2013 Salaries

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OIL & GAS

GLOBAL SALARYGUIDE 2013Global salaries and recruiting trends.

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PEOPLE RESPONDEDTO THE SURVEY

RESPONDENTS AREEMPLOYERS IN THEINDUSTRY

RESPONDENTS WORK WITHA GLOBAL SUPER MAJOR

COUNTRIES WORLDWIDEREPRESENTED

DISCIPLINE

AREAS COVERED

25,000+

8,200+2,500+

53

24

THANK YOUWe would like to express our gratitude to all those organisations and individuals who participatedn the collection o data or this years survey. More than 25,000 responded, which is approximately74 per cent up on last year and this has once again ensured that we can produce an inormativedocument to help support your business and employment decisions.

Disclaimer: The Oil & Gas Global Salary Guide 2013 is representative o a value added service to our clients and candidates. Whilst every care is taken in the collection andcompilation o data, the survey is interpretive and indicative, not conclusive. Thereore inormation should be used as a guideline only and should not be reproduced intotal or by section without written permission rom the producers o this guide.

SURVEY SUMMARY2 A global perspective

Section one - salary inormation

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 beneits

12 Overview o beneits

13 Beneits by company type

14 Beneits by region

Section three - industry employment

17 Staing levels

18 Diversity and movement o workorce

20 Experience and tenure

22 Employment mix

Section our - economic outlook

26 Industry outlook

27 Most signiicant issues

CONTENTSIt is with great delight that we introduce this years global oil and gas salaryguide. This is the ourth year we have published the document and each year

we have seen an increase in the number o respondents taking their time to

give us such valuable inormation and insights into their world o work. Thisyears survey saw more than 25,000 proessionals and skilled employees in

the oil and gas industry respond, giving us more than one million separate

pieces o inormation to collate into indings. As with previous years, it is thetrends and movements within the data that make or such interesting reading

indeed every igure tells its own tale!

With so much data it can become a question o what to present and publish,

however, we have tried to stay true to the goals that we set ourselves whenirst embarking on such a document. This was namely to produce some

meaningul data on how salaries and remuneration change as we move

around the world o work in the oil and gas industry. This is thencomplemented with some inormed insights as to what industry events and

activities are contributing to the outcomes. We hope you enjoy reading the

document, and more importantly it is o assistance to you in youremployment dealings.

2012 was a good year or many in the oil and gas world with an increase insalaries, beneits and conditions. The same cannot be said or too many other

industries and it would not be stretching the truth to state that more wealth

has been created in the oil and gas industry than any other over the last 12months. With nearly every country around the world striving to secure its own

energy uture, either through exploration, increased production or developing

inrastructure, demand or the oil and gas proessional, in all its guises, wasmost deinitely high.

Our headline igure or the average base salary has once again grown to now sit

at $87,300*, showing an 8.5 per cent increase on the previous year. Such an

increase now accounts or a 14 per cent rise in base salary in two years alone.That is signiicant or an industry employing some ive million people worldwide.

There were numerous developments contributing to this rise through 2012, notleast o which was a prolieration o non-conventional ield developments. This

was seen by many nations as the route to energy independence and saw a

wave o hiring. Indeed many countries eagerly embarked on this path only todiscover that the skills didnt exist, at least not in their own country. This was

consequently, or some, their irst steps onto the global recruitment market. Theother change that this sector saw was an expansion into cities/regions

previously untouched by the industry. The likes o Houston, Aberdeen and Perth

are still important, just not as important as they were, it would seem.

There were some environmental challenges to overcome and or some

countries or regions this was a bridge too ar. (Development stalled andsalaries with it, trends that are easily spotted within our data).

Despite the general upward trend there were headwinds to overcome. As the

year came to a close the oil price edged slowly lower, relecting continued

negative sentiment around the general global economy, and the impact thismay have. Most roads led back to Europe in this regard and their continuing

debt issues weighed down consumer demand. This in turn impacted

manuacturing output, most notably in China. The ragile nature o thisscenario has dominated the economic backdrop, and appears likely to

continue well into 2013. This said, conidence rom those taking this survey

has remained high and at least in the oil and gas world, orecasts are orcontinued optimism, albeit guarded.

We would like to take this opportunity to thank all o those individuals thatgave up their valuable time to respond to this survey, once again allowing us

to produce such a valuable document. We would also like to thank those

people in our marketing departments or helping collate and design the guide.Lastly, but by no means least, we would like to thank our consultants and sta

or their valuable insights which undoubtedly bring the document to lie.

Matt Underhill, Managing Director, Hays Oil & Gas

Duncan Freer, Managing Director, Oil and Gas Job Search

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

oreign currency into US dollars at the time o responding.

2013 Oil & Gas Salary Guide | 1

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AUSTRALIA

Australia dominates

the LNG market with amultitude o projects

under construction

IRAQ

Flurry o hiring as a range o new

mega-projects kick o

SOUTH KOREA

Korean ship yards seek to

monopolise vessel and rig

abrication work

A GLOBALPERSPECTIVE

BRAZIL

A long awaited round o eld

auctions announced, breathing

lie back into the market

UNITED STATES

Energy sel-sufciency now in sight

or the US with extensive shale gas

developments

NORTH SEA

The drain o talent to overseas

markets intensies skill shortages

EAST AFRICA

East Arica becomes the next big

ocus or oil and gas majors

2 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 3

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With almost 50 per cent o thoseresponding experiencing an increase o5 per cent or more to their salary, this wasthe second consecutive year o signicantrises or the industry.

