According to international professional services consultancy, Procorre, only four per cent of all new oil and gas positions targeting UK consultants are in Russia. This means that any new sanctions on Russia will have only a limited impact on overall demand for UK oil and gas consultants.
Currently the UK, along with the rest of the EU, upholds targeted asset freezes and travel bans against individuals in Russia and Ukraine following the annexation of the Crimea. Despite a peace agreement, there continues to be a standoff in eastern Ukraine between pro-Russian separatists who are occupying Government buildings and Ukraine’s military, and the EU and US are reported to be contemplating wider economic sanctions.
Procorre points out that while the impact on UK oil and gas consultants will be minor, if there is any fallout from the crisis it is most likely to affect the highest paid UK oil and gas consultants. Russian posts account for nine per cent of all top paying posts, ie over £100,000 a year, currently advertised.
Several Western oil and gas companies employ UK consultants in Russia. These include Exxon, which is working on offshore Arctic exploration in Siberia and has plans to widen to shale production in the country, Eni of Italy and Statoil of Norway which also partner with Rosneft on Arctic exploration; and Shell and Total, which have both invested in Russia’s emerging liquefied gas export business.
Lisa Mangan, Relationship Manager at Procorre, said: “While the situation in Ukraine is disturbing, it is unlikely to have a significant impact on the UK oil and gas consultant community as a whole.
“However, if tensions between the West and Russia do escalate then this would be a concern for the significant number of highly paid UK oil and gas consultants that are currently working in Russia.
“The situation on the ground is changing by the day and at this stage it is unclear what the outcome will be.
“However, if the situation continues in the longer-term UK consultants that have developed a particular Russian focus will have plenty of scope to explore opportunities in other high demand regions such as the North Sea, North America and Africa.”
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Susie Hughes © Shout99 2014