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NIGERIA

Akpo
A Giant Development
in Nigeria's Deep
Offshore

A deep offshore
condensate & gas
field in Nigeria
The AKPO field was discovered in 2000 by
Total Upstream Nigeria Ltd (TUPNI).
Located 150 kilometres off the Niger Delta at
a water depth of 1,400 metres, AKPO is the
first deep-offshore development involving
light oil with a high gas content.

In the field's Miocene reservoir the fluid is


in critical conditions, i.e. the gas and
liquid hydrocarbons are in a single
phase, at high pressure and temperature.
The produced gas is partly re-injected
and partly exported onshore to the
Umbilicals and flowlines
BONNY liquefaction plant (NLNG) via the
69 km of
10facilities.
production
flow
lines in 4 loops
AMENAM
field
This
hybrid
32 km of 10 gas
water
injectionoptimises
flow lines (4 lines)
injection/export
scheme
8 km of 8recovery:
gas injection
line
hydrocarbon
gasflow
is injected
km 16 gas-export
pipeline
only150
in reservoirs
which can
benefit from
from
AKPO
to
AMENAM
this type of pressure support.
8 main umbilicals to subsea wells
and manifolds

On the same OML 130 block as AKPO,


three oil discoveries (EGINA, EGINASubsea production system
SOUTH and PREOWEI) now form the
44 wells, with vertical Christmas Trees
basis 22
foroilan
oil development with a new
producers
20
water
FPSO locatedinjectors
in the EGINA zone. Both
2 gas injectors
AKPO and EGINA, with their ability to
9 offline production manifolds
handle a variety of fluids, will be ideal
1 offline gas injection manifold
hubs for developing future hydrocarbon
discoveries in the area.

AKPO Partners

Offloading buoy
Dual 16 offloading lines

Wells
Intelligent completions

FPSO | Floating Production, Storage


and Offloading Unit

Extended-reach deviated and horizontal wells

Umbilicals and flowlines

Hull dimensions: 310 m x 61 m x 31 m


Oil storage: 2 million barrels

69 km of 10 production flow lines in 4 loops

Oil processing: 185,000 barrels/day

32 km of 10 water injection flow lines (4 lines)

Water injection:
420,000 barrels/da

8 km of 8 gas injection flow line

Produced water treatment:


150,000 barrels/day
Gas processing:
15 million standard cubic metres per day
Gas export:
9.6 million standard cubic metres per day
Gas injection:
6.1 million standard cubic metres per day
Living quarters sleeping: 220

150 km 16 gas-export pipeline


from AKPO to AMENAM
8 main umbilicals to subsea wells
and manifolds

Subsea production system


44 wells, with vertical Christmas Trees
22 oil producers
20 water injectors
2 gas injectors
9 offline production manifolds
1 offline gas injection manifold

Sand control with stand-alone screens,


expandable screens and Frac-Packs

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The 14 World Conference on Earthquake Engineering


October 12-17, 2008, Beijing, China

EFFECT OF SOIL-PILE-STRUCTURE INTERACTION ON NONLINEAR


RESPONSE OF JACKET TYPE OFFSHORE PLATFORMS THROUGH
INCREMENTAL DYNAMIC ANALYSIS
1

Behrouz Asgarian , Alireza Fiouz2 and Ali Shakeri Talarposhti 3


1

Assistant Professor, K.N.Toosi University of Technology, Tehran, Iran


2
Assistant Professor, Persian Gulf University, Bushehr, IRAN
3 Msc in Structural Engineering, K.N.Toosi University of Technology, Tehran, Iran
Email: asgarian@kntu.ac.ir, fiouz@pgu.ac.ir, ali_shakeri_talarposhti@yahoo.com
ABSTRACT :
The response of a fixed offshore tower is greatly affected by nonlinear behavior of the supporting piles.
Pile-Soil-Structure Interaction (PSSI) can significantly affect the seismic performance of structures. The
pile-soil interaction during earthquake loading is one of the most important sources of nonlinearity of offshore
platforms.
Incremental Dynamic Analysis (IDA) is an emerging analysis method that offers thorough seismic demand and
capacity prediction capability. This involves performing a series of nonlinear time history analyses under a suite
of ground motion records by equally scaling both components of each record to several levels of intensity and
recording the structural response.
This paper presents an efficient method to specify the effect of Seismic Soil-Pile-Structure Interaction (SSPSI)
on structure through IDA method and shows suitable length to model offshore with equivalent dummy piles for
more accuracy. Three-dimensional finite element model of offshore, jacket with both equivalent dummy piles
(pile stub) and true piles considering soil-pile-structure interaction are subjected to Incremental Dynamic
Analysis and the results of both are compared in terms of IDA curves.
In this paper, a computer program for Nonlinear Earthquake site Response Analyses of layered soil deposits
(NERA) is used for nonlinear response of soil layers. Modeling of structure of offshore with its pile is
performed with a FEM program (OpenSees) considering the effects of pile-soil-structure interaction using p-y
curves.
KEYWORDS:

Jacket Platform, Incremental Dynamic Analysis, Pile-Soil-Structure Interaction,


Euivalent Dummy Piles.

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1. INTRODUCTION
In recent years experimental and analytical investigations have been directed toward evaluating inelastic
behavior of jacket type offshore structures subjected to strong ground motions. [1] Earthquake design of
offshore platforms in seismic active areas is one of the most important parts in offshore platforms design.
Dynamic response of piles in offshore platforms is a function of the characteristics of the loading, dynamic
pile-soil interaction behavior and dynamic characteristics of the piles structural system. The SSPSI (Seismic
Soil-Pile-Structure Interaction) analysis is the main step in evaluation of seismic behavior of pile supported
offshore platforms. The pile-soil interaction problem during earthquake loading is one of the most important
sources of nonlinear dynamic response analysis of offshore platforms. [2] incremental dynamic analysis (IDA)
is a promising method that has recently risen which involves performing nonlinear dynamic analyses of the
structural model under a suite of ground motion records, each scaled to several intensity levels designed to
force the structure all the way from elasticity to final global dynamic instability [3]. Kimiaei.M et al. [2] has
analyzed nonlinear response of offshore piles under seismic loads. They used BNWF model for the modeling of
pile-soil interaction and finite element method for the modeling of jacket members in nonlinear range of
deformation. Asgarian.B & Ajami.A [4] have surveyed dynamic behavior of jacket type offshore platforms
through incremental dynamic analysis.
In this paper, the effect of considering Seismic Soil-Pile-Structure Interaction (SSPSI) on structure nonlinear
seismic response was investigated by comparing with equivalent dummy piles model. For this purpose analysis
of an existing sample offshore platform in Persian Gulf with Soil-Pile-structure interaction and equivalent
dummy piles subjected to strong ground motions has been performed and the results in terms of peak interstory
drift ratio of platform in IDA curves have been presented. This model has been developed using OPEN System
for Earthquake Engineering Simulation (OPENSEES) [5] software. In order to analyze the variations in soil
layers response against earthquake, "NERA" software [6] is used. In this software the nonlinear strain-stress
behavior has been modeled and the relative displacements (or accelerations) in each sublayer have been
calculated. [7]
2. INCREMENTAL DYNAMIC ANALYSIS
The Incremental Dynamic Analysis (IDA) [8], is a computer intensive procedure that offers thorough (demand
and capacity) prediction capability by using a series of nonlinear dynamic analyses under suitably
multiply-scaled ground motion records. It can estimate accurately the seismic performance of structures.
Applying IDA to determine the performance of a structure requires several steps. First, a proper nonlinear
structural model needs to be formed, and a suite of records must be compiled. Then, for each record, the scaling
levels must be selected, the dynamic analyses run and the results post processed. Thus, IDA curves of the
structural response can be generated, as measured by a Damage Measure (DM, e.g., peak roof drift ratio roof or
max), versus the ground motion intensity level, measured by an Intensity Measure (IM, e.g., peak ground
acceleration, PGA, or the 5%-damped first-mode spectral acceleration Sa(T1,5%)). In turn these are interpolated
for each record and summarized over all records to estimate the distribution of demand DM given intensity IM.
3. PILE-SOIL INTERACTION ANALYSIS USING BNWF
BNWF models used to analyze the dynamic response of piles should allow for the variation of soil properties
with depth, nonlinear soil behavior, nonlinear behavior of pile-soil interfaces and energy dissipation through
radiation and hysteretic damping. Special attention must be given to the evaluation of the free-field excitation.
The computed ground motion at different levels within the soil is then applied to the nodal boundary supports
representing the support motions [2]. Figure 1 shows the general view of a BNWF model and its main
components in dynamic nonlinear response analysis of piles. [9]
In the present study, the soil stiffness is established using the p-y curve (lateral soil resistance versus lateral soil
deflection) approach. The procedures for generating p-y curves proposed by Matlock et al [10], Reese et al [11]
and ONeil [12] are recommended by the American Petroleum Institute and are widely used in both research

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The 14 World Conference on Earthquake Engineering


October 12-17, 2008, Beijing, China

and professional jobs (API-RP- 2a) [13]. Therefore in this study, the soil stiffness is modeled employing the
static p-y curves recommended by API.

