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THE OIL & GASGLOBAL SALARYGUIDE 2012Global salaries and recruiting trends.

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DISCIPLINE AREAS COVERED 24COUNTRIES WORLDWIDEREPRESENTED 53

RESPONDENTS WORK WITHA GLOBAL SUPER MAJOR 1,200+

RESPONDENTS AREEMPLOYERS IN THE INDUSTRY 5,400

PEOPLE RESPONDED TO THESURVEY 14,400+

SURVEY SUMMARY

THANK YOUWe would like to express our gratitude to all those organisations and individuals who participated inthe collection o data or 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 in ormative document to helpsupport your business decisions.

Disclaimer: The Oil & Gas Global Salary Guide 2012 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. There ore in ormation should be used as a guideline only and should not be reproduced in total or bysection without written permission rom Hays.

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CONTENTS

2 A global perspective

Section one - salary in ormation

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 benefts

2 Overview o bene ts

3 Bene ts by company type

4 Bene ts by region

Section three - industry employment

7 Sta ng levels

8 Diversity and movement o work orce

20 Experience and tenure

22 Employment mix

Section our - economic outlook

26 Industry outlook

27 Most signi cant issues

From boom times in Australia and Brazil to unrest in North A rica, our reporton salaries once again displays the many trends, events and orces that shapethe complex world o how people are paid in the oil and gas industry. We areo ten very aware o remuneration within our own regional industry (it is oneo those topics that impacts us all in some way), however very ew o us have

a good handle on how remuneration changes as we move around the world.This is the endearing quality and attraction o this document and we arepleased to say the main reason why it receives so much interest throughoutthe industry.

In general the trend in remuneration or 2011 was up; driven on by a buoyantoil price and most countries around the world seeking to explore or, orextract the energy resources they need to advance their own economies.Indeed it was a year that stood out rom others in the breadth o geographiccoverage. Whilst South America and Asia Paci ic continued to lead the wayin new investment, two o the traditional power houses o the industry, theNorth Sea and the Gul o Mexico, also came back on line in terms o hiring.This added to an already busy market, where very ew areas o the globe

were le t untouched.This wider participation was also re lected in those completing our survey,both in their geographic coverage and their number. To have over 14,000respondents this year was a tremendous number which exceeded allexpectations. This large response has allowed us to drill down into morespeci ic roles, disciplines and regions. In this regard individuals can moreclearly identi y their own situation whilst at the same time we can ensure thatthe igures we produce are an accurate portrayal o the market.

Whilst assessing our own individual package against the igures is anemotive and o ten interesting activity, it is the movement o remunerationand employment trends over the last three years that provide the most

ascinating insights. In general the market in 2010 re lected the tail end o theglobal recession o the previous year and was urther weighed down by theoil disaster in the Gul o Mexico. In 2011 we have seen these issues le t behindand the market regain most o those losses, particularly so when it comesto permanent salary packages and bene its. Contractor rates are still belowthe highs o 2008, and with the general dri t towards permanent sta ingit remains to be seen whether they will return in the near uture. Whilst themarkets have so tened towards the end o the year in the ace o intensenegative sentiment around Europe, the data shows an entrenched con idencethat should prevail through 2012 and beyond.

Last years Salary Guide was downloaded by over 150,000 people. With aurther 10,000 hard copies distributed at various industry exhibitions and

con erences, it is ast becoming the re erence o choice or those wishing tocompare remuneration globally. This continues to be our driving ambition,and we will continue to work hard in improving the content to ensure that itremains as such.

There are numerous people to thank in the compilation o this document, notleast o which are the many industry pro essionals that took valuable timeto complete the survey. We would also like to thank those in our respectiveteams at Hays Oil & Gas and Oil and Gas Job Search that spent many anhour analysing the data and designing the ormat. Once again their hardwork and the time taken by those responding have combined to produce agreat re erence document or our industry.

Matt UnderhillManaging Director, Hays Oil & Gas

Duncan FreerManaging Director, Oil and Gas Job Search

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OIL & GAS SALARY GUIDE 20122

A GLOBALPERSPECTIVE

PRE-SALT FIELDS, BRAZILThe Brazilian government pursuesits ambitious plans to develop thedeep water pre-salt elds withmulti-billion dollar investments.

GULF OF MEXICOThe region sees a strong recovery inemployment ollowing the Horizon disaster othe year be ore.

NORTH SEAHiring returns to the region ollowinga di cult recession.

WESTERN CANADABuoyant oil prices bring oil sandsprojects back on line and drivesup salaries.

WEST AFRICAFurther discoveries and a lack

o social disruption continue toserve the region well. Salariesrise or both imported talent anda growing body o local skills.

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3

AUSTRALIALimited human capital,multiple mega-projectsunderway and a newemerging Coal SeamGas industry drivesalaries to the top othe global league table.

POLANDEmerging shale market attracts

oreign multinationals to the manyopportunities on o er.

CHINAChinese operators extend theiractivities overseas, whilst at homethey aggressively expand operationsto keep up with supplying thecountries mounting energyrequirements.

MIDDLE EASTIraq proves to be the major draw

card in the region or new projectsas the country starts to develop itsextensive oil reserves.

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SECTION ONESALARY INFORMATION

Permanent salaries rose 6. % over the last 2 months.

