THE OIL & GAS GLOBAL SALARY GUIDE 2012

Global salaries and recruiting trends.

SURVEY SUMMARY
DISCIPLINE AREAS COVERED

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

COUNTRIES WORLDWIDE REPRESENTED

RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

PEOPLE RESPONDED TO THE SURVEY

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

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

Section two - industry benefits 12 Overview of benefits 13 Benefits by company type 14 Benefits by region

Section three - industry employment 17 Staffing levels 18 Diversity and movement of workforce 20 Experience and tenure 22 Employment mix

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

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

WEST AFRICA Further discoveries and a lack of social disruption continue to serve the region well.  OIL & GAS SALARY GUIDE 2012 . GULF OF MEXICO The region sees a strong recovery in employment following the Horizon disaster of the year before. Salaries rise for both imported talent and a growing body of local skills. NORTH SEA Hiring returns to the region following a difficult recession. BRAZIL The Brazilian government pursues its ambitious plans to develop the deep water pre-salt fields with multi-billion dollar investments.A GLOBAL PERSPECTIVE WESTERN CANADA Buoyant oil prices bring oil sands projects back on line and drives up salaries. PRE-SALT FIELDS.

POLAND Emerging shale market attracts foreign multinationals to the many opportunities on offer.  . AUSTRALIA Limited human capital. whilst at home they aggressively expand operations to keep up with supplying the countries mounting energy requirements. MIDDLE EAST Iraq proves to be the major draw card in the region for new projects as the country starts to develop its extensive oil reserves. multiple mega-projects underway and a new emerging Coal Seam Gas industry drive salaries to the top of the global league table. CHINA Chinese operators extend their activities overseas.

1% over the last 12 months.Section one salary information Permanent salaries rose 6.  OIL & GAS SALARY GUIDE 2012 .

4% 20.4% 20 20 20 20 20 40 40 40 40 40 30% 60 60 60 60 60 20. A higher number of respondents also expect salaries to increase more than 10 per cent in the new year.9% 80 80 80 80 80 80 80 80 15.2% 100  SECTION FOUR .ECONOMIC OUTLOOK SECTION THREE .2% 100 100 100 100 Increase up to 5% Remain static Decrease 0 0 0 0 0 0 0 0 20 20 20 20 40 40 40 40 60 60 60 60 60 60 60 60 80 80 80 80 80 80 80 80 29.6% 20 20 20 25.4% 40 40 40 40 39.INDUSTRY EMPLOYMENT 2011 SECTION TWO .9% 100 100 3. SECTION ONE .5% 20 20 20 20 100 100 100 100 expected salary change in the next 12 months Increase more than 10% 2012 0 0 0 0 0 0 0 0 32.changes to salaries in the last 12 months 2012 Increase more than 5% 49.SALARY INFORMATION .3% 40 40 40 28% 60 60 60 21.7% 4.5% 16.INDUSTRY BENEFITS Almost 50 per cent of respondents experienced an increase of more than 5 per cent to their salary compared to just under 30 per cent of respondents in 2011.6% 29.7% 10.7% 100 100 Increase between 5-10% Increase up to 5% Remain static Decrease 1% 100 100 100 2011 21.

