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Introduction 1

Africa 2

Americas 3

Asia Pacific 5

Australasia 7

Caspian 8

Europe 9

Middle East 10

Regional Comparisons 11

Contacts 13

Copyright @ Air Energi Group LimitedDisclaimer: The Air Energi, Oilcareers.com H1 Workforce Survey 2011 is representative of an added value service

to clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey report is interpretive and indicative not conclusive. Therefore information should be used as a guideline only.

Contents

creating an increased demand for qualified personnel, whether local or expat. Subsea talent remains in high demand and likely to increase once Angola gets its own pre-salt exploration programs underway. New labour reform measures have been implemented recently, geared toward improving working conditions and improving government transparency in the oil and gas sector, the backbone of the Angolan economy.

NigeriaThe Nigerian government has recently approved a $3.5 billion national electricity grid to put an end to the country’s chronic power shortages. Ironically, Nigeria seeks to raise much of the capital required through foreign partners, in exchange for which the government promises increased operational transparency and above-board administration. Proposed timelines are to have the new ‘supergrid’ completed by 2014; specialised subsets from local oil and gas exploits may migrate to this groundbreaking project.

Yet another federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigeria’s relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, operators opting to remain in holding pattern until it is known what

Some 2.5 million people are currently employed in the energy sector, producing 88.5 million barrels of oil per day and responsible for $490 billion in global exploration and production budget in 2011.

In spite of these massive numbers or perhaps because of them,

as we embark on what looks to be a very busy year the focus

has once again come down to the individual: the right person

for the right project at the right price. Concerns over immigration

policies, administrative backlogs and labour cost and availability

are familiar echoes which our clients are making concerted,

cooperative efforts to mitigate.

Will we see the return of $100 per barrel oil? Will the real cost of

future exploration and production post-Macondo be known? How

long will we be able to hold out against another labour crunch?

www.airenergi.com 1© Air Energi 2011

Just how thin is the veneer of global economic stability we’re

basing current decisions on? 2011 may not hold the answers to

all of these questions, but the experience gained and cooperation

fostered throughout 2010 will no doubt set us up for a prosperous

and prudent decade ahead. We are, if nothing else, the wiser for it.

On behalf of Air Energi and Oil Careers, we wish all of our industry

clients, contractors and other business partners the very best for this

coming year. Thank you all for your continued contributions to this

report. As always, we welcome your comments and suggestions.

Ian M LangleyGroup Executive Chairman

[email protected] behalf of Air Energi

Global Regional Comparison

Salaries and pay rates

Increase Decrease No Change

Hires

Introduction

H1 = statistics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.



Yet another federal election is threatening to backburner the proposed Petroleum Industry Bill (which would effectively rewrite the legal and fiscal basis of Nigeria’s relationships with IOCs) once more, potentially delaying billions of dollars in energy industry investments. Until fully revealed and understood, the controversy surrounding the Bill will result in a slowdown in some major projects, operators opting to remain in holding pattern until it is known what real effect the bill will have on corruption and security concerns.

“ Whereas localisation policies are relaxing in other parts of the world, they are becoming increasingly stringent here, adding to the complexities and challenges of doing business in Africa.”

Regional OverviewRegional energy superpowers Nigeria and Angola have recently been joined by Ghana with its much-anticipated Jubilee field having come online in late 2010. Anxious to avoid the internal corruption, violence and diplomatic tensions experienced by its sub-Saharan neighbours, Ghana is taking its time with drafting its own oil revenue policies. Meanwhile, security risks escalate in Nigeria in the face of yet another presidential election and chronic administrative opacity continues in Angola where state run Sonangol appears to be ever more controlling of the country’s petroleum resources, commerce and wealth. Whereas localisation policies are relaxing in other parts of the world, they are becoming increasingly stringent here, adding to the complexities and challenges of doing business in Africa.