Fig. 1. Characteristics of Nonlinear p-y Element:(a) Components; (b) Behavior of Component


Also the damping component of the soil resistance is represented by a dashpot whose coefficient is established
based on the Berger et al [14] model, i.e.,

CL = 4 B s

(1)

Where B = pile diameter, vs = soil shear wave velocity and =soil unit density.
4. FREE FIELD EXCITATIONS
Free field ground motion time histories are usually computed using common site response analysis techniques.
In site response analysis, the ground motion of the soil layer is calculated due to earthquake excitations applied
at bedrock. The results of such free field analysis (acceleration or displacement time history at different soil
layer) are then used as the input excitation at support nodes of the BNWF-Fiber Element model. [15]
In the present study the nonlinear stress-strain response of soil layers approximated by a nonlinear approach. In
the analyses, Iwan [16] and Morz [17] model is used on which the nonlinear and hysteretic stress-strain
behavior of soil is approximated by tangential shear modulus. A computer program NERA (Nonlinear
Earthquake site Response Analysis) developed by Bardet et al [6] is used for free field ground motion analysis.
The lowstrain shear modulus Gmax was calculated from the dimensionless form of the equations by Seed and
Idriss [18]:

m
G max
= 21.8K 2,max
Patm
Patm

for Sand

K 2, max = 65 m = (1 + 2 K 0 ) vc / 3 K 0 = 0.6 , Patm = atmospheric pressure


G max
= 380
cu

(2)

for Clay
(3)

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The 14 World Conference on Earthquake Engineering


October 12-17, 2008, Beijing, China

5. MODEL AND GROUND MOTION RECORDS


Two structural models in this paper are 3D models and similar but one of them is with SSPSI and other is with
equivalent dummy piles (without SSPSI). The provided model is formed by an assembling of frame elements in
the nodes in general coordination system. This selected jacket type offshore has 141.7 m height. The platform is
a six-leg jacket type which is installed in a water depth of 47.6 m. The jacket is located between -47.6 m and
+7.25 m relative to L.A.T and the top side is located between +9 m and +24 m with three stories. In plan, the
jacket is rectangular, 36m by 36m that is shown in figure 2. The elevations of jacket are shown in figure 3.
The platform has a three-stories topside with total mass of about 10000 tons located in center of each story and
a four story jacket with total mass about 2000 tons located in main nodes of jacket. The platforms has different
geometries in x and y directions. To accommodate platform heavy topside installation using float-over system,
there are not any braces in sea water level bay in direction y and a portal action is formed in this direction.
The first natural period of platform is T1=3.03 sec. The members are modeled using a beam-column element.
All analyses were performed using OPENSEES.

Figure 2. The jacket in plan

Figure 3. Elevation of offshore

For the modeling of SSPSI model, some nodes are introduced on pile with the same coordinate of main layer
and sub-layer nodes. These two points have the same coordinates on the general coordinates. Based on the
conditions of the cave-in and break in interaction between soil and pile, the interactive elements are introduced
in the model. In this model, the relative movements of the nodes between pile and soil would be possible. In
clay soil a gap is formed in tension stress situation. So the interactive element in the model should separate the
node between pile and soil. For non-sticky soil, when the loading process is completed, the gap which is formed
due to the non-sticky material would be filled. In BNWF nonlinear model, apart from modeling the pile in
dynamic forces, the gapping and cave-in are modeled. For the modeling of structural steel, a bilinear
elasto-plastic model with kinematic and isotropic hardening materials is suitable. The selected model for this
study is an elasto-plastic model with strain hardening of 5 %.
For modeling of jacket, deck and pile members, the fiber elements have been used. By using this model, the
buckling behavior and post buckling behavior of the tubular braces can be controlled by adding geometric
stiffness [5]. As accuracy in P-delta analysis is suitable for the application in Earthquake engineering, it is used
for applying the effects of decreasing the stiffness and strength.
According to API (RP-2A) [13], in this essay, the mass used in the dynamic analysis consist of the mass of the
platform associated with gravity loading, the mass of the fluids enclosed with the structure and the

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October 12-17, 2008, Beijing, China

appurtenances, and the hydrodynamic added mass. The added mass may be estimated as the mass of the
displaced water for motion transverse to the longitudinal axis of the individual structural framing and
appurtenances. In computing the dynamic characteristics of braced, pile supported steel structures, viscous
damping ratios of 5% are used for an elastic analysis.
In the SSPSI model, for soil dynamic analysis, the soil characteristics, layers and selected record are introduced
in NERA. Then by using NERA, the time history of relative displacement at a selected sublayer is attained.
After the formation of model, the time history of relative displacement of soil (in NERA) in pile nodes is
applied and later the structure is analyzed by a nonlinear dynamic analysis [8].
The second model of jacket was created with above mentions and eliminating soil-pile-structure and modeling
pile with equivalent dummy piles (pile stub). The length of pile stub was considered 15 times of pile diameter.
A set of twenty ground motion records is selected as listed in Table 1, that belong to a bin of relatively large
magnitudes of 6.5 - 6.9 and moderate distances, all recorded on firm soil and bearing no marks of directivity.
Table 1. The suite of twenty ground motion records used.

6. PERFORMING THE ANALYSIS AND IDA CURVES


Once the model has been formed and the ground motion records have been selected, a way to perform the
actual nonlinear dynamic analyses required for IDA is needed. This entails appropriately scaling each record to
cover the entire range of structural response, from elasticity, to yielding, and finally global dynamic instability.
[3] To use a stepping [8] algorithm to trace the IDA curves of platform is chose. Analyses are performed at
increasing levels of IM at constant steps, until numerical non-convergence is encountered [4].
An IDA Curve set is a collection of IDA curves of the same structural model under different accelerograms that
are all parameterized on the same IMs and DM [8]. Figures 4 to 5 shows all twenty IDA curves in x and y
direction for two models.
By generating the IDA curve for each record a large amount of data can be gathered, only part. There, the IDA
curves display a wide range of behavior, showing large record-to-record variability, thus making it essential to
summarize such data and quantify the randomness introduced by the records. [4] They can be easily
summarized into some central value (e.g., the mean or the median) and a measure of dispersion (e.g., the
standard deviation, or the difference between two fractiles). Consequently, to calculate the 16%, 50% and 84%
fractile values of DM and IM capacity is chosen, as shown in Figures 6 and 7.

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October 12-17, 2008, Beijing, China

(a)

First mode spectral acceleration Sa(T1, %5) g

First mode spectral acceleration Sa(T1, %5) g

8
7
6
5
4
3
2
1
0

(b)
7
6
5
4
3
2
1
0

0.02

0.04

0.06

0.08

0.1

0.12

0.02

0.04

Maximum interstory drift ratio

0.06

0.08

0.1

0.12

Maximum interstory drift ratio

Figure 4. All twenty IDA curves in X direction of Jacket platform


(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction
1.4

1.6

First mode spectral acceleration Sa(T1, %5) g

1.4
1.2
1
0.8
0.6
0.4
0.2

(b)
1.2

0.8

0.6

0.4

0.2

0
0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

0.02

0.04

0.06

0.08

0.1

Maximum interstory drift ratio

Maximum interstory drift ratio

Figure 5. All twenty IDA curves in Y direction of Jacket platform


(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.

(a)

"first-mode" spectral acceleration Sa(T1,5%)

"first-mode" spectral acceleration Sa(T1,5%)

First mode spectral acceleration Sa(T1, %5) g

(a)

7
16% IDA

6
5

50% IDA

4
84% IDA

3
2
1
0

(b)
7
6
16% IDA

50% IDA

4
84% IDA

3
2
1
0

0.02

0.04

0.06

0.08

0.1

Max. interstory drift ratio

0.12

0.14

0.02

0.04

0.06

0.08

0.1

0.12

0.14

Max. interstory drift ratio

Figure 6. The summery of IDA curves in X direction of Jacket platform


(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.

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October 12-17, 2008, Beijing, China

1.4

(a)

"first-mode" spectral acceleration Sa(T1,5%)

"first-mode" spectral acceleration Sa(T1,5%)

1.4
16% IDA

1.2
50% IDA

84% IDA

0.8
0.6
0.4
0.2
0

(b)
1.2
1
16% IDA

0.8
50% IDA

0.6

84% IDA

0.4
0.2
0

0.02

0.04

0.06

0.08

0.1

Max. interstory drift ratio

0.12

0.14

0.02

0.04

0.06

0.08

0.1

0.12

0.14

Max. interstory drift ratio

Figure 7. The summery of IDA curves in Y direction of Jacket platform


(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.

7.CONCLUSION
SSPSI is a fundamental subject in evaluation of offshore platforms behavior. In order to the figures in each
direction before 0.06 drift ratio, behavior of the each models in both direction is almost similar. But after that
depended to frames and interstory stiffness, behavior of the models in each direction is different. As in X
direction that frames have more stiffness, flatline in model without SSPISI is upper than SSSPSI model. In this
direction the model without SSPSI has almost linear behavior.
In Y direction because of conditions of deck installation with float-over method and less frames stiffness,
flatline in model without SSPSI is lower than SSPSI model.
Difference of the model behavior with SSPSI and without SSPSI is depended to equivalent pile stiffness
(length), frames stiffness and interstories stiffness. So nonlinear behavior of pile and surrounding soil plays an
important role in actual behavior of a jacket in nonlinear range of deformation.
REFERENCES
[1] Asgarian A, Aghakouchack AA. (2004) Nonlinear Dynamic Analysis of Jacket Type Offshore Structures
Subjected to Earthquake Using Fiber Elements. 13th World Conference on Earthquake Engineering. Paper No.
1726.
[2] Kimiaei M, Shayanfar MA, El Naggar MH, Aghakouchak AA. (2004) Nonlinear Response Analysis of
Offshore Piles Under Seismic Loads. 13th World Conference on Earthquake Engineering. Paper No. 3056.
[3] Vamvatsikos D, Cornell CA. (2003) Applied incremental dynamic analysis. Earthquake Spectra.
[4] Asgarian B, Ajami A. (2006) Nonlinear Dynamic Behavior of Offshore Structures, Using Incremental
Dynamic Analysis", 8th U.S. National Conference on Earthquake Engineering, San Francisco, USA.
[5] Mazzoni S, McKenna F, Fenves GL. (2006) OpenSees Command Language Manual.
[6] Bardet, JP, Tobita T. (2001) "NERA- a computer program for Nonlinear Earthquake site Response Analysis
of Layered Soil Deposits." Department of Civil Engineering, University of Southern California..
[7] Asgarian B., Raziei A. (2007) Comparison of Incremental Dynamic and Pushover analysis of Jacket Type
Offshore Platforms. 26th International Conference on Offshore Mechanics and Arctic Engineering.
OMAE2007-29469.San Diego, California, USA.
[8] Vamvatsikos D, Cornell CA. (2002) Incremental dynamic analysis. Earthquake Engineering and
Structural Dynamics; 31(3):491_514.
[9] Boulanger RW, Curras CJ, Kutter BL, Wilson DW, Abghari A. (1999) "Seismic soil pile structure
interaction experiments and analysis." Journal of Geotechnical and Geoenvironmental Engineering, ASCE,
125(9), 750-759.
[10] Matlok, H. (1970) Correlations for design of laterally loaded piles in soft clay. Proceeding of the 2nd

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The 14 World Conference on Earthquake Engineering


October 12-17, 2008, Beijing, China

Offshore Technology Conference, Houston, Tx., Vol. 1, pp. 577- 588.


