 76.Engineering.260 1.500 244. it is no surprise that the operators are increasing salaries by about 12 per cent.700 98.100 40.060 1.300 85.000 82.200 37.700 55.Quality assurance/quality control.400 2012 $67. and large scale subsea infrastructure.1% +5. QA/QC . We have also seen technological demands in the industry accelerating at a faster rate than at any point in history. Salaries listed under imported labour are representative of those who are working in that country but originate from another. With such a healthy oil price. pension. and with a wave of new facilities now being built and coming through design we would expect the operator/ technician rates to continue rising.900 48.900 2012 $61.8% +9. In terms of the magnitude of the base salaries by company type. As is evident ‘big is not always best‘.100 166. It is only now after a couple of years of positive revenue that they are starting to claw back some of the lost ground in what they can afford to pay their workforce.700 103.500 2012 $103. however.000 2012 $90.400 30.

30% 1.59% 2. The rise in bonuses continues and now represents the dominant mechanism by which companies attract and retain their talent.13% Increase 21% 12% 15% 19% 9% 10 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 11 .90% 2.50% 3.00% 1. SECTION TWO: INDUSTRY BENEFITS 5 LARGEST INCREASES IN BENEFITS Value of the benefit as a percentage of the overall package 2013 Bonuses Health Plan Home leave allowance/flights Hardship Housing 5.26% 3.80% 2.40% 2012 4.78% 2.SECTION TWO INDUSTRY BENEFITS Bonuses account for rise in benefits.

We know from our own activities that benefits and allowances are a vital part of recruitment in the industry.9% 10.9% 10.3% 12.4% 10.7% 18.8 per cent of our respondents receiving some sort of bonus.8%.6% Average percentage of their total package Almost 65 per cent of the respondents receive some benefit or allowance above their base pay.6% 15.5% 12.8% 26% 10.Overview of industry benefits Company benefits The significant figure in our data here is that the number of people not receiving benefits has once again dropped. however.8% 12. Tax assistance rose slightly as a percentage of what it is worth. this year to just under 35 per cent. 2013 Oil & Gas Salary Guide | 13 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION INDUSTRY BENEFITS INDUSTRY BENEFITS .5% 34. which in the case of bonuses is 13. so it has not made much of an impression on the overall remuneration pool.0% 7.1% 17.8% of respondents receive some sort of bonus. In this way companies are able to engage far more with the individual they are seeking to employ and retention rates are bolstered. rising 7.8% 13.8% 14.9% 18. slightly fewer were receiving it. The second figure represents the value of that benefit stated as a percentage of their overall package for those that receive it. i. the project and the business are increasingly commonplace. OVERVIEW OF INDUSTRY BENEFITS Percentage that receive the benefit Bonuses 42. In terms of what these benefits were worth to individuals there was not a great deal of change from 2011. the highest rate of participation since the survey was launched four years ago. The main mechanism by which employers are engaging with candidates is through bonuses and this is where we have seen the largest growth. where tailoring to the individual.56 per cent respectively. 42.1% 10. The first figure represents the percentage of respondents that receive that particular benefit. To some.2% 12.7% 16.2% 9.2% 19.8% 19.5% 10. Commission Tax Assistance Pension Health Plan Car/Transport/ Petrol Housing Home leave allowance/ flights Hardship allowance Hazardous danger pay Meal allowance TOP BENEFITS BY COMPANY TYPE EPCM/CONTRACTOR 35% 23% 19% 18% 18% 17% Health Plan Bonuses GLOBAL SUPER MAJOR/OPERATOR 43% 29% 24% 20% 19% 18% 39% No Benefits Health Plan Bonuses Housing Car/Transport/Petrol Home leave allowance/flights Pension Housing Home leave allowance/flights Overtime Car/Transport/Petrol 30% No Benefits Share scheme EQUIPMENT MANUFACTURER & SUPPLY 42% 28% 23% 22% 16% 13% Health Plan Bonuses OILFIELD SERVICES/CONSULTANCY 33% 22% 16% 16% 15% 15% Bonuses Schooling Health Plan Car/Transport/Petrol Pension Car/Transport/Petrol Housing Pension Home leave allowance/flights Training Housing Overtime Background: The bar chart shows two figures related to benefits that employees in the oil and gas industry receive.8% 7. Healthcare and home leave allowances were the two other movers in 2012 rising 3.1% 6.8 per cent since 2011 to a total of 42.2% 17. 12 | 2013 Oil & Gas Salary Guide Meal allowance 30% No Benefits 38% No Benefits No Benefits Background: Graphs here show the top benefits by company type and the percentage of people who receive them.5% 6. The exceptions included a jump in healthcare provision within equipment manufacturers and global super majors. Breaking down the data into company types we see a similar pattern across all sectors.e.16 per cent and 2. the fact that 35 per cent do not receive any benefits is still incredible.7% 12. along with home leave allowance showing a small increase across the board.4% 16.1% 14.

