THE OIL & GAS GLOBAL SALARY GUIDE 2012

Global salaries and recruiting trends.

SURVEY SUMMARY
DISCIPLINE AREAS COVERED

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

COUNTRIES WORLDWIDE REPRESENTED

RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

PEOPLE RESPONDED TO THE SURVEY

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

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

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

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

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

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


A GLOBAL PERSPECTIVE
WESTERN CANADA
Buoyant oil prices bring oil sands projects back on line and drives up salaries.

NORTH SEA
Hiring returns to the region following a difficult recession.

GULF OF MEXICO
The region sees a strong recovery in employment following the Horizon disaster of the year before.

PRE-SALT FIELDS, BRAZIL

The Brazilian government pursues its ambitious plans to develop the deep water pre-salt fields with multi-billion dollar investments.

WEST AFRICA
Further discoveries and a lack of social disruption continue to serve the region well. Salaries rise for both imported talent and a growing body of local skills.  OIL & GAS SALARY GUIDE 2012

POLAND
Emerging shale market attracts foreign multinationals to the many opportunities on offer.

CHINA
Chinese operators extend their activities overseas, whilst at home they aggressively expand operations to keep up with supplying the countries mounting energy requirements.

AUSTRALIA
Limited human capital, multiple mega-projects underway and a new emerging Coal Seam Gas industry drive salaries to the top of the global league table.

MIDDLE EAST
Iraq proves to be the major draw card in the region for new projects as the country starts to develop its extensive oil reserves.

Section one salary information

Permanent salaries rose 6.1% over the last 12 months.

OIL & GAS SALARY GUIDE 2012

changes to salaries in the last 12 months 2012

Increase more than 5%

49.5%

16.6%

29.7% 4.2% 100

100 100 100

Increase up to 5% Remain static Decrease

0 0 0 0 0 0 0 0

20 20 20 20

40 40 40 40

60 60 60 60 60 60 60 60

80 80 80 80 80 80 80 80

29.4%

20.4%
40 40 40 40

39.7%

10.5%

20 20 20 20

100 100 100 100

expected salary change in the next 12 months

Increase more than 10%

2012
0 0 0 0 0 0 0 0

32.4%
20 20 20 20 20

40 40 40 40 40

30%

60 60 60 60 60

20.9%

80 80 80 80 80 80 80 80

15.7%

100 100

Increase between 5-10% Increase up to 5% Remain static Decrease

1% 100
100 100

2011
21.6%

20 20 20

25.3%

40 40 40

28%
60 60

60

21.9%

100 100

3.2% 100

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

2011

SECTION TWO - INDUSTRY BENEFITS

Almost 50 per cent of respondents experienced an increase of more than 5 per cent to their salary compared to just under 30 per cent of respondents in 2011. A higher number of respondents also expect salaries to increase more than 10 per cent in the new year.

SECTION ONE - SALARY INFORMATION

SALARY INFORMATION salaries

SALARY

The headline figure in this data is the average permanent salary across the whole sample, which has risen this year to $US80,458 from last years figure of $US75,813. This is a significant increase for salaries across such a large sample and reflects the general buoyancy of the market following the down turn of 2008/9. The year saw a flurry of activity from most corners of the globe as countries sought to take advantage of a high oil price and pushed through new developments, and rejuvenated the old. The general well being was unique in comparison to previous upturns both in its scale and global coverage, leaving very few countries not playing some role in the rush for energy. This in turn drove up vacancies, hiring and salaries. The world was not without its share of economic worries, however (and without wishing to tempt fate) even the recent concerns in Europe have failed to impact the oil price significantly. This more than any other factor ultimately influences hiring intentions in the industry and its resilience led to a project rich environment for vacancies across deep water development, LNG and a range of non conventional plays. Adding to this buoyant outlook was a number of significant new field discoveries, and carbon capture also started to make its way from government funded research to live commercial projects. The hotspots around the world which saw significant salary rises included Brazil, Australia, China and Iraq. All were driven by huge projects underway, which added further pressure to the already stretched skill pool. Regionally, West Africa had a good year, as did South East Asia, Northern Europe (including Poland) and North America. When we break the figures down by local and imported we also noted an increase in those countries that actively encourage hiring local nationals. This took the form of significant increases in local pay whilst the imported figure remained relatively steady. Such examples included Saudi Arabia, Oman, Brazil and Venezuela. The list of those countries importing skills at a lower cost to the local market rates have grown markedly since last year and now includes the UK, Norway, Netherlands, Saudi Arabia, Brunei, New Zealand, Canada, the United States and Brazil. All sought to reduce their cost base by importing lower cost options from overseas. Perhaps more interestingly, are the countries that have seen falling salaries. Many of these are in two regions, Northern Africa and mainland Europe. Both are a reminder that whilst the demand for energy remains high the industry is not immune to what is going on in the world around us on a regional basis, be it social conflict or economic pain. For those looking from the outside in, the situation in Europe is of most concern. At the time of writing, the situation continues to weigh heavily on equity markets and trading conditions within the wider global economy. The impact of this sentiment has been felt already with some recruitment markets softening in the last few months of 2011, and day rates struggling to maintain previous levels.

