Hays Oil & Gas - January 2010
Hotspots
Drilling Engineers, Construction Managers with LNG experience and Civil Engineers are needed in Queensland. There are four significant LNG projects in the feasibility stage in Queensland and PNG, which will result in significant demand for candidates with prior LNG experience.
Projects in PNG also require Mechanical Designers with process experience and ideally experience in designing a plant from pure greenfield. Piping Designers and Drafters of all levels are also needed.
In Queensland's geoscience market, Technical Assistants and Geophysicists are also sought. There is a strong preference for local applicants across the geosciences.
Given that some of the world's largest multi-discipline consultancies are based in Melbourne, the recruitment of Designers is rising in Victoria. These skills are required for both domestic and international LNG projects.
In Western Australia, Subsea Engineering, Development and Exploration Geologists with 10 to 15 years experience, Petroleum and Reservoir Engineers with 10 to 15 years experience and Geophysicists are in demand. An increased oil price is driving exploration and development projects, while Gorgon and other major projects need specialist engineering staff. Subsea engineering and civil construction are areas of particularly high demand at present. Despite a shortage of local skilled candidates, employers are reluctant to offer 457 sponsorships at present due to the extra costs incurred.
The discovery and exploration of continued high value deposits is creating demand in New South Wales in coal seam gas exploration for Exploration Geologists.
The coming quarter
Most companies are expected to hire this quarter. Demand for contractors for short-term assignments or placements within joint venture companies will remain strong, but there is a growing demand from candidates for the security of a permanent role. Employers are expressing an intention to recruit more selectively and with a longer-term view than they have during the past two years. We thus anticipate a much stronger trend towards permanent recruitment this year.
This will be most obvious when employers recruit for larger projects, as employers act to secure high calibre staff to increase their in-house skills and capabilities.
Having said this, we expect increased temporary employment in states undergoing project feasibility and concept design stages.
Employer trends
Salaries did not increase in 2009. Instead of increasing salaries, employers offered retention bonuses and work/life balance incentives. The only exceptions occurred for outstanding candidates, for whom premium salaries were usually offered.
Looking ahead, we expect salaries to begin to increase this year.
Small to medium sized companies are thinking long-term towards their future retention levels. As a result, they often ask us to compare their salary packages to those offered overseas or in Western Australia.
Candidate trends
While there was a general reluctance in 2009 to enter the job market, the oil price, a stabilising economy and large projects are again sparking the interest of candidates. We consequently expect candidate flow to increase throughout the year.
Candidates are increasingly seeking longer-term contract work, particularly in Western Australia where a number of major projects have attracted candidates from other employers or from interstate and overseas. Candidates from closely associated industries, such as mining and civil construction, are also expressing interest in such major projects.
Many of these projects are yet to commence full construction, so the anticipation level between potential job seekers is high. Opportunities at the front-end of project development in the design stage are showing signs of increasing as the market gains more confidence.
