₦airaland Forum

This is going to be my last thread on oil and gas industry. This is because of my strong belief and knowledge that fulfillment in life and career can be achieved in any industry or field of our liking. Other areas of interests are careers in other industries, education, family and investment.
However, my mail box is still inundated with questions regarding the oil and gas industry. I wrote an article on basic answers to questions regarding the oil and gas industry on Jarushub.com a few months back. With the permission of the blog owner, I will repost it here. I sincerely hope other professionals in other industries (such as banking, construction, health, food and beverages, audit, etc) will do the same and share on Nairaland for benefit of all. Maybe I will do something similar for the FCMG industry. Here is the excerpt from the article:

1. What are the various aspects of the oil and gas industry in Nigeria?

The oil industry is made up of three 'sub-industries' – upstream, midstream and downstream industries. Most times, both the midstream and downstream are jointly referred to as downstream. For simplicity sake, I will stick to the 2 major groupings – upstream and downstream. The upstream industry deals with exploration, production and sale of hydrocarbon (oil, natural gas, and condensate). Downstream industry deals with the processing (refining and purification) of hydrocarbon into final refined products; and the distribution, marketing and sales of these final products to end consumers.
Traditionally, people prefer to work in the upstream industry as it is more financially rewarding. The upstream industry is roughly divided into the oil producing companies and the oil servicing companies. The oil producing firms in Nigeria include but are not limited to Shell, Total, ExxonMobil, Agip, Chevron and recently Addax, Sahara Energy Field Limited, First Hydrocarbon and Seven Energy. Oil servicing firms provide technical services to oil producing firms. Several oil servicing companies, both foreign and indigenous, offer variety of services to the producing firms, depending on the availability of technical resources, capabilities, required expertise and complexity involved. Some reputable ones include but are not limited to Halliburton, Schlumberger, Baker Hughes, Ariosh, Rockson Engineering and DeltaAfrik.
Many firms have stakes in the downstream sector in Nigeria. However, NNPC is the only major firm that deals with refining of crude oil in Nigeria, and owns 4 refineries. There are numerous lube blending plants in Nigeria owned by Oando, Total, Mobil, Eterna, MRS, Ibeto, Lubcon and a host of others. Companies like MRS, NNPC, Oando, Mobil, Total, Conoil, etc are involved in the marketing and sales of finished petroleum products (cooking gas, petrol, diesel, engine oil, etc.). Recently, Chevron commissioned a gas-to-liquid (GTL) plant in Nigeria which is designed to convert gas into liquid petroleum products such as diesel, kerosene, naphtha and LPG

2. Do all oil companies pay well?
Oil companies generally provide attractive remunerations and other incentives but not all oil firms pay as much as expected. It depends on the nature of the company. It may also depend on each individual’s perception of what a good income is. Many indigenous oil servicing companies pay comparatively lower than other players in the industry but offer hands-on experience. Most reputable indigenous oil producing companies pay relatively well but generally not as well as international oil firms. Employees of multinational oil servicing firms generally earn well. Pay may also vary depending one’s experience, expertise and the risk associated with the particular job (e.g. offshore workers earn offshore allowances in addition to their regular pay due to the greater risk involved working over waters. Same with divers and access rope technicians who earn on work -time basis).

3. How important are certifications in the oil and gas industry?
The significance of certification varies widely depending on the type of job, level of experience required and/or organization. There is no one-size-fits-all answer to that question. But I will limit my answer to entry level positions. Generally, certifications are not very important for entry level graduate technical roles. A good degree (and possibly but not compulsorily, a Masters degree) is more important than certifications. For middle level manpower and specialized skills such as NDT and rope access work, certifications are necessary.
Certifications become more important for non-technical roles such as accounting, HR, security, IT, safety, etc. Even then, it is not compulsory.
However, the oil industry worldwide generally places more emphasis on experience than certifications, especially in core technical roles. Nevertheless, I always advise oil and gas professionals to enroll for trainings and short term courses as they build their careers in order to further enhance their skills and competencies, and make them globally competitive

4. Why don’t oil companies in Nigeria recruit so often as compared to banks?
It is funny but I am asked this question a lot of time. Oil companies recruit on as-need basis. They are in for business and do not recruit only for PR considerations. Many oil firms, especially the indigenous ones are not even patient enough to recruit fresh graduates. This is because it is quite costly and time consuming to train people. They prefer experienced professionals who will hit the ground running.
Many multinational oil firms have structured graduate recruitment programmes but there is currently a lull in the Nigerian oil and gas industry as most international oil companies (IOC) and their associated oil servicing firms are putting planned investments on hold due to the uncertainty surrounding the Petroleum Industry Bill (PIB) and the state of insecurity in the N/Delta. Oil companies spend a lot of money ensuring the security of personnel and their assets, money that could be spent in investment. Lesser investment means fewer job creation.
In addition, there is low labour turnover in most oil and gas companies as their employees hardly quit their jobs until they retire. Most of them spend their entire career working for a particular company. This invariably means that there are fewer vacancies.

5. What course or certification can I acquire that will guarantee me an oil job?
Answer is simple. There are no guarantees. However, there are some courses and certifications that place you at a better advantage than others. I will discuss that later.

6. I have often heard that oil firms, especially the IOC’s do not pay pensions. Instead, they pay off their retiring employees. How true?
This is far from the truth. That’s one of the ‘myths’ associated with IOC’s which I heard long time ago. Reputable oil and gas firms in Nigeria have a well-structured, comprehensive and robust pension system in line with Nigeria Pension Reform Act 2004 (now 2014).