AngolaBlessed with some of the world’s largest energy and mineral reserves yet cursed with blistering inflation, poverty and a highly corrupt government, new US-based legislation and pressure from international watchdogs for full disclosure of resource based revenues may soon force increased transparency on behalf of the Angolan government and NOC Sonangol. These measures have been proposed to not only improve domestic distribution of revenues but also to provide better risk assessment data for future investment and operations.

FEED, subsea and safety work remains in high demand into 2011, with job vacancies being filled by both local and expat personnel. Operators are hopeful that new labour reform measures will make Angola a more attractive destination as it competes for highly technical talent with similar exploits in Brazil, Asia Pacific and the North Sea.

NigeriaDespite chronically limited numbers of local skilled personnel, the pressure for nationalisation has only increased of late with the recent implementation of Nigeria’s Local Content Policy, which will see expats released and replaced by qualified nationals.

This will prove to be a double dose of cost increases for local operators, now faced with Niger locals’ demands for higher rates once paid to their expat peers as well as potential slow-downs in operations due to a sudden void in expertise.

The much anticipated Petroleum Industry Bill (PIB) will take effect in early 2011, yet with some 120 amendments brought forward over the course of its inception uncertainties as to fiscal terms and royalty arrangements still remain for IOCs operating in Nigeria. Additionally, the PIB will also usher in the Nigerian National Petroleum Corporation (NNPC), the question remains how the government will legislate who is allowed to do what and to what extent.

Presidential elections are once again around the corner in Nigeria, and with incumbent President Goodluck Jonathan being the first leader from the militant-ravaged Niger Delta, fears of increased militant activity are mounting if the nomination or ticketing process is perceived as unfair.

Your Expectations as a Region

Africa

Africa Salaries

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Africa Hires

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“Efforts are now on managing project activity and growth so as to prevent yet another labour meltdown, driving rates and project costs out of control.”

Regional OverviewMajor plays continue to unfold across the Americas in spite of regulatory uncertainty, technological challenges, and political and economic instability. Investments in the exploration and production of South American reserves are coming in by the billions, yet common concerns behind labour standards and availability and ageing (or simply non-existent) infrastructure are increasingly coming to the fore. Where feasible, corporations have undertaken to establish technical training centres in-country, however these will not address labour shortages in the near term. For now, the mantra remains “local, local, local”, but as projects gain traction and pressure mounts to get production going and repay massive debts, there may be a loosening of borders to accept the outside expertise required to keep projects on track.from international watchdogs for full disclosure of resource-based revenues may soon force increased transparency on behalf of the Angolan government and NOC Sonangol. These measures have been proposed to not only improve domestic distribution of revenues but also to provide better risk assessment data for future investment and operations.

ArgentinaArgentina continues to enjoy sustained economic growth, and the energy sector continues to develop new sources in a quest for energy self-sufficiency. A recent major shale gas find is being heralded as the potential future of Argentine energy security, which could bring a spike demand for related disciplines, however with so much gas exploration and development work underway worldwide it is questionable whether Argentina will become a destination for skilled labour, particularly given the country’s strict immigration controls and pressure from local unions.

Falklands exploration continues, though recent reports question the extent of resources to be found in the region. Major IOCs have yet to wade into either the debate or the development of the region; for now it is the smaller exploration corporations taking up this task. Rates are anticipated to hold or increase in Argentina, particularly as local unions are once again flexing their muscle, using the rising local economy and recent political instability as bargaining chips.

BrazilBrazil’s economic makeover continues full steam into 2011. As its economy heats up, fueled in particular by the prospect of its multi-billion barrel subsalt finds, the demand for suitable infrastructure also escalates. This is being underscored by the infrastructure requirements forecasted within the energy sector, the lack of which will drive up production costs in country significantly. In response, the administration has announced a $1 trillion infrastructure investment plan.

Government involvement in the energy sector will increase, giving more ownership and control of projects to state-owned Petrobras, however this will be offset by tax incentives to encourage foreign private investment. Nonetheless, the emphasis remains on utilising local service companies and construction equipment as much as possible throughout, with foreign operators invited under joint venture agreements in order to fulfill local content requirements.