Annual SALARies By Country

Algeria Angola Argentina Australia Azerbaijan Bahrain Brazil Brunei Canada China Colombia Denmark Egypt France Ghana India Indonesia Iran Iraq Italy Kazakhstan Kuwait Libya Malaysia Mexico Netherlands New Zealand Nigeria Norway Oman Pakistan Papua New Guinea Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Singapore South Africa South Korea Spain Sudan Thailand Trinidad and Tobago Turkey United Arab Emirates United Kingdom United States of America Venezuela Vietnam Yemen

Local average annual salary 40,600 48,400 68,800 164,000 40,400 N/A 119,600 140,500 128,700 55,700 69,000 106,300 35,300 92,100 40,200 39,300 45,000 52,200 36,900 68,400 39,700 N/A 44,100 46,800 43,600 138,500 116,500 45,600 180,300 68,000 31,600 29,600 37,100 61,000 49,400 N/A 34,400 59,100 102,900 79,700 79,200 N/A 70,700 29,200 40,300 65,300 67,100 N/A 87,100 124,000 75,500 47,600 30,000

Imported average annual salary 89,200 107,700 N/A 173,100 139,200 77,900 106,700 94,400 123,300 143,700 122,600 152,400 132,300 118,400 139,900 101,600 157,200 93,900 131,000 95,800 128,500 73,000 69,200 128,400 117,300 N/A 112,400 123,200 122,800 80,300 51,300 189,900 111,300 129,300 116,600 72,300 123,000 138,200 67,100 99,300 95,000 147,500 73,100 79,400 137,200 162,400 89,300 69,400 80,900 119,200 109,400 151,900 75,100

OIL & GAS SALARY GUIDE 2012

SALARY INFORMATION SALARIES

Annual Salaries BY Discipline area
Business Development/ Commercial Commissioning Construction/ Installation Downstream Operations Management Drilling Electrical Estimator/ Cost Engineer Geoscience HSE Instrumentation, Controls & Automation Logistics Maintenance Marine/Naval Mechanical Piping Process (chemical) Production Management Project Controls QA/QC Reservoir/ Petroleum Engineering Structural Subsea/ Pipelines Supply Chain/ Procurement Technical Safety Operator/ Technician 55,700 61,300 52,900 38,700 60,900 55,900 28,000 56,700 56,900 51,300 53,900 47,100 62,900 55,400 47,400 48,200 51,300 41,200 51,000 42,100 43,700 56,000 40,500 41,400 Graduate 38,400 N/A 47,300 33,800 30,900 28,600 29,600 35,100 35,200 33,900 31,000 N/A 38,300 30,400 28,400 30,100 31,800 42,400 37,000 37,900 35,600 38,600 29,500 32,500 Intermediate 51,800 68,500 57,400 37,700 75,100 47,400 39,000 58,700 58,700 48,000 42,500 N/A 55,000 45,100 43,500 47,100 59,300 49,000 48,700 61,400 44,900 59,500 48,600 44,300 Senior 60,700 76,800 78,000 62,700 98,000 67,800 67,100 109,000 79,600 75,300 72,500 54,600 85,100 66,700 59,000 68,100 67,500 78,600 68,300 97,800 59,200 105,200 58,200 58,500 Manager Lead/ Principal 94,700 116,200 118,500 103,600 142,500 98,400 107,900 140,100 95,900 107,800 82,400 84,600 115,200 102,700 96,900 104,800 107,700 112,000 94,400 123,400 105,800 146,900 98,500 110,000 VP/ Director 188,400 N/A 173,200 166,300 N/A 136,000 N/A 159,100 128,100 N/A 99,000 168,700 122,300 N/A 139,900 260,700 134,100 128,900 150,000 N/A 225,000 180,000 151,900 N/A

SECTION FOUR - ECONOMIC OUTLOOK

How much difference a year makes in the oil and gas industry is demonstrated by the rise in salaries within drilling. Last years figures showed those in this sector of the industry were sitting in the middle of the pack. This year they are level pegging with subsea engineering as one of the hotspots for salaries. With demand for onshore drilling on non conventional sources at an all time high, and rig utilisation offshore rising, labour demand in this sector is obviously buoyant.

Core engineering disciplines didnt fare so well with electrical, mechanical, structural and process engineers all flat in comparison to last year. These core disciplines are where most engineering professionals will start their careers, and may suggest why headline salaries have not increased beyond the levels seen.