as did South East Asia.900 101.700 69. the United States and Brazil.100  OIL & GAS SALARY GUIDE 2012 . however (and without wishing to tempt fate) even the recent concerns in Europe have failed to impact the oil price significantly. Canada.500 45.900 131.900 68. the situation in Europe is of most concern. Oman.000 52.300 45.500 73.000 75. This took the form of significant increases in local pay whilst the imported figure remained relatively steady. Brunei.200 36.600 157.200 67.400 80. All sought to reduce their cost base by importing lower cost options from overseas. The general well being was unique in comparison to previous upturns both in its scale and global coverage.500 47. Annual SALARies By Country Algeria Angola Argentina Australia Azerbaijan Bahrain Brazil Brunei Canada China Colombia Denmark Egypt France Ghana India Indonesia Iran Iraq Italy Kazakhstan Kuwait Libya Malaysia Mexico Netherlands New Zealand Nigeria Norway Oman Pakistan Papua New Guinea Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Singapore South Africa South Korea Spain Sudan Thailand Trinidad and Tobago Turkey United Arab Emirates United Kingdom United States of America Venezuela Vietnam Yemen Local average annual salary 40.100 N/A 87. the situation continues to weigh heavily on equity markets and trading conditions within the wider global economy.700 N/A 173.300 51.400 117.600 152.400 137. Regionally.700 N/A 44. leaving very few countries not playing some role in the rush for energy.600 29.900 119.000 69.100 46.300 92. Such examples included Saudi Arabia.100 40.000 95.300 123. and day rates struggling to maintain previous levels. Brazil and Venezuela. This more than any other factor ultimately influences hiring intentions in the industry and its resilience led to a project rich environment for vacancies across deep water development.600 180. This is a significant increase for salaries across such a large sample and reflects the general buoyancy of the market following the down turn of 2008/9.400 123.300 65.800 43. West Africa had a good year.100 61.400 89.600 37.700 79.900 75. New Zealand.200 N/A 70.100 99.400 N/A 119.200 107.400 N/A 34.200 162. The list of those countries importing skills at a lower cost to the local market rates have grown markedly since last year and now includes the UK.400 151. Netherlands.000 Imported average annual salary 89. China and Iraq. All were driven by huge projects underway.200 122.000 147.458 from last year’s figure of $US75. LNG and a range of non conventional plays. The impact of this sentiment has been felt already with some recruitment markets softening in the last few months of 2011.200 40.600 48.700 55.300 116.300 68. The world was not without its share of economic worries.300 35. and carbon capture also started to make its way from government funded research to live commercial projects. Northern Europe (including Poland) and North America.200 109.300 N/A 112.300 95. Perhaps more interestingly.700 29.400 123.600 140. Adding to this buoyant outlook was a number of significant new field discoveries.800 128. which has risen this year to $US80.600 138.200 93. For those looking from the outside in. When we break the figures down by local and imported we also noted an increase in those countries that actively encourage hiring local nationals. This in turn drove up vacancies.400 68.200 39. The hotspots around the world which saw significant salary rises included Brazil.100 139.000 31.300 118. Many of these are in two regions. and rejuvenated the old.000 106.300 69.100 79.000 49.300 143.400 132. Australia.700 94. which added further pressure to the already stretched skill pool.100 102.500 116. The year saw a flurry of activity from most corners of the globe as countries sought to take advantage of a high oil price and pushed through new developments.900 79.SALARY INFORMATION salaries SALARY The headline figure in this data is the average permanent salary across the whole sample.800 80. Both are a reminder that whilst the demand for energy remains high the industry is not immune to what is going on in the world around us on a regional basis.000 40. Northern Africa and mainland Europe. Saudi Arabia.000 138.900 111.700 122.200 77.800 164.813. Norway.600 72.600 30.300 189. At the time of writing.400 139.400 39.500 128.500 73.400 59.100 124. be it social conflict or economic pain.200 128.300 129.900 106. hiring and salaries. are the countries that have seen falling salaries.300 67.

300 N/A 136.500 32.900 28.700 112.000 42.200 51.500 Manager Lead/ Principal 94.600 35.100 35.700 56. This will drive salaries up further.600 142. Controls & Automation Logistics Maintenance Marine/Naval Mechanical Piping Process (chemical) Production Management Project Controls QA/QC Reservoir/ Petroleum Engineering Structural Subsea/ Pipelines Supply Chain/ Procurement Technical Safety Operator/ Technician 55.300 72.400 N/A 47.900 55.800 146.900 98.800 78.200 51.300 52.700 56.100 95.400 44.900 47.800 82.200 118.600 29.500 Intermediate 51.300 49.900 31.800 59.400 107.000 94.100 62. and rig utilisation offshore rising.600 68.200 105. mechanical.200 102.700 58.SALARY INFORMATION SALARIES Annual Salaries BY Discipline area Business Development/ Commercial Commissioning Construction/ Installation Downstream Operations Management Drilling Electrical Estimator/ Cost Engineer Geoscience HSE Instrumentation.400 123.700 60.300 N/A 139.200 33.100 128.100 31.600 75.900 140.SALARY INFORMATION .400 105.600 44. and in this scenario we would expect a larger increase than the rise we have seen in 2011.000 N/A 38.900 55. With drilling activity up.000 180.100 109.700 122.900 150.500 41.INDUSTRY EMPLOYMENT Undoubtedly we are delicately poised when it comes to salaries within the industry for next year.400 28. Subsea engineering repeated its increases of last year and project controls and construction and installation proved that there was plenty of new projects under construction.400 84.000 68.000 62.500 103.000 40.400 37.700 76.600 29.900 28. These core disciplines are where most engineering professionals will start their careers.500 N/A 55. it would be a ‘nice problem to have’.900 59.000 67. Without a European induced collapse in the global economy we will inevitably be faced with skill shortages in more than just a few select locations.600 85.900 35. and may suggest why headline salaries have not increased beyond the levels seen.700 61.800 107.300 41.000 N/A 159.900 38.600 115.000 168.700 134.400 48.500 98. Core engineering disciplines didn’t fare so well with electrical.700 75.500 54.300 30. Geosciences and reservoir/petroleum engineers showed good increases and production management and logistics were also strong.100 43.400 47.000 48.000 37.700 96.000 VP/ Director 188.900 104.700 61.400 30.000 45.200 166.100 59.800 42.000 58. SECTION TWO . structural and process engineers all flat in comparison to last year.900 51.700 98.100 47.000 42.300 Senior 60.200 58.200 58.400 N/A 173.900 260.500 47.100 66.700 48.000 79. With demand for onshore drilling on non conventional sources at an all time high.300 53. Last year’s figures showed those in this sector of the industry were sitting in the middle of the pack.400 Graduate 38.500 48. This year they are level pegging with subsea engineering as one of the hotspots for salaries.INDUSTRY BENEFITS SECTION ONE .900 N/A  SECTION FOUR .000 56.500 57.400 39.100 67. it is not unexpected that salaries for others in the exploration and production field are also strong this year.900 107.700 116. With this said.700 59.800 30. SECTION THREE . and when considering the alternative.600 38.100 128. labour demand in this sector is obviously buoyant.500 110.100 N/A 99.000 151.ECONOMIC OUTLOOK How much difference a year makes in the oil and gas industry is demonstrated by the rise in salaries within drilling.300 97.500 78.000 N/A 225.800 68.100 43.800 67.400 37.300 33.