Brazil’s shipbuilding industry is also making a blazing comeback: its naval yard workforce has doubled in just three years in response to hundreds of orders for drill rigs, FPSOs and other production units. There is potential for a new LNG plant to be commissioned off Brazil mid-2011 and auctions of the first pre-salt finds could happen as early as next year. Engineering expertise across multiple disciplines will be in very high demand in response to all this activity, however Brazilian immigration policy is not anticipated to sway in the favour of foreign talent for the moment.

ColombiaBrazil may be in South America’s energy spotlight at the moment, but Colombia’s Ecopetrol is also forecasted to invest billions in exploration and production, downstream and pipeline projects in 2011. Though an otherwise foreign business friendly climate, shortages of skilled labour and lingering strict immigration policy are putting a damper on any real momentum within the Colombian energy sector. With significant pick-ups in other South American economies and sectors, Colombia has the potential to position itself as a prime destination for skilled expats seeking a term in the region. Locals have simply not had the experience from exploration to commissioning to the same extent as those within western IOCs; the issue will therefore hinge very much on immigration policies, which are at once protectionist and somewhat arcane.

Americas





CanadaThe Canadian energy sector continues to move down a timeline: 2010 saw responsible recovery, 2011 is widely forecasted to be busy, but industry execs are speculating that 2012 will bring another peak in activity for which labour will be a key factor. Efforts are now on managing project activity and growth so as to prevent yet another labour meltdown, driving rates and project costs out of control. The challenge is in finding the balance between acceding to fiscal and administrative pressures (i.e., favourable oil pricing and timelines set during approval processes) without landing back in the gold rush mentality and creating a wage race for the entire sector once again.

Eastern Canada is becoming an increasing force not only on Canada’s energy scene but as a research frontier for exploration and production activity for the local Atlantic region, Greenland and farther north. Major projects in the area continue their expansions as major operators continue to build out research teams and centres there, keen to develop drilling programs and become local operators on their own. Pressures on the local labour market are also being exerted from an increasingly strong mining sector and the multi-billion dollar Lower Churchill Dam hydroelectric project. Otherwise, there is high demand for Project Controls, Project Services and Construction Management disciplines as well as Pipeline Engineers and conventional field roles.

“The pressure to resume offshore operations is mounting as the USA loses strategic ground to major energy exploits being built up worldwide.”

USAIndustry remains skeptical in the wake of Macondo, with several offshore projects both within the Gulf of Mexico and elsewhere postponed into 2011. The pressure to resume offshore operations is mounting, however as the USA loses strategic ground to major energy exploits being built up worldwide.

Upstream design work has increased in Houston largely in support of projects in Eastern Canada and abroad, creating a rapid constriction on EPC talent locally and nudging rates upward. With talent availability and rates once again becoming significant factors in project feasibility studies, companies are in some cases choosing to shelve projects for which staff will be either in short supply or too costly. Tremors of the HR panic of 2008 can still be

felt as companies are being held accountable to deliver on staffing plans, resulting in an overall preference for staff over contractors at the moment. Key talent put on extended leave because of the recent downturn are being brought back and once the deepwater drilling moratorium is lifted, expect a sharp increase in demand from oil service companies.

VenezuelaTo nationalise or not to nationalise, that remains the question in Venezuela. Despite the nationalisation of some 200+ foreign operations across multiple sectors in 2010 and legal battles with ExxonMobil and ConocoPhillips, Venezuela continues to tighten its grip on the oil services sector with proposed new legislation that would allow government to circumvent current legal channels currently required to nationalise foreign assets.

Major loans from China and Russia will help kickoff development of Venezuela’s vast Orinoco belt, a welcome investment in light of declining production volumes from mature fields, maintenance stoppages and overall weakened infrastructure. EPC work continues in support of Orinoco projects and may soon increase as the development of Venezuela’s largest gas discovery gets underway in conjunction with Italy’s Eni. Despite its many obstacles, Venezuela may be one of few countries to enjoy the luxury of a

sufficient local talent pool to support its major projects into 2011.


