North Sea sector in rude health as wages surge

Published on Wednesday 1 February 2012 00:00

Wages and contractor rates for oil and gas workers in the North Sea continued to climb last year reflecting a “buoyant” industry, figures have revealed.

The annual salary guide from Hays and recruitment website Oil and Gas Job Search also found firms had begun recruiting graduates again to make up a shortfall in skilled labour.

The guide, based on a survey of some 14,000 companies and workers, said a “flurry of activity from most corners of the globe” caused by last year’s high oil price drove up vacancies and salaries.

The average wage in the industry topped £55,200 last year, up from £51,300 in 2010. Experienced contractors commanded a day rate of £540.

Matt Underhill, managing director of Hays Oil & Gas, said contractors’ rates were a good indicator of the state of the job market, being more reactive to short-term changes in demand for skills.

He said: “The figures demonstrate that the UK oil and gas industry has maintained its recovery.”

The guide also revealed that oil and gas companies were taking on graduates and trainees again, and that the industry is confident of further activity in the year ahead.

Duncan Freer, managing director of Oil and Gas Job Search said: “Greater activity is scheduled for 2012 and beyond following a difficult period during the recession. Despite some forecasts, many oil companies are continuing to invest in the North Sea so it is a time to look forward with confidence.”

The figures coincide with the launch of the latest licensing round for the UK North Sea.

Licences for 2,800 exploration blocks are being offered, with the UK government saying it expects a substantial increase in field approvals.

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