Contractor Openings Rise In Emerging Energy Markets

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Contractor Openings Rise In Emerging Energy Markets

Despite a slowdown in some of the major global economies and growing concerns over rapidly falling oil prices, there are a number of nations whose energy markets continue to thrive.

According to contracting services specialists CXC Global, Kazakhstan, Azerbaijan and Mozambique are three examples of countries where demand for specialists in the oil and gas market is rising, even against a backdrop of market uncertainty.

One of the major factors that is increasing contractor demand in Kazakhstan is the number of major energy projects taking place, including the huge expansion of the current TengizChevroil field, which is due to start in April 2016. Sizable schemes like this one require a huge number of specialists, many of whom are being recruited from all over the world. There has been a significant increase in demand for construction and maintenance experts, who enable these projects to get off the ground and then, crucially, remain functional.

As with many markets there is also continued demand for IT specialists with the skills to optimise systems, increase functionality and ultimately, increase efficiency.

The economy in Azerbaijan is also largely dependent on the oil market with 90% of its revenue coming from oil and gas exports. Although this may seem concerning given the falling oil prices, according to SOCAR’s latest report on economic activity, oil production in Azerbaijan would remain profitable even if prices fell as low as $15 per barrel. Not only is this figure significantly less that then average production cost of US shale which comes in between $35 and $55 per barrel, but is also well below the lowest ever recorded price of $30.28. BP has also just extended its maintenance contract with SOCAR for its onshore and offshore assets, which is estimated to be worth around $90m. All of these factors have contributed to the 4% uplift of the Azeri economy and led to a similar demand for contractors as seen in Kazakhstan.

Mozambique is another emerging oil and gas market that is experiencing an uplift in demand for contractors, following the recent discovery of new natural gas reserves, which puts the country’s proven resources at 98.8 trillion cubic feet – up from just 4.6 trillion cubic feet in 2013.

INP, Mozambique’s state petroleum regulator, is close to agreeing a development deal for its offshore Coral FLNG development with Italian ENI and its partners. The project which is estimated to cost between $5-7bn will tap into reserves from the Coral Field Rovuma Basin, and undoubtedly require a significant number of specialist contractors to get the project off the ground.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.