SECTION ONESALARYINFORMATIONPermanent salaries rose 8.5% over the last 12 months.


CHANGES TO SALARIES IN THE LAST 12 MONTHS

EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS

2013

2013

2012

2012

27.5%

32.4%

49.7%

49.5%

29.8%

30%

16.3%

16.6%

24%

20.9%

30.3%

29.7%

17.6%

15.7%

3.7%

4.2%

1.1%

1%

Increasemore than 5%

Increasemore than 10%

Increaseup to 5%

Increasebetween 5-10%

RemainStatic

Increaseup to 5%

Decrease

RemainStatic

Decrease

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SECTIONONE:SALARYINFORMATION

SECTIONTWO:INDUSTRY

BENEFITS

SECTIO

NTHREE:INDUSTRYEMPLOYMENT

SECTIONFOUR:ECONOMICOUTLOOK

SALARY INFORMATIONSalaries

6 | 2013 Oil & Gas Salary Guide


Breaking the data down into discipline areasand comparing against the previous yearsigures provides us an interesting insight intowhat has been driving the market.

Following the downturn o 2008, thoseprojects put into development the ollowingyear were starting to make their way throughto operational phases, and it is in both thedownstream operations and upstreamproduction management igures that we sawthis eect both sets o igures climb,particularly in the more junior ranks, implyingvolume recruitment. Conversely, the disciplinesassociated with exploration were somewhatlat ater sizeable rises in 2012, although highlevels o production ensured it was a busyyear in drilling.

In line with more project work coming throughFinal Investment Decision (FID), the coredisciplines o electrical, mechanical, pipingand process engineering all had a good year,making up or some lost ground in 2012. Thiswas also mirrored in HSE and commissioningspeciically in the more senior roles, whereexperienced managers o projects in thesedisciplines were hard to ind.

When considering the various levels oseniority in employment, and in line with theprevious section, salaries were up. Howeverwe saw the biggest increase in graduatesalaries rising by more than 12 per cent to justunder US$40,000 equivalent. For an industrythat has historically under-invested in entry-level skills this is welcome news. At otherlevels, salaries or operators/technicians alsosaw rises o 9 per cent, as did the top end othe scale with base salaries in VP/Directorsrising by the same amount.


Once again we saw the average permanent salary or those in the oil and gasndustry rise by a signiicant amount. On the back o last years 6 per centrise, 2012 delivered another impressive increase in base pay o 8.5 per cent,rising to $87,300* as an average US dollar equivalent worldwide. There wouldbe ew industries with such a track record o growth over the last ew years inwhat has been, in the most part, an uncertain economic environment.

While the headline growth is impressive, the individual country igures onceagain portray the numerous orces shaping remuneration in the industry. Bethey issues stemming rom politics, the environment, the economy or in somecases armed conlict, each countrys salary tells a story.

Overall, we have seen the recruitment industry working well to iron out theextreme variations in pay, with those at the top o the table seeing salariesplateau or in some cases ease slightly, and those at the bottom seeing higherdemand or cheaper talent, which in turn raises sa laries. As the marketscontinue to become more eicient, with national borders less restrictive toskilled migration, and the movement o people more prevalent, this isnevitably the outcome.

n general the year saw increases or most countries as the global energyndustry remained buoyant. It is thereore more interesting to look at some o

those that ell and speculate why. There were a number o locations thatsuered rom issues stemming rom political allout, Iran and Venezuela beingthe obvious standouts. The delay in auctions in Brazil saw a drop in theirpreviously spiralling salaries (to some this would be a welcome respite). Someparts o Europe continued to suer rom the debt crisis with relatively latdemand, i.e. Spain; and in Poland the environmental lobby combined with anumber o disappointing drilling campaigns put the brakes on shale gasdevelopments and in turn local salaries.

At the top o this years table we once again see Australia and Norway. Bothcountries have limited skilled labour pools and signiicant workloads, theresult is very high pay rates, although both would appear to have met somesort o ceiling. Completing the top ive on local salaries, we also see NewZealand, Netherlands and Canada.

Where imported salaries are concerned, it is once again the rontiers o thendustry that are pushing the upper limits o pay. Representing a mix odanger money and hardship allowance in these base salaries, we ind Russiasarctic exploration driving imported skills, and Chinas drive on non-conventional skills also pulling in experts on premium rates. Along withAustralia, the Caribbean hub or oil and gas, Trinidad & Tobago, rounds othe top ive importers by salary level.

The major headwind in the world economy in late 2012 was the slowdown ingrowth within the Chinese manuacturing sector. It is thereore somewhatsurprising that their local and imported salary igures exhibit such growth.However, taking a closer look at the market this is clearly a relection o theirquest to become sel reliant on energy in the uture driving exploration andnrastructure development, than any immediate increase in domestic energydemand. Other countries showing big increases include Iraq, Nigeria, Thailandand Argentina. The irst two relect signiicant project demand; Argentina isplaying catch up on the previous years sluggish growth; and Thailand isncreasingly home to many oil and gas proessionals on rotation on oshoreacilities in South East Asia or North Western Australia.

n general the Asia Paciic countries have ared well in the year withSingapore, South Korea and Malaysia joining China in those with positivencreases. Aside rom the USA which saw a relatively lat year orremuneration (all be it at a high level) we did see increasing rates in Mexicoand Colombia, two hot spots or the region.

