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NIGERIA
Akpo A Giant Development
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Umbilicals and flowlines
69 km of 10’’ production flow lines in 4 loops
32 km of 10’’ water injection flow lines (4 lines)
8 km of 8’’ gas injection flow line
150 km 16’’ gas-export pipeline from AKPO to AMENAM
8 main umbilicals to subsea wellsand manifolds
Subsea production system44 wells, with vertical Christmas Trees
22 oil producers20 water injectors
2 gas injectors
9 offline production manifolds
1 offline gas injection manifold
In the field's Miocene reservoir the fluid is
in ‘critical conditions’, i.e. the gas and
liquid hydrocarbons are in a single
phase, at high pressure and tempera-
ture.
The produced gas is partly re-injected
and partly exported onshore to the
BONNY liquefaction plant (NLNG) via the
AMENAM field facilities. This hybrid
injection/export gas scheme optimises
hydrocarbon recovery: gas is injected
only in reservoirs which can benefit from
this type of pressure support.
On the same OML 130 block as AKPO,
three oil discoveries (EGINA, EGINA-
SOUTH and PREOWEI) now form the
basis for an oil development with a newFPSO located in the EGINA zone. Both
AKPO and EGINA, with their ability to
handle a variety of fluids, will be ideal
hubs for developing future hydrocarbon
discoveries in the area.
AKPO Partners
A deep offshorecondensate & gas
field in Nigeria
The AKPO field was discovered in 2000 by
Total Upstream Nigeria Ltd (TUPNI).
Located 150 kilometres off the Niger Delta at
a water depth of 1,400 metres, AKPO is the
first deep-offshore development involving
light oil with a high gas content.
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Offloading buoy
Dual 16’’ offloading lines
Wells
Intelligent completions
Extended-reach deviated and horizontal wells
Sand control with stand-alone screens,expandable screens and Frac-Packs
FPSO | Floating Production, Storageand Offloading Unit
Hull dimensions: 310 m x 61 m x 31 m
Oil storage: 2 million barrels
Oil processing: 185,000 barrels/day
Water injection:420,000 barrels/da
Produced water treatment: 150,000 barrels/day
Gas processing: 15 million standard cubic metres per day
Gas export:9.6 million standard cubic metres per day
Gas injection:6.1 million standard cubic metres per day
Living quarters sleeping: 220
Umbilicals and flowlines69 km of 10’’ production flow lines in 4 loops
32 km of 10’’ water injection flow lines (4 lines)
8 km of 8’’ gas injection flow line
150 km 16’’ gas-export pipeline from AKPO to AMENAM
8 main umbilicals to subsea wellsand manifolds
Subsea production system44 wells, with vertical Christmas Trees
22 oil producers20 water injectors2 gas injectors
9 offline production manifolds
1 offline gas injection manifold
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The 14th
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EFFECT OF SOIL-PILE-STRUCTURE INTERACTION ON NONLINEAR
RESPONSE OF JACKET TYPE OFFSHORE PLATFORMS THROUGH
INCREMENTAL DYNAMIC ANALYSIS
Behrouz Asgarian
1
, Alireza Fiouz
2
and Ali Shakeri Talarposhti
3
1
Assistant Professor, K.N.Toosi University of Technology, Tehran, Iran2
Assistant Professor, Persian Gulf University, Bushehr, IRAN
3 Msc in Structural Engineering, K.N.Toosi University of Technology, Tehran, Iran
Email: [email protected], [email protected], [email protected]
ABSTRACT :
The response of a fixed offshore tower is greatly affected by nonlinear behavior of the supporting piles.
Pile-Soil-Structure Interaction (PSSI) can significantly affect the seismic performance of structures. The
pile-soil interaction during earthquake loading is one of the most important sources of nonlinearity of offshore platforms.
Incremental Dynamic Analysis (IDA) is an emerging analysis method that offers thorough seismic demand andcapacity prediction capability. This involves performing a series of nonlinear time history analyses under a suite
of ground motion records by equally scaling both components of each record to several levels of intensity and
recording the structural response.
This paper presents an efficient method to specify the effect of Seismic Soil-Pile-Structure Interaction (SSPSI)on structure through IDA method and shows suitable length to model offshore with equivalent dummy piles for
more accuracy. Three-dimensional finite element model of offshore, jacket with both equivalent dummy piles(pile stub) and true piles considering soil-pile-structure interaction are subjected to Incremental Dynamic
Analysis and the results of both are compared in terms of IDA curves.
In this paper, a computer program for Nonlinear Earthquake site Response Analyses of layered soil deposits
(NERA) is used for nonlinear response of soil layers. Modeling of structure of offshore with its pile is performed with a FEM program (OpenSees) considering the effects of pile-soil-structure interaction using p-y
curves.
KEYWORDS: Jacket Platform, Incremental Dynamic Analysis, Pile-Soil-Structure Interaction,
Euivalent Dummy Piles.
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1. INTRODUCTION
In recent years experimental and analytical investigations have been directed toward evaluating inelastic
behavior of jacket type offshore structures subjected to strong ground motions. [1] Earthquake design ofoffshore platforms in seismic active areas is one of the most important parts in offshore platforms design.
Dynamic response of piles in offshore platforms is a function of the characteristics of the loading, dynamic
pile-soil interaction behavior and dynamic characteristics of the piles structural system. The SSPSI (SeismicSoil-Pile-Structure Interaction) analysis is the main step in evaluation of seismic behavior of pile supported
offshore platforms. The pile-soil interaction problem during earthquake loading is one of the most important
sources of nonlinear dynamic response analysis of offshore platforms. [2] incremental dynamic analysis (IDA)is a promising method that has recently risen which involves performing nonlinear dynamic analyses of the
structural model under a suite of ground motion records, each scaled to several intensity levels designed to
force the structure all the way from elasticity to final global dynamic instability [3]. Kimiaei.M et al. [2] hasanalyzed nonlinear response of offshore piles under seismic loads. They used BNWF model for the modeling of
pile-soil interaction and finite element method for the modeling of jacket members in nonlinear range of
deformation. Asgarian.B & Ajami.A [4] have surveyed dynamic behavior of jacket type offshore platforms
through incremental dynamic analysis.
In this paper, the effect of considering Seismic Soil-Pile-Structure Interaction (SSPSI) on structure nonlinearseismic response was investigated by comparing with equivalent dummy piles model. For this purpose analysis
of an existing sample offshore platform in Persian Gulf with Soil-Pile-structure interaction and equivalentdummy piles subjected to strong ground motions has been performed and the results in terms of peak interstory
drift ratio of platform in IDA curves have been presented. This model has been developed using OPEN Systemfor Earthquake Engineering Simulation (OPENSEES) [5] software. In order to analyze the variations in soil
layers response against earthquake, "NERA" software [6] is used. In this software the nonlinear strain-stress
behavior has been modeled and the relative displacements (or accelerations) in each sublayer have been
calculated. [7]
2. INCREMENTAL DYNAMIC ANALYSIS
The Incremental Dynamic Analysis (IDA) [8], is a computer intensive procedure that offers thorough (demand
and capacity) prediction capability by using a series of nonlinear dynamic analyses under suitablymultiply-scaled ground motion records. It can estimate accurately the seismic performance of structures.
Applying IDA to determine the performance of a structure requires several steps. First, a proper nonlinear
structural model needs to be formed, and a suite of records must be compiled. Then, for each record, the scaling
levels must be selected, the dynamic analyses run and the results post processed. Thus, IDA curves of thestructural response can be generated, as measured by a Damage Measure (DM, e.g., peak roof drift ratio θroof or
θmax), versus the ground motion intensity level, measured by an Intensity Measure (IM, e.g., peak groundacceleration, PGA, or the 5%-damped first-mode spectral acceleration Sa(T1,5%)). In turn these are interpolated
for each record and summarized over all records to estimate the distribution of demand DM given intensity IM.
3. PILE-SOIL INTERACTION ANALYSIS USING BNWF
BNWF models used to analyze the dynamic response of piles should allow for the variation of soil propertieswith depth, nonlinear soil behavior, nonlinear behavior of pile-soil interfaces and energy dissipation through
radiation and hysteretic damping. Special attention must be given to the evaluation of the free-field excitation.
