SPE/IATMI Asia Pacific Oil &

Gas Conference and Exhibition

Executive Plenary Session
Maximising the Mature, Elevating the Young

Sharbini B Suhaili
Vice President Production International
PETRONAS E&P
22 October 2013

2013 PETROLIAM NASIONAL BERHAD (PETRONAS)

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Energy scenario is increasingly volatile for sustainability and

security

No More Easy Oil/Gas

High Cost

Asia Pacific Oil & Gas Conference and Exhibition

Environmental Pressure

Growing Energy Demand

Global Competition for Talents

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Future State of the Oil & Gas Industry Workforce

FSU

Europe

US/
Canada
Asia
M.E./
N. Africa

Latin
America

SubSaharan
Africa
Australia

Substantial Shortage

Shortage

-- Neutral/Balance

Surplus

Substantial Surplus

Source: Mercers O&G Talent Outlook 2013

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The trend over recent years has been toward greater

external sourcing
Strategies for filling open, experienced positions
and % of open positions filled internally and externally across
respondent companies

Current and planned sourcing strategies

% of current outside hires from source, anticipated change in
reliance1

Reliance on source:
Expected to increase

Buy

Expected to remain unchanged

Expected to decrease
% of
external
hires

% of open
positions
filled

Build

Build promote, train or transfer existing employees

Buy hire workers from outside your organization

Sources of candidates

Competition for talent within the industry is becoming more intense as companies increase
their reliance on the predominant source for filling open positions employees of other O&G
companies
Source of 2006 data: Mercer Oil & Gas Talent Outlook and Strategies Industry Survey, June-July 2006 vs. June 2013
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Apart from the build and buy, the industry is also diversifying
their employment mix
Employment Mix by Company Type

Permanent

Permanent/Part Time

Global Super Major

Contracted Direct

52.6%

Operators
EPCM

31.7%

1.4% 14.9%

53.1%

1.6%

24.2%

24.6%

20.7%

80.7%

Oil Field Services

Contractors

1.5% 14.2%

59.5%

Equipment Manufacturer & Supplier

Consultancy

Contracted through agency

2.0%10.3% 7.0%

60.9%
42.9%
47.1%

3.5%
3.3%
2.5%

20.2%

27.4%

15.4%
26.4%

26.4%

24.0%

Source: Hays Oil and Gas Salary Guide 2013

Asia Pacific Oil & Gas Conference and Exhibition

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A smaller pool at mid-career employees implies larger

succession challenges when senior people retire
100%
Age greater than 55

90%
80%
70%

Age 45-54

60%
50%

Age 35-44

40%
30%

Age 25-34

20%
10%
0%

Age 22-24

Global Energy Industry

Asia Energy Industry

PETRONAS

Source: (1) Mercer Energy Compensation Surveys, 2012;

(2) PETRONAS headcount data, titled Demography.pdf provided to Mercer in March 2013

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Several key elements contribute to peoples interest on the

organisation

Organisation &
Work

Drives attraction and commitment of people to

the organisation
Constitutes
main
components
organisations value proposition

Rewards &
Opportunities

People

of

Structured well, this can be a competitive

levers for the organisation
Growth opportunity is one key determinant to
peoples motivation and commitment to the
organisation

Source: Corporate Leadership Council (CLC)

Asia Pacific Oil & Gas Conference and Exhibition

an

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THANK YOU