[11] Reese, L.C., and Welch, R.C. (1975) Lateral loading of deep foundations in stiff clay. Journal of the
Geotechnical Engineering Division, ASCE, 101(GT7), 633-649.
[12] ONeill, M. and Murchison, J. (1983) An evaluation of py relationships in sands. Report GTDF02-83,
Department of Civil Engineering, University of Houston, May.
[13] American Petroleum Institute. (2000) Recommended practice for planning, designing and constructing
fixed offshore platforms. API Recommended Practice 2A (RP-2A). 21st ed. American Petroleum Institute,
Washington, D.C.
[14] Berger, E., Mahin, S.A., and Pyke R. (1977) Simplified method for evaluating soil-pile-structure
interaction effects. Proceedings of the 9th offshore Technology Conference, OTC paper 2954, Huston, Texas,
589-598.
[15] Asgarian B., Roshandel Tavana MA. (2007) Bedrock Depth Effect Investigation in Seismic Response of
Offshore Platforms Considering Soil- Pile- Structure Interaction. 26th International Conference on Offshore
Mechanics and Arctic Engineering. OMAE2007-29470. San Diego, California, USA.
[16] Iwan, W.D. (1967) On a class of models for the yielding behavior of continuous and composite systems.
Journal of Applied Mechanics, ASME, 34: 612-617.
[17] Mroz, Z. (1967) On the description of anistropic work hardening. Journal of Mechanics and Physics of
Solids, Vol. 15, pp. 163-175.
[18] Seed, H. B., and Idriss, I. M. (1970) Soil moduli and damping factors for dynamic response analysis.
Report No. UCB/EERC-70/10, Earthquake Engineering Res. Ctr., University of California, Berkeley, Calif.

OIL & GAS


GLOBAL
SALARY GUIDE
Review of 2013, outlook for 2014.

SURVEY SUMMARY
DISCIPLINE
AREAS COVERED

COUNTRIES WORLDWIDE
REPRESENTED

RESPONDENTS ARE
EMPLOYERS IN THE
INDUSTRY

PEOPLE RESPONDED
TO THE SURVEY

24
53
7,200+
24,000

THANK YOU
We would like to thank all of you who took the time to participate in our survey.
Wed especially like to thank the teams from Oil and Gas Job Search and from Hays for all of their hard work conducting the survey,
analysing the results and producing an excellent document.
Last year we had over 150,000 copies of the Guide downloaded and an additional 20,000 distributed in person and at various
conferences, and we hope to surpass these levels this year.
We believe that our growing number of readers is a strong indication of the value and quality of our document, but we are always
interested in receiving feedback from you on how to improve and make our study more useful for you.
We hope you enjoy the read and, more importantly, find it useful in your job.
Disclaimer: The Oil & Gas Global Salary Guide is representative of a value added service to our clients and candidates. While 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.

MANAGING DIRECTORS WELCOME

CONTENTS

We are delighted to share with you our Global Oil and Gas Salary Guide for 2014.
Our goal is to provide the industry with an informed view of global and regional
trends in compensation and benefits and to identify some of the key industry
factors and events that have contributed to these trends.
This is the fifth year that we have conducted our survey and produced this
document, and we are proud to say that each year weve seen the level of interest
rise and the quality of our document and underlying analysis improve.

Managing Directors Welcome

Summary of Findings

SECTION ONE - INDUSTRY PERSPECTIVE

This year, approximately 24,000 participants from 53 countries across 24


disciplines responded to our survey.

Global Perspective

Once our survey was completed, the data were compiled and cleansed to eliminate
spurious samples and outliers.

Regional View

Next, our regional recruitment consultants, whose daily job is to work with
companies to attract and retain permanent and temporary workers, reviewed the
data to ensure they reflected the realities of the local labour markets.
We then analysed the findings to identify trends and the reasons behind the
results.
We believe that by blending the surveys quantitative data with our recruitment
consultants localised expertise, we produce the best and most representative view
of remuneration in the industry.
As always with surveys, statistical errors due to sample size and respondent errors
limit the accuracy of any particular figure. In addition, since the people who
respond to our survey vary from year to year, changes to the demographics of
respondents (e.g., their experience level, location and discipline) will have an
impact on our figures that might not represent actual changes in labour markets.
For instance, in this years survey, we had considerably more respondents in lower
salary brackets than last year, which has yielded lower average salaries than
observed by our recruitment consultants.
In addition, respondents report their salaries to us converted to $US from their
local currencies, so fluctuations in the relative value of currencies versus the $US
will also impact our results. This year, the $US gained value against most
currencies, over 15 per cent against the Australian dollar and Brazilian real, for
instance. This has also yielded lower salaries than weve observed in the markets in
$US terms.
This year, we have taken into consideration some of these biases to present a
like-for-like global average salary alongside the average salary computed from the
unadjusted raw data. We have not adjusted the other figures. Nonetheless, we
believe that by looking at the results as a whole, and particularly at trends, there is
considerable value in this research.

SUMMARY OF FINDINGS
2013 saw a one per cent decrease in like-for-like average salary to $81,184.
Contractor day rates broadly declined as well. While perhaps disappointing, this is
probably a necessary correction after two consecutive years of significant growth
in salaries that have started to threaten the financial performance of some
companies and assets.
There were numerous developments across the globe that led to this years decline,
and these will be discussed in the pages to follow.

SECTION TWO - SALARY INFORMATION


10 Salary Overview
11 Salaries by Discipline
11

Contractor Day Rates

12 Salaries by Company Type

SECTION THREE - INDUSTRY BENEFITS


16 Overview of Industry Benefits
17 Company Benefits
18 Regional Benefits

SECTION FOUR - INDUSTRY EMPLOYMENT


21 Staffing Levels
22 Diversity and Movement of Workforce
24 Experience and Tenure
25 Recruiting in the Digital Space
26 Employment Mix

SECTION FIVE - INDUSTRY OUTLOOK


30 Confidence and Concerns
31 Focus for 2014

Despite the decrease in salaries and day rates, there still exist skills shortages in
certain areas and in certain disciplines, most pronounced for engineers and
technical professionals with 10 or more years of industry experience.
Looking forward, our survey respondents remained confident about the coming
year, in terms of industry activity, hiring and salary levels. Over 72 per cent of
employers have a positive or very positive outlook on the industry moving into
2014, and over 70 per cent of companies plan to expand their workforce.
This view is supported by a general consensus of industry and economic analysts,
who anticipate growth in capital spending in the order of five per cent in 2014.
Given this scenario, we would expect the war for experienced talent to remain
fierce, and skills shortages to remain the most pressing concern facing the industry.
John Faraguna, Managing Director, Hays Oil & Gas
Duncan Freer, Managing Director, Oil and Gas Job Search

Oil & Gas Salary Guide | 1

SECTION ONE: INDUSTRY PERSPECTIVE

SECTION ONE
INDUSTRY
PERSPECTIVE

2 | Oil & Gas Salary Guide

While a detailed analysis of the global oil and gas


industry is beyond the scope of this document,
here are some of the key issues that have had
and will continue to have an effect on the
industrys labour markets and remuneration.
GLOBAL PERSPECTIVE
Overall, 2013 saw sluggish economic growth in most of the
worlds economies, which helped to keep oil prices in a
relatively narrow range between $90-105/bbl, above the
standard $80 economic threshold but below prices that
would jeopardise a fragile global economic recovery.
While there are signs of faster economic growth in the
coming year in most regions, and consequently higher energy
prices, there are also some analysts who predict lower crude
prices due to relatively flat demand and increased production
from places like the US, Libya, Iran and Iraq.
The worlds oil market is being thrown out of balance
largely by light tight oil from the US. In addition, the US
now vies with the Middle East in LPG exports, creating
downward pressure on global prices in this market.
Finally, in LNG, expansion investments in Australia are
being reconsidered in view of potential competition from
less expensive North American exports.
How quickly the fracking revolution spreads from the US
to other countries with significant shale reserves is
perhaps the biggest question in the global energy puzzle
over the coming decades. This will also have a profound
effect on what skills are required and where.
Worldwide, rising costs of labour and services coupled
with only modest increases in revenues have squeezed
company profits and cash flow and have sounded an early
warning for some companies and investors alike.
While this is causing a weakening in investment appetite in
certain cases, the long-term view is still relatively strong,
particularly for high potential areas such as Brazil, the Gulf
of Mexico, West Africa and the Arctic.
The worlds energy demand is expected to increase by 50
per cent in the next three decades, primarily caused by
increased requirements in developing nations. Only 50 per
cent of the reserves have been developed, which suggests
that massive ongoing capital investments will be required
in increasingly challenging operating environments.

Oil & Gas Salary Guide | 3

INDUSTRY PERSPECTIVE
Regional View

North America
The US is projected to become the largest
global producer of oil and gas in the world,
driven by a surge in production from shale
reserves. Imports of gas and oil have dropped
by 32 per cent and 15 per cent in the past five
years, creating a shifting and uncertain
geopolitical environment for major oil
producing countries.
Many believe that by the end of the decade the
unconventional bubble will burst and the
importance of imports, particularly from the
Middle East, will again rise.
Due to surging unconventional gas production,
natural gas prices have remained low,
decreasing the attractiveness of drilling for dry
gas and opening the opportunity to export
LNG to higher priced markets such as Asia.
The US is poised to become the worlds largest
exporter of LNG. In the meantime, low gas
prices have greatly benefitted the chemicals
and manufacturing industries, which have
announced new investments of as much as $110
billion.
Offshore activity has completely rebounded
since the Macondo incident of 2009.
Deepwater and ultra deepwater activity is
expected to continue to rise, with active rigs
increasing from 37 currently to 60 by 2015.
Production is expected to increase by 10 per
cent next year. Onshore drilling is focused on
oil and liquids.
The shale drilling boom has attracted new
competition to the service market, which now
looks like it might need to consolidate.