The computed ground motion at different levels within the soil is then applied to the nodal boundary supports
representing the support motions [2]. Figure 1 shows the general view of a BNWF model and its main
components in dynamic nonlinear response analysis of piles. [9]
In the present study, the soil stiffness is established using the p-y curve (lateral soil resistance versus lateral soil
deflection) approach. The procedures for generating p-y curves proposed by Matlock et al [10], Reese et al [11]and O’Neil [12] are recommended by the American Petroleum Institute and are widely used in both research
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and professional jobs (API-RP- 2a) [13]. Therefore in this study, the soil stiffness is modeled employing thestatic p-y curves recommended by API.
Fig. 1. Characteristics of Nonlinear p-y Element:(a) Components; (b) Behavior of Component
Also the damping component of the soil resistance is represented by a dashpot whose coefficient is established
based on the Berger et al [14] model, i.e.,
s L BC ρν 4= (1) Where B = pile diameter, v s = soil shear wave velocity and ρ=soil unit density.
4. FREE FIELD EXCITATIONS
Free field ground motion time histories are usually computed using common site response analysis techniques.
In site response analysis, the ground motion of the soil layer is calculated due to earthquake excitations applied
at bedrock. The results of such free field analysis (acceleration or displacement time history at different soillayer) are then used as the input excitation at support nodes of the BNWF-Fiber Element model. [15]
In the present study the nonlinear stress-strain response of soil layers approximated by a nonlinear approach. In
the analyses, Iwan [16] and Morz [17] model is used on which the nonlinear and hysteretic stress-strain
behavior of soil is approximated by tangential shear modulus. A computer program NERA (NonlinearEarthquake site Response Analysis) developed by Bardet et al [6] is used for free field ground motion analysis.
The lowstrain shear modulus Gmax was calculated from the dimensionless form of the equations by Seed andIdriss [18]:
Sandfor P
K 8.21P
G
atm
mmax,2
atm
max σ′=
(2)
3/)21(65 0max,2 vcm K K σ σ ′+=′= pressurecatmospheriP,6.0K atm0 ==
Clayfor 380c
G
u
max=
(3)
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5. MODEL AND GROUND MOTION RECORDS
Two structural models in this paper are 3D models and similar but one of them is with SSPSI and other is with
equivalent dummy piles (without SSPSI). The provided model is formed by an assembling of frame elements inthe nodes in general coordination system. This selected jacket type offshore has 141.7 m height. The platform is
a six-leg jacket type which is installed in a water depth of 47.6 m. The jacket is located between -47.6 m and
+7.25 m relative to L.A.T and the top side is located between +9 m and +24 m with three stories. In plan, theacket is rectangular, 36m by 36m that is shown in figure 2. The elevations of jacket are shown in figure 3.
The platform has a three-stories topside with total mass of about 10000 tons located in center of each story anda four story jacket with total mass about 2000 tons located in main nodes of jacket. The platforms has different
geometries in x and y directions. To accommodate platform heavy topside installation using float-over system,
there are not any braces in sea water level bay in direction y and a portal action is formed in this direction.
The first natural period of platform is T1=3.03 sec. The members are modeled using a beam-column element.All analyses were performed using OPENSEES.
Figure 2. The jacket in plan Figure 3. Elevation of offshore
For the modeling of SSPSI model, some nodes are introduced on pile with the same coordinate of main layer
and sub-layer nodes. These two points have the same coordinates on the general coordinates. Based on the
conditions of the cave-in and break in interaction between soil and pile, the interactive elements are introduced
in the model. In this model, the relative movements of the nodes between pile and soil would be possible. Inclay soil a gap is formed in tension stress situation. So the interactive element in the model should separate the
node between pile and soil. For non-sticky soil, when the loading process is completed, the gap which is formed
due to the non-sticky material would be filled. In BNWF nonlinear model, apart from modeling the pile indynamic forces, the gapping and cave-in are modeled. For the modeling of structural steel, a bilinear
elasto-plastic model with kinematic and isotropic hardening materials is suitable. The selected model for thisstudy is an elasto-plastic model with strain hardening of 5 %.
For modeling of jacket, deck and pile members, the fiber elements have been used. By using this model, the buckling behavior and post buckling behavior of the tubular braces can be controlled by adding geometric
stiffness [5]. As accuracy in P-delta analysis is suitable for the application in Earthquake engineering, it is used
for applying the effects of decreasing the stiffness and strength.
According to API (RP-2A) [13], in this essay, the mass used in the dynamic analysis consist of the mass of the
platform associated with gravity loading, the mass of the fluids enclosed with the structure and the
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appurtenances, and the hydrodynamic added mass. The added mass may be estimated as the mass of thedisplaced water for motion transverse to the longitudinal axis of the individual structural framing and
appurtenances. In computing the dynamic characteristics of braced, pile supported steel structures, viscous
damping ratios of 5% are used for an elastic analysis.
In the SSPSI model, for soil dynamic analysis, the soil characteristics, layers and selected record are introducedin “NERA”. Then by using “NERA”, the time history of relative displacement at a selected sublayer is attained.
After the formation of model, the time history of relative displacement of soil (in NERA) in pile nodes is
applied and later the structure is analyzed by a nonlinear dynamic analysis [8].
The second model of jacket was created with above mentions and eliminating soil-pile-structure and modeling
pile with equivalent dummy piles (pile stub). The length of pile stub was considered 15 times of pile diameter.
A set of twenty ground motion records is selected as listed in Table 1, that belong to a bin of relatively large
magnitudes of 6.5 - 6.9 and moderate distances, all recorded on firm soil and bearing no marks of directivity.
Table 1. The suite of twenty ground motion records used.
6. PERFORMING THE ANALYSIS AND IDA CURVES
Once the model has been formed and the ground motion records have been selected, a way to perform theactual nonlinear dynamic analyses required for IDA is needed. This entails appropriately scaling each record to
cover the entire range of structural response, from elasticity, to yielding, and finally global dynamic instability.
[3] To use a stepping [8] algorithm to trace the IDA curves of platform is chose. Analyses are performed atincreasing levels of IM at constant steps, until numerical non-convergence is encountered [4].
An IDA Curve set is a collection of IDA curves of the same structural model under different accelerograms thatare all parameterized on the same IMs and DM [8]. Figures 4 to 5 shows all twenty IDA curves in x and y
direction for two models.By generating the IDA curve for each record a large amount of data can be gathered, only part. There, the IDA
curves display a wide range of behavior, showing large record-to-record variability, thus making it essential to
summarize such data and quantify the randomness introduced by the records. [4] They can be easily
summarized into some central value (e.g., the mean or the median) and a measure of dispersion (e.g., thestandard deviation, or the difference between two fractiles). Consequently, to calculate the 16%, 50% and 84%
fractile values of DM and IM capacity is chosen, as shown in Figures 6 and 7.
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Figure 4. All twenty IDA curves in X direction of Jacket platform
(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction
Figure 5. All twenty IDA curves in Y direction of Jacket platform(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.
Figure 6. The summery of IDA curves in X direction of Jacket platform
(a) With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.
0
1
2
3
4
5
6
7
8
0 0.02 0.04 0.06 0.08 0.1 0.12
Maximum interstory drift ratio
“ F i r s t m o d e ” s p e c t r a l a c c e l e r a t i o n S a ( T 1 ,
% 5 ) g
0
1
2
3
4
5
6
7
8
0 0.02 0.04 0.06 0.08 0.1 0.12
Maximum interstory drift ratio
“ F i r s t m o d e ” s p e c t r a l a c c e l e r a t i o n S a ( T 1 ,
% 5 ) g(a) (b)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
0 0.02 0.04 0.06 0.08 0.1
Maximum interstory drift ratio
“ F i r s t m o d e ” s p e c t r a l a c c e l e r a t i o n S a ( T 1 ,
% 5 ) g
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1
Maximum interstory drift ratio
“ F i r s t m o d e ” s p e c t r a l a c c e l e r a t i o n S a ( T 1 ,
% 5 ) g
(a) (b)
0
1
2
3
4
5
6
7
8
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
Max. interstory drift ratio
" f i r s t - m o d e " s p e c t r a l a c c e l e r a t i o n S a ( T 1 , 5
% )
16% IDA
84% IDA
50% IDA
(a)
0
1
2
3
4
5
6
7
8
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
Max. interstory drift ratio
" f i r s t - m o
d e " s p e c t r a l a c c e l e r a t i o n S a ( T 1 , 5
% )
16% IDA
84% IDA
50% IDA
(b)
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Figure 7. The summery of IDA curves in Y direction of Jacket platform(a)
With considering Soil-Pile-Structure Interaction (b) without considering Soil-Pile-Structure Interaction.
