Oil and gas limited companies 'won't be affected by Russia/Ukraine crisis'

Thursday 8 May 2014

Oil and gas limited company contractors shouldn't be professionally concerned about the crisis between Russia and the Ukraine, according to one expert.

Procorre claims that increasing sanctions on the former will have little effect on the UK's oil and gas industry. Indeed, just four per cent of jobs in the sector advertised to those in Britain are based in the country. This means that no matter how the tensions play out, there will be "limited impact" for contractors and others working within the industry.

Among those that will be affected by the crisis, however, it is the high-earners who are expected to take the brunt. Procorre claims that with nine per cent of oil and gas jobs advertised with salaries over £100,000 based in Russia, a large group of these workers will be hit.

Nevertheless, the good news for those caught in the tensions in that oil and gas professionals are in high demand globally, meaning new opportunities are never far away.

Lisa Mangan, relationship manager at Procorre, explained: "The situation on the ground is changing by the day and at this stage it is unclear what the outcome will be. However, if the situation continues, UK consultants that have developed a particular Russian focus will have plenty of scope to explore opportunities in other high demand regions."

Aberdeen is a dominant jobs hot spot for British-based oil and gas workers and it is continuing to expand its headcount all the time.

Statoil has recently announced that it will be adding 200 jobs to its North Sea head office in the city and 500 offshore jobs linked to production from the Mariner field.

More than $7 billion (£4.2 billion) will be invested in the project over the 30-year life of the field and production is expected to begin in 2017.

Scottish secretary Alistair Carmichael has called Statoil's recent move a "great jobs boost for Aberdeen", which "reflects the city's status as a global oil and gas hub".

The Scottish government is currently working with other firms like Statoil to ramp up production from the UK continental shelf over the next ten years.

Schemes such as field allowances have also been introduced to encourage firms to invest in Aberdeen, while legislatively officials have worked to create certainty over the tax relief offered on decommissioning costs.

It is expected that over the next two years there will be up to 39,000 new jobs created in Aberdeen, according to the Bank of Scotland, which will help to absorb any gap created from the Russia/Ukraine crisis.

UK oil and gas contractors may certainly want to stay local, with Europe boasting the greatest rates.

Research from Rigzone revealed industry employees on the continent are the highest paid globally, with the average rate increasing 14 per cent in 2013 to reach £72,714.

In Australia/Oceania, pay packets average £72,230, while Africa offers £70,780. Rates drop considerably in the US to £58,953.

By Victoria McDonnell

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