Europe and North America continue to weight their salaries towards basic salary and consequently benefits are relatively light in comparison.Regional benefits Regional benefits As with previous years Asia remains the region in which more allowances and benefits are paid out as a percentage of the overall package than any other region. 14 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 15 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION INDUSTRY BENEFITS INDUSTRY BENEFITS . TOP BENEFITS BY REGION AFRICA 37% 25% 21% 20% 20% 19% Health Plan Bonuses TOP BENEFITS BY REGION ASIA 43% 29% 24% 24% 22% 19% Health Plan Bonuses EUROPE 30% 22% 19% 12% 9% 7% Pension Bonuses MIDDLE EAST 40% 29% 26% 24% 22% 18% 49% No Benefits Housing Bonuses Housing Home leave allowance/flights Car/Transport/Petrol Car/Transport/Petrol Housing Health Plan Home leave allowance/flights Car/Transport/Petrol Health Plan Home leave allowance/flights Overtime Car/Transport/Petrol Pension Meal allowance Meal allowance Overtime 36% No Benefits 26% No Benefits 27% No Benefits AUSTRALASIA 33% 27% 12% 11% 10% 9% Health Plan Car/Transport/Petrol Home leave allowance/flights Overtime Bonuses COMMONWEALTH OF INDEPENDENT STATES 30% 20% 19% 17% 14% 12% 43% No Benefits Bonuses NORTH AMERICA 37% 35% 22% 13% 11% 10% Pension Bonuses SOUTH AMERICA 39% 39% 24% 21% 17% 13% 34% No Benefits Bonuses Health Plan Pension Health Plan Home leave allowance/flights Health Plan Meal allowance Housing Car/Transport/Petrol Pension Meal allowance Overtime Training Car/Transport/Petrol Pension Housing 40% No Benefits 25% No Benefits Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. In South America health plans are given to far more employees than any other region. In terms of regional differences we identified a number of interesting patterns.  In Asia there is a distinct absence of pension payments. The Middle East is not far behind. at a level not seen elsewhere. having a zero tax on earnings. as well as overtime. with Africa and South America next. This was offset by having the highest payments of bonuses. Perhaps even more of a factor for some regions is the level of tax on gross pay. Whilst the Middle East and Asia continue to deliver higher levels of benefits across most categories. They also pay out a high proportion of meal allowances. this is in the most part offset by lower basic salaries. and this is where the majority of the Middle East clearly plays its trump card. CIS includes Russia and the former Soviet Republics. Indeed the inter relationship between base salary and benefits should not be ignored when considering regional differences in overall remuneration.

