Singapore's oil and gas market about to boom

Day rates for local labour for Oil & Gas in Singapore have almost doubled in the last year.

This was revealved in our second annual Oil & Gas Global Salary Guide, produced in partnership with the specialist jobsite Oil and Gas Job Search.

Daily average contract rates for locally based professionals have increased significantly, from $280 to $500. Annual salaries have also increased with locals earning an average US $66,300, up from $56,700.

With the global recession hitting the world’s markets in late 2008, the oil and gas industry was not immune to its effects. By late 2009 the worst had passed and business was in recovery. However permanent salary trends by their nature tend to lag behind the economic state of the industry and salaries continued to fall. It was only in mid-2010 that permanent packages began to climb.

Contract day rates on the other hand are much more reactive to short term changes in demand for skills and as such are a good indicator of the state of the job market. In September/October 2009 we would expect contractor day rates to have been at their absolute rock bottom in line with the recession hitting the industry at that time. So to have an increase between then and the same time in 2010 is to be expected, however to have an increase of 80% shows the oil and gas industry in Singapore is rebounding very strongly and is good indicator of the likely boom predicted to hit in 2012.

The Guide, compiled from the responses of almost 11,000 industry professionals, shows positive worldwide growth and sentiment towards salaries in the sector. Over the next 12 months, nearly 47 per cent of respondents believe that salaries will increase by 5 per cent or more.

Overall the figures demonstrate a level of confidence and more than half the respondents indicated they are positive about the current employment market. With an increase in the number of jobs and applications posted to our own offices and Oilandgasjobsearch in the past 12 months, I am equally optimistic.

This said the oil and gas industry has to make a concerted effort to attract talented individuals, including new graduates, to ensure that skills shortages do not hamper its growth over the coming decade. It is clear from our survey that this didn’t happen through the recession and there is now a certain amount of catch up to be done.

Other key findings based on responses from those working locally in Singapore:

• Average annual salary is US $9,500 below the global average
• Imported labour earn an average annual salary of US $98,500
• 54.2% receive benefits in addition to their salary, 10.7% below the global figure
• 14.1% are women, double the global figure
• 32.4% are aged 30 - 34
• 42.5% have 10 – 19 years experience
• 46.7% have been with their current employer for 3 – 5 years
• 58% get two weeks annual leave
• 44.4% are positive about the current employment market

Matt Underhill, Global Managing Director of Hays Oil & Gas