As we orecast in 2011, Northern Europe also came through with increasingsalaries relecting a lack o skills to meet burgeoning demand. Demographicssues contributed to this shortage, as did a brain drain o proessionalsoverseas, which continues to take its toll on the UK talent pool in particular. Therelative low salary levels in the UK clearly contribute to this eect, and it willtake urther signiicant rises domestically beore we see the trend reversing.

At the time o writing the oil price remained above $80 bbl and at this levelwe should see salaries continue to rise as we progress into and through 2013.This rise however will be modest and we would expect the increase to besomewhere in the bracket o 4 to 6 per cert. We also expect to see morelattening o the market as skills move around the world to alleviate pocketso acute demand, and employers move to those countries at the bottom oour tables to take advantage o lower cost levels.

*Respondents were asked to provide their base salary only in US dollarsequivalent, converting oreign currency into US dollars at the time o responding.

ANNUAL SALARIESBY COUNTRY

Local average

annual salary

Imported average

annual salary

Algeria 45,200 92,400

Angola 53,700 108,700

Argentina 94,200 60,000

Australia 163,600 171,000

Azerbaijan 47,500 133,500

Bahrain N/A 92,200

Brazil 111,000 131,400

Brunei N/A 123,100

Canada 123,000 122,500

China 68,300 161,400

Colombia 81,700 106,900

Denmark 109,700 148,500

Egypt 41,900 118,500

France 92,800 107,400

Ghana 40,500 121,600

India 38,900 111,800

Indonesia 45,200 146,000

Iran 46,900 68,100

Iraq 47,200 124,500

Italy 69,000 84,600

Kazakhstan 41,900 117,200

Kuwait 114,400 79,700

Libya 42,200 82,800

Malaysia 47,200 130,200

Mexico 50,000 132,300

Netherlands 123,800 84,900

New Zealand 127,600 110,700

Nigeria 55,100 140,800

Norway 152,600 128,600

Oman 72,600 92,100

Pakistan 32,600 70,000

Papua New Guinea N/A 145,600

Philippines 35,600 170,000

Poland 42,500 139,600

Portugal 51,000 125,800

Qatar N/A 77,900

Romania 34,400 105,200

Russia 57,900 151,100

Saudi Arabia 86,500 81,000

Singapore 84,900 103,900

South Arica 75,300 93,100

South Korea 81,400 141,800

Spain 68,900 97,900

Sudan 31,100 59,800

Thailand 49,400 142,400

Trinidad and Tobago 66,200 168,800

Turkey 77,400 101,900

United Arab Emirates N/A 79,400

United Kingdom 93,400 93,100

United States o America 121,400 123,800

Venezuela 62,200 113,000

Vietnam 53,300 132,700

Yemen 35,100 97,300

ANNUAL SALARIESBY DISCIPLINE AREA

Operator/

Te chni cian Graduate Interme diate Senior

Manager

Lead/

P ri nci pa l VP/ Di re ct or

Business Development/Commercial 53,500 35,600 48,900 65,500 100,900 184,300

Construction/Installation 58,700 46,400 57,200 80,600 124,000 191,400

Commissioning 62,000 47,400 53,300 96,700 139,600 N/A

Downstream Operations Management 59,300 42,800 53,600 74,900 103,900 174,600

Drilling 75,200 39,400 75,100 102,400 151,700 181,300

Electrical 59,600 37,100 50,800 73,100 98,000 N/A

Estimator/Cost Engineer N/A 38,100 51,700 68,500 103,800 N/A

Geoscience 58,500 43,400 58,800 101,800 144,500 230,000

Health, Saety and Environment (HSE) 55,000 39,900 58,100 76,900 107,500 148,500

Instrumentation, Controls & Automation 50,600 N/A 47,700 68,700 104,000 N/A

Logistics 57,800 34,300 40,200 70,200 85,200 114,500

Maintenance 54,100 41,100 47,400 87,700 108,600 N/A

Marine/Naval 62,700 41,100 55,300 87,900 112,800 142,200

Mechanical 53,700 38,900 54,100 75,600 108,300 158,500

Piping 49,400 34,100 43,100 68,900 104,800 N/A

Process (chemical) 54,900 38,600 52,200 81,200 117,300 166,100

Production Management 68,300 36,200 52,100 77,600 117,600 240,600

Project Controls 56,100 42,700 54,200 85,300 118,100 169,000

Quality Assurance/Quality Control (QA/QC) 51,300 40,000 52,400 76,300 102,400 123,200

Reservoir/Petroleum Engineering 51,800 37,500 66,300 96,800 124,100 153,300

Structural 52,800 34,500 51,100 68,400 101,200 191,700

Subsea/Pipelines 63,500 37,000 65,900 102,400 149,500 251,200

Supply Chain/Procurement 42,200 37,000 54,600 72,700 97,700 141,300

Technical Saety 55,300 31,900 50,400 75,600 110,500 142,400

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SECTIONTWO:INDUSTRY

BENEFITS

SECTIO





This data is ascinating. With such a healthyoil price, it is no surprise that the operatorsare increasing salaries by about 12 per cent,however, it was a surprise to see the global

super majors lagging their competition withonly a 6 per cent rise.