1% More than 10% SECTION THREE: INDUSTRY EMPLOYMENT 46.8% 23. the level has come off from 2012 albeit only slightly. We also see the use of contractors has continued to predominate in the construction and installation disciplines. the use of expats appears to be falling.9% 29. Through the latter part of 2011 and early 2012 European debt worries dominated business confidence. Confidence levels in the industry on staffing demand remains high.9% 48.7% 19. This is very much in line with the increasing trend to localise the workforce. less so in the oil and gas world.9% 12.3% 32. an economy that has helped to prop up global activity for the last few years. looking ahead the market does not have the same confidence as last year that this contract base will increase. however. This was the same in 2011. The contractor base in the industry has remained relatively static since 2011.1% 21.1% SECTION TWO: INDUSTRY BENEFITS Confidence remains high with almost a quarter of employers expecting salaries to rise by 10 per cent or more in the next year.5% HSE & QAQC 44% 25.Staffing levels 24.7% Ops.5% Up to 5% None 37. As the year progressed the possibility of serious financial melt-down in Europe receded and the markets became similarly afflicted with concern for the downturn in growth within China. in line with rising salary costs.4% 48.5% Engineering & Design 35.8% PERCENTAGE OF WORKFORCE EMPLOYED AS AN EXPAT 36% 22.8% Project Controls 41.7% 18. despite this year’s data showing a contraction in expat use contradicting that forecast.6% 44. However.2% Increase more than 10% Increase between 5-10% Increase up to 5% Remain static 38.3% 18.7% 25. Maintenance & Production EXPECTATION THAT EXPAT LEVELS WILL CHANGE IN THE NEXT 12 MONTHS 40% Petrochemicals 43. However.5% 38.7% Equipment & Supply 45.5% None Up to 5% More than 20% Between 5-20% Decrease DISCIPLINE AREAS IN WHICH CONTRACTORS ARE EMPLOYED IN OIL AND GAS Always Subsea/Pipelines EXPECTATION THAT CONTRACTOR LEVELS WILL CHANGE IN THE NEXT 12 MONTHS Never 12.2% 22.1% Increase Remain the same Decrease 2013 Oil & Gas Salary Guide | 17 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT Sometimes 39. CONFIDENCE THAT STAFFING LEVELS WILL CHANGE IN THE NEXT 12 MONTHS PERCENTAGE OF STAFF EMPLOYED ON A TEMPORARY OR CONTRACT ASSIGNMENT SECTION ONE: SALARY INFORMATION SECTION THREE INDUSTRY EMPLOYMENT INDUSTRY EMPLOYMENT . This concern is having an impact on the wider economy. While it is still high.7% 24.5% 36.6% 42.3% 15.1% 16 | 2013 Oil & Gas Salary Guide 45.5% 10.9% 5. Energy demand continues to edge up and demand for skills continue to outstrip supply in many regions. with more than 20 per cent of those responding stating that their company did not employ people on an expat basis.9% 23.6% 43.5% 8.2% Geoscience & Petroleum Engineering Between 5-10% 30. The level of those expecting the number of expatriates to increase remains stubbornly high however.3% Drilling & Well Delivery 38. Interestingly.3% 16.8% Increase Remain the same 39.8% 20. more of our sample believes contractor numbers will remain static.8% Decrease 43.7% 16.

5% 2013 Oil & Gas Salary Guide | 19 North America Working in home country 71. although localisation of staff levels did manage to make a small dent in the levels of those imported. most of which were heading east to chase the dollars.0% 85. Moving the other way we saw something of an exodus of foreign nationals from Europe.7% 8. Africa continued to increase its imports as did South America as wages increased. but also the Philippines and China.4% 27.8% 43. Project Controls and HSE as the largest sectors of employment for females. primarily from the sub-continent. with nationals mostly heading north to Europe. this one gives us the most insight into the markets around the world and how they are faring. Regionally the Americas are faring better than other regions. up from the previous year’s figure of 42. The Middle East continues to be the largest importer of skills.5% 94.5% 6.9% 14. unfortunately it appears an opportunity missed.4% 16. the same cannot be said of specific markets.2% 67.0% 6. Of all the sections in this report. lack of home grown talent and drives on localising the workforce can all be identified within these figures. In line with our own experience.Diversity & movement of workforce Diversity & movement of workforce Disappointingly we didn’t find an increase in the number of women working in the industry. While overall the global data does not show any significant issues with demographics.2% 35. With skill shortages as they are.9% 3. as the only two continents with more than 10 per cent of female workers.5% 31. with Business Development.3% Female AGE DEMOGRAPHICS Male 24 and under Female IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE Imported labour Australasia Asia Africa Europe CIS Middle East North America South America 49.8% 65. The proportion of Australian nationals working at home once again grew for the third year running.7% 10.9% 86. that would appear to exceed current project and production needs.4% 5.8% 64.9% 9. and more recently as the data shows South Americans heading to both Europe and North America.5% 42.3% 91. Africa. In Asia there was a significant increase in local participation. we do not expect it will be long before there are more oil and gas professionals overseas than there are in their own home countries.6% 91.2% 58. The market with the most acute issue is the US with more than 55 per cent of respondents over 50 years of age. The Middle East. This trend is due to a number of factors.4% 50.6% 5. The spread of discipline splits amongst women in the industry remains the same as last year.4% 18. These include. High levels of project work.6% Home 18 | 2013 Oil & Gas Salary Guide 47.8% 48.1% 89.6% 13.5% 76.1% 13.6% 14. however we also know that the workforce grew at a significant rate.8% 33.4% 22.5% 0.1% 23.7% 8. again we believe due to those returning home to higher rates of pay.2% 89. In terms of nationals working overseas (see table below) the figures support three big movers in the export of staff.6% 81.3% 96.0% 17.6% 12.2% 34. There has been a small aging of the working population within our sample and this is in line with the years of experience as documented in the figure below. In 2012 this percentage has risen to 47.4% Abroad South America SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT Africa SECTION TWO: INDUSTRY BENEFITS MOVEMENT OF THE WORKFORCE SECTION ONE: SALARY INFORMATION INDUSTRY EMPLOYMENT INDUSTRY EMPLOYMENT .5% 25-29 Asia 30-34 35-39 Europe 40-44 CIS 45-49 Middle East 50-54 WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY Working overseas Australasia Asia Africa Europe CIS Middle East North America 28. primarily the promotion of inward skilled migration by nation’s governments that facilitates the growth.6 per cent.5% 57.8% 11.1% 93. the number of oil and gas professionals working overseas continues to increase. DIVERSITY OF STAFF REGIONAL GENDER DIFFERENCES Male Australasia 90.3% 65 and over WORKING AT HOME OR ABROAD 52.9% 55-59 South America 60-64 76.8% 10.2% 22.4 per cent.1% 1.8% 41. Asian nationals. Africa and Asia are once again at the lower end of the scale. In Australia.3% 2.0% 12.2% 56.7% 23.3% 6. the overall percentage of imports dropped.0% 72.6% 9. With skill shortages as they are this appears to be the ideal time to take advantage of what should be a sizeable proportion of the workforce.3% 3.6% Local labour 2.5% 68.9% 12. We believe that this is already driving the high demand for talent in the US and Canada. and this demand was filled with Australian nationals.9% 6.2% 51.