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S E C T I O N O N E - S A L A R Y I N F O R M A T I O N

S E C T I O N T W O

- I N D U S T R Y

B E N E F I T S

S E C T I O N T H R E E

- I N D U S T R Y E M P L O Y M E N T

S E C T I O N F O U R

- E C O N O M I C O U T L O O K

Almost 50 per cent o respondentsexperienced an increase o morethan 5 per cent to their salarycompared to just under 30 per cento respondents in 2011. A highernumber o respondents also expectsalaries to increase more than 10per cent in the new year.

Increase more than %

Increase up to %

Remain static

Decrease

Increase more than 0%

Increase between - 0%

Increase up to %

Remain static

Decrease

CHANGES TO SALARIES IN THE LAST 12 MONTHS

ExPECTED SALARY CHANGE IN THE NExT 12 MONTHS

2012

2011

2012

2011

49. % 6.6% 29.7%

4.2%

29.4% 20.4% 39.7% 0. %

32.4% 30% 20.9% .7%

2 .6% 2 .3% 28% 2 .9%

%

3.2%

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SALARYSALARY INFORMATIONSALARIES

Algeria 40,600 89,200

Angola 48,400 07,700

Argentina 68,800 N/A

Australia 64,000 73, 00Azerbaijan 40,400 39,200

Bahrain N/A 77,900

Brazil 9,600 06,700

Brunei 40, 00 94,400

Canada 28,700 23,300

China ,700 43,700

Colombia 69,000 22,600

Denmark 06,300 2,400

Egypt 3 ,300 32,300

France 92, 00 8,400

Ghana 40,200 39,900

India 39,300 0 ,600

Indonesia 4 ,000 7,200

Iran 2,200 93,900

Iraq 36,900 3 ,000

Italy 68,400 9 ,800

Kazakhstan 39,700 28, 00

Kuwait N/A 73,000

Libya 44, 00 69,200

Malaysia 46,800 28,400

Me ico 43,600 7,300

Netherlands 38, 00 N/A

New Zealand 6, 00 2,400

Nigeria 4 ,600 23,200

Norway 80,300 22,800

Oman 68,000 80,300

Pakistan 3 ,600 ,300

Papua New Guinea 29,600 89,900

Philippines 37, 00 ,300

Poland 6 ,000 29,300

Portugal 49,400 6,600

Qatar N/A 72,300

Romania 34,400 23,000

Russia 9, 00 38,200

Saudi Arabia 02,900 67, 00Singapore 79,700 99,300

South A rica 79,200 9 ,000

South Korea N/A 47, 00

Spain 70,700 73, 00

Sudan 29,200 79,400

Thailand 40,300 37,200

Trinidad and Tobago 6 ,300 62,400

Turkey 67, 00 89,300

United Arab Emirates N/A 69,400

United Kingdom 87, 00 80,900

United States o America 24,000 9,200

Venezuela 7 , 00 09,400

Vietnam 47,600 ,900

Yemen 30,000 7 , 00

The headline igure in this data is the average permanentsalary across the whole sample, which has risen this yearto $US80,458 rom last years igure o $US75,813. This is asigni icant increase or salaries across such a large sample andre lects the general buoyancy o the market ollowing the downturn o 2008/9.

The year saw a lurry o activity rom most corners o the globeas countries sought to take advantage o a high oil price andpushed through new developments, and rejuvenated the old.The general well being was unique in comparison to previousupturns both in its scale and global coverage, leaving very ewcountries not playing some role in the rush or energy. This inturn drove up vacancies, hiring and salaries.

The world was not without its share o economic worries,however (and without wishing to tempt ate) even therecent concerns in Europe have ailed to impact the oil pricesigni icantly. This more than any other actor ultimately

in luences hiring intentions in the industry and its resilience ledto a project rich environment or vacancies across deep waterdevelopment, LNG and a range o non conventional plays.Adding to this buoyant outlook was a number o signi icantnew ield discoveries, and carbon capture also started to makeits way rom government unded research to live commercialprojects.

The hotspots around the world which saw signi icant salaryrises included Brazil, Australia, China and Iraq. All were drivenby huge projects underway, which added urther pressure tothe already stretched skill pool. Regionally, West A rica had agood year, as did South East Asia, Northern Europe (including

Poland) and North America.When we break the igures down by local and imported we alsonoted an increase in those countries that actively encouragehiring local nationals. This took the orm o signi icant increasesin local pay whilst the imported igure remained relativelysteady. Such examples included Saudi Arabia, Oman, Brazil andVenezuela.

The list o those countries importing skills at a lower cost to thelocal market rates have grown markedly since last year and nowincludes the UK, Norway, Netherlands, Saudi Arabia, Brunei,New Zealand, Canada, the United States and Brazil. All soughtto reduce their cost base by importing lower cost options romoverseas.

Perhaps more interestingly, are the countries that have seenalling salaries. Many o these are in two regions, Northern

A rica and mainland Europe. Both are a reminder that whilst thedemand or energy remains high the industry is not immune towhat is going on in the world around us on a regional basis, beit social con lict or economic pain.

For those looking rom the outside in, the situation in Europe iso most concern. At the time o writing, the situation continuesto weigh heavily on equity markets and trading conditionswithin the wider global economy. The impact o this sentiment

has been elt already with some recruitment markets so teningin the last ew months o 2011, and day rates struggling tomaintain previous levels.

