Oil salaries higher in Nigeria

3/20/2012

Nigeria has edged out Egypt, Libya and Kurdistan on a list of oil and gas producing countries where energy majors pay the most supplementary pay to senior staffers, according to executive recruitment firm The Cruzon Partnership.

Attracting talent to frontier countries such as Nigeria remains a challenge for the oil and gas industry. The average general manager in the West African country can receive a country premium up to 45% of base pay, bringing total salaries to approximately $460,000 (£290,000) a year.

'The growth in exploration and production across frontier markets over the last 15 years has created a global fight for talent among oil & gas businesses,' said Helen Di Mauro, partner at The Curzon Partnership. 'There are still roles in more mature regions like the North Sea, but frontier markets will represent an ever bigger slice of the pie in the future.'

Di Mauro said companies are willing to dole out country premiums because it is harder for expats, and especially those with families, to maintain the same lifestyles they would enjoy in the US or the UK in frontier markets. Those general managers or equivalents working in the North Sea can make approximately $238,000 (£150,000) a year.

The Curzon Partnership attributes Nigeria's high pay premiums to not only cultural adjustments, but local skills shortages and the number of talent needed on projects.

'Nigerian oil projects are booming, with a number of new entrants targeting opportunities which is generating a lot of demand for senior talent,' Di Mauro said. 'Some oil and gas executives and their families do perceive frontier markets like Nigeria as riskier than other markets and the high country premium reflects that.'

Comparatively premiums in countries such as Egypt, Libya and Kurdistan are lower amounting to 30% of base pay. General Managers in these countries stand to make between $309,000-371,000 (£195,000-234,000) a year. Di Mauro attributes this to a well-established expat community in Egypt and lower demand for senior staff in Libya and security improvements in Kurdistan.

'Kurdistan is becoming an increasingly attractive location for oil & gas executives,' Di Mauro said. 'The region is seen as quite separate from the rest of the country with much lower levels of personal risk for expats, and with much improved flight connections through places such as Istanbul and Dubai there is no longer a need to transit through Baghdad.'

By: Audrey Leon,
aleon@oilonline.com