Americas

Americas Salaries

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6%

42%

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Americas Hires

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32%

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“Some IOCs have been observed paying top dollar to ensure the requisite team members are on deck to meet project demands.”

Regional OverviewAfter months of nationalistic tensions and uncertainty on behalf of IOCs operating in Asia Pacific, there seems to be a return to relative ease of operations in the area. Borders have loosened somewhat, workarounds to formidable regulations have been found and confidence has returned to the future stability of the energy sector here. Fabrication and construction in support of LNG plays here and abroad (such as shipbuilding and construction of modularised LNG components) is chief among industry activity and subsequent draw on personnel, in particular FEED positions and project teams in support of modularised construction work. All in all, 2011 looks to be extremely positive throughout the region.

JapanJapan remains a powerhouse in the global oil and gas scene, lending its engineering expertise and cash investments to projects worldwide. However it has been evident for several years that it is critical for the oil and gas industry of Japan to make sure that there is some stability regarding supply of oil and gas resources. Evidence of this diversification is the joint venture with Russia which will see a $300 million investment in the development of three oil and gas sites in the north of Russia’s Irkutsk region. The reserves of North Mogdinsk are estimated at around 14.8 million tons; however they may in fact amount to as much as 50 million tons. The first oil from the deposits would enter Japan on the East Siberia - Pacific Ocean (ESPO) oil pipeline in three to four years’ time.

IndonesiaLacking local technical expertise and financial backing, the Indonesian government has become more accepting of foreign talent, investment and project management to get projects flowing and all important post recession revenue generated sooner. Localisation is still key but because of the scale and project control requirements of projects underway here IOCs have made clear that expat expertise must be in place to ensure timely delivery.

In spite of sagging domestic production and regulatory hurdles, a new maritime law requiring Indonesian flagged vessels for the transport of goods domestically will further threaten Indonesia’s ability to keep pace with the region’s thriving energy industry.

The law, expected to be in effect in May 2011, will affect both exploration and transport rigs and ships, hampering activity in the area given an insufficient inventory of domestic vessels and lack of experienced personnel.

FEED work in support of several local natural gas plays is expected to increase. Construction teams required to meet high order volumes of FPSOs, drill rigs, and drillships are in high demand and proving difficult to assemble.

MalaysiaNew tax incentives aimed at generating foreign investment are helping Malaysia gear up for a busy 2011. Recent project announcements include massive investments in infrastructure, plans to build two nuclear power plants, development of new LNG regasification facilities and a new oil and gas hub inclusive of fabrication yards and storage terminals.

Localisation and state ownership (or control) of major projects continues, however, and with strong competition for investment and E&P from elsewhere in the region the Malay government will likely be forced to turn a blind eye to its notoriously stiff regulations. FEED and EPC disciplines will be in high demand, and faced with strong global competition for top talent these skill sets will continue to be in short local supply. As elsewhere in the region, subsea and construction related Project Managers, Construction Managers, as well as Quality and Safety personnel are in high demand.

ThailandPolitical instability may be on the horizon once again in Thailand on reports of the monarch’s failing health. The Thai government has made positive steps to improve the transparency of foreign investment regulations creating an influx of foreign interest and investment in Thailand of late, though regulatory watchdogs have yet to be officially formed and appointed. With strong competition for talent, investment and resources from neighbouring Malaysia, Indonesia and Singapore, true momentum within Thailand’s energy and industrial sector may not be had until its political unrest and regulatory uncertainties are resolved. As elsewhere in Asia Pacific, Thailand will also be a draw for any available subsea expertise and an ambitious expansion of its massive petrochemical refinery complex are expected to spike demand for EPC-related disciplines into 2011.

Asia Pacific





SingaporeSingapore continues the expansion of its diverse LNG operations portfolio with the construction of a new LNG terminal and connecting pipeline infrastructure off Jurong Island, both of which are targeted to be completed in early 2013. Expansion of its chemical and refining industry is also planned into 2011, including a second ethylene cracker and new butyl rubber plant, taking advantage of the ample feedstock made available through Singapore’s vast petrochemical storage facilities.