ANNUAL SALARIESBY COUNTRY

Local averageannual salary

Imported averageannual salary

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SALARY INFORMATIONSALARIES

ANNUAL SALARIESBY DISCIPLINE AREA

Operator/Technician Graduate Intermediate Senior

ManagerLead/Principal

VP/ Director

Business Development/ Commercial ,700 38,400 ,800 60,700 94,700 88,400

Commissioning 6 ,300 N/A 68, 00 76,800 6,200 N/A

Construction/ Installation 2,900 47,300 7,400 78,000 8, 00 73,200

Downstream Operations Management 38,700 33,800 37,700 62,700 03,600 66,300Drilling 60,900 30,900 7 , 00 98,000 42, 00 N/A

Electrical ,900 28,600 47,400 67,800 98,400 36,000

Estimator/ Cost Engineer 28,000 29,600 39,000 67, 00 07,900 N/A

Geoscience 6,700 3 , 00 8,700 09,000 40, 00 9, 00

HSE 6,900 3 ,200 8,700 79,600 9 ,900 28, 00

Instrumentation, Controls & Automation ,300 33,900 48,000 7 ,300 07,800 N/A

Logistics 3,900 3 ,000 42, 00 72, 00 82,400 99,000

Maintenance 47, 00 N/A N/A 4,600 84,600 N/A

Marine/Naval 62,900 38,300 ,000 8 , 00 ,200 68,700

Mechanical ,400 30,400 4 , 00 66,700 02,700 22,300

Piping 47,400 28,400 43, 00 9,000 96,900 N/A

Process (chemical) 48,200 30 , 00 47, 00 68, 00 04,800 39,900

Production Management ,300 3 ,800 9,300 67, 00 07,700 260,700

Project Controls 4 ,200 42,400 49,000 78,600 2,000 34, 00

QA/QC ,000 37,000 48,700 68,300 94,400 28,900

Reservoir/ Petroleum Engineering 42, 00 37,900 6 ,400 97,800 23,400 0,000

Structural 43,700 3 ,600 44,900 9,200 0 ,800 N/A

Subsea/ Pipelines 6,000 38,600 9, 00 0 ,200 46,900 22 ,000

Supply Chain/ Procurement 40, 00 29, 00 48,600 8,200 98, 00 80,000

Technical Sa ety 4 ,400 32, 00 44,300 8, 00 0,000 ,900

Undoubtedly we are delicately poised when it comesto salaries within the industry or next year. Without aEuropean induced collapse in the global economy we willinevitably be aced with skill shortages in more than just a

ew select locations. This will drive salaries up urther, andin this scenario we would expect a larger increase thanthe rise we have seen in 2011. With this said, and whenconsidering the alternative, it would be a nice problem tohave.

How much di erence a year makes in the oil and gasindustry is demonstrated by the rise in salaries withindrilling. Last years igures showed those in this sector othe industry were sitting in the middle o the pack. This yearthey are level pegging with subsea engineering as one othe hotspots or salaries. With demand or onshore drillingon non conventional sources at an all time high, and rigutilisation o shore rising, labour demand in this sector isobviously buoyant.

With drilling activity up, it is not unexpected that salaries orothers in the exploration and production ield are also strongthis year. Geosciences and reservoir/petroleum engineersshowed good increases and production management andlogistics were also strong. Subsea engineering repeated itsincreases o last year and project controls and constructionand installation proved that there was plenty o new projectsunder construction.

Core engineering disciplines didnt are so well withelectrical, mechanical, structural and process engineers all

lat in comparison to last year. These core disciplines arewhere most engineering pro essionals will start their careers,and may suggest why headline salaries have not increasedbeyond the levels seen.

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ANNUAL SALARIESBY COMPANY TYPE

Operator/Technician Graduate Intermediate Senior


VP/ Director

Consultancy 44,600 32,700 46,800 76,000 20,300 46,800

Contractor 46,300 3 ,300 ,300 6 ,800 0 ,900 42, 00

EPCM 49, 00 36,400 ,700 79,400 20,600 72,300Equipment Manu acture and Supply 42,900 28,300 38,900 9,700 73,800 29, 00

Global Super Major 60,200 48,300 70,300 93, 00 29,400 222,800

Oil Field Services 49,300 3 , 00 ,300 69,200 89,400 ,200

Operator ,000 48,700 72,300 97,400 49,200 22 ,400

In line with the increase in project work those working in anEPCM company saw a rise in salary as did anyone working

or an operator. The most signi icant rises however came orthose with the least experience within any o the companytypes, and re lected the increasing competition or entry

level talent compared to the year be ore. We also saw a riseor the most experienced end o the market as companies

sought to put their increasing pro its to good use, both inrewarding that talent, and also in attracting new strategichires.

20 2 $ 02,000

20 $ 00,800

20 2 $67,300

20 $64, 00

YEARLY SALARY CHANGES BY COMPANY TYPE

Consultancy

Contractor

EPCM

Equipment Manu acture

Global Super Major

Oil Field Services

Operator

and Supply

20 2 $90,200

20 $8 ,700

20 2 $74,800

20 $7 ,600

20 2 $9 ,200

20 $87,000

20 2 $6 ,600

20 $62,900

20 2 $ 03,300

20 $97, 00

+5%

-1.1%

+4.6%

-2.2%

+1.1%

+4.8%

+5.6%

With the market on the increase, in general it was a yearin which most company types saw increases in salaryo around the 5 per cent mark. The exceptions to thistrend included both general contractors and equipment

manu acturers, both o which have a high level o localemployees (as opposed to imported talent). In this respectboth groups will be more aligned to local economies thanany global orces and may explain the lack o growth.

