SECTION ONE SALARY OVERVIEW - Hays

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Salary overview Average annual salary for permanent staff by country Results from our survey indicate those working in oil and gas are well paid. With an average permanent staff salary of more than $75,000 globally (based on the combined total of local and imported labour) those in this industry are earning a premium compared to most other industries. There is however still a vast divide between those countries at the top of the table and those at the bottom and for this reason it’s not hard to understand why easily transferrable skills continue to migrate around the world in search of higher returns. Of all the countries on the list only three pay less for skills they import compared with what they pay their local resident employees - Norway, Canada and Australia. All other countries import skills from overseas at a premium, and in some cases at a significant premium. There does not however appear to be any correlation between home salaries and those imported, with Indonesia being at the bottom of the scale in terms of the average salary for local workforce, however it is the second highest payer for those it imports. The same can be found in Azerbaijan. At the other end of the spectrum, Oman pays its local workforce an average ‘mid table’ rate of just over $58,000. However it is the lowest payer of imported labour on the list. (With a highly concentrated number of employers there is some evidence that this is a reflection of an efficient overseas recruitment policy). If we combine both figures for each country - the five highest paying countries are Australia, USA, Azerbaijan, Canada and Netherlands. Those paying the least are Kuwait, Oman, Libya, India and Kazakhstan. Background Only where the sample size is large enough have we listed countries in this table. Permanent staff salaries are the figures returned by respondents as their package in US dollar equivalent figures excluding one-off bonuses, pension, share options and other non-cash benefits, and for those working on a monthly or yearly payroll. Those on a weekly or daily payroll are extracted and included in the figures for contracting overleaf. The first column represents the average salary for respondents based in their country of origin, the second column for those who are working in that country although originate from another. Where not enough responses were received, entries are returned as N/A. Salaries Country Local Labour Imported Labour Average annual salary Average annual salary Europe UK Norway Netherlands 92,200 94,200 114,700 101,000 104,200 112,000 Russia & CIS Russia Kazakhstan Azerbaijan 65,600 105,700 30,700 88,100 53,300 144,500 Middle East UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran 50,200 88,500 67,600 86,400 35,900 91,400 58,400 67,800 N/A 83,500 32,600 N/A 37,300 89,300 Africa Libya Angola Algeria 46,000 78,700 53,600 118,900 33,800 107,800 North America USA Canada 117,900 128,100 112,800 112,500 South America Venezuela Brazil Argentina 72,300 113,700 72,500 125,200 65,000 N/A Asia Vietnam Singapore Malaysia Korea Japan Indonesia India China N/A N/A 56,700 102,900 43,100 131,000 N/A 144,100 N/A N/A 32,000 136,300 50,000 77,800 51,600 102,900 Australasia Australia New Zealand Notes: All figures are base salaries, quoted in US dollars. 138,100 133,700 99,700 112,700 Oil & Gas Salary Guide 2010 | 07
Salary overview Average annual salary for contract staff by country With an average annual contractor salary of more than $95,000 for those working locally and more than $168,000 for imported labour, there is a considerable premium placed by employers on this method of working. However it should be noted that this figure and all other salaries listed assume that the individual works a full 240 days a year (or 48 weeks) which is clearly not always possible, or in many cases desired. Clearly the trade off between security and guarantee of work versus an increase in rate for contracting is very much at work in the oil and gas industry. This is further accentuated where candidates work overseas on contract with the average return increasing to an impressive $168,500 per annum. In all but two cases, countries are employing contractors from overseas at a premium (it can be assumed the skills required do not exist or are not available in the local workforce). The other observation from the figures shows that the discrepancy between contracting rates and equivalent permanent salaries is most pronounced in those countries with extensive permanent employment legislation i.e. The Netherlands. Here we can assume that this valuation of contractors is driven by employers avoiding expensive permanent employment costs. Background Contractor salaries are those working on daily or weekly payroll. The annual salary equivalent assumes they work for 240 days a year, or 48 weeks respectively. Where not enough responses were received, entries are returned as N/A. Whilst Australia’s imported rate for labour is marginally below that for local staff, the UK shows a clear differentiation between the two. This may reflect a trend in the UK to import cheaper labour to combat margin decline in a difficult market. As the market improves however, it will be interesting to see whether the UK remains in a group of its own, or if they are joined by other nations seeking similar savings. Salaries Country Local Labour Imported Labour Average annual salary Average daily rate Average annual salary Average daily rate Europe UK Norway Netherlands 163,800 630 134,900 520 222,300 850 226,900 870 186,500 720 210,300 810 Russia & CIS Russia Kazakhstan Azerbaijan 146,000 560 203,600 780 76,300 290 191,500 740 129,200 500 202,500 780 Middle East UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran 78,600 300 123,900 480 55,100 210 103,700 400 N/A N/A 166,300 640 60,500 230 183,200 700 N/A N/A 125,700 480 53,000 200 178,500 690 60,800 230 159,000 610 Africa Libya Angola Algeria 83,800 320 188,000 720 73,200 280 169,100 650 84,000 320 166,300 640 North America USA Canada 214,300 820 220,800 850 205,400 790 206,700 790 South America Venezuela Brazil Argentina 106,300 410 154,000 590 159,000 610 176,000 680 N/A N/A N/A N/A Asia Vietnam Singapore Malaysia Korea Japan Indonesia India China 82,800 320 163,500 630 71,700 280 175,800 680 134,500 520 160,200 620 N/A N/A 201,500 770 N/A N/A 84,400 320 51,900 200 203,200 780 58,400 220 166,200 640 78,600 300 189,800 730 Australasia Australia New Zealand Notes: All figures are base salaries, quoted in US dollars. 207,400 800 204,000 780 155,300 600 182,700 700 Oil & Gas Salary Guide 2010 | 08
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SECTION ONE SALARY OVERVIEW - Hays

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