SECTION THREE - INDUSTRY EMPLOYMENT

Undoubtedly we are delicately poised when it comes to salaries within the industry for next year. Without a European induced collapse in the global economy we will inevitably be faced with skill shortages in more than just a few select locations. This will drive salaries up further, and in this scenario we would expect a larger increase than the rise we have seen in 2011. With this said, and when considering the alternative, it would be a nice problem to have.

With drilling activity up, it is not unexpected that salaries for others in the exploration and production field are also strong this year. Geosciences and reservoir/petroleum engineers showed good increases and production management and logistics were also strong. Subsea engineering repeated its increases of last year and project controls and construction and installation proved that there was plenty of new projects under construction.

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

SALARY INFORMATION salaries

aNNUAL SALARIES By Company Type
Consultancy Contractor EPCM Equipment Manufacture and Supply Global Super Major Oil Field Services Operator Manager Lead/ Principal 120,300 101,900 120,600 73,800 129,400 89,400 149,200

Operator/ Technician

Graduate

Intermediate

Senior

VP/ Director 146,800 142,500 172,300 129,100 222,800 155,200 221,400

2044,600
46,300 49,500 42,900 60,200 49,300 51,000 20

40

32,700 60 31,300 36,400 28,300 48,300 31,500 48,700

80 46,800
51,300 51,700 38,900 70,300 51,300 72,300 80

100 76,000
65,800 79,400 59,700 93,100 69,200 97,400 100

40

60

In line with the increase in project work those working in an EPCM company saw a rise in salary as did anyone working for an operator. The most significant rises however came for those with the least experience within any of the company types, and reflected the increasing competition for entry

level talent compared to the year before. We also saw a rise for the most experienced end of the market as companies sought to put their increasing profits to good use, both in rewarding that talent, and also in attracting new strategic hires.

Yearly salary changes by company type

Consultancy

2012 $90,200 2011 $85,700 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $74,800 $75,600 $91,200 $87,000 $61,600 $62,900 $102,000 $100,800 $67,300 $64,100 $103,300 $97,500

+5%

Contractor

-1.1%

EPCM

+4.6%

Equipment Manufacture and Supply

-2.2%

Global Super Major

+1.1%

Oil Field Services

+4.8%

+5.6%

Operator

20000

40000

60000

80000

100000

120000

With the market on the increase, in general it was a year in which most company types saw increases in salary of around the 5 per cent mark. The exceptions to this trend included both general contractors and equipment manufacturers, both of which have a high level of local employees (as opposed to imported talent). In this respect both groups will be more aligned to local economies than any global forces and may explain the lack of growth. 

The third group to experience little movement in comparison to last year is the global super majors. This may be the effects of localisation/nationalisation drives within the workforce, reducing average salaries. Indeed we have noted an increase in local employees within this group from 47 per cent last year to approaching 55 per cent this year.

OIL & GAS SALARY GUIDE 2012

SALARY INFORMATION SALARIES

CONTRACTOR Day RATES By Region
Northern Europe Western Europe Eastern Europe CIS Middle East North Africa West Africa East/South Africa Southern Asia South East Asia North East Asia Australasia North America South America Operator/ Technician 410 350 260 300 220 280 310 280 190 210 310 630 410 300 Intermediate 440 370 290 350 320 380 330 310 220 260 300 680 430 320 Senior 670 690 380 630 360 380 480 380 270 440 440 970 690 550 Manager Lead/ Principal 840 850 500 730 540 500 660 670 380 720 780 1250 810 610 VP/ Director 1380 1100 900 830 820 750 910 N/A 560 1300 1130 1110 830 1830

Most contractor day rates have progressed through the year; however there were conflicting pressures on this market making it a complex back drop in which to extract any trends. In many ways employers were shifting their employment mix away from contractors to a more permanent staff base. This reduced the overall requirement for temporary employment and followed the increasing confidence employers felt throughout the year. Evidence of this can be clearly found within our results on pages 22 and 23. Countering this trend is a general increase in the practice of using contractors in new regions and countries. The flexibility to be found for both employers and employees is a compelling driver for those seeking to match the cost base with fluctuating revenues. Those regions experiencing skill shortages are most prone to hikes in contractor rates and it is no coincidence that both Australia and Brazil have seen the highest increases since last year. North Africa and Western Europe were relatively subdued reflecting weaknesses in their local economies.

Whilst the exchange rate movements through the year can account for some of the rise in the Australasian figures it is the local project led environment that is really driving the numbers. The same can be said for South East Asia, which continues to import a high level of expatriate skills. We also noted the rise of rates in West Africa as the region continued to expand.

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

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

Section two industry benefits

Benefits rise in the form of incentives.

10

OIL & GAS SALARY GUIDE 2012

Those benefits on the rise reflected the increasing confidence in the market and the desire of companies to provide an environment that incentivised growth. Consequently bonuses, commissions and share schemes all made the top five increases.