The third group to experience little movement in comparisonto last year is the global super majors. This may be thee ects o localisation/nationalisation drives within thework orce, reducing average salaries. Indeed we have noted

an increase in local employees within this group rom 47 percent last year to approaching 55 per cent this year.

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S E C T I O N T W O

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Most contractor day rates have progressed through the year;however there were con licting pressures on this marketmaking it a complex back drop in which to extract any trends.In many ways employers were shi ting their employment mixaway rom contractors to a more permanent sta base. Thisreduced the overall requirement or temporary employmentand ollowed the increasing con idence employers eltthroughout the year. Evidence o this can be clearly oundwithin our results on pages 22 and 23.

Countering this trend is a general increase in the practiceo using contractors in new regions and countries. The

lexibility to be ound or both employers and employees is acompelling driver or those seeking to match the cost basewith luctuating revenues.

Those regions experiencing skill shortages are most proneto hikes in contractor rates and it is no coincidence that bothAustralia and Brazil have seen the highest increases sincelast year. North A rica and Western Europe were relativelysubdued re lecting weaknesses in their local economies.

Whilst the exchange rate movements through the year canaccount or some o the rise in the Australasian igures it isthe local project led environment that is really driving thenumbers. The same can be said or South East Asia, whichcontinues to import a high level o expatriate skills. We alsonoted the rise o rates in West A rica as the region continuedto expand.

CONTRACTOR DAY RATESBY REGION

Operator/Technician Intermediate Senior


VP/ Director

Northern Europe 4 0 440 670 840 380

Western Europe 3 0 370 690 8 0 00

Eastern Europe 260 290 380 00 900

CIS 300 3 0 630 730 830Middle East 220 320 360 40 820

North A rica 280 380 380 00 7 0

West A rica 3 0 330 480 660 9 0

East/South A rica 280 3 0 380 670 N/A

Southern Asia 90 220 270 380 60

South East Asia 2 0 260 440 720 300

North East Asia 3 0 300 440 780 30

Australasia 630 680 970 2 0 830

North America 4 0 430 690 8 0 0

South America 300 320 0 6 0 830

Background or this section

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

Permanent staf salaries are the gures returned by respondents as their base salary in US dollar equivalent gures (respondents were asked to convert theirsalary into US dollars using xe.com at the time o responding) excluding one-of bonuses, pension, share options and other non-cash bene ts, 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 labour arerepresentative o those who are 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, sa ety and environment; QA/QC - Quality assurance/quality control.


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SECTION TWOINDUSTRY BENEFITSBene ts rise in the orm o incentives.

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Those bene ts on the riserefected the increasingcon dence in the market and thedesire o companies to providean environment that incentivisedgrowth. Consequently bonuses,commissions and share schemesall made the top ve increases.

5 LARGEST INCREASESIN BENEFITS

20 2 20 Increase

Bonuses 4.78% 3. 2% 1.27%

Pension .94% .44% 0.50%

Commission 0.78% 0.30% 0.48%Hardship allowance .26% 0.80% 0.46%

Share scheme 0.87% 0.48% 0.39%

Value o the bene t as apercentage o the overall package

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OVERVIEW OF INDUSTRY BENEFITS

Last year, we orecast an increase in bene ts or this yearssurvey and our data has con rmed this prediction ascorrect. Somewhat surprisingly it was not the number orespondents receiving bene ts that increased but how much

they were getting. It appears that as companies have grownout o the recession then the increasing wealth has beenshared - but not with all.

In terms o numbers receiving bene ts there were a ewnotable exceptions rom the downward trend. These wereshare schemes, commissions and pensions, all o which rosecompared to last years gures. These rises ollowed a globaltrend o wider company ownership within a companysemployees, and more immediate returns or those taskedwith selling their products and services. In line with thesetrends we saw once again bonuses were prevalent in termso the make-up o allowances and bene ts overall.

Those allowances that dropped included health care,home leave and housing allowance, which suggests ewerexperienced expatriates. We also noted a reduction inovertime, a trend ollowing the wider working population.

Whilst the number o people receiving bene ts returned amixed bag o results in comparison to last year, the amounteach o those bene ts was worth was in positive territoryacross the board. Bonuses and commission payments ledthe way as we would expect given the market conditions,however a ra t o other allowances also increased as morecash was available to meet speci c requirements. Theseincluded allowances or meals, hardship, share schemes,schooling and training.

SALARYINFORMATION

Background: The bar chart shows two gures related to bene ts that employees in the oil and gas industry receive. The rst gure represents the percentageo respondents that receive that particular bene t, i.e. 3 % o respondents receive some sort o bonus. The second gure represents the value othat bene t stated as a percentage o their overall package or those that receive it, which in the case o bonuses is 3.7%.