in general it was a year in which most company types saw increases in salary of around the 5 per cent mark.900 120.400 100 0 40 60 In line with the increase in project work those working in an EPCM company saw a rise in salary as did anyone working for an operator. In this respect both groups will be more aligned to local economies than any global forces and may explain the lack of growth.600 $62.200 2011 $85.100 69.300 51.1% Oil Field Services +4.600 46.000 $100.700 38.800 79.900 $102.200 $87.300 $64.300 36.500 +5% Contractor -1.700 60 31.300 49. Indeed we have noted an increase in local employees within this group from 47 per cent last year to approaching 55 per cent this year.800 $67.800 155. both in rewarding that talent.000 65. both of which have a high level of local employees (as opposed to imported talent).1% EPCM +4.300 31.300 $97.900 60.600 $91.400 28.200 97.2% Global Super Major +1. The exceptions to this trend included both general contractors and equipment manufacturers.400 149.400 89. Yearly salary changes by company type Consultancy 2012 $90.  The third group to experience little movement in comparison to last year is the global super majors.6% Equipment Manufacture and Supply -2. and also in attracting new strategic hires.200 Operator/ Technician Graduate Intermediate Senior VP/ Director 146.900 70.800 129.300 80 100 76.800 $75. This may be the effects of localisation/nationalisation drives within the workforce.600 73.500 48.000 $61.400 0 2044.300 72.800 142.700 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $74.SALARY INFORMATION salaries aNNUAL SALARIES By Company Type Consultancy Contractor EPCM Equipment Manufacture and Supply Global Super Major Oil Field Services Operator Manager Lead/ Principal 120.400 59.300 51.300 101.300 48. OIL & GAS SALARY GUIDE 2012 .700 80 46.000 20 40 32.300 129.700 93.8% +5.300 51.500 172. We also saw a rise for the most experienced end of the market as companies sought to put their increasing profits to good use.100 $103.200 221.6% Operator 0 20000 40000 60000 80000 100000 120000 With the market on the increase. reducing average salaries.500 42.100 222.200 49. and reflected the increasing competition for entry level talent compared to the year before.800 51. The most significant rises however came for those with the least experience within any of the company types.

SALARY INFORMATION SALARIES CONTRACTOR Day RATES By Region Northern Europe Western Europe Eastern Europe CIS Middle East North Africa West Africa East/South Africa Southern Asia South East Asia North East Asia Australasia North America South America Operator/ Technician 410 350 260 300 220 280 310 280 190 210 310 630 410 300 Intermediate 440 370 290 350 320 380 330 310 220 260 300 680 430 320 Senior 670 690 380 630 360 380 480 380 270 440 440 970 690 550 Manager Lead/ Principal 840 850 500 730 540 500 660 670 380 720 780 1250 810 610 VP/ Director 1380 1100 900 830 820 750 910 N/A 560 1300 1130 1110 830 1830 Most contractor day rates have progressed through the year. Notes: EPCM . We also noted the rise of rates in West Africa as the region continued to expand. which continues to import a high level of expatriate skills. The average salaries listed under local labour are representative of respondents based in their country of origin. Background for this section Only where the sample size is large enough have we listed figures in these tables. The flexibility to be found for both employers and employees is a compelling driver for those seeking to match the cost base with fluctuating revenues. Where not enough responses were received. Evidence of this can be clearly found within our results on pages 22 and 23. Countering this trend is a general increase in the practice of using contractors in new regions and countries. Salaries listed under imported labour are representative of those who are working in that country but originate from another. Whilst the exchange rate movements through the year can account for some of the rise in the Australasian figures it is the local project led environment that is really driving the numbers. QA/QC .Quality assurance/quality control.SALARY INFORMATION . procurement and construction management. Those on a daily payroll are extracted and listed separately. In many ways employers were shifting their employment mix away from contractors to a more permanent staff base. This reduced the overall requirement for temporary employment and followed the increasing confidence employers felt throughout the year. pension. safety and environment.Engineering. Those regions experiencing skill shortages are most prone to hikes in contractor rates and it is no coincidence that both Australia and Brazil have seen the highest increases since last year. Contractor rates are listed as US dollar equivalent day rates as listed by respondents. HSE . for those working on a yearly payroll.  SECTION FOUR .com at the time of responding) excluding one-off bonuses. 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. share options and other non-cash benefits. entries are returned as N/A.ECONOMIC OUTLOOK SECTION THREE . North Africa and Western Europe were relatively subdued reflecting weaknesses in their local economies. The same can be said for South East Asia.Health.INDUSTRY EMPLOYMENT SECTION TWO .INDUSTRY BENEFITS SECTION ONE . however there were conflicting pressures on this market making it a complex back drop in which to extract any trends.