7.CONCLUSION
SSPSI is a fundamental subject in evaluation of offshore platforms behavior. In order to the figures in each
direction before 0.06 drift ratio, behavior of the each models in both direction is almost similar. But after that
depended to frames and interstory stiffness, behavior of the models in each direction is different. As in Xdirection that frames have more stiffness, flatline in model without SSPISI is upper than SSSPSI model. In this
direction the model without SSPSI has almost linear behavior.In Y direction because of conditions of deck installation with float-over method and less frames stiffness,
flatline in model without SSPSI is lower than SSPSI model.
Difference of the model behavior with SSPSI and without SSPSI is depended to equivalent pile stiffness
(length), frames stiffness and interstories stiffness. So nonlinear behavior of pile and surrounding soil plays animportant role in actual behavior of a jacket in nonlinear range of deformation.
REFERENCES
[1] Asgarian A, Aghakouchack AA. (2004) “Nonlinear Dynamic Analysis of Jacket Type Offshore StructuresSubjected to Earthquake Using Fiber Elements”. 13th World Conference on Earthquake Engineering. Paper No.
1726.
[2] Kimiaei M, Shayanfar MA, El Naggar MH, Aghakouchak AA. (2004) “Nonlinear Response Analysis of
Offshore Piles Under Seismic Loads”. 13th World Conference on Earthquake Engineering. Paper No. 3056.
[3] Vamvatsikos D, Cornell CA. (2003) “Applied incremental dynamic analysis”. Earthquake Spectra.[4] Asgarian B, Ajami A. (2006) “Nonlinear Dynamic Behavior of Offshore Structures, Using Incremental
Dynamic Analysis", 8th U.S. National Conference on Earthquake Engineering, San Francisco, USA.
[5] Mazzoni S, McKenna F, Fenves GL. (2006) “OpenSees Command Language Manual”.[6] Bardet, JP, Tobita T. (2001) "NERA- a computer program for Nonlinear Earthquake site Response Analysis
of Layered Soil Deposits." Department of Civil Engineering, University of Southern California..[7] Asgarian B., Raziei A. (2007) “Comparison of Incremental Dynamic and Pushover analysis of Jacket TypeOffshore Platforms”. 26th International Conference on Offshore Mechanics and Arctic Engineering.
OMAE2007-29469.San Diego, California, USA.
[8] Vamvatsikos D, Cornell CA. (2002) “Incremental dynamic analysis”. Earthquake Engineering andStructural Dynamics; 31(3):491_514.
[9] Boulanger RW, Curras CJ, Kutter BL, Wilson DW, Abghari A. (1999) "Seismic soil pile structure
interaction experiments and analysis." Journal of Geotechnical and Geoenvironmental Engineering, ASCE,125(9), 750-759.
[10] Matlok, H. (1970) “Correlations for design of laterally loaded piles in soft clay”. Proceeding of the 2nd
0
0.2
0.4
0.6
0.8
1
1.2
1.4
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
Max. interstory drift ratio
" f i r s t - m o d e " s p e c t r a l a c c e l e r a t i o n S
a ( T 1 , 5
% )
16% IDA
84% IDA
50% IDA
(a)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
0 0.02 0.04 0.06 0.08 0.1 0.12 0.14
Max. interstory drift ratio
" f i r s t - m o d e " s p e c t r a l a c c e l e r a t i o n S
a ( T 1 , 5
% )
16% IDA
84% IDA
50% IDA
(b)
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Offshore Technology Conference, Houston, Tx., Vol. 1, pp. 577- 588.[11] Reese, L.C., and Welch, R.C. (1975) “Lateral loading of deep foundations in stiff clay”. Journal of the
Geotechnical Engineering Division, ASCE, 101(GT7), 633-649.
[12] O’Neill, M. and Murchison, J. (1983) “An evaluation of py relationships in sands”. Report GTDF02-83,Department of Civil Engineering, University of Houston, May.
[13] American Petroleum Institute. (2000) “Recommended practice for planning, designing and constructing
fixed offshore platforms”. API Recommended Practice 2A (RP-2A). 21st ed. American Petroleum Institute,Washington, D.C.
[14] Berger, E., Mahin, S.A., and Pyke R. (1977) “Simplified method for evaluating soil-pile-structure
interaction effects”. Proceedings of the 9th offshore Technology Conference, OTC paper 2954, Huston, Texas,589-598.
[15] Asgarian B., Roshandel Tavana MA. (2007) “Bedrock Depth Effect Investigation in Seismic Response of
Offshore Platforms Considering Soil- Pile- Structure Interaction”. 26th International Conference on OffshoreMechanics and Arctic Engineering. OMAE2007-29470. San Diego, California, USA.
[16] Iwan, W.D. (1967) “On a class of models for the yielding behavior of continuous and composite systems”.
Journal of Applied Mechanics, ASME, 34: 612-617.
[17] Mroz, Z. (1967) “On the description of anistropic work hardening”. Journal of Mechanics and Physics of
Solids, Vol. 15, pp. 163-175.[18] Seed, H. B., and Idriss, I. M. (1970) “Soil moduli and damping factors for dynamic response analysis”.
Report No. UCB/EERC-70/10, Earthquake Engineering Res. Ctr., University of California, Berkeley, Calif.
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OIL & GAS
GLOBALSALARY GUIDEReview of 2013, outlook for 2014.
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PEOPLE RESPONDED
TO THE SURVEY
RESPONDENTS AREEMPLOYERS IN THEINDUSTRY
COUNTRIES WORLDWIDEREPRESENTED
DISCIPLINEAREAS COVERED
24,0007,200+
5324
THANK YOUWe would like to thank all of you who took the time to participate in our survey.
We’d especially like to thank the teams from Oil and Gas Job Search and from Hays for all of their hard work conducting the survey,
analysing the results and producing an excellent document.
Last year we had over 150,000 copies of the Guide downloaded and an additional 20,000 distributed in person and at various
conferences, and we hope to surpass these levels this year.
We believe that our growing number of readers is a strong indication of the value and quality of our document, but we are always
interested in receiving feedback from you on how to improve and make our study more useful for you.
We hope you enjoy the read and, more importantly, find it useful in your job.
Disclaimer: The Oil & Gas Global Salary Guide is representative of a value added service to our clients and candidates. While every care is taken in the collection andcompilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced intotal or by section without written permission from Hays.
SURVEY SUMMARY
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SECTION ONEINDUSTRYPERSPECTIVE
2 | Oil & Gas Salary Guide
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While a detailed analysis of the global oil and gas
industry is beyond the scope of this document,
here are some of the key issues that have had
and will continue to have an effect on the
industry’s labour markets and remuneration.
GLOBAL PERSPECTIVE
Overall, 2013 saw sluggish economic growth in most of the
world’s economies, which helped to keep oil prices in a
relatively narrow range between $90-105/bbl, above the
standard $80 economic threshold but below prices thatwould jeopardise a fragile global economic recovery.
While there are signs of faster economic growth in the
coming year in most regions, and consequently higher energy
prices, there are also some analysts who predict lower crude
prices due to relatively flat demand and increased production
from places like the US, Libya, Iran and Iraq.
The world’s oil market is being thrown out of balance
largely by light tight oil from the US. In addition, the US
now vies with the Middle East in LPG exports, creating
downward pressure on global prices in this market.
Finally, in LNG, expansion investments in Australia are
being reconsidered in view of potential competition from
less expensive North American exports.