INDUSTRY BENEFITSOVERVIEW OF INDUSTRY BENEFITS

35% 13.7% 8.9% 8.8% 10% 11% 17.2% 11 .3% 28.8% 11.4% 17.6% 10.7% 1 7.8% 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%

B o n u s e s

C o m m i s s i o n

T a x a s s i s t a n c e

P e n s i o n

H e a l t h p l a n

C a r

/ t r a n s p o r t

/ p e t r o l

H o u s i n g

H o m e l e a v e a l l o w a n c e

/ f i g h t s

H a r d s h i p a l l o w a n c e

H a z a r d o u s

/ d a n g e r p a y

M e a l a l l o w a n c e

S h a r e s c h e m e

S c h o o l i n g

T r a i n i n g

O v e r t i m e

N o b e n e t s

Percentage that receive the bene t

Average percentage o their total package

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3


S E C T I O N T W O

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

INDUSTRY BENEFITSCOMPANY BENEFITS

4 % 2 % 22% 9% 7% 6% 3 %

32% 2 % 6% 7% 6% 7% 42%

33% 6% 2 % 7% 7% %42%

43% 23% 28% 8% 9% 7% 33%

TOP BENEFITS BY COMPANY TYPE

EPCM/CONTRACTOR GLOBAL SUPER MAJOR/OPERATOR

EQUIPMENT MANUFACTURER & SUPPLY OILFIELD SERVICES/CONSULTANCY

In terms o company type, operators and themajors continued to distribute more bene ts totheir work orce than any other group at just over29.5 per cent o overall package.

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

C a r

/ t r a n s p o r t

/ p e t r o l

C a r

/ t r a n s p o r t

/ p e t r o l

C a r / t r a n s p o r t / p e t r o l


H o u s i n g

H o u s i n g

H o u s i n g

H o u s i n g

H o m e l e a v e

a l l o w a n c e

/ f i g h t s

H o m e l e a v e

a l l o w a n c e

/ f i g h t s

H o m e l e a v e

a l l o w a n c e

/ f i g h t s


O v e r t i m e

O v e r t i m e

N o b e n e t s

N o b e n e t s

N o b e n e t s

N o b e n e t s

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

INDUSTRY BENEFITSREGIONAL BENEFITS

TOP BENEFITS BY REGION

AFRICA ASIA

AUSTRALASIA COMMONWEALTH OF INDEPENDENT STATES

On average, bene its received by those working inA rica are valued at 34% o their total package.

On average, bene its received by those working inAsia are valued at 36% o their total package.

On average, bene its received by those working inAustralasia are valued at 17% o their total package.

On average, bene its received by those working inCIS are valued at 23% o their total package.

33% 24% 9% 2 % 8% 9% 28%

38% 7% 4% % 8% 8% 3 % 33% 3% 9% 3% % 3% 37%

42% 8% 27% 22% 23% 8% 2 %

Across most geographic regions we saw an increase in thevalue o the bene ts paid, although most signi cantly inA rica and Asia. Australasia, Russia & the CIS, and Europewere also in positive territory. As has been the case inrecent years we have seen most o the increases coming

rom developing nations, which is refective o the desire ocompanies in these regions to retain trained sta in the aceo increasing competition rom overseas.

While both North and South American gures ell slightly, itwas the Middle East that saw the largest drop in the value othe bene ts in comparison to overall package. This was romprevious highs o 38 per cent the year be ore to just over 32per cent. However there is some evidence to suggest thatthis is more refective o employers in that region shi ting theemphasis in remuneration towards higher base salaries andaway rom allowances.

This relationship between bene ts and base salary shouldnot be ignored when considering the relative make up oemployees remuneration. Whilst some regions continue toplace more emphasis on either base salary or bene ts, wehave ound that all regions are trending towards 72 per centbase salary and 28 per cent bene ts.

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

P e n s i o n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

C a r / t r a n s p o r t

/ p e t r o l

C a r

/ t r a n s p o r t

/ p e t r o l


H o u s i n g

H o u s i n g

H o u s i n g

H o m e l e a v e

a l l o w a n c e

/ f i g h t s

T r a i n i n g

N o b e n e t s

N o b e n e t s

N o b e n e t s

N o b e n e t s


H o m e l e a v e

a l l o w a n c e

/ f i g h t s

O v e r t i m e

S c h o o l i n g


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INDUSTRY BENEFITSREGIONAL BENEFITS

TOP BENEFITS BY REGION

EUROPE MIDDLE EAST

NORTH AMERICA SOUTH AMERICA

On average, bene its received by those working inEurope are valued at 16% o their total package.

On average, bene its received by those working in theMiddle East are valued at 32% o their total package.

On average, bene its received by those working inNorth America are valued at 21% o their total package.

On average, bene its received by those working inSouth America are valued at 33% o their total package.

29% 2 % 9% 4% 8% 8% 43%

36% 2 % 32% 2% 8% 2% 30% 37% % 34% 22% 3 % 2% 28%

38% 22% 2 % 26% 23% 9% 2 %

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

P e n s i o n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

C a r

/ t r a n s p o r t

/ p e t r o l

C a r

/ t r a n s p o r t

/ p e t r o l



H o u s i n g

H o m e l e a v e

a l l o w a n c e

/ f i g h t s


O v e r t i m e

O v e r t i m e

N o b e n e t s

N o b e n e t s

N o b e n e t s

N o b e n e t s


O v e r t i m e

H o u s i n g

T r a i n i n g

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SECTION THREEINDUSTRYEMPLOYMENTOver a th o all employers expect salaries toincrease by more than 0 per cent in the next year.