The US workforce has grown by over 40 per


cent since the recession, and energy companies
are forecasting a need for many thousands of
engineers by the decades end.
Due to an aging workforce and difficult
immigration restrictions, there is a need to
attract more Science, Technology, Engineering
and Mathematics (STEM)-skilled workers from
schools as well as from other sources, such as
the military.
Increasingly, professionals with unconventional
expertise are being sought for international
assignments.
In Canada, transportation bottlenecks and a
glut of oil and gas in the US have led to a
general softening of the market and a push to
build infrastructure for LNG export.
The government has been enhancing policies
to encourage foreign investment and to further
develop the required infrastructure to export to
Asia and other markets, thus reducing the
reliance on exports to the US.
Some companies have announced significant
reductions in workforce and others have
reduced profit forecasts because of delayed
projects. However, other companies are hiring
and are even struggling to find adequate skills.
Significantly, the end of 2013 saw a number of
large projects get Final Investment Decision
(FID) and move into detailed engineering and
construction phases. This activity is likely to
reinvigorate the competition for talent in this
space and we expect to see renewed upwards
pressure on salaries and day rates through
2014.

South America
Mexico has passed legislation to open its
energy industry to outside investment in order
to reverse steeply declining production, which
has dropped 20 per cent since 2002. The
changes would allow international companies
to enter into globally competitive contracts to
explore for and produce hydrocarbons and to
take ownership of the oil above ground, after
paying royalties and taxes. It also permits
international companies to open retail gas
stations. If the law is implemented successfully,
this could create significant activity on the
Mexican side of the Gulf of Mexico, an area that
has been only lightly explored compared to the
highly productive US areas to the north.
In Brazil, Petrobras is having difficulties
financing its five year investment plan, which,
at over $200 billion, is the worlds largest
corporate spending programme. This has
delayed deepwater projects and has led to
sales of some of its international assets.
However, successful licensing rounds for the
pre-salt in 2013 has led to renewed optimism
for 2014 activity levels.
Colombia also had a successful licensing
round, but at a more subdued level than
Brazil. Exploration is a priority to boost
diminishing reserves of crude oil, which stood
at around 2.4 billion barrels in 2013.
Akacias is one of the biggest exploration
successes in recent years in Colombia, and
clearly shows the potential of heavy crudes in
the Llanos area. Plans are being made to
spend as much as $75 billion by 2020 to
increase oil and gas production to 1.3 million
barrels.
4 | Oil & Gas Salary Guide

While 2013 was a relatively quiet year in terms


of activity and hiring in both Brazil and
Colombia, recruiting efforts are starting to
shift into gear particularly in the geoscience
and subsea engineering disciplines,
predominantly for operations and project
managers.
Both countries are trying to reduce their
dependence on international workers by
attracting nationals who are currently working
abroad.
In Brazil, the government estimates it will
need an additional 250,000 new professionals
this decade and has initiated a programme to
attract and develop 200,000 new workers to
the industry, but despite a swelling youthful
population it is unclear whether there will be
sufficiently trained workers to fulfill their
needs. It is likely that there will continue to be
an influx of as many as 5,000-10,000
international workers per year.
In Argentina, the government has recently
relaxed regulations enabling agreements to be
put in place to develop the vast Vaca Muerta
shale reserves, one of the worlds most
promising shale formations.
Argentina is hopeful that shale production will
help recover energy self-sufficiency it lost earlier
this century.

Nevertheless, there is considerable exploration


work being conducted, especially on the
Atlantic side of the North Sea (west of
Shetland). The continued use of new
technology is also propping up the Engineering
Procurement and Construction (EPC),
consultancy and engineering markets with
numerous upgrades to platforms and facilities.
London in particular has emerged as a financing
hub for smaller start up and midcap E&P
businesses exploring in the North Sea and the rest
of the world. Over the last 12 months there has
been a marked increase in smaller businesses
securing finance to exploit recently acquired
licenses.
The UK has announced a new tax allowance
aimed at boosting the development of shale
gas resources in the country. If other
European countries, such as Poland, follow
suit and overcome geological, political,
environmental and other hurdles related to
shale production, the global oil and gas
industry would face a major rebalancing.

Aging North Sea fields, whose average size is


shrinking quickly, are increasingly relying on
National Oil Companies (NOC), small operators
and service companies to keep production and
tax revenues flowing.
Emerging technologies to better visualise the
subsurface in order to enhance ultimate recovery
will also play an important role in maintaining
production levels.

Norway expects to continue record level


spending, primarily offshore, although the
service sector is experiencing a slowdown as
companies have become more focused on
increasing cash flow, perhaps foreshadowing a
future slowdown in activity.
In the UK, the debate continues regarding the
benefit of the influx of migrant workers,
primarily Norwegian, Dutch and Americans, who
make up nearly 20 per cent of the offshore
industry.

The government recently relaxed immigration


restrictions on employing non-British engineers
in order to address the skills shortage of the
industry. Meanwhile, government and private
sector efforts to develop graduates in STEM
disciplines are underway.
In the North Sea, experienced workers in most
disciplines are in demand, as people are being
attracted to overseas projects which is reducing
the local candidate market. International
assignments are often more lucrative and are
perceived to offer exposure to more diverse
environments compared with the North Sea.
Subsea engineers are in short supply; particularly
those working in controls and pipelines, however
this isnt new to 2013/2014. Geoscience and
subsurface professionals, specifically with
development experience in the North Sea, are in
high demand driven by a number of new
developments over the last 12 months coupled
with competition from international opportunities.
In order to find scarce skills and combat salary
inflation, some companies are looking to other
industries for talent with transferable skills, such as
ex-military personnel for operations, logistics and
maintenance roles or other engineering sectors
such as automotive, defense and aerospace.
In general, Continental Europe tends to have a
surplus of well trained and educated oil and gas
professionals and acts as an exporter of these
professionals worldwide. This past year did not
see significant changes in activity and so the
supply and demand of labour was largely in
equilibrium. An exception to this was Poland,
where disappointing results in shale exploration
has led to a weakening demand for these skills.

Russia and Commonwealth of Independent States (Russia and CIS)

as $100 billion in international investment,


which is being supported so far by tax breaks.
Russia currently accounts for approximately 15
per cent of global production but less than 10
per cent of capital investment.

Russia, which relies on oil and gas related


duties and taxes, is being threatened by the
re-balancing of the global energy market.
Exports have dropped due to European
economic problems and increased competition
from cheaper alternatives. Therefore, Russias
attention, and gas exports, might shift
eastward to gas-hungry China.
Many believe that Russia must invest in
unconventional resources like the Arctic and
shale in order to maintain long-term
production. This would likely require a
significant inflow of technology and as much

At the time of writing, large scale rallies were


being held in Ukraine to protest the
governments refusal to sign a political and
trade pact with the European Union, a
decision assumed to be heavily influenced by
Russia. Adding to the tension between Russia
and Ukraine is a dispute over overdue
payments owed to Gazprom. The outcome of
the current discourse between the countries
may have an impact on hiring for Russian and
Ukrainian projects.
Perhaps consequently, Ukraine has entered
into shale gas production agreements with
International Oil Companies (IOCs) to reduce
its dependence on Russian imports and
possibly achieve energy self-sufficiency.
However, shale efforts in neighboring Poland,
Lithuania and Romania have had limited
success due to a combination of geology,
contractual terms and environmental concerns.
Further south in the Caspian area, activity
continues to remain high as do investments in
transportation infrastructure.
Oil & Gas Salary Guide | 5

SECTION ONE: INDUSTRY PERSPECTIVE

United Kingdom and Continental Europe

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

Regional View

SECTION FIVE: INDUSTRY OUTLOOK

INDUSTRY PERSPECTIVE

INDUSTRY PERSPECTIVE
Regional View
Middle East
2013 was a relatively steady year for the
Middle East, but given the number of
infrastructure and field development projects
that are now underway, the expectation for
2014 is for much greater activity.

Growing interest in the Middle East in


unconventional resources underlines the
general view that the days of easy oil are over.
These skills will largely be imported
internationally.

While the Middle East will rely on imported


workers for the foreseeable future, there have
been government and company efforts to
increase the local labour content of the
workforce.

Iran in particular has not had access to


modern technologies, so there is great
potential for increased production if local
complexities can be overcome.

These efforts have had some positive impact,


supported by the demographic youth bulge in
the local population, but the increased blueand white-collar workforce requirements
expected in the next few years will most
certainly be met by workers from other
regions.

OPEC has seen its exports decrease due to


slow growth of global demand coupled with
surging production from the US.
Given the expected return of production from
places like Iran, Iraq and Libya, OPEC may
continue to see declines in the short-term.

Some of the NOCs have launched worldwide


recruitment campaigns for the thousands of
engineers they expect to require in the near
future.

In the long-term, global oil demand is


expected to grow from 90mmbpd to
115mmbpd by 2040 due to population growth
and increased per capita energy consumption
in developing countries, in the Middle East
production will once again regain its
dominance.

Africa currently supplies approximately 12 per


cent of the worlds oil and is estimated to hold
as much as eight per cent of the worlds
recoverable oil reserves and seven per cent of
its gas. About 80 per cent of its oil production
currently comes from Nigeria, Libya, Algeria,
Egypt and Angola. Given its vast size and
potentially untapped resource wealth, Africa is
one of the last oil and gas frontiers.

Historically, E&P focus has been in the west,


mainly in offshore and deep water, but that
focus is shifting somewhat to the east,
particularly in gas exploration, as expectations
have not been completely met in western
investments. Recently, there have been
significant gas finds in Mozambique and
Tanzania, and growing interest in oil exploration
in Uganda and Kenya.

Challenges, however, remain in almost all


respects. Security remains a concern, and
candidates are increasingly considering their
safety and how potential employers are
managing security at their facilities before they
accept offers. Political uncertainty, fraud and
corruption, stringent regulations and
restrictions, and a lack of infrastructure and
local skills all play a role in inhibiting investment.

Deep water skills are still in demand in the


west, mostly reservoir and drilling engineering,
but increasingly candidates with gas
experience, particularly in the feasibility, design
and exploration areas, are being recruited in
the east.

Africa

Nevertheless, capital investment in East and


West Africa should continue as huge potential
outweighs concerns about fiscal stability,
security and infrastructure.

6 | Oil & Gas Salary Guide

Some of these skill requirements will be met by


workers moving from west to east. A majority
of skilled workers will continue to be expats
into the foreseeable future.