5 largest increases in benefitS

Value of the benefit as a percentage of the overall package

2012

2011

Increase

Bonuses Pension Commission Hardship allowance Share scheme

4.78% 1.94% 0.78% 1.26% 0.87%

3.52% 1.44% 0.30% 0.80% 0.48%

1.27% 0.50% 0.48% 0.46% 0.39%

11

INDUSTRY BENEFITS overview of industry benefits

SALARY INFORMATION Last year, we forecast an increase in benefits for this years
survey and our data has confirmed this prediction as correct. Somewhat surprisingly it was not the number of respondents receiving benefits that increased but how much they were getting. It appears that as companies have grown out of the recession then the increasing wealth has been shared - but not with all. In terms of numbers receiving benefits there were a few notable exceptions from the downward trend. These were share schemes, commissions and pensions, all of which rose compared to last years figures. These rises followed a global trend of wider company ownership within a companys employees, and more immediate returns for those tasked with selling their products and services. In line with these trends we saw once again bonuses were prevalent in terms of the make-up of allowances and benefits overall.

Those allowances that dropped included health care, home leave and housing allowance, which suggests fewer experienced expatriates. We also noted a reduction in overtime, a trend following the wider working population. Whilst the number of people receiving benefits returned a mixed bag of results in comparison to last year, the amount each of those benefits was worth was in positive territory across the board. Bonuses and commission payments led the way as we would expect given the market conditions, however a raft of other allowances also increased as more cash was available to meet specific requirements. These included allowances for meals, hardship, share schemes, schooling and training.

overview of industry benefits

50 40 30 20 10
Commission Tax assistance Health plan Car/transport/petrol Home leave allowance/flights Hardship allowance Hazardous/danger pay Meal allowance

Percentage that receive the benefit Average percentage of their total package

Share scheme

12

Background: The bar chart shows two figures related to benefits that employees in the oil and gas industry receive. The first figure represents the percentage of respondents that receive that particular benefit, i.e. 35% 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 13.7%.

OIL & GAS SALARY GUIDE 2012

No benefits

Bonuses

Pension

Housing

Schooling

Training

Overtime

35% 13.7%

8.9% 8.8%

10%

11%

17.2% 11.3%

28.8% 11.4%

17.6% 10.7% 17.8% 17.6%

15.6% 12.8%

8.5% 14.8%

7.2% 14.9%

14.1% 12.2%

7.3% 11.9%

8.1%

14%

10.9% 12.7%

14.8% 16.5% 40.2%

INDUSTRY BENEFITS company BENEFITS

SECTION ONE - SALARY INFORMATION

In terms of company type, operators and the majors continued to distribute more benefits to 40 40 50 50 their workforce than any other group at just over 30 30 40 40 29.5 per cent of overall package. 20 20 30
50 50 30 10 10 20 20 00 10 10 00
top benefits by company type EPCM/CONTRACTOR
50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10 0 0 50 50 40 40 50 50 30 30 40 40 20 20 30 30 10 10 42% 20 20 0 0 10 10
No benefits

Global super major/operator

32%
Bonuses

21%
Health plan

16%
Car/transport/petrol

17%
Housing

16%
Home leave allowance/flights

17%
Overtime

43%
Bonuses

23%
Pension

28%
Health plan

18%
Car/transport/petrol

19%
Housing

17%
Home leave allowance/flights

33%
No benefits

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

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

equipment manufacturer & supply oilfield services/consultancy

41%
Bonuses

21%
Health plan

22%
Car/transport/petrol

19%
Housing

17%
Meal allowance

16%
Overtime

35%
No benefits

33%
Bonuses

16%
Pension

21%
Health plan

17%
Car/transport/petrol

17%
Housing

15%
Home leave allowance/flights

42%
No benefits

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

13

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

INDUSTRY BENEFITS regional BENEFITS

Across most geographic regions we saw an increase in the value of the benefits paid, although most significantly in Africa and Asia. Australasia, Russia & the CIS, and Europe were also in positive territory. As has been the case in recent years we have seen most of the increases coming from developing nations, which is reflective of the desire of companies in these regions to retain trained staff in the face of increasing competition from overseas. While both North and South American figures fell slightly, it was the Middle East that saw the largest drop in the value of the benefits in comparison to overall package. This was from previous highs of 38 per cent the year before to just over 32 per cent. However there is some evidence to suggest that this is more reflective of employers in that region shifting the emphasis in remuneration towards higher base salaries and away from allowances. This relationship between benefits and base salary should not be ignored when considering the relative make up of employees remuneration. Whilst some regions continue to place more emphasis on either base salary or benefits, we have found that all regions are trending towards 72 per cent base salary and 28 per cent benefits.

top benefits by region Africa asia

50 40 50 30 40 20 30 10
Car/transport/petrol Home leave allowance/flights Health plan Housing Meal allowance Bonuses No benefits

On average, benefits received by those working in 50 Africa are valued at 34% of their total package.

On average, benefits received by those working in Asia are valued at 36% of their total package.