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The con dence in the sta ng markets at the point thesurvey data was taken was particularly high, although it isworth noting that data was taken in September and October2011, be ore the world economy started to alter aroundEuropean concerns. Over a quarter o those surveyedexpected an increase in sta ng levels by 10 per cent or

more, which is an unprecedented level o con dence sincethis survey rst started. As 2011 came to a close, it is thiscon dence that is most at risk rom depressed sentimentengul ng the media.

As mentioned earlier, the use o contractors has becomemore widespread in comparison to the year be ore. The useo expats continued to expand on the back o orecastedgrowth last year, and once again the market appears tobelieve it will grow again in 2012.

STAFFING LEVELS

CONFIDENCE THAT STAFFING LEVELS WILLCHANGE IN THE NExT 12 MONTHS

PERCENTAGE OF STAFF EMPLOYED ON ATEMPORARY OR CONTRACT ASSIGNMENT

AREAS IN WHICH CONTRACTORS AREEMPLOYED IN OIL AND GAS

ExPECTATION THAT CONTRACTOR LEVELSWILL CHANGE IN THE NExT 12 MONTHS

PERCENTAGE OF WORKFORCE EMPLOYEDAS AN ExPAT

ExPECTATION THAT ExPAT LEVELSWILL CHANGE IN THE NExT 12 MONTHS



Increase up to %

Remain static

Decrease

More than 20%

Between -20%

0- %

None

Increase

Remain the same

Decrease

Engineering

Geoscience

Drilling

Construction/Installation

Project controls

Always

Sometimes

Never

Increase

Remain the same

Decrease



Increase up to %

None

26. %

2 .3%23.3%

2 %

4.3%

37.2%

29.6%

2 .9%

.3%

4 .9%

37.8%

6.3%

34.9%

2 .6%

20.6%

8.9%

49.6%43.6%

6.8%

INDUSTRY EMPLOYMENTSTAFFING LEVELS

0 20 40 60 80 00

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INDUSTRY EMPLOYMENTDIVERSITY & MOVEMENT OF WORKFORCE

This year we have seen an increase in the number o womenworking in the industry, however the pace o growth is not asquick as most would like. The percentage this year has risento 7.8 per cent up rom last years igure o 7.1 per cent. Sadly,to achieve parity with the wider general work orce in terms ogender diversity will take over 30 years at the current rate ogrowth.

We have noted a small decrease in the average age o thoseworking in the industry rom 36.5 down to 35.5 years old. Thisis consistent with the rest o our data, which shows that whilethere was a good level o new entries into the industry, many othese people were experienced sta rom other industries. Thishas reduced the average level o experience in the industry;however it has had only a marginal e ect on age.

DIVERSITY OF STAFF

GENDER IN OIL AND GAS WOMEN IN OIL AND GAS

Business development

Project controls

HSE

Supply chain

QA/QC

Construction/installation

Other

92.2% 7.8%

DEMOGRAPHICS

Male

Female

- 2 4

2 - 2 9

3 0 - 3 4

3 - 3 9

4 0 - 4 4

4 - 4 9

0 - 4

- 9

0 - 4

6 +

4.3%.6%

6.9%

27. %

7.4%

2 .9%

4%

7.2%

2.4%

8.9%

0.2%

7.9%

0.3%

. %

7.7%

3. %

. %

. %

.7%

Male Female

WORKING AT HOME OR ABROAD

7.3% 42.7%

2012

Home Abroad

6%

7.4%

9%

6.2%

4.8%.4%

.2%

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INDUSTRY EMPLOYMENTDIVERSITY & MOVEMENT OF WORKFORCE

MOVEMENT OF THE WORKFORCE

3.8% 46.2% 23.2% 76.8% 28.8% 7 .2% 33. % 66. % .6% 48.4% 88.4% .6% 29.2% 70.8% 27.2% 72.8%

28.3% 7 .7% 42.4% 7.6% 6.9% 83. % 42. % 7.9% 28.2% 7 .8% 20.7% 79.3% 29.3% 70.7% 27.3% 72.7%

A u s t r a l a s i a

A s i a

A r i c a

E u r o p e C

I S

M i d d l e E a s t

N o r t h A m e r i c a

S o u t h A m e r i c a


A s i a

A r i c a

E u r o p e C

I S

M i d d l e E a s t



IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

Imported labour

Local labour

Working overseas

Working in homecountry

Since the bottom o the recession in 2009 the number opeople working overseas in oil and gas has been steadilyincreasing. This is consistent with employers having to search

urther a ield to ind the skills they require. However, there is stillsome way to go be ore the levels rise to those achieved in mid2009 o over 45 per cent.

Last year we reported a quick exit rom the downturn inAustralia, and a corresponding sharp increase in the number ooverseas candidates that came into the market to work on thecountrys burgeoning LNG projects. This trend has continuedwith overseas workers now making up over 53 per cent o themarket. Europe was the only other region to ollow this trendas many o those imported skills previously retrenched throughthe downturn returned to take up roles in a rejuvenated labourmarket.