How quickly the fracking revolution spreads from the US
to other countries with significant shale reserves is
perhaps the biggest question in the global energy puzzle
over the coming decades. This will also have a profound
effect on what skills are required and where.
Worldwide, rising costs of labour and services coupledwith only modest increases in revenues have squeezed
company profits and cash flow and have sounded an early
warning for some companies and investors alike.
While this is causing a weakening in investment appetite in
certain cases, the long-term view is still relatively strong,
particularly for high potential areas such as Brazil, the Gulf
of Mexico, West Africa and the Arctic.
The world’s energy demand is expected to increase by 50
per cent in the next three decades, primarily caused by
increased requirements in developing nations. Only 50 percent of the reserves have been developed, which suggests
that massive ongoing capital investments will be required
in increasingly challenging operating environments.
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INDUSTRY PERSPECTIVERegional View
Mexico has passed legislation to open itsenergy industry to outside investment in orderto reverse steeply declining production, whichhas dropped 20 per cent since 2002. Thechanges would allow international companiesto enter into globally competitive contracts toexplore for and produce hydrocarbons and totake ownership of the oil above ground, afterpaying royalties and taxes. It also permitsinternational companies to open retail gasstations. If the law is implemented successfully,this could create significant activity on the
Mexican side of the Gulf of Mexico, an area thathas been only lightly explored compared to thehighly productive US areas to the north.
In Brazil, Petrobras is having difficultiesfinancing its five year investment plan, which,at over $200 billion, is the world’s largestcorporate spending programme. This hasdelayed deepwater projects and has led tosales of some of its international assets.However, successful licensing rounds for thepre-salt in 2013 has led to renewed optimismfor 2014 activity levels.
Colombia also had a successful licensinground, but at a more subdued level thanBrazil. Exploration is a priority to boostdiminishing reserves of crude oil, which stood
at around 2.4 billion barrels in 2013.
Akacias is one of the biggest explorationsuccesses in recent years in Colombia, andclearly shows the potential of heavy crudes inthe Llanos area. Plans are being made tospend as much as $75 billion by 2020 toincrease oil and gas production to 1.3 millionbarrels.
While 2013 was a relatively quiet year in termsof activity and hiring in both Brazil andColombia, recruiting efforts are starting toshift into gear particularly in the geoscienceand subsea engineering disciplines,predominantly for operations and projectmanagers.
Both countries are trying to reduce theirdependence on international workers byattracting nationals who are currently workingabroad.
In Brazil, the government estimates it willneed an additional 250,000 new professionalsthis decade and has initiated a programme toattract and develop 200,000 new workers tothe industry, but despite a swelling youthfulpopulation it is unclear whether there will besufficiently trained workers to fulfill theirneeds. It is likely that there will continue to bean influx of as many as 5,000-10,000international workers per year.
In Argentina, the government has recentlyrelaxed regulations enabling agreements to beput in place to develop the vast Vaca Muertashale reserves, one of the world’s mostpromising shale formations.
Argentina is hopeful that shale production will
help recover energy self-sufficiency it lost earlierthis century.
The US is projected to become the largestglobal producer of oil and gas in the world,driven by a surge in production from shalereserves. Imports of gas and oil have dropped
by 32 per cent and 15 per cent in the past fiveyears, creating a shifting and uncertaingeopolitical environment for major oilproducing countries.
Many believe that by the end of the decade theunconventional bubble will burst and theimportance of imports, particularly from theMiddle East, will again rise.
Due to surging unconventional gas production,natural gas prices have remained low,decreasing the attractiveness of drilling for drygas and opening the opportunity to exportLNG to higher priced markets such as Asia.The US is poised to become the world’s largestexporter of LNG. In the meantime, low gasprices have greatly benefitted the chemicals
and manufacturing industries, which haveannounced new investments of as much as $110billion.
Offshore activity has completely reboundedsince the Macondo incident of 2009.Deepwater and ultra deepwater activity isexpected to continue to rise, with active rigsincreasing from 37 currently to 60 by 2015.Production is expected to increase by 10 percent next year. Onshore drilling is focused onoil and liquids.
The shale drilling boom has attracted newcompetition to the service market, which nowlooks like it might need to consolidate.
The US workforce has grown by over 40 percent since the recession, and energy companiesare forecasting a need for many thousands ofengineers by the decade’s end.
Due to an aging workforce and difficultimmigration restrictions, there is a need toattract more Science, Technology, Engineeringand Mathematics (STEM)-skilled workers fromschools as well as from other sources, such asthe military.
Increasingly, professionals with unconventionalexpertise are being sought for internationalassignments.
In Canada, transportation bottlenecks and aglut of oil and gas in the US have led to ageneral softening of the market and a push tobuild infrastructure for LNG export.
The government has been enhancing policiesto encourage foreign investment and to further
develop the required infrastructure to export toAsia and other markets, thus reducing thereliance on exports to the US.
Some companies have announced significantreductions in workforce and others havereduced profit forecasts because of delayedprojects. However, other companies are hiringand are even struggling to find adequate skills.
Significantly, the end of 2013 saw a number oflarge projects get Final Investment Decision(FID) and move into detailed engineering andconstruction phases. This activity is likely toreinvigorate the competition for talent in thisspace and we expect to see renewed upwardspressure on salaries and day rates through2014.
South America
North America
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INDUSTRY PERSPECTIVERegional View
Aging North Sea fields, whose average size isshrinking quickly, are increasingly relying onNational Oil Companies (NOC), small operatorsand service companies to keep production andtax revenues flowing.
Emerging technologies to better visualise thesubsurface in order to enhance ultimate recoverywill also play an important role in maintainingproduction levels.
Nevertheless, there is considerable explorationwork being conducted, especially on theAtlantic side of the North Sea (west ofShetland). The continued use of new
technology is also propping up the EngineeringProcurement and Construction (EPC),consultancy and engineering markets withnumerous upgrades to platforms and facilities.
London in particular has emerged as a financinghub for smaller start up and midcap E&Pbusinesses exploring in the North Sea and the restof the world. Over the last 12 months there hasbeen a marked increase in smaller businessessecuring finance to exploit recently acquiredlicenses.
The UK has announced a new tax allowanceaimed at boosting the development of shalegas resources in the country. If otherEuropean countries, such as Poland, followsuit and overcome geological, political,
environmental and other hurdles related toshale production, the global oil and gasindustry would face a major rebalancing.
Norway expects to continue record levelspending, primarily offshore, although theservice sector is experiencing a slowdown ascompanies have become more focused onincreasing cash flow, perhaps foreshadowing afuture slowdown in activity.
In the UK, the debate continues regarding thebenefit of the influx of migrant workers,primarily Norwegian, Dutch and Americans, whomake up nearly 20 per cent of the offshoreindustry.
The government recently relaxed immigrationrestrictions on employing non-British engineersin order to address the skills shortage of theindustry. Meanwhile, government and private
sector efforts to develop graduates in STEMdisciplines are underway.
In the North Sea, experienced workers in mostdisciplines are in demand, as people are beingattracted to overseas projects which is reducingthe local candidate market. Internationalassignments are often more lucrative and areperceived to offer exposure to more diverseenvironments compared with the North Sea.
Subsea engineers are in short supply; particularlythose working in controls and pipelines, howeverthis isn’t new to 2013/2014. Geoscience andsubsurface professionals, specifically withdevelopment experience in the North Sea, are inhigh demand driven by a number of newdevelopments over the last 12 months coupled
with competition from international opportunities.
In order to find scarce skills and combat salaryinflation, some companies are looking to otherindustries for talent with transferable skills, such asex-military personnel for operations, logistics andmaintenance roles or other engineering sectorssuch as automotive, defense and aerospace.
In general, Continental Europe tends to have asurplus of well trained and educated oil and gasprofessionals and acts as an “exporter” of theseprofessionals worldwide. This past year did notsee significant changes in activity and so thesupply and demand of labour was largely inequilibrium. An exception to this was Poland,where disappointing results in shale exploration
has led to a weakening demand for these skills.
