Surge in demand from post Arab Spring Governments pushes up rates for Interim Executives
Surge in demand from post Arab Spring Governments pushes up rates for Interim Executives in the Oil & Gas industry
Demand from post Arab Spring governments in North Africa, including Libya and Egypt, for interim oil & gas executives from the UK to boost energy production is driving up their pay, says Interim Partners, the UK’s leading provider of interim management solutions.
Interim Partners says that the high demand has pushed up the average daily rate for interim Project Engineering Directors to £1,500, up from £1,000 a year ago.
Jonathan Mooney, Senior Consultant for Energy and Utilities at Interim Partners, comments: “North African governments are under intense pressure to grow their economies and cut unemployment - it’s imperative for them to get money into their coffers. This has generated lots of fresh opportunities for energy executives as new governments seek to bring online and exploit their natural resources to boost their income.”
“Increasing energy resources output is the quickest way of doing that.”
“The problem they face is that whilst it remains in the interest of the respective national oil companies to develop the local workforce, the reality remains that the speed at which major projects need to start delivering often leaves a gap at the very top from both a management and skills perspective. That means they are importing large numbers of interim executives from overseas.”
Jonathan Mooney continues: “Post Arab Spring countries want to retain control over their energy resources rather than engage too many large foreign contractors. Using interims is an astute way to rapidly ramp up production to pre-conflict levels whilst training up local talent, leaving them to maintain high production once the interim’s engagement ends.”
“While there are already many talented executives based in Libya and Egypt for example, they simply do not have the strength in depth to bring their energy industries up to speed quickly without further help from overseas.”
“Globally there is an acute shortage of very experienced senior energy interims because there are so many new production projects taking place, which is why rates have increased dramatically following the surge in demand from North Africa.”
Interim Partners explains that Project Engineering Directors have a key leadership role in assessing the commissioning process for oil & gas extraction to identify areas which can be accelerated at low cost to increase overall revenue generation.
Jonathan Mooney comments: “The demand is for senior level executives that can help to guide commercial decisions about the best allocation of manpower and resources. These are Interims who have worked on energy projects in many different countries and who can significantly increase the efficiency of a project.”
Jonathan Mooney adds: “Because of the extensive work carried out in the North Sea oil fields, the UK is seen as a real centre of excellence when it comes to energy production. Many UK oil & gas experts find the short term, high pay work as an interim in North Africa very tempting.”