Investment has been inhibited by challenging


legal and ownership issues, raising capital,
territorial disputes, infrastructure and technical
issues. The region must reduce regulatory
uncertainties and offer financial investment
frameworks that compensate for risks in order
to attract more international investment.
With Singapores first LNG terminal coming on
line, we can expect an increase in demand for
candidates with LNG experience. Design and
construction of offshore structures (rigs,
FPSO, FSO and topsides) remains an
expanding market.
There is a shortage of Senior Project Managers,
particularly those with a subsea or SURF
background and mega project experience. The
market is also tight for Asian national Reservoir
Engineers, Senior Geophysicists and Geologists.

Energy demand is expected to grow by 80 per


cent by 2035 in Southeast Asia, further shifting
the global centre of gravity of the industry
eastward. Singapore has become one of Asias
main energy and petrochemicals hubs and one
of the worlds top-three oil trading and refining
centers. Asia Pacific continues to be a region
targeted by global IOCs to achieve growth.
Oil production has peaked, and the region has
become a net oil importer in the mid-1990s.
Indonesia, Malaysia and Brunei have been
significant exporters of gas historically, but are
now slowly becoming importers or net neutral.

The manufacturing industry in Asia has


continued its drive forward and the Original
Equipment Manufacturer (OEM) sector has
been an engine for growth for a number of
years. With issues of quality and reliability
high on the end users agenda, Asia has made
giant strides in improving quality and the
results are increased orders and a wider range
of products being produced. We expect to see
continued demand for sales & business
development specialists and operations/plant
managers well versed in maximizing
productivity and improving quality processes.
There has been pressure on salary levels
increasing for Asian nationals. To manage
costs, companies are offering increased

bonuses and are reducing their reliance on


expats where possible.
The drive to invest in and develop local talent
in Malaysia continues. This strategy has had a
significant positive impact on the talent
available, particularly at the senior level.
In the geoscience area many senior roles have
been historically occupied by expats. However,
companies, such as operators, are now vying
for talented local professionals. In response to
high demand and short supply, suitable
Malaysian candidates at this level can
negotiate large salary increases when moving
from one company to another. Given the focus
on employing local staff, expat salaries are
under pressure.
Agreements are starting to be put into place in
China to attract international capital and talent to
develop shale reserves. China is believed to hold
the worlds largest technically recoverable shale
gas resource, but exploration is at an early stage.
In the upstream market, EPC and other oil field
service companies have seen a relatively flat
market for their services, and so their hiring has
remained stable. In contrast, the downstream
market, particularly the production of bitumen
and lubricants, is booming and sales and
marketing professionals are in demand.
Experienced and skilled engineering
professionals specialising in geology and
reservoir engineering and with both onshore
and offshore knowledge are in short supply in
the domestic market.

Australasia
In the marine support sector, wages and
expenses have risen significantly (40 per cent)
since 2007, only partially offset by rises in
revenue (8 per cent), raising concerns about the
ongoing health and competitiveness of the
offshore industry.
In Western Australia and in the Northern
Territories the focus has come off of the
Gorgon and Wheatstone projects and now
attention lies with Inpex and other new
developments, expansion of existing
operations with mid-tier operators and, finally,
efficiency measures in existing assets.
Offshore-specific disciplines like marine
installation and subsea engineering remain in
high demand falling in line with the stages of
major projects.
The four LNG projects in Queensland (QLD)
are all at differing stages with QCLNG coming
in first.

After a number of remarkable years of


investment, there will likely be a pause in new
LNG projects as US exports are potentially more
favourable from a standpoint of pricing,
contractual terms, and supply portfolio
diversification.
New Australian opportunities for LNG expansion
will have to overcome its high-cost environment
and highly valued currency.

APLNG and GLNG have another year of


construction to run and have recently signed
an agreement to share some pipeline
infrastructure to save costs. Due to a mixture
of cost, developing FLNG technology and new
countries coming into play, the Arrow project
has gone back to concept selection phase. The
refineries are currently going through
significant periods of change and are
structuring themselves over the coming
months to deal with this. GTL technology
appears to be uncompetitive with the current
availability of resources in QLD and the pilot
plant is likely to be abandoned.

The outlook for 2014 is quite promising with


multiple packages of the major projects
ramping up in close succession, re-engaging
candidates in areas of the market that have
been stagnant over the last six months, as well
as planned expansion and maintenance works
at various on- and offshore operations. Key
disciplines that will see a resurgence include
HSE, QA/QC, specialist trades and labour, with
subsea, installation, project controls and
operations and maintenance remaining stable.
With portions of the market remaining flat
over 2013, employers are looking to exhaust
local resources before they will consider
sponsorship. Key technical areas and skillsets
specific to new technology like FLNG and
dynamic positioning are new to Australia and
therefore employers are looking to overseas
markets for resources.
As infrastructure comes into completion,
companies are preparing for operations. With the
lack of previous local expertise within CSG and
LNG we will see demand increase for operations
personnel from similar industries as well as
training personnel to assist in the transition.
Although a relatively minor player on the
global playing field, there is growing interest
in the exploration potential in offshore New
Zealand.
Due to the potential economic benefits, the
government has purposefully attracted
international investment to shoot seismic and
explore in some of the largely unexplored
deepwater basins.
Oil & Gas Salary Guide | 7

SECTION ONE: INDUSTRY PERSPECTIVE

Asia

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

Regional View

SECTION FIVE: INDUSTRY OUTLOOK

INDUSTRY PERSPECTIVE

SECTION TWO
SALARY
INFORMATION

SECTION TWO: SALARY INFORMATION

2013 saw a one per cent like-for-like decrease in average salary

8 | Oil & Gas Salary Guide

One per cent like-for-like


decrease after three years
of growth
SALARIES DECLINE FROM 2012 LEVELS
10%
8%
6%
4%

Raw data

2%

Like-for-like data

0%
-2%
-4%
-6%
-8%
-10%
2010

2011

2012

2013

Like-for-like data takes into consideration respondent demographic changes and currency fluctuations.

Oil & Gas Salary Guide | 9

SALARY INFORMATION
Salary Overview

This past year we saw the like-for-like average permanent salary of


survey respondents fall to $81,184*, a one per cent decline from last years
average salary of $81,924.

ANNUAL SALARIES
BY COUNTRY

Local average
annual salary

Imported average
annual salary

This represents perhaps a well needed correction after two prior years of
significant salary increases.

Algeria

39,600

96,700

Angola

51,300

110,600

While the headline decline is significant, the individual country figures


portray the numerous forces shaping remuneration in the industry.
Whether they are successes or issues stemming from geology, politics,
the environment, the economy or in some cases armed conflict, each
regions salary tells a story:

Argentina

75,800

106,900

Australia

163,700

164,000

Azerbaijan

54,800

133,800

Bahrain

34,000

69,300

Australia saw flat to slightly declining average salaries after a number of


years of unsustainable growth in wages had started to threaten the
financial viability of some projects.

Brazil

90,600

125,800

Brunei

99,300

119,400

Southeast Asia saw declines in China, Indonesia and Malaysia due to


downward pressure on expat salaries, while Singapore remained
relatively strong.

Canada

130,000

119,200

China

62,900

125,600

The Middle East was flat to slightly declining except for Qatar due to its
increased upstream and downstream activity.

Colombia

100,300

137,000

Denmark

98,800

115,200

Egypt

37,500

105,200

France

101,200

103,300

Ghana

26,800

128,500

India

37,700

63,700

Indonesia

41,900

129,600

Iran

39,800

83,700

Iraq

49,100

114,500

Italy

66,100

86,100

Kazakhstan

38,900

117,000

Kuwait

79,600

84,600

Libya

36,000

68,700

Malaysia

47,900

115,400

Russia and CIS were flat to lower due to less reliance on expats as was
most of Africa.
Continental Europe was flat to declining as supply and demand of
workers was largely in equilibrium, but in places like Poland there was a
reduced need for expats. UK and North Sea salaries were also flat to
slightly declining year-over-year.
Brazil had a second consecutive decline after several years of upwardly
spiraling salaries, as further delays in activity reduced the demand for
workers. Argentina and Venezuela also saw salaries decline, whereas
Colombia a bright spot.
Canada saw relatively flat salaries as transportation bottlenecks to the US
caused jitters in prices and shook investor confidence. US salaries decreased
to 2010 levels as low natural gas prices depressed onshore drilling.

Looking forward

Mexico

79,600

132,700

At the time of writing the price of oil remained comfortably above $90/
bbl and natural gas in the US has rebounded to well over $4/mcf. There
is some doubt creeping into the market driven by the possibility of falling
prices due to tepid global demand and the impact of increased
production from countries such as the US, Iran, Iraq and Libya. If so, it
will be interesting to see whether OPEC takes steps to prop up prices to
their desired benchmark by curtailing their production.

Netherlands

111,000

101,500

New Zealand

100,800

127,700

Nigeria

48,500

129,800

Norway

179,200

110,400

Oman

87,800

90,000

However, the consensus view is that the US will continue to experience


good economic growth and the economies of the UK and other parts of
Europe are poised to have improved years. Australia may also have hit
its bottom as Chinas manufacturing output and therefore demand for
coal and metals rebounds. In this scenario, energy prices should continue
to remain within a relatively narrow band between $90-110/bbl, perhaps
with upside, which would drive increased spending in 2014, perhaps on
the order of five per cent over 2013 levels.

Pakistan

32,200

93,500

Papua New Guinea

52,900

99,800

Philippines

30,000

120,100

Poland

36,400

58,200

Portugal

75,400

106,000

Qatar

47,200

84,000

Assuming this happens in 2014, we would expect salaries to rise in the


five per cent range, but with a wide variation between disciplines and
countries.

Romania

33,800

103,900

Russia

68,300

127,000

Saudi Arabia

58,400

76,600

The like-for-like global


average salary for 2013 was
$81,184; broken down this
translates to local talent
average of $68,900 and
imported talent average of
$100,600

Singapore

86,400

97,600

South Africa

63,100

76,300

South Korea

70,000

156,500

Spain

66,900

94,100

Sudan

24,100

77,600

Thailand

59,300

143,200

Trinidad and Tobago

59,000

80,400

Turkey

50,400

77,000

United Arab Emirates

65,100

80,000

United Kingdom

94,200

91,800

United States of America

111,800

118,100

Venezuela

50,000

85,600

Vietnam

26,600

142,200

Yemen

36,300

150,200

*Respondents were asked to provide their base salary only in US dollars


equivalent, converting foreign currency into US dollars at the time of responding.