Russia, which relies on oil and gas relatedduties and taxes, is being threatened by there-balancing of the global energy market.Exports have dropped due to Europeaneconomic problems and increased competition
from cheaper alternatives. Therefore, Russia’sattention, and gas exports, might shifteastward to gas-hungry China.
Many believe that Russia must invest inunconventional resources like the Arctic andshale in order to maintain long-termproduction. This would likely require asignificant inflow of technology and as much
as $100 billion in international investment,which is being supported so far by tax breaks.Russia currently accounts for approximately 15per cent of global production but less than 10per cent of capital investment.
At the time of writing, large scale rallies werebeing held in Ukraine to protest thegovernment’s refusal to sign a political andtrade pact with the European Union, adecision assumed to be heavily influenced byRussia. Adding to the tension between Russiaand Ukraine is a dispute over overduepayments owed to Gazprom. The outcome ofthe current discourse between the countriesmay have an impact on hiring for Russian andUkrainian projects.
Perhaps consequently, Ukraine has enteredinto shale gas production agreements withInternational Oil Companies (IOCs) to reduceits dependence on Russian imports andpossibly achieve energy self-sufficiency.
However, shale efforts in neighboring Poland,Lithuania and Romania have had limitedsuccess due to a combination of geology,contractual terms and environmental concerns.
Further south in the Caspian area, activitycontinues to remain high as do investments intransportation infrastructure.
United Kingdom and Continental Europe
Russia and Commonwealth of Independent States (Russia and CIS)
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O
N E : I N D U S T R Y P E R S P E C T I V E
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2013 was a relatively steady year for theMiddle East, but given the number ofinfrastructure and field development projectsthat are now underway, the expectation for
2014 is for much greater activity.While the Middle East will rely on importedworkers for the foreseeable future, there havebeen government and company efforts toincrease the local labour content of theworkforce.
These efforts have had some positive impact,supported by the demographic youth bulge inthe local population, but the increased blue-and white-collar workforce requirementsexpected in the next few years will mostcertainly be met by workers from otherregions.
Some of the NOC’s have launched worldwiderecruitment campaigns for the thousands of
engineers they expect to require in the nearfuture.
Growing interest in the Middle East inunconventional resources underlines thegeneral view that the days of easy oil are over.These skills will largely be imported
internationally.Iran in particular has not had access tomodern technologies, so there is greatpotential for increased production if localcomplexities can be overcome.
OPEC has seen its exports decrease due toslow growth of global demand coupled withsurging production from the US.
Given the expected return of production fromplaces like Iran, Iraq and Libya, OPEC maycontinue to see declines in the short-term.
In the long-term, global oil demand isexpected to grow from 90mmbpd to115mmbpd by 2040 due to population growthand increased per capita energy consumption
in developing countries, in the Middle Eastproduction will once again regain itsdominance.
Africa currently supplies approximately 12 percent of the world’s oil and is estimated to holdas much as eight per cent of the world’srecoverable oil reserves and seven per cent ofits gas. About 80 per cent of its oil productioncurrently comes from Nigeria, Libya, Algeria,Egypt and Angola. Given its vast size andpotentially untapped resource wealth, Africa isone of the last oil and gas frontiers.
Challenges, however, remain in almost allrespects. Security remains a concern, andcandidates are increasingly considering theirsafety and how potential employers aremanaging security at their facilities before theyaccept offers. Political uncertainty, fraud andcorruption, stringent regulations andrestrictions, and a lack of infrastructure andlocal skills all play a role in inhibiting investment.
Nevertheless, capital investment in East andWest Africa should continue as huge potentialoutweighs concerns about fiscal stability,security and infrastructure.
Historically, E&P focus has been in the west,mainly in offshore and deep water, but thatfocus is shifting somewhat to the east,particularly in gas exploration, as expectationshave not been completely met in westerninvestments. Recently, there have beensignificant gas finds in Mozambique andTanzania, and growing interest in oil explorationin Uganda and Kenya.
Deep water skills are still in demand in thewest, mostly reservoir and drilling engineering,but increasingly candidates with gasexperience, particularly in the feasibility, designand exploration areas, are being recruited inthe east.
Some of these skill requirements will be met byworkers moving from west to east. A majorityof skilled workers will continue to be expatsinto the foreseeable future.
INDUSTRY PERSPECTIVERegional View
Africa
Middle East
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INDUSTRY PERSPECTIVERegional View
Energy demand is expected to grow by 80 percent by 2035 in Southeast Asia, further shiftingthe global centre of gravity of the industryeastward. Singapore has become one of Asia’smain energy and petrochemicals hubs and oneof the world’s top-three oil trading and refiningcenters. Asia Pacific continues to be a regiontargeted by global IOCs to achieve growth.
Oil production has peaked, and the region hasbecome a net oil importer in the mid-1990s.Indonesia, Malaysia and Brunei have beensignificant exporters of gas historically, but arenow slowly becoming importers or net neutral.
Investment has been inhibited by challenginglegal and ownership issues, raising capital,territorial disputes, infrastructure and technicalissues. The region must reduce regulatory
uncertainties and offer financial investmentframeworks that compensate for risks in orderto attract more international investment.
With Singapore’s first LNG terminal coming online, we can expect an increase in demand forcandidates with LNG experience. Design andconstruction of offshore structures (rigs,FPSO, FSO and topsides) remains anexpanding market.
There is a shortage of Senior Project Managers,particularly those with a subsea or SURFbackground and ‘mega project’ experience. Themarket is also tight for Asian national ReservoirEngineers, Senior Geophysicists and Geologists.
The manufacturing industry in Asia has
continued its drive forward and the OriginalEquipment Manufacturer (OEM) sector hasbeen an engine for growth for a number ofyears. With issues of quality and reliabilityhigh on the end users’ agenda, Asia has madegiant strides in improving quality and theresults are increased orders and a wider rangeof products being produced. We expect to seecontinued demand for sales & businessdevelopment specialists and operations/plantmanagers well versed in maximizingproductivity and improving quality processes.
There has been pressure on salary levelsincreasing for Asian nationals. To managecosts, companies are offering increased
bonuses and are reducing their reliance onexpats where possible.
The drive to invest in and develop local talentin Malaysia continues. This strategy has had a
significant positive impact on the talentavailable, particularly at the senior level.
In the geoscience area many senior roles havebeen historically occupied by expats. However,companies, such as operators, are now vyingfor talented local professionals. In response tohigh demand and short supply, suitableMalaysian candidates at this level cannegotiate large salary increases when movingfrom one company to another. Given the focuson employing local staff, expat salaries areunder pressure.
Agreements are starting to be put into place inChina to attract international capital and talent todevelop shale reserves. China is believed to hold
the world’s largest technically recoverable shalegas resource, but exploration is at an early stage.
In the upstream market, EPC and other oil fieldservice companies have seen a relatively flatmarket for their services, and so their hiring hasremained stable. In contrast, the downstreammarket, particularly the production of bitumenand lubricants, is booming and sales andmarketing professionals are in demand.
Experienced and skilled engineeringprofessionals specialising in geology andreservoir engineering and with both onshoreand offshore knowledge are in short supply inthe domestic market.
Asia
Australasia
After a number of remarkable years ofinvestment, there will likely be a pause in newLNG projects as US exports are potentially morefavourable from a standpoint of pricing,contractual terms, and supply portfoliodiversification.
New Australian opportunities for LNG expansionwill have to overcome its high-cost environmentand highly valued currency.
In the marine support sector, wages andexpenses have risen significantly (40 per cent)since 2007, only partially offset by rises inrevenue (8 per cent), raising concerns about theongoing health and competitiveness of theoffshore industry.
In Western Australia and in the NorthernTerritories the focus has come off of theGorgon and Wheatstone projects and nowattention lies with Inpex and other newdevelopments, expansion of existingoperations with mid-tier operators and, finally,efficiency measures in existing assets.Offshore-specific disciplines like marineinstallation and subsea engineering remain inhigh demand falling in line with the stages ofmajor projects.
The four LNG projects in Queensland (QLD)are all at differing stages with QCLNG comingin first.