10 OIL & GAS SALARY GUIDE 2012 .Section two industry benefits Benefits rise in the form of incentives.

78% 1.39% 11 .26% 0. commissions and share schemes all made the top five increases.48% 1.94% 0.80% 0.27% 0.78% 1.87% 3.44% 0. 5 largest increases in benefitS Value of the benefit as a percentage of the overall package 2012 2011 Increase Bonuses Pension Commission Hardship allowance Share scheme 4.30% 0.46% 0.50% 0.52% 1.48% 0. Consequently bonuses.Those benefits on the rise reflected the increasing confidence in the market and the desire of companies to provide an environment that incentivised growth.

These were share schemes. a trend following the wider working population. i. commissions and pensions. we forecast an increase in benefits for this year’s survey and our data has confirmed this prediction as correct.8% 17. In line with these trends we saw once again bonuses were prevalent in terms of the make-up of allowances and benefits overall.9% 14. It appears that as companies have grown out of the recession then the increasing wealth has been shared . home leave and housing allowance. Somewhat surprisingly it was not the number of respondents receiving benefits that increased but how much they were getting.7% 14. all of which rose compared to last year’s figures.1% 14% 10. which in the case of bonuses is 13. hardship. In terms of numbers receiving benefits there were a few notable exceptions from the downward trend. which suggests fewer experienced expatriates.INDUSTRY BENEFITS overview of industry benefits SALARY INFORMATION Last year.8% 7.5% 40. overview of industry benefits 50 40 30 20 10 Car/transport/petrol Commission Tax assistance Health plan Home leave allowance/flights Hardship allowance Hazardous/danger pay Meal allowance Percentage that receive the benefit Average percentage of their total package Share scheme 12 Background: The bar chart shows two figures related to benefits that employees in the oil and gas industry receive.7% 8.8% 11.3% 28.e.7%. share schemes.8% 8. The first figure represents the percentage of respondents that receive that particular benefit.8% 16.2% 14. and more immediate returns for those tasked with selling their products and services.9% 8.2% 7. Bonuses and commission payments led the way as we would expect given the market conditions. These rises followed a global trend of wider company ownership within a company’s employees. OIL & GAS SALARY GUIDE 2012 No benefits Bonuses Pension Housing Schooling Overtime Training 0 35% 13.6% 10. 35% of respondents receive some sort of bonus. We also noted a reduction in overtime. however a raft of other allowances also increased as more cash was available to meet specific requirements.2% 11. These included allowances for meals.8% 10% 11% 17.9% 12.6% 15. The second figure represents the value of that benefit stated as a percentage of their overall package for those that receive it.9% 8.5% 14. Whilst the number of people receiving benefits returned a mixed bag of results in comparison to last year.7% 17.2% .3% 11.6% 12.4% 17.1% 12. schooling and training.but not with all. Those allowances that dropped included health care. the amount each of those benefits was worth was in positive territory across the board.

INDUSTRY EMPLOYMENT SECTION TWO . operators and the majors continued to distribute more benefits to 40 40 50 50 their workforce than any other group at just over 30 30 40 40 29.ECONOMIC OUTLOOK SECTION THREE .INDUSTRY BENEFITS company BENEFITS SECTION ONE .SALARY INFORMATION In terms of company type. 20 20 30 50 50 30 10 10 20 20 00 10 10 00 top benefits by company type EPCM/CONTRACTOR 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 42% 20 20 0 0 10 10 No benefits Global super major/operator 32% Bonuses 21% Health plan 16% Car/transport/petrol 17% Housing 16% Home leave allowance/flights 17% Overtime 43% Bonuses 23% Pension 28% Health plan 18% Car/transport/petrol 19% Housing 17% Home leave allowance/flights 33% No benefits 0 0 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0 equipment manufacturer & supply oilfield services/consultancy 41% Bonuses 21% Health plan 22% Car/transport/petrol 19% Housing 17% Meal allowance 16% Overtime 35% No benefits 33% Bonuses 16% Pension 21% Health plan 17% Car/transport/petrol 17% Housing 15% Home leave allowance/flights 42% No benefits Background: Graphs here show the top benefits by company type and the percentage of people who receive them.5 per cent of overall package.INDUSTRY BENEFITS . 13 SECTION FOUR .