10 | Oil & Gas Salary Guide

Operator/
Technician

Graduate

Business Development/Commercial

53,600

36,000

41,800

Construction/Installation

61,000

37,000

54,500

Manager
Lead/
Principal

Vice
President/
Director

59,700

101,100

168,100

76,800

105,700

188,000

Intermediate Senior

Downstream Operations Management

55,000

42,000

50,000

83,700

92,000

163,400

Drilling

65,200

37,000

67,900

86,900

125,800

199,900

Electrical

61,200

38,100

48,500

70,100

87,200

N/A

Estimator/Cost Engineer

35,000

30,000

46,700

74,000

102,000

N/A

Geoscience

60,000

45,000

56,000

95,400

137,100

222,300

Health, Safety and Environment (HSE)

42,500

34,500

55,800

71,800

94,500

182,300

Logistics

55,900

31,300

35,000

65,000

85,000

116,900

Marine/Naval

72,000

32,900

67,600

80,300

98,200

175,000

Mechanical

50,000

38,000

42,600

69,200

87,100

102,000

Piping

47,000

34,000

43,000

59,900

86,900

N/A

Process (chemical)

49,400

38,900

46,200

73,700

113,000

125,400

Production Management

55,800

32,400

52,100

79,600

109,700

242,200

Project Controls

55,000

40,000

50,600

72,600

111,200

156,500

Quality Assurance/Quality Control (QA/QC)

49,300

36,500

53,700

60,000

92,900

134,000

Reservoir/Petroleum Engineering

45,900

44,800

67,800

105,700

131,900

262,800

Structural

57,700

36,000

41,800

73,000

93,000

204,100

Subsea/Pipelines

54,200

41,400

62,400

89,100

134,500

199,000

Supply Chain/Procurement

45,600

31,900

53,800

72,100

86,600

186,800

Technical Safety

61,300

35,000

60,700

74,300

115,200

185,000

Most disciplines realised flat


or single digit declines in
their salaries

Breaking down the data into disciplines and comparing against last years
figures highlights the effects of the factors discussed in Section One.
In general, high demand skills like reservoir/petroleum engineering and
subsea engineering continued to see an increase in salary. So did skills in
unconventional exploration and production.
Conversely, most other disciplines realized flat or single digit declines in
their salaries.
Salary declines occurred more or less uniformly across all levels of seniority.

Contractor Day Rates


CONTRACTOR DAY RATES
BY REGION

Operator/
Technician

Intermediate

Senior

Manager Lead/
Principal

Vice President/
Director

Australasia

700

660

910

1,190

1,160

North East Asia

230

220

450

700

1,030

South East Asia

210

150

230

310

630

Eastern Europe

270

180

350

460

N/A

Northern Europe

340

330

660

880

1,120

Russia and CIS

270

190

540

700

760

Western Europe

370

440

630

810

1,020

Middle East

280

250

350

500

990

East/South Africa

240

270

440

570

N/A

North Africa

280

250

350

470

N/A

West Africa

290

270

500

620

N/A

North America

440

600

660

790

930

South America

370

280

380

630

910

Like permanent salaries, contractor day rates were largely flat or


declining across regions and levels of seniority
Oil & Gas Salary Guide | 11

SECTION ONE: INDUSTRY IN PERSPECTIVE

ANNUAL SALARIES
BY DISCIPLINE AREA

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

Salaries by Discipline Area

SECTION FIVE: INDUSTRY OUTLOOK

SALARY INFORMATION

SALARY INFORMATION
Salaries by Company Type

Intermediate Senior

Manager
Lead/
Principal

Vice
President/
Director

46,600

80,000

111,200

155,300

67,700

98,300

167,000

ANNUAL SALARIES
BY COMPANY TYPE

Operator/
Technician

Graduate

Consultancy

51,000

41,200

Contractor

67,600

40,600

55,600

EPCM

57,000

43,500

49,000

78,300

117,800

172,400

Equipment Manufacture and Supply

47,700

37,000

45,300

60,300

75,800

140,000

Global Super Major

75,900

63,000

76,600

101,600

124,300

210,000

Oil Field Services

53,000

39,300

54,500

65,000

86,700

166,000

Operator

58,500

43,500

65,000

101,300

145,500

234,500

All company types experienced single digit declines in average salary from
last year, and salaries are broadly back to 2011 levels.

In terms of the magnitude of


base salary by company type,
Global Super Majors and other
Operators continue to lead the
pack, as expected

SALARY CHANGES BY COMPANY TYPE

$120,000

2010
2011

$100,000

2012
$80,000

2013

$60,000

$40,000

$20,000

$0

Consultancy

Contractor

EPCM

Equipment
Manufacture
and Supply

Global
Super Major

Oil Field
Services

Operator

This chart presents the raw survey data only.

Background for this section


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

12 | Oil & Gas Salary Guide

Oil & Gas Salary Guide | 13

SECTION FIVE: INDUSTRY OUTLOOK

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

SECTION ONE: INDUSTRY IN PERSPECTIVE

SECTION THREE
INDUSTRY BENEFITS

SECTION THREE: INDUSTRY BENEFITS

Bonuses continue to dominate benefits packages in a bid to attract


top talent, while keeping salaries from escalating

14 | Oil & Gas Salary Guide

Bonuses remain the most popular


benefit offered by companies,
however health plans are on the rise
TOP FIVE BENEFITS RECEIVED OVER FOUR YEARS

2010

2011

2012

2013

Bonuses

36.7%

38.1%

42.8%

42.8%

Health plan

25.7%

27.9%

32.4%

33.2%

Home leave allowance/flights

19.1%

21.2%

23.9%

24.0%

Hardship

20.6%

21.7%

24.3%

22.8%

Housing

20.0%

20.4%

24.5%

23.0%

Oil & Gas Salary Guide | 15

INDUSTRY BENEFITS

Overview of Industry Benefits

Once again the number of people receiving benefits has increased.


Compared to 2012, we have seen a two per cent increase in the number
of people receiving benefits.
As candidate shortages continue to rise, it is evident that employers are
utilising benefits such as bonuses as a mechanism for attracting top
talent. Despite this increase, there is a still a significant portion of oil and
gas professionals not receiving benefits (33 per cent) worldwide.
Employers who utilise their benefits as a key selling feature may be able
to more effectively target this candidate pool in their recruitment plans.
Bonuses once again rank as the number one benefit offered by
employers, staying steady with 2013 at 42.8 per cent. Bonuses,
particularly those directly relating to performance can be a strong
motivator.
What is most notable about this years results is the increase in health
plans. Health plans have consistently been ranked second next to bonuses.
However, for the first time health plans rank first in North America.

OVERVIEW OF INDUSTRY BENEFITS


Percentage
that receive
the benefit
Bonuses

Commission

Tax Assistance

Pension

More people are receiving


benefits than in the past
five years

Health Plan
Car/Transport/
Petrol
Housing

8.9%
10.2%
11.4%
13.1%
20.8%
11.6%
33.2%
14.5%
24%
11.7%
22.8%
18.8%
23%

Hardship
allowance

10.2%

Hazardous
danger pay

8.4%

Share scheme

Schooling

Training

16 | Oil & Gas Salary Guide

15.9%

Home leave
allowance/
flights

Meal allowance

Background: The bar chart shows two figures related to benefits that
employees in the oil and gas industry receive. The first figure represents the
percentage of respondents that receive that particular benefit, i.e. 42.8 per
cent of respondents receive some sort of bonus. The second figure
represents the value of that benefit stated as a percentage of their overall
package for those that receive it, which in the case of bonuses is 15.9 per
cent.

42.8%

Overtime
No Benefits

14.8%

16.0%

16.5%
18%
13.0%
7.9%
13.2%
10.6%
17.0%
14.7%
15.1%
18.6%
18.6%
33.28%

Average
percentage of their
total package

As candidates move within sectors employers should be mindful of the


benefits professionals are used to receiving and be flexible with their
offerings in order to attract their desired talent.

Despite bonuses being the


highest ranked benefit across
all company types, health
plans realised the highest
increase of five per cent

TOP BENEFITS BY COMPANY TYPE


EPCM/CONTRACTOR

GLOBAL SUPER MAJOR/OPERATOR


35%

26%

46%

Bonuses

35%

Health Plan

21%

Home leave allowance/flights

21%

Housing

20%
19%

23%

Car/Transport/Petrol
Overtime

32%

44%

Housing
Home leave allowance/flights

22%

Car/Transport/Petrol

23%

No Benefits

OILFIELD SERVICES/CONSULTANCY
36%

Bonuses

28%

Health Plan

Bonuses

Health Plan

Car/Transport/Petrol

Pension

20%

Home leave allowance/flights

Meal allowance

19%

22%
17%

Pension

20%

28%
18%

Health Plan

22%

No Benefits

EQUIPMENT MANUFACTURER & SUPPLY


31%

25%

Bonuses

Car/Transport/Petrol

Home leave allowance/flights

24%

No Benefits

17%

Housing

Overtime

32%

No Benefits

Oil & Gas Salary Guide | 17

SECTION FIVE: INDUSTRY OUTLOOK

Bonuses top the list as the highest ranked benefit across all company
types, staying consistent with 2012. Global Super Majors and Equipment
Manufacturer & Supplier companies offer pension plans more so than
other company types. On the other hand, EPCM and Oilfield Services
offer more overtime pay.

SECTION ONE: INDUSTRY IN PERSPECTIVE

Company Benefits

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

INDUSTRY BENEFITS

INDUSTRY BENEFITS
Regional Benefits

Bonuses are the most popular benefit offered to employees for all
regions bar North and South America. In North America in the last
year, health plans have taken over the number one spot for most
prevalent benefit offered. This could be in response to the recent
US Obama Care implementation.
In South America, health plans are again the most popular benefit.
South America also has the lowest number of employees who are not
receiving benefits.
Australasia, although experiencing a small decline in the number of
people receiving benefits, is still above its lowest number in 2010.

Middle East, Asia and South


America are the regions
with the fewest number of
oil and gas professionals
without benefits

The Middle East has seen the highest percentage increase in the number
of people receiving benefits, as benefits are offered to >10 per cent
more people than in 2013. The number of people receiving benefits in
the Middle East currently surpasses the previous high in 2010.