EPC and Project Management contracts arising from these opportunities will also compete for talent with Singaporean shipyards, which are grappling with high order volumes of FPSOs and other rigs. Subsea and Safety will be two areas competing for personnel with similar projects worldwide, particularly as Singapore seeks to position itself as a centre of subsea engineering excellence in the wake of the Macondo spill. Though ostensibly a job seekers’ market, local industry is keeping rates in check, yet some IOCs have been observed paying top dollar to ensure the requisite team members are on deck to meet project demands. Otherwise, expat packages are being trimmed somewhat as corporations recognise the value of the quality of life that Singapore has to offer combined with attractive longer term contracts.

“Construction teams required to meet high order volumes are in high demand and proving difficult to assemble.”

VietnamIn response to a dramatic increase in natural gas consumption, Vietnam will embark on construction of its first domestic LNG import terminal and regasification facility: state-run Petro Vietnam Gas is targeting the facility to come online within an ambitious 12 to 24 months. Further efforts to bolster critical energy self sufficiency include a $1.2 billion thermal power plant, with construction planned to commence in early 2011. Whilst the doors to foreign investors have been opened for bidding on these contracts, Vietnam’s employment regulations keep its borders closed to foreign talent. As throughout 2010, existing expat contracts are not being renewed and contracts on any new projects are being offered almost exclusively to Viet nationals.

“Fabrication and construction in support of LNG plays, here and abroad is chief among industry activity and subsequent draw on personnel.”


Asia Pacific

Asia Pacific Salaries

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“Strong union representation, an abundance of resources and an overall healthy local economy, labourers are increasingly forcing the hand of operators for wage increases.”

Regional OverviewThe long awaited inquiry into Australia’s 2009’s Montara spill was published in late November. Among the recommendations is a designated, unified body responsible for all offshore HSE controls, and while not yet ratified by government or industry the demand for Safety expertise will continue to rise into 2011. Infrastructure construction continues at a rapid pace in PNG with several companies committed to upskilling the local PNG workforce and supporting the National Content plans. High demand also remains for Project Engineering, Quality, Procurement and Construction personnel throughout the region.

AustraliaSince rattling the mining industry several months ago when it was first proposed, a first draft of the mining supertax legislation is expected to be presented to parliament in early 2011. Operators can still expect a headline rate of between 38 and 44 per cent, depending on revenues and the type of resources being mined for. Climate change remains a key concern in Australia, though Prime Minister Gillard recently announced the postponement of a carbon trading scheme until 2012, good news for heavy industry but angering valuable allies within the Green party.

Though its reserves are among the largest in the world, Australia’s gas exploration and production projects are facing the reality of both a local labour crunch and an oversupply of LNG worldwide, serving to cool the pace of development somewhat. With strong union representation, an abundance of resources and an overall healthy local economy, labourers are increasingly forcing the hand of operators for wage increases and improvement of living and working conditions; with multi-billion dollar projects at stake, operators are in turn swallowing project cost increases of upwards of 40 per cent.

An increase in labour supply is being called for across all levels and multiple industry sectors, in response to which the Australian government has opened exceptions to existing immigration policy to allow the in-migration of skilled personnel in support of mega

projects only. In terms of overall global supply of LNG expertise, Australia may benefit from soon to be unemployed personnel on location in Qatar, as many of the Middle Eastern country’s LNG projects will near completion across 2011.

PNGWith its mining resources and massive deposits of natural gas, oil and gas companies and the government are investing heavily in infrastructure construction activities, including road and bridge works, telecommunications and camps to house the large construction workforces expected.

Commitments are being made to support the National Content Plan, with companies ramping up to train nationals, transfer skills and to utilise local contractors and suppliers. This is supported by the launch of the government’s medium term strategic plan to develop workforce and supplier capability in PNG. It is expected that substantial funds will be committed.