40 50 30 40 20 30 10
33% 24% 19% 21% 18% 19% 28%
Health plan Housing Pension Car/transport/petrol Overtime Bonuses No benefits

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

20 0 10 0 50 40

42%

18%

27%

22%

23%

18%

25%

australasia

On average, benefits received by those working in 50 Australasia are valued at 17% of their total package.30 40 20

On average, benefits received by those working in CIS are valued at 23% of their total package.

commonwealth of independent states

30 10 20 0 10
38%
Bonuses

Pension

Health plan

Bonuses

Pension

Car/transport/petrol

Home leave allowance/flights

Meal allowance

No benefits

Schooling

Health plan

Training

14 50OIL & GAS SALARY GUIDE 2012

Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. CIS includes Russia and the former Soviet Republics.

50 40

40

No benefits

Housing

17%

14%

11%

8%

8%

35%

33%

13%

19%

13%

15%

13%

37%

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

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

Top benefits by region europe middle east

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

On average, benefits received by those working in 50 Europe are valued at 16% of their total package.

On average, benefits received by those working in the Middle East are valued at 32% of their total package.

29%
Bonuses

21%
Pension

19%
Health plan

14%
Car/transport/petrol

8%
Meal allowance

8%
Overtime

43%
No benefits

38%
Bonuses

22%
Health plan

21%
Car/transport/petrol

26%
Housing

23%
Home leave allowance/flights

19%
Overtime

25%
No benefits

0 50

36%
Bonuses

21%
Pension

32%
Health plan

12%
Car/transport/petrol

8%
Housing

12%
Overtime

30%
No benefits

Health plan

Bonuses

Pension

Car/transport/petrol

Meal allowance

Training

No benefits

37%

15%

34%

22%

31%

12%

28%

15

SECTION FOUR - ECONOMIC OUTLOOK

On average, benefits received by those working in 50 30 North America are valued at 21% of their total package. 40 20 30 10 20 0 10

north america south america 40

On average, benefits received by those working in South America are valued at 33% of their total package.

SECTION THREE - INDUSTRY EMPLOYMENT

40 50 30 40 20 30 10 20 0 10

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

40 20 30 10 20 0 10

40 20 30 10 20 0 10

INDUSTRY BENEFITS regional BENEFITS

Section three industry Employment

Over a fifth of all employers expect salaries to increase by more than 10 per cent in the next year.

16

OIL & GAS SALARY GUIDE 2012

INDUSTRY EMPLOYMENT STAFFING LEVELS

The confidence in the staffing markets at the point the survey data was taken was particularly high, although it is worth noting that data was taken in September and October 2011, before the world economy started to falter around European concerns. Over a quarter of those surveyed expected an increase in staffing levels by 10 per cent or more, which is an unprecedented level of confidence since this survey first started. As 2011 came to a close, it is this confidence that is most at risk from depressed sentiment engulfing the media. As mentioned earlier, the use of contractors has become more widespread in comparison to the year before. The use of expats continued to expand on the back of forecasted growth last year, and once again the market appears to believe it will grow again in 2012.
SECTION ONE - SALARY INFORMATION

4.3%
Increase more than 10%

26.1% In the next 12 Months do you Increase between 5-10% 21% expect Staffing levels to:
Increase up to 5% Remain static

11.3%

More than 20%

What percentage of your staff Between 5-20% is currently 37.2% employed on a temp/contract basis 0-5% 21.9%
None

23.3%

25.3%

Decrease

29.6%

If your company employs contractors, please indicate in which areas:

Engineering Geoscience Drilling Construction/Installation Project controls

Always Sometimes Never

change in the next 12 months?

16.3% 45.9%

Increase Remain the same Decrease

37.8%

18.9% 34.9%

Increase more than 10% Increase between 5-10% Increase up to 5%

6.8%

Increase Remain the same

49.6% 43.6%

Decrease

20.6% 25.6%

None

17

SECTION FOUR - ECONOMIC OUTLOOK

currently employed on an expat What percentage What percentage of your ofworkforce your workforce is package is What percentage of your workforce is percentage ofan workforcE What What percentage percentage of on your of workforce your workforce is employed is currently currently employed employed on expat an expat package package currently employed on an expat package as employed an expat currently currently employed on anon expat an expat package package

01 01 01

0 20 40 60 80 100 001 08 06 04 02 0 0 1 08 08 06 06 04 04 02 02 0 0 0 8 0 6 0 4 0 2 0 What percentage of your workforce is 0 1 08 08 06 06 04 04 02 02 0 0

How do you expect this to change in the next 12 months How do How you do expect you expect this tothis change to change in the in the How do you expect this to change in the expectation that expat levels How 12 do How you do expect you expect this to this change to change in thein the next next months 12 months next 12 months will change in the next 12 months next 12 next months 12 months