PERCENTAGE OF EMPLOYEES WHO RECEIVE BENEFITS BY REGION

80%

2010

70%

2011

60%

2012
2013

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

Africa

Asia

18 | Oil & Gas Salary Guide

Australasia

CIS

Europe

Middle East

North
America

South
America

TOP BENEFITS BY REGION


ASIA

AFRICA
37%
31%
26%
25%
24%
22%

34%

Health Plan

25%

Housing

20%

Meal allowance

9%

Home leave allowance/flights

No Benefits

33%
25%

Pension

21%
15%

Car/Transport/Petrol

Training

44%

Bonuses

Pension

Health Plan

Car/Transport/Petrol

10%

Overtime

10%

Meal allowance

No Benefits

MIDDLE EAST

39%

No Benefits

39%

Health Plan

NORTH AMERICA
41%

26%

Bonuses

33%

Home leave allowance/flights

33%

Housing

31%

20%

Pension

Car/Transport/Petrol

Car/Transport/Petrol

16%

Overtime

12%

Training

29%

No Benefits

No Benefits

SOUTH AMERICA
30%

23%

21%

Bonuses

16%

RUSSIA AND CIS


24%

36%

Health Plan

Meal allowance

23%

16%

Housing

Bonuses

Health Plan

18%

Car/Transport/Petrol

EUROPE

Home leave allowance/flights

16%

Health Plan

46%

Bonuses

40%

Health Plan

25%

Home leave allowance/flights

19%

Housing

18%

Meal allowance

Car/Transport/Petrol

35%

No Benefits

17%

Health Plan

SECTION FIVE: INDUSTRY OUTLOOK

11%

Bonuses

Overtime

23%

No Benefits

30%

12%

23%

Home leave allowance/flights

AUSTRALASIA

15%

27%

Car/Transport/Petrol

29%

19%

48%

Bonuses

Bonuses

Meal allowance

Car/Transport/Petrol
Pension

Training

22%

SECTION ONE: INDUSTRY IN PERSPECTIVE

Regional Benefits

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

INDUSTRY BENEFITS

No Benefits

Oil & Gas Salary Guide | 19

SECTION FOUR
INDUSTRY
EMPLOYMENT

SECTION FOUR: INDUSTRY EMPLOYMENT

Plans for increasing staffing levels stays consistent with 2012

>70 per cent of employers plan to increase headcount in 2014


CONFIDENCE THAT STAFFING LEVELS WILL CHANGE IN THE NEXT 12 MONTHS
100%

13.5%

80%
60%

34.2%

9.7%
27.6%
34.1%

40%

27.0%

20%

12.7%
12.6%

14.7%

2010
2009

2011
2010

0%

20 | Oil & Gas Salary Guide

13.9%

Increase more than 10%

20.9%

22.9%

23.5%

23.3%

23.2%

24.7%

25.3%

23.9%

23.8%

26.1%

24.8%

22.3%

2012
2011

2013
2012

2014
2013

Increase between 5-10%


Increase up to 5%
Remain static
Decrease

The industry continues to rely heavily on contract workers and


companies expect this to continue and perhaps increase in the future.

In 2013 there was a slight dip in the number of employers planning to


increase their headcount by more than 10 per cent, reaffirming that
employers are setting realistic expectations for increases in the headcount.

AREAS IN WHICH CONTRACTORS


ARE EMPLOYED IN OIL AND GAS
Always

Sometimes

Never

Subsea & Pipelines

45.4%

37.9%

16.6%

Drilling & Well Delivery

37.1%

36.3%

26.5%

Engineering & Design

40.4%

46.1%

13.5%

Equipment & Supply

45.9%

38.9%

15.1%

Geoscience & Petroleum Engineering

27.7%

44.6%

27.7%

HSE & QAQC

33.6%

43.6%

22.8%

Operations, Maintenance & Production

38.1%

43.1%

18.8%

Petrochemicals

28.7%

40.9%

30.4%

Project Controls

34.1%

43.2%

22.7%

PERCENTAGE OF STAFF EMPLOYED ON A


TEMPORARY OR CONTRACT ASSIGNMENT IN 2013
41.4%
34.1%

On average, companies
rely less on expat
workers than in 2012
PERCENTAGE OF WORKFORCE
EMPLOYED AS AN EXPAT IN 2013
33.9%

More than 20%

22.9%

Between 5-20%

More than 10%

Between 5-10%

12.0%

Up to 5%

21.8%

Up to 5%

12.5%

None

21.4%

None

EXPECTATION THAT CONTRACTOR


LEVELS WILL CHANGE IN THE NEXT 12 MONTHS

EXPECTATION THAT EXPAT


LEVELS WILL CHANGE IN THE NEXT 12 MONTHS

41.6% 40.5%

43.8% 48.7%

Increase

Remain the same

17.9%
Decrease

Increase

Remain the same

7.6%
Decrease

Oil & Gas Salary Guide | 21

SECTION FIVE: INDUSTRY OUTLOOK

Projected headcount growth remains on par with the previous two


years. We have seen three years of consistently optimistic expectations
of headcount growth, indicative of the relevant confidence in the
industry.

SECTION ONE: INDUSTRY IN PERSPECTIVE

Staffing Levels

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

INDUSTRY EMPLOYMENT

INDUSTRY EMPLOYMENT

Diversity and Movement of Workforce

INSIGHT INTO GENERATION Y


A new generation has arrived and is now embedded in the world of
work. Generation Y (Gen Y) those born between 1983 and 1995
now represent a significant and increasing percentage of the global
labour market. As the Baby Boomers and Gen X start to leave the
workforce, this generation will take over the reigns and be responsible
for leading the worldwide economy.
Research recently conducted by Hays sheds some light on Gen Ys
attitudes to issues surrounding their work and careers: what attracts
them to a potential employer and what makes them stay such as
reward, training and work/life balance; what they look for in an ideal
boss; what they regard as key indicators of career success; and how
they relate to social media and emerging technology.
Its probably not surprising that our research shows that Gen Y across
the globe differs from prior generations in terms of their needs and
aspirations in the workplace. By and large, they look for a more
engaging employee value proposition than prior generations, and
value flexibility in when and where they work.
However, our research also shows that Gen Y differs considerably from
region to region and from country to country. For instance, while all

Gen Ys want to be compensated appropriately, wealth creation is much


more important to those in China than Gen Y in the UK or US where
work/life balance and job satisfaction are equally important.
In contrast, Gen Y in Japan view job security as the most important
indicator of career success. Gen Y in the US are more motivated by
making a difference to society than any other country surveyed,
whereas Gen Y UK are the most motivated by interesting work and
coming up with solutions, and workers in China value public recognition.
In terms of an ideal boss, Gen Y in the UK and US seek coaching,
mentoring and leadership, whereas in China and Japan they are more
interested in their boss being a confidant and an allocator of work.
In the oil and gas industry, the aging workforce and the increasing demand
for highly skilled professionals has created skills shortages in many
disciplines and in many parts of the world. In fact, our survey shows that
skills shortages are now the most important issue facing companies today.
Gen Y workers will play an increasingly important role in solving the
industrys skill shortages. Therefore it is critical for companies and their HR
departments to understand what motivates Gen Y so that they can most
effectively attract, motivate and retain them.

DIVERSITY OF STAFF
REGIONAL GENDER DIFFERENCES
Male
Africa

Asia

Australasia

Europe

Middle East

North America

Russia and CIS

South America

AGE DEMOGRAPHICS

Female

Male

91.6%
24 and under

8.4%
92.7%
7.3%

25-29

89.3%
10.7%

30-34

89.2%
10.8%

35-39

95.8%
4.2%

40-44

81.6%
18.4%

45-49

86.8%
13.2%

50-54

88.7%
11.3%

Women and younger workers


make up more of the oil and gas
industry workforce than last year
22 | Oil & Gas Salary Guide

55-59

60-64

65 and over

Female

4.5%
6.6%
13.7%
19.1%
17.6%
22.7%
14.4%
15.5%
13.7%
11.5%
11.4%
8.5%
10.1%
8.6%
7.8%
4.9%
4.7%
2.1%
2.0%
0.3%

Diversity and Movement of Workforce

WORKING AT HOME OR ABROAD

62%

38%

Home

Abroad

Middle East dominated


by expatriates
MOVEMENT OF THE WORKFORCE
IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE
Imported labour
Africa

28.4%

Asia

23.0%

Australasia

47.4%

Europe

30.5%

Middle East

86.5%

North America

26.5%

Russia and CIS

50.8%

South America

26.0%

Local labour
71.6%

77.0%
52.6%
69.5%
13.5%
73.5%
49.2%
74.0%

Europe and Asia remain the


primary export of talent
WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY
Working overseas
27.5%

Asia

49.6%

Australasia

31.4%

Europe

48.5%

Middle East

33.2%

North America

22.7%

Russia and CIS

38.0%

South America

34.7%

72.5%
50.4%

SECTION FIVE: INDUSTRY OUTLOOK

Africa

Working in home country

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

SECTION ONE: INDUSTRY IN PERSPECTIVE

INDUSTRY EMPLOYMENT

68.6%
51.5%
66.8%
77.3%
62.0%
65.3%
Oil & Gas Salary Guide | 23

INDUSTRY EMPLOYMENT
Experience and Tenure

This year has seen a significant increase in the number of workers new
to the industry as companies are hiring more college graduates as well
as experienced workers to join their business from other industries.
However, years of experience of professionals within their current roles
have largely stayed the same with previous years.

With the baby boomer generation nearing retirement we could see an


exodus of professionals leaving the industry with vast knowledge and
skill sets. Employers can address this impending issue with appropriate
training and succession planning.