Though still a developing country with residual security and safety risks, these developments along with the frontier environment continue to make PNG an attractive location for the industry’s pioneers.


Australasia

Australasia Salaries

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Australasia Hires

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“2011 is forecast to get off to a slow start here, as corporations often opt to halt recruitment and mobilisation efforts until warmer weather returns in the spring.”

Regional Overview2011 may be a more encouraging year in the Caspian region but the full story will not be known until the spring when hiring and project activities resume at full speed. Home to some of the world’s largest oil reserves and gas fields, regional governments are openly courting international investment and undertaking necessary reform measures to position themselves as cooperative business partners. The next challenge will be in attracting the top level talent required to tap into the region’s remote reserves, and given the formidable winter weather and relatively meager standard of living, this will be no easy task.

KazakhstanWith the mercury dipping to -40 degrees during Kazakh winters, the weather can make operations and deployment of personnel very challenging. 2011 is forecast to get off to a slow start here, as corporations often opt to halt recruitment and mobilisation efforts until warmer weather returns in the spring.

Nationalisation still dominates the market, with the government using any opportunity to drive down the number of expat work permit quotas. Faced with frequent cost overruns IOCs are finding themselves in a Catch 22, not wishing to be too top heavy with expat hires yet needing the expertise to keep projects on track. Healthy oil prices will shore up optimism and positive hiring trends into the New Year, however Kazakhstan is also known to be a volatile market, with the ability to hire hinging on project activity abroad and government cooperation. Drilling, Safety, Welding and Structural specialists remain in highest demand.

AzerbaijanAzerbaijan enjoys a strategically valuable position between the FSU and Europe, and European governments have already pledged billions toward the development of the Nabucco pipeline from Azerbaijan to mainland Europe with a goal of reducing energy dependence on Russia. It is also a key transport corridor for US military efforts in Afghanistan. Yet for all its western friendly arrangements, Azerbaijan continues to demonstrate corruption and authoritarian tendencies: strengthened energy trade agreements with Iran, suspicions of rigged federal elections

and mounting tensions with neighbouring Armenia will keep the international community on its toes into 2011. Exploration and development continues apace for the moment, notably the expansion of Azeri pipeline networks to various locations in the region, adding new recipients and boosting export volumes. Rates will remain competitive in efforts to retain key staff.

RussiaAmid high taxation and a subsequent fear over a drop off of oil production, the Russian deputy finance minister has quelled concerns by confirming Russia will introduce a new profit based tax on new oilfields from 2012. Russia’s economic and energy outlook has stabilised considerably of late, which will likely encourage the heavy investments required to tap into its remote reserves. Russia’s known reserves are eighth in the world, but it is number two in production. Industry analysts envisage prospective reserves to be twice the estimated known reserves, but foreign investment capital will be a necessity to meet future production goals. Breaking news in January has been the announcement of the joint venture between BP and Russian energy firm Rosneft to exploit potentially huge deposits of oil and gas in Russia’s Arctic shelf. The “strategic global alliance” will see the firms exchange expertise in exploring the region.


Caspian

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“Europe is still the global go-to for technologically challenging design work.”

Regional OverviewThe economic chasm is widening in the Eurozone between the haves (such as France and Germany) and the have nots (Greece and Ireland), and concern is also spreading over tenuous debt levels and high unemployment in Italy and Spain. Despite the negative pressure the region has experienced of late, Europe is still the global go to for technologically challenging design work, the depth of expertise providing valuable insurance that complex projects will be delivered on time and on budget. The UK looks forward to a pick up in project activity worldwide, which will keep design firms in London and Aberdeen busy well through 2011. And North Sea exploration and development, once the silverback of the industry, has undergone a complete revival with billions in E&P investments pledged for the coming year.