reflecting a less volatile market but one which continued to drive hiring. As the market settles into this particular cycle we would expect tenure to continue to increase.8% Less than 1 year 1-2 years 3-5 years 6-10 years 10+ years 2012 19.7% 12.4% Newspaper 12. Job board use remains level at just over 15 per cent. This year these numbers remain high.8% 29.3% Less than 1 year 1-2 years 3-5 years 6-10 years 10+ years SOURCE OF NEW EMPLOYMENT 21.1% Geoscience 25.0% Head hunted 14.0% 28. This would suggest that the wave of projects coming through the industry has gone through its peak and the big ‘flex’ in headcount (those with zero to four years experience) is behind us. The changes.1% 21.4% 25.1% Internal move Other 20 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 21 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION INDUSTRY EMPLOYMENT INDUSTRY EMPLOYMENT .8% 26. albeit gradually.5% Agency 7. Again we have seen only a small change in the tenure of respondents with a small increase.5% 24.6% 29.4% 23. YEARS OF EXPERIENCE OIL & GAS INDUSTRY 28. Last year we started to measure where oil and gas professionals sought their new roles.0% Online job board Word of mouth Subsea/ Pipelines 23.8% Construction/ Installation 27.5% 21.6% 21. the construction and project controls figures have both increased their average experience level. In terms of disciplines.Experience and tenure Experience and tenure In 2012 we reported a large influx of new and experienced hires into the oil and gas industry. Should the market turn down then this may well accelerate as ‘last in: first out’ principles start to take hold. Firstly that traditional newspaper advertising continues to disappear as a source of job hunting.0% Project Controls 23. On the increase was head hunting and the use of agencies. or internal moves.5% 24. although some have moved through into the following band with the net effect of increasing the experience levels across the whole sample.4% Company website 15. Tenure edged up slightly from last year’s figures. are relatively small and indicate a more ‘steady state’ market than in previous years when the market was emerging from a downturn.1% 27. There was little change in most of the other disciplines.7% 16.0% 8.3% 23.8% 0-4 years 5-9 years 10-19 years 20+ years FOR SPECIFIC DISCIPLINE AREAS 0-4 years 5-9 years 10-19 years 20 + years TIME IN CURRENT ROLE 2013 24.1% 6. however. We also saw a small decline in those seeking work through internal company websites.7% 7. This saw record numbers of people in the zero to four years experience bracket.2% 24.7% 13.0% 25.6% 28.8% 30.1% 24.7% 25. To recruiters there are a number of useful observations that we can see derive from numbers.9% 7. including those in the sub-surface areas.