SECTION THREE - INDUSTRY EMPLOYMENT

If your Ifcompany your company employs employs contractors, contractors, If your company employs contractors, If your If company your company employs employs contractors, contractors, please please indicate indicate in in which areas: areas: areas inwhich which contractors are please indicate which areas: please please indicate indicate in which in which areas: areas: employed in oil and gas

How you How expect you expect this percentage thiscontractor percentage to tolevels expectation How you expect thisthat percentage to How you How expect you expect this percentage this percentage to to change change in the in next the 12 next months? 12 months? will change inmonths? the next 12 months change in the next 12 change change in the in next the 12 next months? 12 months? How you expect this percentage to

SECTION TWO - INDUSTRY BENEFITS

In theIn next the12 next Months 12 Months do you do you In the next 12 Months do you In theIn next the12 next Months 12 Months do you do you levels will expect expect Staffing Staffing levels levels to: to: Confidence that staffing expect Staffing levels to: change in the next 12 months expect expect Staffing Staffing levels levels to: to:

staffing levels

What percentage What percentage of your ofstaff your is staff currently is currently What percentage of your staff is currently What What percentage percentage ofof ofstaff your is staff currently is currently employed employed on a temp/contract on ayour temp/contract basis basis Percentage staff employed on a employed on a temp/contract basis temporary contract assignment employed employed on a temp/contract onor a temp/contract basis basis

INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE

This year we have seen an increase in the number of women working in the industry, however the pace of growth is not as quick as most would like. The percentage this year has risen to 7.8 per cent up from last years figure of 7.1 per cent. Sadly, to achieve parity with the wider general workforce in terms of gender diversity will take over 30 years at the current rate of growth. We have noted a small decrease in the average age of those working in the industry from 36.5 down to 35.5 years old. This is consistent with the rest of our data, which shows that while there was a good level of new entries into the industry, many of these people were experienced staff from other industries. This has reduced the average level of experience in the industry; however it has had only a marginal effect on age.

Diversity of staff

diversity of staff

Diversity of staff

gender in oil and gas women in oil and gas

Diversity of staff
Business development 16% 7.4%
0
0 20

sity of staff Diversity of staff

Project controls HSE Supply chain QA/QC Construction/installation Other

20

40

60

40

92.2%
80

60

100

80

100

7.8%
51.2% Female 100 9%
Diversity of staff

Diversity of staff

50

Male 0 Age Bracket 20

6.2%

40

60

80

5040
30 20 50

Age Bracket

5.4%

4.8%

Age Bracket
0 20 40 60 80 100

40Demographics
40 10 30 30 0

Age Bracket

Male Female

20 20 10 0 0
10

21.9% 27.1% in country Based of origin

17.2%

8.9%

7.9% 10.2%
45-49

5.5% 10.3%
50-54

5.6% 4.3%
-24

3.1% 7.7%
55-59

1.1% 5.1%
50-54

16.9%
25-29

17.4%
30-34

14%
35-39

12.4%
40-44

1.7%
65+

Based in country of origin

working at home or abroad 2012

Based in country of origin

Based in country of origin

57.3% 42.7%
Abroad

100 80 60
80
18 40 OIL & GAS SALARY GUIDE 2012
Home

100

20

30 40 20 30
Since the bottom of the recession in 2009 the number of 10 20 people working overseas in oil and gas has been steadily increasing. This is consistent with employers having to search 0 afield to find the skills they require. However, there is still 10 further some way to go before the levels rise to those achieved in mid 2009 of over 45 per cent. Based in country of origin Last year we reported a quick exit from the downturn in Australia, and a corresponding sharp increase in the number of Based in country of origin overseas candidates that came into the market to work on the countrys burgeoning LNG projects. This trend has continued with overseas workers now making up over 53 per cent of the market. Europe was the only other region to follow this trend as many of those imported skills previously retrenched through the downturn returned to take up roles in a rejuvenated labour market.

INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE

Elsewhere, trends showed a downwards movement regarding imports as localisation and home grown skills development programs started to come through. The regions showing the most changes were Africa, CIS and South America. In general this was accompanied by a reduction in age and experience as much of this recruitment was taking place with those at the entry level. The graphs below represent the movement of candidates and how specific regions nationals are working locally or overseas. So where we have seen the number of imports rise within the busy Australian market, we have also seen a great number of nationals returning home to take advantage of the high salaries. This was going against the trend elsewhere that saw a general drift overseas in search of better remuneration.
SECTION ONE - SALARY INFORMATION

MOVEMENT OF THE WORKFORCE IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE

Imported labour Local labour

100 80 100 60 80 40 60 20 40
Asia Europe Australasia Africa CIS Middle East North America