This was from previous highs of 38 per cent the year before to just over 32 per cent. Russia & the CIS. we have found that all regions are trending towards 72 per cent base salary and 28 per cent benefits. However there is some evidence to suggest that this is more reflective of employers in that region shifting the emphasis in remuneration towards higher base salaries and away from allowances. While both North and South American figures fell slightly. it was the Middle East that saw the largest drop in the value of the benefits in comparison to overall package. top benefits by region Africa asia 50 40 50 30 40 20 30 10 Health plan Car/transport/petrol Home leave allowance/flights Housing Meal allowance Bonuses No benefits On average. CIS includes Russia and the former Soviet Republics. 50 40 40 No benefits 0 17% 14% 11% 8% 8% 35% 0 33% 13% 19% 13% 15% 13% 37% . Whilst some regions continue to place more emphasis on either base salary or benefits. benefits received by those working in 50 Australasia are valued at 17% of their total package. commonwealth of independent states 30 10 20 0 10 38% Bonuses Health plan Pension Car/transport/petrol Home leave allowance/flights Meal allowance No benefits Bonuses Pension Health plan Schooling Housing Training 14 50OIL & GAS SALARY GUIDE 2012 Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. benefits received by those working in CIS are valued at 23% of their total package. which is reflective of the desire of companies in these regions to retain trained staff in the face of increasing competition from overseas.INDUSTRY BENEFITS regional BENEFITS Across most geographic regions we saw an increase in the value of the benefits paid. As has been the case in recent years we have seen most of the increases coming from developing nations. On average. 40 50 30 40 20 30 10 33% 24% 19% 21% 18% 19% 28% Health plan Car/transport/petrol Housing Pension Overtime Bonuses No benefits 20 0 10 0 50 40 50 30 40 20 30 10 20 0 10 20 0 10 0 50 40 42% 18% 27% 22% 23% 18% 25% australasia On average. benefits received by those working in Asia are valued at 36% of their total package. although most significantly in Africa and Asia.30 40 20 On average. benefits received by those working in 50 Africa are valued at 34% of their total package. and Europe were also in positive territory. This relationship between benefits and base salary should not be ignored when considering the relative make up of employees’ remuneration. Australasia.

benefits received by those working in South America are valued at 33% of their total package. 29% Bonuses 21% Pension 19% Health plan 14% Car/transport/petrol 8% Meal allowance 8% Overtime 43% No benefits 38% Bonuses 22% Health plan 21% Car/transport/petrol 26% Housing 23% Home leave allowance/flights 19% Overtime 25% No benefits 0 50 36% Bonuses 21% Pension 32% Health plan 12% Car/transport/petrol 8% Housing 12% Overtime 30% No benefits Health plan Bonuses Pension Car/transport/petrol Meal allowance Training No benefits 0 37% 15% 34% 22% 31% 12% 28% 15 SECTION FOUR . 40 20 30 10 20 0 10 north america south america 40 On average. SECTION THREE .ECONOMIC OUTLOOK On average.INDUSTRY BENEFITS SECTION ONE .0 50 40 50 30 40 20 30 10 20 0 10 0 0 50 40 50 30 40 20 30 10 20 0 10 0 Top benefits by region europe middle east 50 40 50 30 40 20 30 10 20 0 10 0 50 40 50 30 40 20 30 10 20 0 10 0 On average. On average. benefits received by those working in 50 Europe are valued at 16% of their total package.SALARY INFORMATION 40 20 30 10 20 0 10 40 20 30 10 20 0 10 INDUSTRY BENEFITS regional BENEFITS .INDUSTRY EMPLOYMENT 40 50 30 40 20 30 10 20 0 10 SECTION TWO . benefits received by those working in the Middle East are valued at 32% of their total package. benefits received by those working in 50 30 North America are valued at 21% of their total package.

16 OIL & GAS SALARY GUIDE 2012 .Section three industry Employment Over a fifth of all employers expect salaries to increase by more than 10 per cent in the next year.