Elsewhere, trends showed a downwards movement regardingimports as localisation and home grown skills developmentprograms started to come through. The regions showing themost changes were A rica, CIS and South America. In generalthis was accompanied by a reduction in age and experienceas much o this recruitment was taking place with those at theentry level.

The graphs below represent the movement o candidates andhow speci ic regions nationals are working locally or overseas.So where we have seen the number o imports rise within thebusy Australian market, we have also seen a great number onationals returning home to take advantage o the high salaries.This was going against the trend elsewhere that saw a generaldri t overseas in search o better remuneration.

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YEARS OF ExPERIENCE

INDUSTRY EMPLOYMENTExPERIENCE AND TENURE

FOR SPECIFIC DISCIPLINE AREAS

0-4 years

-9 years

0- 9 years

20+ years

36.3% 22.2% 20.9% 20.6%

Within last years survey we reported a sharp decrease inthose with less than our years experience in the industry.This was consistent with a drop in recruitment or thosewith little or no experience and was re lective o the actthe industry was recovering rom the recession o previousyears. In 2012, the pool o available talent has diminishedsigni icantly and this has led many companies to employnew talent and seek to retrain.

As a result, the percentage o those with less than ouryears experience has grown rom 20 per cent o the totalwork orce to just over 36 per cent. It is worth noting that in2010 the igure was over 40 per cent when the market wasarguably at its peak so we still have a small way to go be orewe hit that mark.

The picture becomes more pronounced when broken downby job unction, with Geo-science and Subsea/Pipelinesshowing little change rom last year, and in some casesedging up slightly in terms o average experience. Howeverwe have seen a reduction in construction/installation andproject controls. Both disciplines are clearly project led andindicate that the project development space has attractedthe most newcomers. In our experience this is wheremost skills can be trans erred into oil and gas rom otherindustries.

Construction/Installation

Project controls

Geoscience

Subsea/Pipelines

0 20 40 60 80 00

OIL & GAS INDUSTRY

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TIME IN CURRENT ROLE

INDUSTRY EMPLOYMENTExPERIENCE AND TENURE

Tracking last years gures, tenure has remainedstatic with just over 25 per cent o respondents

possessing less than one years experience in theircurrent role. Again this indicates a busy marketwith a great deal o hiring activity taking place.

SOURCE OF NEW EMPLOYMENT

Less than year

-2 years

3- years

6- 0 years

More than 0 years

2012

2011

26% 2 % 28.7% 2% 8.3%

24.7% 23.8% 3 . % % 9%

N e w s p a p e r

C o m p a n y w e b s i t e

O n l i n e j o b b o a r d

W o r d o m

o u t h

H e a d h u n t e d

A g e n c y

I n t e r n a l M o v e

O t h e r

8. % 3% . % 2 .3% 3.6% 3.6% 8.3% 6.6%

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INDUSTRY EMPLOYMENTEMPLOYMENT MIx

Aside rom the equipment manu acturers, the year saw asharp rise in permanent sta as a percentage o the overallwork orce. This trend continued year-on-year as companiessought to build up their core skills in a buoyant market.The increase in permanent sta was in some cases at theexpense o temporary sta . However it should be noted thatthis does not signi y a drop in contractor numbers, only areduction in their share o the total employed.

Contracting companies and consultancies appear to havebeen most bullish, making a strong rebound on the back oa buoyant project market. Correspondingly there was lesso a all in the use o temporary contractors within theseemployers as they coped with extra workload.

Equipment manu acturers have reduced overall sta inglevels and may be eeling the e ects o the recent economicturmoil somewhat earlier in the project cycle than othercompanies.

Should this trend low through to other parts o the industry,

we would expect the use o contractors to rise in responseto uncertainty around the general economy.

EMPLOYMENT MIx BY COMPANY TYPE

GLOBAL SUPER MAJOR OPERATORS

0 20 40 60 80 00

Permanent

Permanent / part-time

Contracted direct

Contracted through agency

PERCENTAGE CHANGE FROM 2011 TO 2012

Global Super Major

Operators

EPCM

Equipment manu acturers & Suppliers

Oil Field Services

Consultancy

Contractors

7. %

0.7%

-3.3%

-4.9%

.2%

0.2%

-0.2%

- .2%

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INDUSTRY EMPLOYMENTEMPLOYMENT MIx

the year sawa sharp rise inpermanent staas a percentageo the overallwork orce

EPCM EQUIPMENT MANUFACTURER & SUPPLIER

OIL FIELD SERVICES CONSULTANCY

CONTRACTOR

8.6%

0. %

-3.8%

-4.9%

-8%

- .7%

.4%

8.3% 7.3%

0. %

-3.9%

-3.9%

-0.8%

.3%

0.6%

- . .%

-6.8%

0. %

0.6%

6. %

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SECTION FOURECONOMIC OUTLOOKIt was a good year or the Oil & Gas industry withcon dence being led by a robust oil price.

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As the market continued toheat up so did the concern orskill shortages. This has grownas a percentage o the overallsample rom 28 per cent to over30 per cent and now representsthe largest concern o those inthe industry.

Skills shortages

Economic instability

Environmental concerns

Sa ety regulations

Immigration/overseasvisa program

Other

Security/sa ety causedby social unrest

30.6%

29%

3.3%

0. %

7. %

8.3%

.6%

EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET

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ECONOMIC OUTLOOKINDUSTRY OUTLOOK

Employers con idence in the current employment markethas seen a large increase in comparison to last years results,with the very positive share up to 26.7 per cent rom lastyears 9.7 per cent.