TIME IN CURRENT ROLE


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

24.6%

26.0%

Less than 1 year

23.4%

1-2 years
26.6%

25.0%

29.2%

28.7%

24.7%

24.9%

6 - 10 years

12.0%

13.7%

15.6%

10+ years

8.3%

7.7%

9.5%

2011

2012

2013

3-5 years

YEARS OF EXPERIENCE IN THE OIL AND GAS INDUSTRY

35.6% 23.1%
0-4 years

5-9 years

21.7%
10-19 years

19.5%
20+ years

YEARS OF EXPERIENCE FOR SPECIFIC DISCIPLINE AREAS


0-4 years

5-9 years

10-19 years

20+ years

Construction/
Installation

16.2%

26.4%

36.0%

21.4%

Geoscience

24.7%

24.7%

26.5%

24.1%

Project
Controls

19.0%

30.1%

23.0%

27.9%

Subsea/
Pipelines

29.8%

21.4%

22.4%

26.5%

24 | Oil & Gas Salary Guide

Recruiting in the Digital Space

THE RISE OF ONLINE JOB BOARDS FOR JOB SEEKERS


The following chart indicates the top three ways in which oil and gas
professionals find new jobs. Recruiting in the digital age means employers
need to cover all basis, having their jobs posted on multiple channels, so
that job seekers can easily navigate the job market.

85%

75%

69%

Online search

Traditional networking

Job board

Source: Study by Oil and Gas Jobsearch

MOBILE RECRUITING

65 per cent of Hays countries


have experienced between
100 and 200 per cent+
increase in job seeker mobile
traffic compared to last year

Social media is obviously an important space to be in when targeting job


seekers. In addition to this however, recruiting in the digital space means
reaching your audiences when and where they are available and there may
be no better direct route then mobile technology. In a recent iMomentous
report, 36 per cent of Fortune 500 companies have a mobile website, yet
only five per cent permit applying via mobile capabilities. A Simply Hired
survey found that mobile users click on 60 per cent more jobs and spend
27 per cent more time looking at jobs. By not having your jobs in a mobile
environment could result in employers missing out on active candidates.

% INCREASE IN HAYS JOB SEEKER MOBILE TRAFFIC 2012 VS 2013


250%

200%

150%

100%

50%

SECTION FIVE: INDUSTRY OUTLOOK

UK

Singapore

Japan

China

Australia

USA

UAE

New
New Zealand

Job seeker mobile traffic usage

Russia

Portugal

Poland

Italy

Hungary

France

Spain

Canada

Brazil

0%

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

SECTION ONE: INDUSTRY IN PERSPECTIVE

INDUSTRY EMPLOYMENT

Oil & Gas Salary Guide | 25

INDUSTRY EMPLOYMENT
Employment Mix

Permanent hiring
on the rise

Permanent hiring is at an all-time high compared to the results of our


past four salary guides. Areas where we are seeing the highest spike in
permanent staff levels are Global Super Majors and Operators. Both of
which are up by approximately 10 per cent compared to 2012.
Of note, Equipment Manufacturer & Suppliers were the only company
type to experience flat or declining percentages of permanent workers.
However, their permanent workforce percentage remains the highest out
of all company types.

Fewer contractors
were engaged
with agencies

EMPLOYMENT MIX BY COMPANY TYPE


Permanent

Permanent/
part-time

Contracted
direct

Contracted
through
agency

Consultancy

50.6%

Contractors

51.9%

EPCM

62.2%

Equipment Manufacturer
& Supplier

79.7%

Global Super Major

63.1%

1.5% 11.4%

Operators

69.0%

2.2%

Oil Field Services

66.2%

26 | Oil & Gas Salary Guide

3.3%
2.8%

27.3%

18.8%

25.2%
1.4%

20.0%
21.7%

14.8%
3.2%

3.4%

10.2% 6.9%

24.0%

12.4%
18.0%

16.4%
12.4%

Employment Mix

PERCENTAGE CHANGE OF EMPLOYMENT TYPE FROM 2012 to 2013


Permanent

Permanent/part-time

Contracted direct

CONSULTANCY

Contracted through agency

CONTRACTORS
7.6%

4.8%

0.0%

0.3%

-0.1%

-1.2%

-7.6%

-3.9%

EPCM

EQUIPMENT MANUFACTURER & SUPPLIER


9.1%

-1.0%

-0.3%

1.2%

-2.9%

-0.1%

-0.1%

-0.1%

GLOBAL SUPER MAJOR

OPERATORS
10.5%

9.4%

-0.1%

0.8%

-2.7%

-2.5%

-7.7%

-7.8%

SECTION FIVE: INDUSTRY OUTLOOK

OIL FIELD SERVICES

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

SECTION ONE: INDUSTRY IN PERSPECTIVE

INDUSTRY EMPLOYMENT

5.4%
-0.1%
-2.3%
-3.0%

Oil & Gas Salary Guide | 27

SECTION FIVE
INDUSTRY OUTLOOK

SECTION FIVE: INDUSTRY OUTLOOK

Long-term view is relatively strong, particularly for high potential


areas such as Brazil, the Gulf of Mexico, West Africa and the Arctic

28 | Oil & Gas Salary Guide

Skill shortages continue to be the main


concern for employers worldwide
employers concerns in the current employment market

7.9%
9.2%

Skills shortages

2.1%

Economic instability

33.8%

Environmental concerns
Safety regulations

9.4%

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

14.5%

Other

23.1%

Oil & Gas Salary Guide | 29

INDUSTRY OUTLOOK
Confidence and Concerns

Skill shortages worldwide still plague the industry, however immigration


and overseas visa programs are less concerning to employers. Expect
competition on a global level for top talent as business activity gains
strength throughout 2014.

Confidence levels in next


years industry growth remain
high but have declined
slightly from last year,
reflecting the caution that
has crept into the industry.

EMPLOYERS CONFIDENCE IN THE OIL & GAS INDUSTRY

John Faraguna, Managing Director, Hays Oil & Gas

For the past three years employers have had a consistently positive
outlook on the industry. Over 70 per cent of employers have a positive to
very positive outlook moving into 2014. Despite this positivity there are
still many factors that could impede on employers plans for growth. For
example, in South America and Australasia, approximately a third of
employers are concerned with economic instability and in North America,
40 per cent are concerned with skill shortages. In Africa economic
instability is equally as concerning as the potential of environmental
issues. Safety regulations remain an important concern here as well.

100%

15.8%

80%
60%

34.1%

5.7%

5.5%

6.2%

20.8%

20.7%

21.5%

9.7%

Neutral

33.4%
46.8%

40%
20%
0%

43.6%

6.5%
2009

Negative

Positive

46.2%

47.8%

Very positive

45.1%

11.8%
2010

26.7%

26%

26.1%

2011

2012

2013

EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET


Skills
shortages

Economic
instability

Environmental Safety
concerns
regulations

Immigration/
overseas visa
program

Security/safety Other
caused by
social unrest
2.1%

All regions

33.8%

Africa

23.4%

23.1%

14.5%

9.4%

9.2%

7.9%
1.6%

19.6%

19.0%

9.3%

11.1%

16.1%
1.6%

Asia

31.5%

Australasia

40.0%

25.1%

13.3%

8.8%

12.4%

7.4%
4.6% 3.3% 4.2%

27.7%

13.9%

6.4%
4.1%

Europe

47.6%

Middle East

30.2%

21.4%

10.8%

2.6%
6.6% 6.8%
1.3%

North America

39.5%

Russia and CIS

29.2%

21.0%

13.9%
23.8%

10.7%

11.5%

11.4%

4.5% 3.0%
6.9% 5.4%

16.8%

3.0%

South America

25.8%

30 | Oil & Gas Salary Guide

26.8%
30.3%

13.5%
21.0%

10.8%

6.3% 10.4%
9.2%

3.9%
2.3%
7.4%

EMPLOYERS GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS, OUTSIDE THEIR OWN REGIONAL AREA

North Sea
Geoscience and subsurface professionals are in high
demand due to an emergence of projects over the last
12 months. These candidates with North Sea specific
development experience are in particular short supply
as they are typically recruited for projects overseas.
Employers in 2014 should plan ahead their recruitment
plans in order be prepared for this shortage.
Ed Allnutt, Director, Hays Oil & Gas

Middle East
We have seen strong business activity
in 2013, and as planned projects come
on-line, we expect the Middle East to be
a hive of recruitment of activity over the
next year. The labour market is forecast
to remain stable for local candidates
but increase for imported talent, as
employers look to overseas to source the
skills needed to support major projects
planned for 2014.
Gary Ward, Director, Hays Oil & Gas

9.6%
7.7%

10.9%

8.7%

21.2%

North America
Hiring levels for both
permanent and temporary
professionals are predicted to
increase in 2014 as new projects
are approved. Although many
candidates will come from
the local market in Canada,
initiatives such as the new LNG
pipeline will require employers
to reach out internationally to
obtain all the skills needed.
Jim Fearon, Vice President,
Hays Oil & Gas

11.6%

12.7%

7.8%
9.7%
Asia
With a consistently high level of job flow
through-out the year, candidates are high
in demand causing wage pressures. In
an effort to keep costs from escalating
employers are utilising bonuses to keep
base salaries in check. We anticipate
much of the same for 2014.
Mike Wilkshire, Director, Hays Oil & Gas

Australia
With portions of the market remaining
flat over 2013, employers are looking to
exhaust local resources before they will
consider sponsorship. Key technical areas
and skillsets specific to new technology
like FLNG and dynamic positioning
are new to Australia however, and as
such, employers are looking to overseas
markets for resources.
Paula Kirwan, Director, Hays Oil & Gas

100%
19%

21.6%

23%

25.3%

80%
60%
40%
20%
0%

26%

32.4%

2009

2010

Increase more than 10%


Increase between 5-10%

29.4%

24%

24.2%

15.7%

17.6%

17%

2011

2012

2013

28.1%
21.9%

27.6%

29.8%

30%
20.9%

28%

27.4%

SECTION FIVE: INDUSTRY OUTLOOK

EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS

SECTION ONE: INDUSTRY IN PERSPECTIVE

Focus for 2014

SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION

INDUSTRY OUTLOOK

Increase up to 5%
Remain static
Decrease

Oil & Gas Salary Guide | 31

ABOUT HAYS

COUNTRIES WORLDWIDE

offices worldwide

staff WORLDWIDE

PERMANENT CANDIDATES
PLACED LAST YEAR

PEOPLE PLACED INTO


TEMPORARY ASSIGNMENTS
LAST YEAR

33
239
7,840
53,000
182,000

Hays Oil & Gas specialise in the recruitment of professionals within the oil and gas sector across the following regions: Africa, Asia,
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To register your vacancy or to find your next job, please visit hays-oilgas.com
32 | Oil & Gas Salary Guide

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