6% 43. As 2011 came to a close.3% 45. and once again the market appears to believe it will grow again in 2012.6% Decrease 20. If your company employs contractors. contractors. SECTION ONE .3% More than 20% What percentage of your staff Between 5-20% is currently 37.9% 34. The use of expats continued to expand on the back of forecasted growth last year. Over a quarter of those surveyed expected an increase in staffing levels by 10 per cent or more. which is an unprecedented level of confidence since this survey first started. please indicate in which areas: Engineering Geoscience Drilling Construction/Installation Project controls Always Sometimes Never change in the next 12 months? 16. before the world economy started to falter around European concerns. although it is worth noting that data was taken in September and October 2011.INDUSTRY BENEFITS In theIn next the12 next Months 12 Months do you do you In the next 12 Months do you In theIn next the12 next Months 12 Months do you do you levels will expect expect Staffing Staffing levels levels to: to: Confidence that staffing expect Staffing levels to: change in the next 12 months expect expect Staffing Staffing levels levels to: to: staffing levels What percentage What percentage of your ofstaff your is staff currently is currently What percentage of your staff is currently What What percentage percentage ofof ofstaff your is staff currently is currently employed employed on a temp/contract on ayour temp/contract basis basis Percentage staff employed on a employed on a temp/contract basis temporary contract assignment employed employed on a temp/contract onor a temp/contract basis basis .3% Increase more than 10% 26. As mentioned earlier.1% In the next 12 Months do you Increase between 5-10% 21% expect Staffing levels to: Increase up to 5% Remain static 11.6% None 17 SECTION FOUR .6% 25.9% None 23.8% Increase Remain the same 49. it is this confidence that is most at risk from depressed sentiment engulfing the media.3% Decrease 29.SALARY INFORMATION 4.9% Increase more than 10% Increase between 5-10% Increase up to 5% 6.9% Increase Remain the same Decrease 37.INDUSTRY EMPLOYMENT If your Ifcompany your company employs employs contractors.2% employed on a temp/contract basis 0-5% 21.INDUSTRY EMPLOYMENT STAFFING LEVELS The confidence in the staffing markets at the point the survey data was taken was particularly high.3% 25.6% If your company employs contractors.8% 18. contractors.ECONOMIC OUTLOOK currently employed on an expat What percentage What percentage of your ofworkforce your workforce is package is What percentage of your workforce is percentage ofan workforcE What What percentage percentage of on your of workforce your workforce is employed is currently currently employed employed on expat an expat package package currently employed on an expat package as employed an expat currently currently employed on anon expat an expat package package 01 01 01 0 20 40 60 80 100 001 08 06 04 02 0 0 1 08 08 06 06 04 04 02 02 0 0 0 8 0 6 0 4 0 2 0 What percentage of your workforce is 0 1 08 08 06 06 04 04 02 02 0 0 How do you expect this to change in the next 12 months How do How you do expect you expect this tothis change to change in the in the How do you expect this to change in the expectation that expat levels How 12 do How you do expect you expect this to this change to change in thein the next next months 12 months next 12 months will change in the next 12 months next 12 next months 12 months SECTION THREE . the use of contractors has become more widespread in comparison to the year before. please please indicate indicate in in which areas: areas: areas inwhich which contractors are please indicate which areas: please please indicate indicate in which in which areas: areas: employed in oil and gas How you How expect you expect this percentage thiscontractor percentage to tolevels expectation How you expect thisthat percentage to How you How expect you expect this percentage this percentage to to change change in the in next the 12 next months? 12 months? will change inmonths? the next 12 months change in the next 12 change change in the in next the 12 next months? 12 months? How you expect this percentage to SECTION TWO . If your If company your company employs employs contractors.

4% 30-34 14% 35-39 12. which shows that while there was a good level of new entries into the industry.4% 4.5 years old. The percentage this year has risen to 7. however it has had only a marginal effect on age.1% in country Based of origin 17. Sadly.5 down to 35.7% 65+ 0 Based in country of origin 0 working at home or abroad 2012 Based in country of origin Based in country of origin 57.7% 55-59 1.1% 7.3% 50-54 5.2% 45-49 5.9% 27.9% 25-29 17. many of these people were experienced staff from other industries. to achieve parity with the wider general workforce in terms of gender diversity will take over 30 years at the current rate of growth.1% 5.7% Abroad 100 80 60 80 18 40 OIL & GAS SALARY GUIDE 2012 Home 100 20 .9% 10.4% 40-44 1. however the pace of growth is not as quick as most would like.8 per cent up from last year’s figure of 7.6% 4.2% 40 60 80 5040 30 20 50 Age Bracket 5.1% 50-54 16. This has reduced the average level of experience in the industry.1 per cent.3% -24 3.8% 51. We have noted a small decrease in the average age of those working in the industry from 36.4% 0 0 20 sity of staff Diversity of staff Project controls HSE Supply chain QA/QC Construction/installation Other 20 40 60 40 92. Diversity of staff diversity of staff Diversity of staff gender in oil and gas women in oil and gas Diversity of staff Business development 16% 7. This is consistent with the rest of our data.2% 80 60 100 80 100 7.2% 0 8.5% 10.8% 0 Age Bracket 0 20 40 60 80 100 40Demographics 40 10 30 30 0 Age Bracket 0 Male Female 0 20 20 10 0 0 10 21.3% 42.INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE This year we have seen an increase in the number of women working in the industry.9% 7.2% Female 100 9% Diversity of staff Diversity of staff 50 Male 0 Age Bracket 20 6.

9% 28.6% 29.3% 71.8% 28.1% 42.8% Australasia Africa Asia Europe CIS Middle East North America South America 0 28.3% 70.4% 88.5% 66. However.1% 57. The graphs below represent the movement of candidates and how specific region’s nationals are working locally or overseas.3% 72.2% 76.8% 46. This is consistent with employers having to search 0 afield to find the skills they require.8% 71.2% 23.4% 57.5% 51. trends showed a downwards movement regarding imports as localisation and home grown skills development programs started to come through. INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE Elsewhere. CIS and South America.7% 27. This trend has continued with overseas workers now making up over 53 per cent of the market.4% 11. This was going against the trend elsewhere that saw a general drift overseas in search of better remuneration.8% 27.3% 29. Europe was the only other region to follow this trend as many of those imported skills previously retrenched through the downturn returned to take up roles in a rejuvenated labour market. SECTION ONE .7% 19 SECTION FOUR . So where we have seen the number of imports rise within the busy Australian market.2% 71. and a corresponding sharp increase in the number of Based in country of origin overseas candidates that came into the market to work on the country’s burgeoning LNG projects.30 40 20 30 Since the bottom of the recession in 2009 the number of 10 20 people working overseas in oil and gas has been steadily increasing.6% 48.6% 16. there is still 10 further some way to go before the levels rise to those achieved in mid 2009 of over 45 per cent.9% 83. The regions showing the most changes were Africa.2% 72. Based in country of origin Last year we reported a quick exit from the downturn in Australia. In general this was accompanied by a reduction in age and experience as much of this recruitment was taking place with those at the entry level.2% 33.SALARY INFORMATION 0 MOVEMENT OF THE WORKFORCE IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE Imported labour Local labour 100 80 100 60 80 40 60 20 40 Australasia Africa Asia Europe CIS North America Middle East 0 100 80 100 60 80 40 60 20 40 0 20 WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY Working overseas Working in home country South America 0 20 53.INDUSTRY BENEFITS .INDUSTRY EMPLOYMENT SECTION TWO .7% 42.2% 70.ECONOMIC OUTLOOK SECTION THREE . we have also seen a great number of nationals returning home to take advantage of the high salaries.7% 79.8% 20.