This aside, we saw the largest rise at morethan 16.7 per cent within the equipmentmanuacturers. There is some conjecture as towhy this is happening, however, it is probablyno coincidence that this industry was the leastwell paid o the company types surveyed in2011. It is only now ater a couple o years opositive revenue that they are starting to clawback some o the lost ground in what they canaord to pay their workorce. We have alsoseen technological demands in the industry

accelerating at a aster rate than at any pointin history. Much o the onus or meeting thesedemands rests with those in this sector andthis in turn is driving talent needs and the

salaries needed to recruit eectively.

The other under achievers historically interms o salaries are the service contractors,and these companies also saw a good returnin 2012 with an increase o 11 per cent.

In terms o the magnitude o the base salariesby company type, global super majors andother operators continue to lead the market aswe would expect, however the relative levelsbetween these two groups makes or someinteresting reading in itsel. As is evident bigis not always best.

Our data shows healthy rises in day rates ormost disciplines across all levels. Theoperator/technician level saw some o thelargest rises and at these l ower levels thisimplies volume hiring with plenty o projectwork available. As highlighted in this report itis the construction/installation companiesalong with the large EPCMs that have mostneed or contractors, and with a wave o newacilities now being built and coming throughdesign we would expect the operator/technician rates to continue rising.

The other signiicant rise was in the manager/lead/principal level, particularly in East/SouthArica and North Asia. The latter region sawgood rises across all levels or contractor ratesbeing led in the most part by largeengineering irms out o South Korea (withChina not ar behind). Constructing andabricating FPSOs, vessels, and large scalesubsea inrastructure, the need or seniorengineering talent is driving up rates, and alsosaw them elevated to the top o the table orimporting talent (see table on page 6).

Background or this section

Only where the sample size is large enough have we listed igures in these tables. Where not enough responses were received, entries are returned as N/A.

Permanent sta salaries are the igures returned by respondents as their base salary in US dollar equivalent igures (respondents were asked toconvert their salary into US dollars using xe.com at the time o responding) excluding one-o bonuses, pension, share options and other non-cashbeneits, or 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 o respondents based in their country o origin. Salaries listed under imported labourare representative o those who a re working in that country but originate rom another.

Contractor rates are listed as US dollar equivalent day rates as listed by respondents.

Notes: EPCM - Engineering, procurement and construction management; HSE - Health, saety and environment; QA/QC - Quality assurance/quality control.

ANNUAL SALARIESBY COMPANY TYPE

Operator/

Technician Graduate Intermediate Senior

Manager

Lead/

P ri nci pa l VP/ Di re ct or

Consultancy 56,100 36,100 50,600 82,600 119,300 162,500

Contractor 68,800 40,800 53,100 72,000 107,300 181,700

EPCM 57,000 48,400 54,800 82,000 126,300 172,000

Equipment Manuacture & Supply 50,400 30,700 50,600 61,700 85,500 166,200

Global Super Major 76,800 55,200 71,900 103,900 131,700 252,100

Oil Field Services 53,400 37,900 49,300 70,700 98,300 166,500

Operator 58,000 48,800 75,000 105,900 153,800 244,000

CONTRACTOR DAY RATESBY REGION

Operator/

Technician Intermediate Senior

Manager Lead/

Principal VP/Director

Northern Europe 430 490 720 850 1,130

Western Europe 390 360 550 770 940

Eastern Europe 300 250 340 460 N/A

CIS 350 440 580 830 880

Middle East 250 320 400 610 1,000

North Arica 310 300 440 560 N/A

West Arica 320 350 610 750 N/A

East/South Arica 310 270 450 820 790

South East Asia 330 320 450 750 1,060

North East Asia 240 340 630 940 1,260

Australasia 690 700 940 1,330 1,590

North America 420 490 760 840 1,110

South America 340 320 480 630 N/A

YEARLY SALARY CHANGES BY COMPANY TYPE

+6.4%

+11%

+8.4%

+16.7%

+5.6%

+9.1%

+11.8%

Consultancy

Contractor

EPCM

EquipmentManuacture& Supply

Global Super Major

Oil Field Services

Operator

2013 $96,000

2013 $83,000

2013 $98,900

2013 $71,900

2013 $107,700

2013 $73,400

2013 $115,500

2012 $90,200

2012 $74,800

2012 $91,200

2012 $61,600

2012 $102,000

2012 $67,300

2012 $103,300

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The rise in bonuses continues andnow represents the dominant mechanismby which companies attract and retain

their talent.

SECTION TWOINDUSTRY BENEFITSBonuses account or rise in benets.