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

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

Working overseas Working in home country

South America

0 20

53.8% 46.2%

23.2% 76.8%

28.8% 71.2%

33.5% 66.5%

51.6% 48.4%

88.4% 11.6%

29.2% 70.8%

27.2% 72.8%

Australasia

Asia

Africa

Europe

CIS

Middle East

North America

South America

28.3% 71.7%

42.4% 57.6%

16.9% 83.1%

42.1% 57.9%

28.2% 71.8%

20.7% 79.3%

29.3% 70.7%

27.3% 72.7%

19

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE

Within last years survey we reported a sharp decrease in those with less than four years experience in the industry. This was consistent with a drop in recruitment for those with little or no experience and was reflective of the fact the industry was recovering from the recession of previous years. In 2012, the pool of available talent has diminished significantly and this has led many companies to employ new talent and seek to retrain. As a result, the percentage of those with less than four years experience has grown from 20 per cent of the total workforce to just over 36 per cent. It is worth noting that in 2010 the figure was over 40 per cent when the market was arguably at its peak so we still have a small way to go before we hit that mark. The picture becomes more pronounced when broken down by job function, with Geo-science and Subsea/Pipelines showing little change from last year, and in some cases edging up slightly in terms of average experience. However we have seen a reduction in construction/installation and project controls. Both disciplines are clearly project led and indicate that the project development space has attracted the most newcomers. In our experience this is where most skills can be transferred into oil and gas from other industries.

Years of experience

20

40

60

80

100

Years of experience

YEARS OF EXPERIENCE
OIL & GAS INDUSTRY
36.3%
0

22.2%
40

20.9%
60 80

20.6%
100

0-4 years 5-9 years 10-19 years

Construction/instrallation
20

geoscience

FOR SPECIFIC DISCIPLINE AREAS

Construction/Installation

20+ years

Project controls Construction/instrallation

geoscience

Geoscience

Subsea/Pipelines 0 20 40 60 80 100

20

40

60

80

100

20

OIL & GAS SALARY GUIDE 2012

INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE

0 0

Tracking last years figures, tenure has remained static with just over 25 per cent of respondents 40 years experience 60 80 possessing20 in their 20less than one 40 60 80 current role. Again this indicates a busy market 0 20 deal of hiring 40 60 80 place. 100 with a great activity taking

timein incurrent current role Time role Time in current role

Time in current role

2011

2011 2011
Less than 1 year

2012
26%
0 0
0

25%
20 20
20 40

28.7%
60

12%
80 80
100

8.3%
100 100

1-2 years 3-5 years

40 40

60 60

80

24.7%
0 20

23.8%
40 60

31.5%
80 100

11%

9%

More than 10 years

0 0

20 20

40 40

60 60

80 80

100 100

source of new employment

8.5%
Newspaper

13%
Company website

15.1%
Online job board

21.3%
Word of mouth

13.6%
Head hunted

13.6%
Agency

8.3%
Internal Move

6.6%
Other

21

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

2011

6-10 years

SECTION TWO - INDUSTRY BENEFITS

SECTION ONE - SALARY INFORMATION

INDUSTRY EMPLOYMENT EMPLOYMENT MIX

Aside from the equipment manufacturers, the year saw a sharp rise in permanent staff as a percentage of the overall workforce. This trend continued year-on-year as companies sought to build up their core skills in a buoyant market. The increase in permanent staff was in some cases at the expense of temporary staff. However it should be noted that this does not signify a drop in contractor numbers, only a reduction in their share of the total employed. Contracting companies and consultancies appear to have been most bullish, making a strong rebound on the back of a buoyant project market. Correspondingly there was less of a fall in the use of temporary contractors within these employers as they coped with extra workload. Equipment manufacturers have reduced overall staffing levels and may be feeling the effects of the recent economic turmoil somewhat earlier in the project cycle than other companies. Should this trend flow through to other parts of the industry, we would expect the use of contractors to rise in response to uncertainty around the general economy.

employment mix by company type

Global Super Major Operators EPCM Equipment manufacturers & Suppliers Oil Field Services Consultancy Contractors 0 0 20 20 40 40 60 60 80 80
Operators

Permanent Permanent / part-time Contracted direct Contracted through agency

100 100

120

Global Super Major

Percentage change from 2011 to 2012 global super major operators

0 20 40 60 80
Global Super Major Operators

100

120

EPCM

7.5% 0.7% -3.3% -4.9%

Equipment man.

5.2% 0.2% -0.2% -5.2%

EPCM Oil Field Services

Consultancy

Equipment man.