ScandinaviaNorth Sea exploration may be decades old but it is not slowing down, with the Norwegian government having recently committed $30 million on seismic exploration on the Norwegian shelf, citing many areas have yet to be fully mapped. All in all, Norway expects domestic upstream investments to exceed 1985 levels in efforts to maximise current exploits, explore fringe areas, and fully understand the region’s potential. Return to operations following widespread maintenance outages in late 2010 is also fueling the momentum here. For the moment, the workforce demographic in the north remains heavily local with rates slightly lower than in mainland Europe, though the forecasted spike in activity could drive demand for key personnel and ensuing rates upward.

UKOperators here and abroad breathed a deep sigh of relief when the proposed cap on skilled migrants into the UK was amended to allow candidates deemed ‘exceptional talent’ (Tier 1) as well as Tier 2 candidates brought in to work under intra company transfers, providing a valuable loophole for EPC firms in London and Aberdeen ramping up for a heavy design year in 2011. Though the issue of skills versus nationality has not as yet been fully put to bed, any immediate administrative hurdles (and costs) seem to have been averted. As the EPC market gathers speed, rates will increase, though these large, one off jobs will only require short duration resources.

In what may be the first retreat from deepwater exploration since Macondo, the UK surprised the industry and analysts by awarding fewer than anticipated exploration licenses in a recent bidding round, despite public gestures of interest in exploration in the region. With the industry thirsty for cash injection, the holding pattern is not likely to last long. At Blackpool in the North West region of the UK, drilling is due to take place to extract shale gas. This highly controversial operation has attracted opposition from environmental groups who believe that the high risk health concerns have not been fully explored.

Mainland EuropeFrom an immigration and mobilisation standpoint, the EU is still a relatively easy place for expats to work, though both contractors and permanent staff are being forced to accept lower packages to keep on par with local rates. This trend may reverse into 2011 as project activity worldwide picks up, bringing technologically cutting edge EPC work back to the esteemed design firms here. Average unemployment lingers at a relatively steep 10 per cent, and with the exception of Germany and France, Europe’s industrial sector lags behind many other economies worldwide. Safety, Process and Planners remain the most sought-after disciplines.


Europe

Europe Salaries

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28%

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Europe Hires

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“Major demobilisation of many projects is underway with an anticipated 40 per cent of the workforce leaving Qatar by the end of quarter two.”

Regional OverviewThe focus across much of the Middle East remains on diversification of its energy sector (both upstream and downstream) and on solidifying domestic energy supply, ironic given the region is home to some of the largest deposits of oil and gas in the world. With oil prices holding at a comfortable $80-$90 and beyond, international interest and investment may once again pick up in the Middle East into 2011. For the moment, relatively easy immigration, low taxation, steady rates and long-term contracts (and direct hires) will make the Middle East an attractive destination for those interested in a term here.

IraqIraq is home to an estimated 110 billion barrels of proven oil reserves, the third largest in the world. Iraq’s true resource potential may be greater than expected, as deeper oil bearing formations located mainly in the Western Desert region could yield additional resources. As a turbulent peace is held together by foreign and domestic security forces, Iraq’s oil ministry has signed deals with foreign companies to develop its Mansuriyah and Siba natural gas fields. As it tries to boost its energy production and break into global gas markets, Iraq awarded contracts for development of three fields in its third energy bidding round since the 2003 invasion. The first commercial production from the gas fields achieved by the contractor “will be 25 per cent of the production target within the first three years”, announced the Head of the ministry’s licensing and contracting office. He also stated that he “hoped that the total output targets would be achieved within six years.” The Iraqi government has said the priority for the gas will be domestic consumption, but stressed the possibility of allowing exports. More than seven years after the U.S and British led invasion, Iraq’s national grid only supplies a few hours of power each day.

QatarWith its LNG super trains either onstream or soon to be, major demobilisation of many projects are underway at the moment with an anticipated 40 per cent of the workforce leaving Qatar by the end of quarter two. EPC personnel may be retained in support of the Barzan and Ras Laffan projects, though much of the design work is anticipated to be done out of design houses in the

UK. Corporations with deep enough pockets have enjoyed the luxury of keeping key staff on the payroll for several months until project activity picks up once again. Personnel with valuable LNG experience from Qatar will likely find easy transferability of skills to other LNG hubs in Southeast Asia and Australia.