5 LARGEST INCREASES IN BENEFITS Value o the benet as apercentage o the overall package

2013 2012 Increase

Bonuses 5.80% 4.78% 21%

Health Plan 2.90% 2.59% 12%

Home leave allowance/ights 2.30% 2.00% 15%

Hardship 1.50% 1.26% 19%

Housing 3.40% 3.13% 9%

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NT

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SECTIONF

OUR:ECONOMICOUTLOOK


SECTIONTWO:INDUSTRY

BENEFITS

INDUSTRY BENEFITSCompany benets

INDUSTRY BENEFITSOverview o industry benets

The signiicant igure in our data here is that the number o people notreceiving beneits has once again dropped, this year to just under 35 percent. We know rom our own activities that beneits and allowances are avital part o recruitment in the industry, where tailoring to the individual,the project and the business are increasingly commonplace. In this waycompanies are able to engage ar more with the individual they areseeking to employ and retention rates are bolstered. To some, the actthat 35 per cent do not receive any beneits is still incredible.

The main mechanism by which employers are engaging with candidatess through bonuses and this is where we have seen the largest growth,rising 7.8 per cent since 2011 to a total o 42.8 per cent o ourrespondents receiving some sort o bonus. Healthcare and home leaveallowances were the two other movers in 2012 rising 3.16 per cent and2.56 per cent respectively.

n terms o what these beneits were worth to individuals there was not agreat deal o change rom 2011. Tax assistance rose slightly as a percentageo what it is worth, however, slightly ewer were receiving it, so it has notmade much o an impression on the overall remuneration pool.

Breaking down the data into company types we see a similar pattern

across all sectors. The exceptions included a jump in healthcare provisionwithin equipment manuacturers and global super majors, a long withhome leave allowance showing a small increase across the board.

Almost 65 per cent o the respondents receive somebenet or allowance above their base pay, the highestrate o participation since the survey was launchedour years ago.

Background: The bar chart shows two igures related to beneits thatemployees in the oil and gas industry receive. The irst igure represents thepercentage o respondents that receive that particular beneit, i.e. 42.8% orespondents receive some sort o bonus. The second igure represents thevalue o that beneit stated as a percentage o their overall package orthose that receive it, which in the case o bonuses is 13.8%.

13.8%

16.5%

10.2%

16.1%

12.7%

12.1%

10.8%

12.0%

10.8%

14.4%

10.2%

12.6%

17.9%

17.5%

12.9%

42.8%

10.4%

7.5%

6.7%

9.5%

14.3%

18.9%

6.7%

26%

7.8%

19.1%

10.8%

19.2%

15.1%

18.2%

34.6%

Bonuses

Hardshipallowance

Commission

Hazardousdanger pay

Tax Assistance

Meal allowance

Pension

Share scheme

Health Plan

Schooling

Car/Transport/Petrol

Training

Housing

Overtime

Home leaveallowance/ights

No Benefts

Percentagethat receivethe beneft

Averagepercentage o theirtotal package

OVERVIEW OF INDUSTRY BENEFITS

TOP BENEFITS BY COMPANY TYPE

Overtime17%

Meal allowance13%

Home leave allowance/ights19%

Home leave a llowance/ights15%

Housing19%

Car/Transport/Petrol23%



No Benets

No Benets

No Benets

No Benets

39%

30%

30%

38%

Health Plan23%

Pension22%

Pension24%

Pension15%


Housing16%

Housing20%

Housing16%


Health Plan28%

Health Plan29%

Health Plan22%

Bonuses

Bonuses

Bonuses

Bonuses

35%

42%

43%

33%

EPCM/CONTRACTOR

EQUIPMENT MANUFACTURER & SUPPLY

GLOBAL SUPER MAJOR/OPERATOR

OILFIELD SERVICES/CONSULTANCY

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

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SECTIO

NT

HREE:INDUSTRYEMPLOYMENT

SECTIONF

OUR:ECONOMICOUTLOOK

INDUSTRY BENEFITSRegional benets

INDUSTRY BENEFITSRegional benets

TOP BENEFITS BY REGION

Overtime

Meal allowance

Home leave a llowance/ights20%

Overtime9%

9%

Overtime11%

19% Overtime18%

Meal allowance14%

Meal allowance24%



Housing


12%

11% Car/Transport/Petrol13%

24%

Housing29%

Housing17%


No Benets No Benets

No Benets No Benets

No Benets No Benets

No Benets No Benets

36% 49%

43% 34%

26% 27%

40% 25%

Pension

Pension

Health Plan

Pension19%

22%

27%

Pension22%

29%

Health Plan24%

Pension12%

Pension21%

Home leave a llowance/ights

Home leave allowance/ights

Housing21%

Meal allowance7%

10%

Training10%

22%



Housing13%

Health Plan

Health Plan


Health Plan25%

19%

12%

Health Plan35%

24%


Health Plan20% Health Plan39%

Bonuses Bonuses

Bonuses Bonuses

Bonuses Bonuses

Bonuses Bonuses

37% 30%

33% 37%

43% 40%

30% 39%

AFRICA EUROPE

AUSTRALASIA NORTH AMERICA

ASIA MIDDLE EAST

COMMONWEALTH OF INDEPENDENT STATES SOUTH AMERICA

TOP BENEFITS BY REGION


SECTIONTWO:INDUSTRY

BENEFITS

As with previous years Asia remains theregion in which more allowances and beneitsare paid out as a percentage o the overallpackage than any other region. The MiddleEast is not ar behind, with Arica and SouthAmerica next. Europe and North Americacontinue to weight their salaries towards basicsalary and consequently beneits are relativelyight in comparison.

n terms o regional dierences we identiied anumber o interesting patterns. In SouthAmerica health plans are given to ar moreemployees than any other region. They alsopay out a high proportion o meal allowances,at a level not seen elsewhere. In Asia there isa distinct absence o pension payments, aswell as overtime. This was oset by having thehighest payments o bonuses.