0% 1.0% 15.9% 42.1% 1.5% 1.3% -0.8% 1.9% 47. at the expense of contractors (direct or through an agency). The most pronounced shift occurred within the super majors and operators.6% -1.8% 0.9% 3.3% EMPLOYMENT MIX BY COMPANY TYPE Permanent Permanent/ Part-Time Contracted Direct Contracted through agency OIL FIELD SERVICES CONSULTANCY Global Super Major Operators EPCM Equipment Manufacturer & Supplier Oil Field Services Consultancy Contractors 52.1% 80.4% 5.1% 5.5% 53.4% -6.7% 2.5% PERCENTAGE CHANGE FROM 2012 to 2013 GLOBAL SUPER MAJOR OPERATORS -1.4% 26.5% 14.4% 1.4% 24.3% 4.6% 59. as confidence has come off its highs.9% 22 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 23 SECTION FOUR: ECONOMIC OUTLOOK  ost of last year’s gains M in permanent hires were reversed this year as economic concern saw a move towards more flexible employment solutions.2% 0.Employment mix Employment mix In last year’s data we saw most companies (outside of the constructors/installers) changing their mix of employment to include more permanent staff.0% 10.8% 14.1% 3.5% 0.6% -0. This year.0% CONTRACTORS -0.9% -0.7% -1.3% 7. EPCM EQUIPMENT MANUFACTURER & SUPPLIER -3.6% 24.4% 20. This was appropriate for a market where confidence was sky high. SECTION THREE: INDUSTRY EMPLOYMENT 1.4% 0.3% 1.5% -0.4% 26. we’ve seen the trend reverse with employers seeking more flexibility in their workforce.6% 2.2% 20.7% 24.6% SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION INDUSTRY EMPLOYMENT INDUSTRY EMPLOYMENT .1% 0. closely followed by the consultancies.1% -4.4% 31.0% -5.5% 27.2% 2.9% 0.7% 60.2% 1.3% 0.

2% 8.6% Other 2013 Oil & Gas Salary Guide | 25 Environmental concerns Safety regulations .8% 8.1% Immigration/overseas visa program 24 | 2013 Oil & Gas Salary Guide Security/safety caused by social unrest 1.3% 25.3% 11. SECTION FOUR: ECONOMIC OUTLOOK employer’s concerns in the current employment market 37. Skill shortages are now by far the major concern for employers in the industry.7% Skills shortages Economic instability 7.SECTION FOUR ECONOMIC OUTLOOK Confidence was delicately balanced in the year with high profits from a buoyant oil price offset by concerns over European debt and a slowdown in China’s growth.

the skill shortages were acute in a few select places. which represents high levels of confidence in comparison to figures given in other years. For now both forces are balancing each other and producing a steady. This caused salaries to spiral upwards.6% Middle East 16. This is a pleasing result for those involved in talent acquisition. not take much to push the markets out of kilter either way. so it is with some interest that we enter 2013.Industry outlook Most significant issues These figures remain largely in line with 2011. Balancing this positive sentiment is concern around China’s growth and whether Europe will re-emerge as the trigger to create a ‘meltdown’.5% Extremely positive Positive Neutral Negative 2012 All Africa Asia Australasia EMPLOYER’S GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS OUTSIDE THEIR OWN REGIONAL AREA CIS Europe Middle East North America South America Asia South America North America Skills shortages Economic instability Environmental Safety Concerns regulations Immigration/ overseas visa program 11. buoyant market. It would.2% Africa 10.8% 20. a high oil price. This said it is without doubt that investment ‘rates of return’ are being tested in such locations as Australia and Brazil.0% 47.7% Extremely positive Positive Neutral Negative 16. however. it is clear that skill shortages are their number one concern. This is a change from last year when this issue was on a par with those around the economy.3% 26 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 27 SECTION FOUR: ECONOMIC OUTLOOK SECTION THREE: INDUSTRY EMPLOYMENT EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET SECTION TWO: INDUSTRY BENEFITS SECTION ONE: SALARY INFORMATION ECONOMIC OUTLOOK ECONOMIC OUTLOOK . but without the critical spikes. jeopardising many of the projects that caused the demand in the first place.1% 37. The key factors affecting the market in late 2012 included. driven by growing energy demand. 2013 26.3% Australasia 12.3% Europe 13. Economic worries were conversely waning as were those concerns around environmental factors and safety. Social unrest and immigration issues remain steady and at relatively low levels.7% 46. This is giving operators plenty of revenue to drive development. and would indicate that the pendulum continues to swing towards a candidate-led market. however. we are yet to see this stall project development.7% 5.8% Security/Safety Other caused by social unrest 8.8% 20.3% 26.4% CIS 13. Whether or not the current positive feeling turns to trepidation we will have to wait and see. on the positive side.3% 25. showing that the market still has a great deal to offer both employers and job seekers alike.8% 5. In terms of the worries for employers in the industry.4% 9.7% 7. In 2008. This cycle has seen widespread demand.2% 8.5% 8. before the economic downturn.

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