2% 40 20. with Geo-science and Subsea/Pipelines showing little change from last year. and in some cases edging up slightly in terms of average experience. the pool of available talent has diminished significantly and this has led many companies to employ new talent and seek to retrain. Years of experience 0 20 40 60 80 100 Years of experience YEARS OF EXPERIENCE OIL & GAS INDUSTRY 36. The picture becomes more pronounced when broken down by job function. In 2012. However we have seen a reduction in construction/installation and project controls.9% 60 80 20.3% 0 22. the percentage of those with less than four years experience has grown from 20 per cent of the total workforce to just over 36 per cent. As a result.INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE Within last year’s survey we reported a sharp decrease in those with less than four years experience in the industry. This was consistent with a drop in recruitment for those with little or no experience and was reflective of the fact the industry was recovering from the recession of previous years. It is worth noting that in 2010 the figure was over 40 per cent when the market was arguably at its peak so we still have a small way to go before we hit that mark. Both disciplines are clearly project led and indicate that the project development space has attracted the most newcomers.6% 100 0-4 years 5-9 years 10-19 years Construction/instrallation 20 geoscience FOR SPECIFIC DISCIPLINE AREAS Construction/Installation 20+ years Project controls Construction/instrallation geoscience Geoscience Subsea/Pipelines 0 20 40 60 80 100 0 20 40 60 80 100 20 OIL & GAS SALARY GUIDE 2012 . In our experience this is where most skills can be transferred into oil and gas from other industries.

INDUSTRY BENEFITS SECTION ONE .3% 100 100 1-2 years 3-5 years 40 40 60 60 80 24. 100 with a great activity taking timein incurrent current role Time role Time in current role Time in current role 2011 2011 2011 Less than 1 year 2012 26% 0 0 0 25% 20 20 20 40 28.INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE 0 0 Tracking last year’s figures.INDUSTRY EMPLOYMENT 2011 6-10 years SECTION TWO .3% Word of mouth 13.8% 40 60 31.7% 60 12% 80 80 100 8.3% Internal Move 6. Again this indicates a busy market 0 20 deal of hiring 40 60 80 place.ECONOMIC OUTLOOK SECTION THREE .SALARY INFORMATION .6% Other 21 SECTION FOUR .7% 0 20 23.5% 80 100 11% 9% More than 10 years 0 0 20 20 40 40 60 60 80 80 100 100 source of new employment 8. tenure has remained static with just over 25 per cent of respondents 40 year’s experience 60 80 possessing20 in their 20less than one 40 60 80 current role.5% Newspaper 13% Company website 15.1% Online job board 21.6% Agency 8.6% Head hunted 13.

Should this trend flow through to other parts of the industry.7% -3. 22 OIL & GAS SALARY GUIDE 2012 . Contracting companies and consultancies appear to have been most bullish.2% 0.3% -4. However it should be noted that this does not signify a drop in contractor numbers. we would expect the use of contractors to rise in response to uncertainty around the general economy. the year saw a sharp rise in permanent staff as a percentage of the overall workforce.2% EPCM Oil Field Services Consultancy Equipment man.5% 0.INDUSTRY EMPLOYMENT EMPLOYMENT MIX Aside from the equipment manufacturers. 5. Equipment manufacturers have reduced overall staffing levels and may be feeling the effects of the recent economic turmoil somewhat earlier in the project cycle than other companies.2% -5. Correspondingly there was less of a fall in the use of temporary contractors within these employers as they coped with extra workload.9% Equipment man. employment mix by company type Global Super Major Operators EPCM Equipment manufacturers & Suppliers Oil Field Services Consultancy Contractors 0 0 20 20 40 40 60 60 80 80 Operators Permanent Permanent / part-time Contracted direct Contracted through agency 100 100 120 Global Super Major Percentage change from 2011 to 2012 global super major operators 0 20 40 60 80 Global Super Major Operators 100 120 EPCM 7. The increase in permanent staff was in some cases at the expense of temporary staff. only a reduction in their share of the total employed. making a strong rebound on the back of a buoyant project market. This trend continued year-on-year as companies sought to build up their core skills in a buoyant market.2% -0.