UAEUAE is something of a project activity hotspot into 2011, with expansion work ongoing throughout the ADNOC group of companies. Efforts to push production and downstream processes are leading to plenty of EPC and sub construction work at the moment.

Though the UAE like much of the post recession world has strict nationalisation programs in place, the region is very keen on keeping oil and gas revenues flowing, particularly with the Dubai debt crisis in the not too distant past. Workarounds to immigration policies have therefore been found at all levels, to the extent that the vast majority of the workforce here is comprised of internationals. Nonetheless, with the sheer volume and scale of projects underway, the help is needed and the UAE is certainly accomplishing its ambitious production increase and energy diversification goals.

Disciplines highest in demand include Project Controls personnel (Cost, Planning and Scheduling Engineers) as well as various discipline engineers. Construction and Commissioning personnel are expected to be in demand into quarters three and four.


Middle East

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Middle East Hires

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Regional Comparisons

Key Decrease No Change Increase

Africa - Salaries and Pay Rates Africa - Hires

Americas - Salaries and Pay Rates Americas - Hires

Asia Pacific - Salaries and Pay Rates Asia Pacific - Hires

Australasia - Salaries and Pay Rates Australasia - Hires

H1 = statistics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.


Regional Comparisons

Key Decrease No Change Increase

Caspian - Salaries and Pay Rates Caspian - Hires

Europe - Salaries and Pay Rates Europe - Hires

Middle East - Salaries and Pay Rates Middle East - Hires

H1 = statitics/predictions for the first half of the year, H2 = statistics/predictions for the second half of the year.


Contacts

AmericasAir Resources Americas LLC

6002 RogerdaleSuite 340, Houston Texas, 77072, USA

Tel: +1 281 983 3463 Fax: +1 281 983 3468

[email protected]

Asia PacificAir Energi Group Singapore Pte Ltd

1 North Bridge Road#06-03/04 High Street Centre

Singapore, 179094 Tel: +65 6511 1060Fax: +65 6511 1050

[email protected]

AustralasiaAir Consulting Australia Pty Ltd

Level 4, 46 Edward Street Brisbane, QLD, 4000

Australia Tel: +61 (0)7 3056 0900 Fax: +61 (0)7 3112 2601 [email protected]


The Air Energi and OilCareers.com Global Oil & Gas Workforce Survey © 2011For more information on this report and its findings, please see information below.

Contributors Public Relations: Ian Langley Coordination and Distribution: Chris Grundy Artwork & Design: Ben Quinton

Research and Editorial Services: Sounder Communications Inc, Edmonton, Alberta, Canada

CaspianAir Energi Caspian LLP

Floor 7, 23 Kulmanov Street060011, Atyrau

Kazakhstan Tel: +7 7122 270 126 Fax: +7 7122 270 128

[email protected]

UK, Europe & AfricaAir Resources Ltd

The Exchange, 3 New York StManchester, M1 4HN

United KingdomTel: +44 (0)870 112 9444Fax: +44 (0)870 112 9445

[email protected]

Middle EastAir Resources Qatar

PO BOX 2953, Darwish Building 87604Area 48, Doha Airport West

Doha, QatarTel: +974 4462 0886Fax: +974 4462 6675

[email protected]

Westhill Business Centre,Arnhall Business Park,

Westhill,Aberdeenshire

AB32 6UFUnited Kingdom

Tel: +44 0870 870 4564 Fax: +44 0870 870 4563

[email protected]

OilCareers Inc,11490 Westheimer Road,

Suite 850Houston,TX 77077

USATel: +1 713 425 6316 Fax: +1 713 783 0067 [email protected]

OilCareer.comDubai Media City

Building 9, Office 23PO Box 500643,

Dubai,UAE

Tel: +9 714 299 3678 Fax: +9 714 299 3946 [email protected]

North AmericaUnited Kingdom Middle East

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