22

OIL & GAS SALARY GUIDE 2012

0
Global Super Major

20

40

60

80
Operators

INDUSTRY EMPLOYMENT EMPLOYMENT MIX

SECTION ONE - SALARY INFORMATION

100

120

epcm equipment manufacturer & supplier

EPCM 0 Global Super Major 6.1% 0.6% EPCM -6.8% 0.1% Equipment man. -0.8%

20

40

60

80 Equipment man. 100

Operators -1.1.% 0.6% 1.3%

120

Oil Field Services EPCM

Consultancy Equipment man.

oil field services consultancy

Oil Field Services Consultancy

8.3% 1.4% -1.7% Consultancy -3.9% -3.9% 0.5%

7.3%

-8%

Contractor

Contractor
Contractor

8.6% 0.1% -3.8% -4.9%

23

SECTION FOUR - ECONOMIC OUTLOOK

the year saw a sharp rise in permanent staff as a percentage of the overall workforce

SECTION THREE - INDUSTRY EMPLOYMENT

Contractor Oil Field Services

SECTION TWO - INDUSTRY BENEFITS

Section FOUR ECONOMIC OUTLOOK

It was a good year for the Oil & Gas industry with confidence being led by a robust oil price.

24

OIL & GAS SALARY GUIDE 2012

25 20As

employers concerns in the current employment market

1.6%
Skills shortages

8.3% 7.1% 30.6%

Economic instability Environmental concerns Safety regulations

10.1%

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

13.3% 29%

Other

25

SECTION FOUR - ECONOMIC OUTLOOK

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

the market continued to 15heat up so did the concern for skill shortages. This has grown 10 as a percentage of the overall 5sample from 28 per cent to over 030 per cent and now represents the largest concern of those in the industry.

SECTION ONE - SALARY INFORMATION

ECONOMIC OUTLOOK Industry outlook

Employers confidence in the current employment market has seen a large increase in comparison to last years results, with the very positive share up to 26.7 per cent from last years 9.7 per cent. Whilst the majority of regions were experiencing solid growth this time last year, the Gulf of Mexico and the North Sea markets were still shaking off the effects of the recession, which consequently weighed down the overall average. Since the start of 2011, those markets came on line from a hiring perspective and this removed any negative sentiment in the market. A huge 73.5 per cent of the market is either positive or very positive. (Again it is worth noting that data was taken in the 3rd quarter of 2011, before the market experienced any negative sentiment.) With regards to where individuals believe their operational focus will be in 2012, the Middle East again leads the way, although the percentage is down slightly in comparison to last years figures. A number of other regions followed this trend with only the North American and European markets showing an increase. This appears to be in line with the comments in previous sections regarding the pick up in activity in the Gulf of Mexico and the North Sea.

Employers confidence in the current employment market

2012
26% 26.7%
0 20 40

Extremely positive

46.8%
60

20.8%
80

5.7%
100

Positive Neutral Negative

2011
9.7% 24.7%

20

40

45.1%

60

80

33.4%
60 80

100

11.8%
100

20

40

25
0 20 40 60 80 100

20 15 10 5 0
employers geographical focus over next 12 months outside of their own regional area

10.7%
Central Asia

11.7%
East Asia

10%
Australasia

7.1%
Eastern and Continental Europe

10.2%
UK and Northern Europe

20.8%
Middle East

8%
North America

8%
South America

13.5%
Africa

26

OIL & GAS SALARY GUIDE 2012

ECONOMIC OUTLOOK most significant issues

As the market continued to heat up so did the concern for skill shortages. This has grown as a percentage of the overall sample from 28 per cent to over 30 per cent and now represents the largest concern of those in the industry. This is being felt most acutely in Australia and South America, the two hotspots in the world where local resources are most stretched. North America and Europe are following close behind. Not surprisingly economic stability is also a concern at 29 per cent. It is only in Australasia with its booming market where this appears to be of lesser concern. Moving the other way and slowly diminishing from peoples focus is environmental and safety concerns. We can only assume, as time passes by so does the memory of the oil spill in the Gulf, and the issues surrounding the cause of that event attract less attention. This year we have included a new response which we have sought to gain an insight into, namely social unrest. As expected, we saw spikes in concern in both Africa and the Middle East. A comparison of data on this issue will make for interesting reading in subsequent years.
SECTION ONE - SALARY INFORMATION

employers concerns in the current employment market

Skills shortages Economic instability Environmental concerns Safety regulations

All

Africa

Asia

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

Australasia

CIS SECTION FOUR - ECONOMIC OUTLOOK

Europe

Middle East

North America

South America
0 20 40 60 80 100

20

40

60

80

10

27

SECTION THREE - INDUSTRY EMPLOYMENT

SECTION TWO - INDUSTRY BENEFITS

ABOUT HAYS
COUNTRIES WORLDWIDE

32 257 7,620 60,000 190,000

offices worldwide

Consultants WORLDWIDE

PERMANENT CANDIDATES PLACED LAST YEAR

PEOPLE PLACED INTO TEMPORARY ASSIGNMENTS LAST YEAR

We are leading global experts in qualified, professional and skilled recruitment. Last year our experts placed around 60,000 candidates into permanent jobs and around 190,000 people into temporary assignments. We employ 7,620 staff operating from 257 offices in 32 countries across 20 specialisms. We have market-leading positions in the UK, Asia Pacific, Continental Europe and Latin America.

28

OIL & GAS SALARY GUIDE 2012

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