Whilst the Middle East and Asia continue todeliver higher levels o beneits across mostcategories, this is in the most part oset bylower basic salaries. Indeed the interrelationship between base salary and beneitsshould not be ignored when consideringregional dierences in overall remuneration.Perhaps even more o a actor or someregions is the level o tax on gross pay, andthis is where the majority o the Middle Eastclearly plays its trump card, having a zero taxon earnings.

Background: Graphs here and overlea show the top beneits by region and the percentage o people who receive them. CIS includes Russia and theormer Soviet Republics.

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SECTIONTWO:INDUSTRY

BENEFITS


SECTIO


INDUSTRY EMPLOYMENTStang levelsSECTION THREE

INDUSTRYEMPLOYMENTCondence remains high with almost a quartero employers expecting salaries to rise by

10 per cent or more in the next year.


Conidence levels in the industry on staingdemand remains high, in line with rising salarycosts. However, the level has come o rom2012 albeit only slightly. Through the latterpart o 2011 and early 2012 European debtworries dominated business conidence. Asthe year progressed the possibility o seriousinancial melt-down in Europe receded andthe markets became similarly alicted withconcern or the downturn in growth withinChina, an economy that has helped to prop upglobal activity or the last ew years. Thisconcern is having an impact on the widereconomy, however, less so in the oil and gas

world. Energy demand continues to edge upand demand or skills continue to outstripsupply in many regions.

The contractor base in the industry hasremained relatively static since 2011. We alsosee the use o contractors has continued topredominate in the construction andinstallation disciplines. However, looking aheadthe market does not have the sameconidence as last year that this contract basewill increase. While it is still high, more o oursample believes contractor numbers willremain static.

Interestingly, the use o expats appears to bealling, with more than 20 per cent o thoseresponding stating that their company did notemploy people on an expat basis. This is verymuch in line with the increasing trend tolocalise the workorce. The level o thoseexpecting the number o expatriates toincrease remains stubbornly high however.This was the same in 2011, despite this yearsdata showing a contraction in expat usecontradicting that orecast.

CONFIDENCE THAT STAFFING LEVELSWILL CHANGE IN THE NEXT 12 MONTHS

PERCENTAGE OF STAFF EMPLOYEDON A TEMPORARY OR CONTRACT ASSIGNMENT

PERCENTAGE OF WORKFORCEEMPLOYED AS AN EXPAT

DISCIPLINE AREAS IN WHICH CONTRACTORSARE EMPLOYED IN OIL AND GAS

Ops, Maintenance & Production

Petrochemicals

Project Controls

HSE & QAQC

Geoscience & Petroleum Engineering

Equipment & Supply

Engineering & Design

Drilling & Well Delivery

Subsea/Pipelines

48.3% 38.8% 12.9%

39.5% 35.7% 24.8%

43.7% 45.5% 10.8%

46.5% 38.3% 15.2%

30.5% 44% 25.5%

37.6% 42.7% 19.7%

40% 43.7% 16.3%

32.8% 41.7% 25.5%

36.1% 45.3% 18.6%

Always Sometimes Never

EXPECTATION THAT CONTRACTORLEVELS WILL CHANGE IN THE NEXT 12 MONTHS

EXPECTATION THAT EXPATLEVELS WILL CHANGE IN THE NEXT 12 MONTHS

39.6%Increase

43.4%Increase

44.3%Remain the same

48.5%Remain the same

16.1%Decrease

8.1%Decrease

Remain static None

None

22.9% 12.5%

21.1%

Increase between 5-10% Between 5-20%

Between 5-10%

23.9% 29.7%

22.8%

Decrease5.2%

Increase up to 5% Up to 5%

Up to 5%

23.2% 18.9%

20.1%

Increase more than 10% More than 20%

More than 10%

24.8% 38.9%

36%


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SECTIONTWO:INDUSTRY

BENEFITS


INDUSTRY EMPLOYMENTDiversity & movement o workorce

INDUSTRY EMPLOYMENTDiversity & movement o workorce

SECTIO



Disappointingly we didnt ind an increase inthe number o women working in the industry.With skill shortages as they are this appearsto be the ideal time to take advantage o whatshould be a sizeable proportion o theworkorce, unortunately it appears anopportunity missed. Regionally the Americasare aring better than other regions, as theonly two continents with more than 10 percent o emale workers. The Middle East,Arica and Asia are once again at the lowerend o the scale.

The spread o discipline splits amongstwomen in the industry remains the same asast year, with Business Development, Project

Controls and HSE as the largest sectors oemployment or emales.

There has been a small aging o the workingpopulation within our sample and this is in linewith the years o experience as documentedin the igure below. While overall the globaldata does not show any signiicant issues withdemographics, the same cannot be said ospeciic markets. The market with the mostacute issue is the US with more than 55 percent o respondents over 50 years o age. Webelieve that this is already driving the highdemand or talent in the US and Canada, thatwould appear to exceed current project andproduction needs.