APLNG and GLNG have another year ofconstruction to run and have recently signedan agreement to share some pipelineinfrastructure to save costs. Due to a mixtureof cost, developing FLNG technology and newcountries coming into play, the Arrow projecthas gone back to concept selection phase. The
refineries are currently going throughsignificant periods of change and arestructuring themselves over the comingmonths to deal with this. GTL technologyappears to be uncompetitive with the currentavailability of resources in QLD and the pilotplant is likely to be abandoned.
The outlook for 2014 is quite promising withmultiple packages of the major projectsramping up in close succession, re-engagingcandidates in areas of the market that havebeen stagnant over the last six months, as wellas planned expansion and maintenance worksat various on- and offshore operations. Keydisciplines that will see a resurgence includeHSE, QA/QC, specialist trades and labour, withsubsea, installation, project controls andoperations and maintenance remaining stable.
With portions of the market remaining flatover 2013, employers are looking to exhaustlocal resources before they will considersponsorship. Key technical areas and skillsetsspecific to new technology like FLNG anddynamic positioning are new to Australia andtherefore employers are looking to overseasmarkets for resources.
As infrastructure comes into completion,companies are preparing for operations. With thelack of previous local expertise within CSG andLNG we will see demand increase for operationspersonnel from similar industries as well astraining personnel to assist in the transition.
Although a relatively minor player on theglobal playing field, there is growing interest
in the exploration potential in offshore NewZealand.
Due to the potential economic benefits, thegovernment has purposefully attractedinternational investment to shoot seismic andexplore in some of the largely unexploreddeepwater basins.
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O
N E : I N D U S T R Y P E R S P E C T I V E
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SECTION TWOSALARYINFORMATION2013 saw a one per cent like-for-like decrease in average salary
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One per cent like-for-like
decrease after three yearsof growth
Oil & Gas Salary Guide | 9
SALARIES DECLINE FROM 2012 LEVELS
Raw data
Like-for-like data
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2010 2011 2012 2013
Like-for-like data takes into consideration respondent demographic changes and currency fluctuations.
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SALARY INFORMATIONSalary Overview
10 | Oil & Gas Salary Guide
This past year we saw the like-for-like average permanent salary ofsurvey respondents fall to $81,184*, a one per cent decline from last year’saverage salary of $81,924.
This represents perhaps a well needed correction after two prior years of
significant salary increases.
While the headline decline is significant, the individual country figuresportray the numerous forces shaping remuneration in the industry.Whether they are successes or issues stemming from geology, politics,the environment, the economy or in some cases armed conflict, eachregion’s salary tells a story:
• Australia saw flat to slightly declining average salaries after a number ofyears of unsustainable growth in wages had started to threaten thefinancial viability of some projects.
• Southeast Asia saw declines in China, Indonesia and Malaysia due to
downward pressure on expat salaries, while Singapore remainedrelatively strong.
• The Middle East was flat to slightly declining except for Qatar due to its
increased upstream and downstream activity.
• Russia and CIS were flat to lower due to less reliance on expats as wasmost of Africa.
• Continental Europe was flat to declining as supply and demand of
workers was largely in equilibrium, but in places like Poland there was areduced need for expats. UK and North Sea salaries were also flat toslightly declining year-over-year.
• Brazil had a second consecutive decline after several years of upwardly
spiraling salaries, as further delays in activity reduced the demand forworkers. Argentina and Venezuela also saw salaries decline, whereasColombia a bright spot.
• Canada saw relatively flat salaries as transportation bottlenecks to the US
caused jitters in prices and shook investor confidence. US salaries decreasedto 2010 levels as low natural gas prices depressed onshore drilling.
Looking forwardAt the time of writing the price of oil remained comfortably above $90/bbl and natural gas in the US has rebounded to well over $4/mcf. Thereis some doubt creeping into the market driven by the possibility of fallingprices due to tepid global demand and the impact of increasedproduction from countries such as the US, Iran, Iraq and Libya. If so, itwill be interesting to see whether OPEC takes steps to prop up prices totheir desired benchmark by curtailing their production.
However, the consensus view is that the US will continue to experiencegood economic growth and the economies of the UK and other parts ofEurope are poised to have improved years. Australia may also have hitits bottom as China’s manufacturing output and therefore demand forcoal and metals rebounds. In this scenario, energy prices should continueto remain within a relatively narrow band between $90-110/bbl, perhapswith upside, which would drive increased spending in 2014, perhaps onthe order of five per cent over 2013 levels.
Assuming this happens in 2014, we would expect salaries to rise in thefive per cent range, but with a wide variation between disciplines andcountries.
ANNUAL SALARIESBY COUNTRY
Local average
annual salary
Imported average
annual salary
Algeria 39,600 96,700
Angola 51,300 110,600
Argentina 75,800 106,900
Australia 163,700 164,000
Azerbaijan 54,800 133,800
Bahrain 34,000 69,300
Brazil 90,600 125,800
Brunei 99,300 119,400
Canada 130,000 119,200
China 62,900 125,600
Colombia 100,300 137,000
Denmark 98,800 115,200
Egypt 37,500 105,200
France 101,200 103,300
Ghana 26,800 128,500
India 37,700 63,700
Indonesia 41,900 129,600
Iran 39,800 83,700
Iraq 49,100 114,500
Italy 66,100 86,100
Kazakhstan 38,900 117,000
Kuwait 79,600 84,600
Libya 36,000 68,700
Malaysia 47,900 115,400
Mexico 79,600 132,700Netherlands 111,000 101,500
New Zealand 100,800 127,700
Nigeria 48,500 129,800
Norway 179,200 110,400
Oman 87,800 90,000
Pakistan 32,200 93,500
Papua New Guinea 52,900 99,800
Philippines 30,000 120,100
Poland 36,400 58,200
Portugal 75,400 106,000
Qatar 47,200 84,000
Romania 33,800 103,900
Russia 68,300 127,000
Saudi Arabia 58,400 76,600
Singapore 86,400 97,600
South Africa 63,100 76,300
South Korea 70,000 156,500
Spain 66,900 94,100
Sudan 24,100 77,600
Thailand 59,300 143,200
Trinidad and Tobago 59,000 80,400
Turkey 50,400 77,000
United Arab Emirates 65,100 80,000
United Kingdom 94,200 91,800
United States of America 111,800 118,100
Venezuela 50,000 85,600
Vietnam 26,600 142,200
Yemen 36,300 150,200
The like-for-like globalaverage salary for 2013 was$81,184; broken down thistranslates to local talentaverage of $68,900 and
imported talent average of$100,600*Respondents were asked to provide their base salary only in US dollarsequivalent, converting foreign currency into US dollars at the time of responding.
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SALARY INFORMATIONSalaries by Discipline Area
Contractor Day Rates
Oil & Gas Salary Guide | 11
ANNUAL SALARIESBY DISCIPLINE AREA
Operator/
Technician Graduate Intermediate Senior
Manager
Lead/
Principal
Vice
President/
Director
Business Development/Commercial 53,600 36,000 41,800 59,700 101,100 168,100Construction/Installation 61,000 37,000 54,500 76,800 105,700 188,000
Downstream Operations Management 55,000 42,000 50,000 83,700 92,000 163,400
Drilling 65,200 37,000 67,900 86,900 125,800 199,900
Electrical 61,200 38,100 48,500 70,100 87,200 N/A
Estimator/Cost Engineer 35,000 30,000 46,700 74,000 102,000 N/A
Geoscience 60,000 45,000 56,000 95,400 137,100 222,300
Health, Safety and Environment (HSE) 42,500 34,500 55,800 71,800 94,500 182,300
Logistics 55,900 31,300 35,000 65,000 85,000 116,900
Marine/Naval 72,000 32,900 67,600 80,300 98,200 175,000
Mechanical 50,000 38,000 42,600 69,200 87,100 102,000
Piping 47,000 34,000 43,000 59,900 86,900 N/A
Process (chemical) 49,400 38,900 46,200 73,700 113,000 125,400
Production Management 55,800 32,400 52,100 79,600 109,700 242,200
Project Controls 55,000 40,000 50,600 72,600 111,200 156,500
Quality Assurance/Quality Control (QA/QC) 49,300 36,500 53,700 60,000 92,900 134,000
Reservoir/Petroleum Engineering 45,900 44,800 67,800 105,700 131,900 262,800
Structural 57,700 36,000 41,800 73,000 93,000 204,100
Subsea/Pipelines 54,200 41,400 62,400 89,100 134,500 199,000
Supply Chain/Procurement 45,600 31,900 53,800 72,100 86,600 186,800
Technical Safety 61,300 35,000 60,700 74,300 115,200 185,000
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O N E : I N D U S T R Y I N P E R S P E C T I V E
Breaking down the data into disciplines and comparing against last year’s
figures highlights the effects of the factors discussed in Section One.In general, high demand skills like reservoir/petroleum engineering and
subsea engineering continued to see an increase in salary. So did skills in
unconventional exploration and production.
