Hays Oil & Gas - July 2010

Hotspots

Singapore continues to strengthen its reputation as a premier location for FPSO conversions as well as for building offshore support vessels. These niche areas are both busy as more exploration projects are put back on the agenda following the recession. As local shipyards continue to build their competencies they are increasing their share of the more specialised and sophisticated ship repair market segment of LNG (liquefied natural gas) carriers. This is resulting in a steady increase of recruitment activity in both the marine and shipping sectors.

There is also increased demand for experienced EPC and Design personnel. Many companies are investing in improved and innovative designs to meet specific requirements as well as for new operating environments.

Kuala Lumpur and Jakarta continue to be recruitment hot spots as a steady stream of companies move into Indonesia and the Malaysian Peninsula to improve cost effectiveness throughout their operations.

This leads to a steady increase in both the marine and shipping recruitment sector and also for EPC and design personnel as Singapore continues to try and leverage on its competitive advantages to provide cost effective solutions to customers by coming up with new and improved designs and engineering solutions to meet customers 'specific' requirements and for new operating environments.

The coming quarter

Based on current swelling order books, the remainder of 2010 looks set to be a healthy year of growth for the industry after the 2009 recession.

Executive recruitment

Some companies are expanding their management teams in readiness for the steady increase in block auctions. The majority of opportunities will be within geoscience and petroleum engineering but there will also be senior roles in Project Development.

Employer trends

Strong growth will continue to come from the offshore sector. Given the robust offshore oil and gas market, and the high utilisation and high charter rates of jack-up rigs, the rig market is expected to stay strong, as supply of offshore equipment, services and rigs, is not in tandem with the surge in oil exploration and production activities worldwide. This is evident from the continuous stream of orders for new jack-ups and semi-submersibles placed with local shipyards.

As the market begins to pick up, so too do salaries and contract rates across the region.

Candidate trends

There has been an increase in expatriate candidates especially from the UK region as the market there remains unpredictable.