| The Oil Boom of the 70’s saw a flurry of oil and | | | | “share the wealth” (eg, the agitations in the Niger |
| gas exploration and production activity in the Middle | | | | delta) governments are interested in greater |
| East. Since there was a dearth of skilled manpower to | | | | knowledge transfer, upskilling and general hiring of local |
| sustain the fast growth in the new Gulf oil and gas | | | | talents for jobs in oil and gas industry. The Dept. of |
| industry, international and national oil companies turned | | | | Petroleum Resources, Nigeria has recently issued a |
| to experienced staff from overseas to fill up the oil | | | | directive to oil and gas companies to hire local talents |
| and gas vacancies in the region hit by talent shortage. | | | | instead of expatriates for oil field jobs. Similar guidelines |
| After 40 years of operation, the situation hasn’t | | | | are already being provided by licensing and governing |
| changed much. Though there has been massive | | | | bodies in growth regions such as Libya and Iraq. |
| increase in the oil and gas professionals’ number | | | | Instead of viewing such directives as a handicap, |
| together with the growth of the energy sector in | | | | International oil companies should make most of the |
| Middle East, the percentage of expatriates remains the | | | | situation to cement their relationships with national |
| same. | | | | governing bodies, while National Oil Companies can |
| All was okay until recently. There has been an | | | | build up their image as national champions; giving |
| increase in violence directed at expatriates in Saudi | | | | practical solutions for their country’s expatriates |
| Arabia. Most of the oil and gas professionals working | | | | dependence in the future energy industry. National oil |
| in various oil companies in the region are expatriates. | | | | companies’ aspiration to play a major role in the |
| Meanwhile local unemployment has been growing; | | | | international energy market is very closely related to |
| Arthur Little’s report released this week highlights | | | | building local capability. As they venture into other |
| how this problem has been growing in the region. | | | | countries, they will need the expertise right from |
| Yemen’s unemployment rate is 36%, Saudi | | | | geologists and drilling engineers to petroleum engineers |
| Arabia’s is creeping up to 14%. Resentment over | | | | and refinery engineers to manage their growing |
| “foreigners” taking away various oil and gas | | | | international operations. |
| jobs too could be one of the factors for these attacks. | | | | There is a financial imperative to this calculus too. Block |
| Though recruiting more local workers for oil and gas | | | | awards and renewals are increasingly tied |
| jobs seems to be the way forward, oil companies | | | | contractually to local workforce development. |
| now faces a shortage of local oil and gas worker for | | | | International oil companies also worry about the |
| qualified positions like project engineer and | | | | approximate 50% of the current expatriate workforce |
| engineering graduates alike. | | | | that will retire by the next decade. There is no time like |
| Finally the cost of expats, typically 2-5 times higher | | | | now to build a local workforce that will not only deliver |
| than locals, is also more difficult for National Oil | | | | the project at hand but may also be a springboard for |
| Companies to bear. With the populace seeking to | | | | regional expansion. |