Conversely, most other disciplines realized flat or single digit declines intheir salaries.
Salary declines occurred more or less uniformly across all levels of seniority.
Most disciplines realised flator single digit declines intheir salaries
CONTRACTOR DAY RATESBY REGION
Operator/
Technician Intermediate Senior
Manager Lead/
Principal
Vice President/
Director
Australasia 700 660 910 1,190 1,160
North East Asia 230 220 450 700 1,030
South East Asia 210 150 230 310 630
Eastern Europe 270 180 350 460 N/A
Northern Europe 340 330 660 880 1,120
Russia and CIS 270 190 540 700 760
Western Europe 370 440 630 810 1,020
Middle East 280 250 350 500 990
East/South Africa 240 270 440 570 N/A
North Africa 280 250 350 470 N/A
West Africa 290 270 500 620 N/A
North America 440 600 660 790 930South America 370 280 380 630 910
Like permanent salaries, contractor day rates were largely flat ordeclining across regions and levels of seniority
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SALARY INFORMATIONSalaries by Company Type
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 toconvert their salary into US dollars using xe.com at the time of responding) excluding one-off bonuses, pension, share options and other non-cashbenefits, 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 labourare 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.
ANNUAL SALARIESBY COMPANY TYPE
Operator/
Technician Graduate Intermediate Senior
Manager
Lead/
Principal
Vice
President/
Director
Consultancy 51,000 41,200 46,600 80,000 111,200 155,300Contractor 67,600 40,600 55,600 67,700 98,300 167,000
EPCM 57,000 43,500 49,000 78,300 117,800 172,400
Equipment Manufacture and Supply 47,700 37,000 45,300 60,300 75,800 140,000
Global Super Major 75,900 63,000 76,600 101,600 124,300 210,000
Oil Field Services 53,000 39,300 54,500 65,000 86,700 166,000
Operator 58,500 43,500 65,000 101,300 145,500 234,500
SALARY CHANGES BY COMPANY TYPE
Consultancy Contractor EPCM Equipment
Manufacture
and Supply
Global
Super Major
Oil Field
Services
Operator$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2013
2011
2012
2010
All company types experienced single digit declines in average salary from
last year, and salaries are broadly back to 2011 levels. In terms of the magnitude ofbase salary by company type,
Global Super Majors and otherOperators continue to lead thepack, as expected
This chart presents the raw survey data only.
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F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O N E : I N D U S T R Y I N P E R S P E C T I V E
Oil & Gas Salary Guide | 13
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SECTION THREEINDUSTRY BENEFITSBonuses continue to dominate benefits packages in a bid to attract
top talent, while keeping salaries from escalating
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Bonuses remain the most popularbenefit offered by companies,
however health plans are on the rise
Oil & Gas Salary Guide | 15
TOP FIVE BENEFITS RECEIVED OVER FOUR YEARS
2010 2011 2012 2013
Bonuses 36.7% 38.1% 42.8% 42.8%
Health plan 25.7% 27.9% 32.4% 33.2%
Home leave allowance/flights 19.1% 21.2% 23.9% 24.0%
Hardship 20.6% 21.7% 24.3% 22.8%
Housing 20.0% 20.4% 24.5% 23.0%
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INDUSTRY BENEFITSOverview of Industry Benefits
Once again the number of people receiving benefits has increased.Compared to 2012, we have seen a two per cent increase in the numberof people receiving benefits.
As candidate shortages continue to rise, it is evident that employers are
utilising benefits such as bonuses as a mechanism for attracting toptalent. Despite this increase, there is a still a significant portion of oil andgas professionals not receiving benefits (33 per cent) worldwide.Employers who utilise their benefits as a key selling feature may be ableto more effectively target this candidate pool in their recruitment plans.
Bonuses once again rank as the number one benefit offered byemployers, staying steady with 2013 at 42.8 per cent. Bonuses,particularly those directly relating to performance can be a strongmotivator.
What is most notable about this year’s results is the increase in healthplans. Health plans have consistently been ranked second next to bonuses.However, for the first time health plans rank first in North America.
Background: The bar chart shows two figures related to benefits thatemployees in the oil and gas industry receive. The first figure represents thepercentage of respondents that receive that particular benefit, i.e. 42.8 percent of respondents receive some sort of bonus. The second figurerepresents the value of that benefit stated as a percentage of their overallpackage for those that receive it, which in the case of bonuses is 15.9 percent.
15.9%
16.0%
10.2%
16.5%
13.1%
13.0%
11.6%
13.2%
14.5%
17.0%
11.7%
15.1%
18.8%
18.6%
14.8%
42.8%
10.2%
8.9%
8.4%
11.4%
18%
20.8%
7.9%
33.2%
10.6%
24%
14.7%
22.8%
18.6%
23%
33.28%
Bonuses
Hardshipallowance
Commission
Hazardousdanger pay
Tax Assistance
Meal allowance
Pension
Share scheme
Health Plan
Schooling
Car/Transport/ Petrol
Training
Housing
Overtime
Home leaveallowance/ flights
No Benefits
Percentage
that receivethe benefit
Average
percentage of theirtotal package
OVERVIEW OF INDUSTRY BENEFITS
More people are receivingbenefits than in the pastfive years
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INDUSTRY BENEFITSCompany Benefits
Bonuses top the list as the highest ranked benefit across all companytypes, staying consistent with 2012. Global Super Majors and EquipmentManufacturer & Supplier companies offer pension plans more so thanother company types. On the other hand, EPCM and Oilfield Services
offer more overtime pay.As candidates move within sectors employers should be mindful of thebenefits professionals are used to receiving and be flexible with theirofferings in order to attract their desired talent.
TOP BENEFITS BY COMPANY TYPE
Overtime
Home leave allowance/flights Overtime
19%
17%
Home leave allowance/flights22%
17%
Housing
Pension Home leave allowance/flights
21%
22%
Car/Transport/Petrol22%
20%
No Benefits
No Benefits
No Benefits
No Benefits
32%
24%
23%
32%
Health Plan
Health Plan Health Plan
26%
31%
Pension25%
28%
Car/Transport/Petrol
Meal allowance Housing
20%
18%
Housing23%
19%
Home leave allowance/flights
Car/Transport/Petrol Car/Transport/Petrol
21%
28%
Health Plan35%
20%
Bonuses
Bonuses
Bonuses
Bonuses
35%
44%
46%
36%
EPCM/CONTRACTOR
EQUIPMENT MANUFACTURER & SUPPLY
GLOBAL SUPER MAJOR/OPERATOR
OILFIELD SERVICES/CONSULTANCY
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O N E : I N D U S T R Y I N P E R S P E C T I V E
Despite bonuses being thehighest ranked benefit acrossall company types, healthplans realised the highestincrease of five per cent
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INDUSTRY BENEFITSRegional Benefits
PERCENTAGE OF EMPLOYEES WHO RECEIVE BENEFITS BY REGION
Bonuses are the most popular benefit offered to employees for allregions bar North and South America. In North America in the lastyear, health plans have taken over the number one spot for mostprevalent benefit offered. This could be in response to the recent
US ‘Obama Care’ implementation.In South America, health plans are again the most popular benefit.South America also has the lowest number of employees who are notreceiving benefits.
Australasia, although experiencing a small decline in the number ofpeople receiving benefits, is still above its lowest number in 2010.