In line with our own experience, the numbero oil and gas proessionals working overseascontinues to increase. In 2012 this percentagehas risen to 47.4 per cent, up rom theprevious years igure o 42.6 per cent. Thistrend is due to a number o actors, primarilythe promotion o inward skilled migration bynations governments that acilitates thegrowth. With skill shortages as they are, wedo not expect it will be long beore there aremore oil and gas proessionals overseas thanthere are in their own home countries.

O all the sections in this report, this one givesus the most insight into the markets aroundthe world and how they are aring. High levelso project work, lack o home grown talentand drives on localising the workorce can allbe identiied within these igures.

In Australia, the overall percentage o importsdropped, however we also know that theworkorce grew at a signiicant rate, and thisdemand was illed with Australian nationals.The proportion o Australian nationals workingat home once again grew or the third yearrunning. The Middle East continues to be the

largest importer o skills, although localisationo sta levels did manage to make a smalldent in the levels o those imported. In Asiathere was a signiicant increase in localparticipation, again we believe due to thosereturning home to higher rates o pay.

Moving the other way we saw something o anexodus o oreign nationals rom Europe, mosto which were heading east to chase thedollars. Arica continued to increase its importsas did South America as wages increased.

In terms o nationals working overseas (seetable below)the igures support three bigmovers in the export o sta. These include;Asian nationals, primarily rom thesub-continent, but also the Philippines andChina; Arica, with nationals mostly headingnorth to Europe; and more recently as thedata shows South Americans heading to bothEurope and North America.

9.1%

5.9%

6.5%

22.4%

5.6%

22.9%

8.3%

17.6%

8.3%

12.0%

3.1%

6.8%

10.2%

6.6%

1.3%

10.3%

3.9%

0.5%

49.4%

28.8%

50.6%

71.2%

90.9%

2.6%

18.2% 81.8%

48.1% 51.9%

35.6% 64.4%

23.8% 76.2%

14.2% 85.8%

43.2% 56.8%

58.9% 41.1%

34.7% 65.3%

86.4% 13.6%

23.5% 76.5%

27.8% 72.2%

31.5% 68.5%

33.0% 67.0%

42.5% 57.5%

93.5%

12.4%

94.4%

16.2%

91.7%

14.0%

91.7%

13.6%

96.9%

12.0%

89.8%

11.3%

6.1%

89.7%

9.3%

2.5%

Australasia

Australasia

Australasia

24 and under

Asia

Asia

Arica

Arica

Europe

Europe

CIS

CIS

Middle East

Middle East

North America

North America

South America

South America

Asia

25-29

Arica

30-34

Europe

35-39

CIS

40-44

Middle East

45-49

North America

50-54

60-64

South America

55-59

65 and over

Imported labour

Working overseas

Male

Male Local labour

Working in home country

Female

Female

IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

REGIONAL GENDER DIFFERENCES

MOVEMENT OF THE WORKFORCE

DIVERSITY OF STAFF AGE DEMOGRAPHICS

WORKING AT HOME OR ABROAD

52.6%Home

47.4%Abroad

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SECTIONTWO:INDUSTRY

BENEFITS


INDUSTRY EMPLOYMENTExperience and tenure

INDUSTRY EMPLOYMENTExperience and tenure

SECTIO



n 2012 we reported a large inlux o new andexperienced hires into the oil and gas industry.This saw record numbers o people in the zeroto our years experience bracket. This yearthese numbers remain high, although somehave moved through into the ollowing bandwith the net eect o increasing theexperience levels across the whole sample.The changes, however, are relatively small andndicate a more steady state market than inprevious years when the market was emergingrom a downturn.

n terms o disciplines, the construction andproject controls igures have both increasedtheir average experience level. This would

suggest that the wave o projects comingthrough the industry has gone through its peakand the big lex in headcount (those with zeroto our years experience) is behind us.

There was little change in most o theother disciplines, including those in thesub-surace areas.

Again we have seen only a small change in thetenure o respondents with a small increase.As the market settles into this particular cyclewe would expect tenure to continue toincrease, albeit gradually. Should the marketturn down then this may well accelerate aslast in: irst out principles start to take hold.

Last year we started to measure where oil andgas proessionals sought their new roles. Torecruiters there are a number o useulobservations that we can see derive romnumbers. Firstly that traditional newspaperadvertising continues to disappear as a sourceo job hunting. We also saw a small decline inthose seeking work through internal companywebsites, or internal moves. On the increasewas head hunting and the use o agencies. Jobboard use remains level at just over 15 per cent.

Tenure edged up slightly rom last years gures,reecting a less volatile market but one whichcontinued to drive hiring.