Whilst the majority o regions were experiencing solid

growth this time last year, the Gul o Mexico and theNorth Sea markets were still shaking o the e ects o therecession, which consequently weighed down the overallaverage. Since the start o 2011, those markets came on line

rom a hiring perspective and this removed any negativesentiment in the market. A huge 73.5 per cent o the marketis either positive or very positive. (Again it is worth notingthat data was taken in the 3rd quarter o 2011, be ore themarket experienced any negative sentiment.)

With regards to where individuals believe their operationalocus will be in 2012, the Middle East again leads the way,

although the percentage is down slightly in comparison tolast years igures. A number o other regions ollowed thistrend with only the North American and European marketsshowing an increase. This appears to be in line with thecomments in previous sections regarding the pick up inactivity in the Gul o Mexico and the North Sea.

EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

EMPLOYERS GEOGRAPHICAL FOCUS OVER NExT 12 MONTHS OUTSIDE OF THEIR OWN REGIONAL AREA

Extremely positive

Positive

Neutral

Negative

2012

2011

26%

24.7%

C e n t r a l A s i a

E a s t A s i a


M i d d l e E a s t



A r i c a

0.7%

26.7% .7%46.8% 20.8%

9.7% 4 . % 33.4% .8%

.7% 0% 7. % 0.2% 20.8% 8% 8% 3. %

E a s t e r n a n d

C o n t i n e n t a l E u r o p e

U K a n d N o r t h e r n

E u r o p e

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EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET

ECONOMIC OUTLOOKMOST SIGNIFICANT ISSUES

As the market continued to heat up so did the concernor skill shortages. This has grown as a percentage o the

overall sample rom 28 per cent to over 30 per cent and nowrepresents the largest concern o those in the industry. Thisis being elt most acutely in Australia and South America,the two hotspots in the world where local resources aremost stretched. North America and Europe are ollowingclose behind.

Not surprisingly economic stability is also a concern at 29per cent. It is only in Australasia with its booming marketwhere this appears to be o lesser concern.

Moving the other way and slowly diminishing rom peoplesocus is environmental and sa ety concerns. We can only

assume, as time passes by so does the memory o the oilspill in the Gul , and the issues surrounding the cause o thatevent attract less attention.

This year we have included a new response which we havesought to gain an insight into, namely social unrest. Asexpected, we saw spikes in concern in both A rica and theMiddle East. A comparison o data on this issue will make orinteresting reading in subsequent years.

All

A rica

Asia

Australasia

CIS

Europe

Middle East

North America

South America

0 20 40 60 80 00

Skills shortagesEconomic instability

Environmental concerns

Sa ety regulations

Immigration/overseasvisa program

Other

Security/sa ety causedby social unrest

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COUNTRIES WORLDWIDE 32OFFICES WORLDWIDE 257

CONSULTANTS WORLDWIDE 7,620

PERMANENT CANDIDATESPLACED LAST YEAR 60,000

ABOUT HAYS

PEOPLE PLACED INTOTEMPORARY ASSIGNMENTSLAST YEAR

190,000

We are leading global experts in quali ed, pro essional and skilled recruitment. Last

year our experts placed around 60,000 candidates into permanent jobs and around190,000 people into temporary assignments.

We employ 7,620 sta operating rom 257 o ces in 32 countries across 20specialisms. We have market-leading positions in the UK, Asia Paci c, ContinentalEurope and Latin America.

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United KingdomAberdeenT: +44 12 2459 2870E: [email protected]

LondonT: +44 203 465 0133E: [email protected]

RussiaMoscowT: + 7 495 228 2208E: [email protected]

PolandWarsawT: +48 22 584 5650E: [email protected]

NetherlandsRotterdam

T: +31 10 201 3700E: [email protected]

FranceParisT: +33 (0)1 42 99 16 60E: btp@hays. r

CanadaCalgaryT: +1 403 269 4297E: [email protected]

United StatesHoustonT: +1 866 420 4297E: [email protected]

Me icoMe ico CityT: + 52 (55) 5249 2500E: [email protected]

Colombia Bogot D.C.T: +57 (1) 313 58 67E: [email protected]

BrazilRio de JaneiroT: +55 21 2430 6600

E: [email protected]

United Arab EmiratesDubaiT: +971 4 361 2882E: [email protected]

IndiaMumbaiT: +91 22 4248 2500E: [email protected]

ChinaBeijingT: +86 10 6598 9122E: [email protected]

ShanghaiT: +86 21 2322 9600E: [email protected]

SingaporeSingapore City

T: +65 6303 0152E: [email protected]

AustraliaPerthT: +61 8 9254 4579E: [email protected]

MelbourneT: +61 3 9670 2066E: [email protected]

BrisbaneT: +61 7 3231 2962E: [email protected]

SydneyT: +61 2 9249 2299E: [email protected]

AdelaideT: +61 8 8212 5242E: [email protected]

New ZealandWellingtonT: +64 4 473 6860E: [email protected]

United KingdomManchesterT: +44 161 975 6026E: [email protected]

AustraliaPerthT: +61 404 162 491E: [email protected]

United Arab EmiratesDubaiT: +971 4311 7175E: [email protected]

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