The Middle East has seen the highest percentage increase in the numberof people receiving benefits, as benefits are offered to >10 per centmore people than in 2013. The number of people receiving benefits inthe Middle East currently surpasses the previous high in 2010.
Africa Asia Australasia CIS Europe Middle East North
America
South
America
0%
10%
20%
30%
40%
50%
60%
70%
80%
2013
2011
2012
2010
Middle East, Asia and SouthAmerica are the regionswith the fewest number ofoil and gas professionalswithout benefits
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INDUSTRY BENEFITSRegional Benefits
TOP BENEFITS BY REGION
Meal allowance
Training
Overtime22%
9%
20%
Housing
Home leave allowance/flights
Housing25%
12%
25%
No Benefits
No Benefits
No Benefits29%
44%
23%
Health Plan
Pension
Health Plan31%
19%
34%
Home leave allowance/flights
Car/Transport/Petrol
Home leave allowance/flights24%
11%
23%
Car/Transport/Petrol
Health Plan
Car/Transport/Petrol26%
15%
27%
Bonuses
Bonuses
Bonuses37%
30%
48%
AFRICA
AUSTRALASIA
Meal allowance10%
Car/Transport/Petrol15%
No Benefits39%
Pension25%
Overtime10%
Health Plan21%
Bonuses33%
EUROPE
Training
12%
Car/Transport/Petrol16%
No Benefits29%
Bonuses36%
Overtime16%
Pension21%
Health Plan39%
NORTH AMERICA
ASIA
Meal allowance
16%
Health Plan31%
No Benefits23%
Home leave allowance/flights33%
Car/Transport/Petrol26%
Housing33%
Bonuses41%
MIDDLE EAST
Car/Transport/Petrol16%
Housing20%
No Benefits35%
Health Plan24%
Meal allowance18%
Home leave allowance/flights23%
Bonuses30%
RUSSIA AND CIS
Training17%
Car/Transport/Petrol19%
No Benefits22%
Bonuses40%
Pension18%
Meal allowance25%
Health Plan46%
SOUTH AMERICA
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O N E : I N D U S T R Y I N P E R S P E C T I V E
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SECTION FOURINDUSTRYEMPLOYMENTPlans for increasing staffing levels stays consistent with 2012
20 | Oil & Gas Salary Guide
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013
12.6%
12.7%
27.0%
34.2%
13.5%
13.9%
14.7%
34.1%
27.6%
9.7%
26.1%
25.3%
20.9%
23.3%
24.8%
22.9%
23.9%
23.2%
22.3%
23.8%
24.7%
23.5%
CONFIDENCE THAT STAFFING LEVELS WILL CHANGE IN THE NEXT 12 MONTHS
Remain static
Increase between 5-10%
Decrease
Increase up to 5%
Increase more than 10%
>70 per cent of employers plan to increase headcount in 2014
2010 2011 2012 2013 2014
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INDUSTRY EMPLOYMENTStaffing Levels
Projected headcount growth remains on par with the previous twoyears. We have seen three years of consistently optimistic expectationsof headcount growth, indicative of the relevant confidence in theindustry.
In 2013 there was a slight dip in the number of employers planning toincrease their headcount by more than 10 per cent, reaffirming thatemployers are setting realistic expectations for increases in the headcount.
The industry continues to rely heavily on contract workers andcompanies expect this to continue and perhaps increase in the future.
PERCENTAGE OF STAFF EMPLOYED ON ATEMPORARY OR CONTRACT ASSIGNMENT IN 2013
EXPECTATION THAT CONTRACTORLEVELS WILL CHANGE IN THE NEXT 12 MONTHS
EXPECTATION THAT EXPATLEVELS WILL CHANGE IN THE NEXT 12 MONTHS
41.6%Increase
43.8%Increase
40.5%Remain the same
48.7%Remain the same
17.9%Decrease
7.6%Decrease
None12.5%
Between 5-20%34.1%
Up to 5%12.0%
More than 20%41.4%
PERCENTAGE OF WORKFORCEEMPLOYED AS AN EXPAT IN 2013
None21.4%
Between 5-10%22.9%
Up to 5%21.8%
More than 10%33.9%
AREAS IN WHICH CONTRACTORSARE EMPLOYED IN OIL AND GAS
Always Sometimes Never
Operations, Maintenance & Production
Petrochemicals
Project Controls
HSE & QAQC
Geoscience & Petroleum Engineering
Equipment & Supply
Engineering & Design
Drilling & Well Delivery
Subsea & Pipelines
45.4% 37.9% 16.6%
37.1% 36.3% 26.5%
40.4% 46.1% 13.5%
45.9% 38.9% 15.1%
27.7% 44.6% 27.7%
33.6% 43.6% 22.8%
38.1% 43.1% 18.8%
28.7% 40.9% 30.4%
34.1% 43.2% 22.7%
S E C T I O N
F I V E : I N D U
S T R Y O U T L O O K
S E C T I O N F O U R : 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 T H R E E : I N D U S T R Y B E N E F I T S
S E C T I O N T W O : S A L A R Y I N F O R M A T I O N
S E C T I O N O N E : I N D U S T R Y I N P E R S P E C T I V E
On average, companiesrely less on expatworkers than in 2012
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INDUSTRY EMPLOYMENTDiversity and Movement of Workforce
A new generation has arrived and is now embedded in the world ofwork. Generation Y (Gen Y) – those born between 1983 and 1995 –now represent a significant and increasing percentage of the globallabour market. As the Baby Boomers and Gen X start to leave theworkforce, this generation will take over the reigns and be responsiblefor leading the worldwide economy.
Research recently conducted by Hays sheds some light on Gen Y’sattitudes to issues surrounding their work and careers: what attractsthem to a potential employer and what makes them stay such asreward, training and work/life balance; what they look for in an idealboss; what they regard as key indicators of career success; and howthey relate to social media and emerging technology.
It’s probably not surprising that our research shows that Gen Y acrossthe globe differs from prior generations in terms of their needs andaspirations in the workplace. By and large, they look for a moreengaging employee value proposition than prior generations, andvalue flexibility in when and where they work.
However, our research also shows that Gen Y differs considerably fromregion to region and from country to country. For instance, while all
Gen Y’s want to be compensated appropriately, wealth creation is muchmore important to those in China than Gen Y in the UK or US wherework/life balance and job satisfaction are equally important.
In contrast, Gen Y in Japan view job security as the most importantindicator of career success. Gen Y in the US are more motivated bymaking a difference to society than any other country surveyed,whereas Gen Y UK are the most motivated by interesting work andcoming up with solutions, and workers in China value public recognition.
In terms of an ideal boss, Gen Y in the UK and US seek coaching,mentoring and leadership, whereas in China and Japan they are moreinterested in their boss being a confidant and an allocator of work.
In the oil and gas industry, the aging workforce and the increasing demandfor highly skilled professionals has created skills shortages in manydisciplines and in many parts of the world. In fact, our survey shows thatskills shortages are now the most important issue facing companies today.Gen Y workers will play an increasingly important role in solving theindustry’s skill shortages. Therefore it is critical for companies and their HR
departments to understand what motivates Gen Y so that they can mosteffectively attract, motivate and retain them.
6.6%
7.3%19.1%
22.7%
15.5%
11.5%4.2%
8.5%18.4%
8.6%
2.1%
11.3%4.9%
0.3%
4.5%
92.7%13.7%
17.6%
14.4%
13.7%95.8%
11.4%81.6%
10.1%
4.7%
88.7%7.8%
2.0%
10.7%
89.3%Australasia
24 and under
Asia25-29
8.4%
91.6%Africa
30-34
10.8%
89.2%Europe
35-39
13.2%
86.8%Russia and CIS
40-44Middle East
45-49North America
50-54
60-64
South America55-59
65 and over
MaleMale
FemaleFemale
REGIONAL GENDER DIFFERENCES
DIVERSITY OF STAFF
INSIGHT INTO GENERATION Y
AGE DEMOGRAPHICS
Women and younger workersmake up more of the oil and gasindustry workforce than last year
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INDUSTRY EMPLOYMENTDiversity and Movement of Workforce
33.2% 66.8%
22.7% 77.