YEARS OF EXPERIENCE

TIME IN CURRENT ROLE

SOURCE OF NEW EMPLOYMENT

OIL & GAS INDUSTRY

2013

2012

FOR SPECIFIC DISCIPLINE AREAS

20 + years10-19 years5-9 years0-4 years

Construction/Installation

ProjectControls

Geoscience

Subsea/Pipelines

21.8%

27.1%

21.6%

21.8%

19.6%

25.1%

24.5%

25.1%

27.8%

23.7%

25.5%

23.4%

30.8%

24.1%

28.4%

29.7%

28.3%0-4 years

24.6%Less than 1 year

26.0%Less than 1 year

23.4%5-9 years

29.2%1-2 years

25.0%1-2 years

23.5%10-19 years

24.7%3-5 years

28.7%3-5 years

24.8%20+ years

13.7%6-10 years

12.0%6-10 years

7.8%10+ years

8.3%10+ years

Newspaper Company website Online job board Word o mouth

Head hunted Agency Internal move Other

6.1%15.0%

21.0%

16.0% 14.5%7.9% 7.1%

12.4%

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SECTIONTWO:INDUSTRY

BENEFITS


INDUSTRY EMPLOYMENTEmployment mix

INDUSTRY EMPLOYMENTEmployment mix

SECTIO



n last years data we saw most companies(outside o the constructors/installers)changing their mix o employment to includemore permanent sta, at the expense ocontractors (direct or through an agency). Thiswas appropriate or a market where conidencewas sky high.

This year, as conidence has come o its highs,weve seen the trend reverse with employersseeking more lexibility in their workorce. Themost pronounced shit occurred within thesuper majors and operators, closely ollowed bythe consultancies.

EMPLOYMENT MIX BY COMPANY TYPE

PERCENTAGE CHANGE FROM 2012 to 2013

Contractors

Consultancy

Oil Field Services

Equipment Manuacturer& Supplier

EPCM

Operators

Global Super Major

47.1%

42.9%

60.9%

80.7%

53.1%

59.5%

52.6%

2.5%

3.3%

3.5%

2.0%

1.6%

1.4%

1.5%

26.4%

27.4%

20.2%

10.3%

24.6%

14.9%

14.2%

24.0%

26.4%

15.4%

7.0%

20.7%

24.2%

31.7%

Permanent Permanent/Part-Time

ContractedDirect

Contractedthroughagency

5.1%

1.6%

0.0%

0.4%

5.9%

0.3%

4.8%

-0.6%

0.0%

-0.9%

-0.1%

-1.3%

-1.6%

-0.8%

2.4%

1.4%

0.4%

1.2%

0.1%

-0.5%

1.3%

-6.9%

-3.1%

0.5%

-1.5%

-4.7%

1.8%

-5.3%

GLOBAL SUPER MAJOR

EPCM

OIL FIELD SERVICES

CONTRACTORS

OPERATORS

EQUIPMENT MANUFACTURER & SUPPLIER

CONSULTANCY

Most o last years gainsin permanent hires were

reversed this year aseconomic concern saw amove towards more exibleemployment solutions.

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Skill shortages are now by ar the majorconcern or employers in the industry.

SECTION FOURECONOMIC OUTLOOKCondence was delicately balanced in the year with high prots

rom a buoyant oil price ofset by concerns over European debtand a slowdown in Chinas growth.


EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET

37.3%Skills shortages

7.2%Immigration/overseas

visa program

25.3%Economic instability

8.1%Security/saety caused

by social unrest

11.8%Environmental

concerns

1.6%Other

8.7%Saety regulations

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SECTIONTWO:INDUSTRY

BENEFITS

SECTIO


ECONOMIC OUTLOOKndustry outlook

ECONOMIC OUTLOOKMost signicant issues



These igures remain largely in line with 2011,which represents high levels o conidence incomparison to igures given in other years. Thiss a pleasing result or those involved in talentacquisition, showing that the market still has agreat deal to oer both employers and jobseekers alike. In 2008, beore the economicdownturn, the skill shortages were acute in aew select places. This caused salaries to spiralupwards, jeopardising many o the projectsthat caused the demand in the irst place.

This cycle has seen widespread demand, butwithout the critical spikes. This said it is withoutdoubt that investment rates o return arebeing tested in such locations as Australia andBrazil, however, we are yet to see this stallproject development.

The key actors aecting the market in late2012 included, on the positive side, a high oilprice, driven by growing energy demand. Thisis giving operators plenty o revenue to drive

development. Balancing this positive sentimentis concern around Chinas growth and whetherEurope will re-emerge as the trigger to create ameltdown. For now both orces are balancingeach other and producing a steady, buoyantmarket. It would, however, not take much topush the markets out o kilter either way, so it iswith some interest that we enter 2013. Whetheror not the current positive eeling turns totrepidation we will have to wait and see.

In terms o the worries or employers in theindustry, it is clear that skill shortages are theirnumber one concern. This is a change rom lastyear when this issue was on a par with thosearound the economy, and would indicate thatthe pendulum continues to swing towards acandidate-led market.

Economic worries were conversely waning aswere those concerns around environmentalactors and saety. Social unrest andimmigration issues remain steady and atrelatively low levels.

EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

2013

2012

26.0%Extremely positive

26.7%Extremely positive

47.8%Positive

46.8%Positive

20.7%Neutral

20.8%Neutral

5.5%Negative

5.7%Negative

EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

Middle East

North America

South America

Europe

CIS

Australasia

Asia

Arica

All 37.3% 25.3% 11.8% 8.7% 7.2% 8.1%

Skillsshortages

Economicinstability

EnvironmentalConcerns

Saetyregulations

Immigration/overseas visaprogram

Security/Saetycaused bysocial unrest

Other

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

Middle East Europe CIS Australasia

AricaAsia South America North America

16.6% 13.4% 13.3%

12.2% 10.4% 9.5% 8.3%

16.3%

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