8% -4. 100 Operators -1.1. -0.9% 0.9% -3.9% 23 SECTION FOUR .4% -1.6% 1.ECONOMIC OUTLOOK “the year saw a sharp rise in permanent staff as a percentage of the overall workforce” SECTION THREE .1% -3.6% 0.INDUSTRY BENEFITS .3% 1.SALARY INFORMATION 100 120 epcm equipment manufacturer & supplier EPCM 0 Global Super Major 6.8% 0.3% 120 Oil Field Services EPCM Consultancy Equipment man.7% Consultancy -3.% 0.6% EPCM -6.1% 0.1% Equipment man.3% -8% Contractor Contractor Contractor 8.5% 7.INDUSTRY EMPLOYMENT Contractor Oil Field Services SECTION TWO . oil field services consultancy Oil Field Services Consultancy 8.0 Global Super Major 20 40 60 80 Operators INDUSTRY EMPLOYMENT EMPLOYMENT MIX SECTION ONE .8% 20 40 60 80 Equipment man.

24 OIL & GAS SALARY GUIDE 2012 .Section FOUR ECONOMIC OUTLOOK It was a good year for the Oil & Gas industry with confidence being led by a robust oil price.

SECTION ONE .6% Skills shortages 8.3% 29% Other 25 SECTION FOUR .6% Economic instability Environmental concerns Safety regulations 10. This has grown 10 as a percentage of the overall 5sample from 28 per cent to over 030 per cent and now represents the largest concern of those in the industry.1% 30.3% 7.ECONOMIC OUTLOOK SECTION THREE .SALARY INFORMATION .INDUSTRY EMPLOYMENT SECTION TWO .25 20As employer’s concerns in the current employment market 1.INDUSTRY BENEFITS the market continued to 15heat up so did the concern for skill shortages.1% Immigration/overseas visa program Security/safety caused by social unrest 13.

8% 100 0 20 40 25 0 20 40 60 80 100 20 15 10 5 0 employer’s geographical focus over next 12 months outside of their own regional area 10.7% 0 20 40 Extremely positive 46. A huge 73.8% 60 20.8% Middle East 8% North America 8% South America 13.5 per cent of the market is either positive or very positive. the Gulf of Mexico and the North Sea markets were still shaking off the effects of the recession.7% East Asia 10% Australasia 7.ECONOMIC OUTLOOK Industry outlook Employer’s confidence in the current employment market has seen a large increase in comparison to last year’s results. before the market experienced any negative sentiment.7% Central Asia 11.7 per cent.7% 100 Positive Neutral Negative 2011 9. This appears to be in line with the comments in previous sections regarding the pick up in activity in the Gulf of Mexico and the North Sea.1% Eastern and Continental Europe 10. the Middle East again leads the way.5% Africa 26 OIL & GAS SALARY GUIDE 2012 . (Again it is worth noting that data was taken in the 3rd quarter of 2011.7% 0 20 40 45.7% 24.8% 80 5. Since the start of 2011. although the percentage is down slightly in comparison to last year’s figures.1% 60 80 33.4% 60 80 100 11. Whilst the majority of regions were experiencing solid growth this time last year. those markets came on line from a hiring perspective and this removed any negative sentiment in the market. which consequently weighed down the overall average.7 per cent from last year’s 9.2% UK and Northern Europe 20.) With regards to where individuals believe their operational focus will be in 2012. Employer’s confidence in the current employment market 2012 26% 26. with the ‘very positive’ share up to 26. A number of other regions followed this trend with only the North American and European markets showing an increase.

A comparison of data on this issue will make for interesting reading in subsequent years. We can only assume. Moving the other way and slowly diminishing from people’s focus is environmental and safety concerns. SECTION ONE .INDUSTRY EMPLOYMENT SECTION TWO . This is being felt most acutely in Australia and South America. It is only in Australasia with its booming market where this appears to be of lesser concern. namely social unrest.SALARY INFORMATION employer’s concerns in the current employment market Skills shortages Economic instability Environmental concerns Safety regulations All Africa Asia Immigration/overseas visa program Security/safety caused by social unrest Other Australasia CIS SECTION FOUR .ECONOMIC OUTLOOK Europe Middle East North America South America 0 20 40 60 80 100 0 20 40 60 80 10 27 SECTION THREE . This year we have included a new response which we have sought to gain an insight into.ECONOMIC OUTLOOK most significant issues As the market continued to heat up so did the concern for skill shortages. This has grown as a percentage of the overall sample from 28 per cent to over 30 per cent and now represents the largest concern of those in the industry. Not surprisingly economic stability is also a concern at 29 per cent. and the issues surrounding the cause of that event attract less attention.INDUSTRY BENEFITS . we saw spikes in concern in both Africa and the Middle East. the two hotspots in the world where local resources are most stretched. North America and Europe are following close behind. As expected. as time passes by so does the memory of the oil spill in the Gulf.

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