7. What are the most sought after disciplines in the oil industry?
The oil and gas industry is a very vast and requires a wide range of disciplines. Almost all the major disciplines are required in the sector. Disciplines related to humanities, medicine and occupational health, social sciences, sciences, safety, IT, engineering, biological sciences and arts are required in various ways. But the industry is largely technology driven. Thus STEM (Science, Technology, Engineering and Mathematics) courses tend to be higher demand, specifically engineering, and to a significant extent, geosciences. Mid level workers such as operators, technicians, roustabouts, crane operators, etc. are also required. Major engineering fields such as petroleum, electrical, mechanical and chemical can easily fit into almost all the engineering positions in the industry. Other fairly demanded disciplines include safety, social sciences and IT (Read my article on Top 10 Most Demanded Jobs in the Oil and Gas Industry on jarushub.com).

8. What are my chances with a 2.2?
Jobs in the industry are generally very competitive. Even those with very good grades still find it hard to break in. There are really no guarantees and it always takes an element of 'luck' to break into the industry. With a 2.2, the chances are much lower, especially with reputable and established oil producing/servicing firms. The most practicable way to go around this is to aim for smaller oil firms and/or get some relevant specialized certifications. Getting additional degree may help as one acquires some experience in the sector. Networking can also be very helpful in securing a job.

http://www.jarushub.com/common-questions-and-answers-on-oil-and-gas-careers/
http://www.jarushub.com/common-questions-answers-on-oil-gas-careers-ii/

a good insight!

Let me save this thread and show it to my younger bro.
The only job he keeps talking about is oil and gas jobs

Good write up

Wait make I check the name of the Poster first. . .



Wow! Na Xfire o. This thread go too make sense o o o. Chai!

Huuuuum! Bar man, abeg give everybody a sachet of Pure water and Cabin biscuit. The bills are on me.

passing in case..

that's good one

Hmmm...interesting. An article I wrote as far back as 2014. I posted the first part on Nairaland then but was unfortunately caught by the anti-spam bot and the post was hidden. How did it suddenly re-appear? Lemme complete it and add more:

9. I studied a course not relevant to the oil and gas industry, any chances for me?
There are very few courses that are totally irrelevant in the industry. Those courses may just be in very low demand. It may also depend on your location. A few graduate opportunities (like NNPC graduate programmes and the current NLNG recruitment drive) throw the door open to a wide variety of graduates including the those that studied 'non-relevant' courses. That provides a plausible chance. Another alternative is to change career entirely e.g. from a 'non-relevant' social science course to accounting (through ICAN or ACCA) or from Agric engineering to Mechanical Engineering through the MSc route. But it must be said that not everyone can work in the oil industry. Career satisfaction can certainly be gotten elsewhere.

10. What of job security in the industry?
Over the decades, the industry worldwide tends to be cyclical. In times of high oil prices like we have now, job stability tends to be high. Companies recruit in this time of prosperity. When oil prices crash for a sustained period of time, it becomes uneconomical to sustain high level of production and there may be massive lay-offs. This can happen for many reasons -gloomy economy, oil glut, newer and cheaper technologies, political instability or uncertainty. However the industry is currently in a sustained period of high prices and job security is pretty high.
Moreover, the industry is skill driven. Some set of professional skills will always sell, and many experts will always find themselves in various aspects of the industry irrespective of the economic situation.
Generally speaking, job security in the industry is fairly high.

11. What do industry employers look for in candidates?
Pretty much the same qualities every employer will want in a graduate - analytical skills, communication skills, result driven, intelligence, sense of accomplishment, drive, enthusiasm, interpersonal skills, problem solving skills, etc.
For experienced hires, employers look for a set of specialized skills, and level of relevant work experience in addition to the required soft skills mentioned above for graduates.
Many companies, particularly in Nigeria require that candidates pass a series of written and /or online tests to be considered for employment. Some even require this for experienced candidates.

12. Will an MSc in a top university brighten my chances?
Yes it can and it does. Many firms consider that at the interview stage. But it is not a guarantee. You still need to do very well at every stage of the recruitment. It can only help if you are being compared with a another equally good candidate who has no MSc.

13. What is the average pay for fresh graduates in the industry?
It is impossible to put a single figure on a fresh graduate's pay in the industry. It varies depending on the aspect of the industry (oil producing or servicing), the size of the firms, policy of the firm, the type of job, contract type (permanent or contract staff) and the type of firm (local or international). Generally speaking, the average pay for fresh graduates in the industry is far higher than what is obtainable in other industries.

14. Do you I have a better chance of getting recruited as an indigene of an oil producing state?
Yes. Most companies provide additional slots for local indigenes, or employ local indigenes for servicing works. But the industry is very much merit driven and being a local indigene is not enough to secure you employment in an oil company. It only gives you a brighter chance than others.

15. Does working in a reputable oil firm equate to career fulfilment?
No. Career fulfilment is a personal and individualistic sense of contentment and accomplishment in one's career. Many in the industry are left unfulfilled because the promotions they desired never came. Some never achieve the heights they set for themselves. Some remain on the same level for years without promotion, maybe because their performance is low or no one is 'pushing' them upwards. Some simply have to deal with 'bad' bosses. Others achieve rapid progression through the ranks. Some are willing to sacrifice work-life balance for career progression, others aren't. Career fulfilment is not all about money. Many earn well but are still unhappy. Some don't love their jobs or the location of their workplace (especially field workers) despite the high pay. I have seen quite a number of people who hate their employer with a passion but love the huge pay. I have also seen the opposite - those who love the job and the pay. Thus, career fulfilment is personal.

16. If I get a postgraduate scholarship from an IOC (International Oil Company), does it mean I get automatically employed by the IOC after recruitment?
No. It does not. In years past, it was almost automatic but not anymore. The competition is harder now. You will have to apply like all other graduates and pass through the rigorous recruitment process.

17. What advice will you give me if I want to pursue a career in the industry?
I receive this question a lot. It all depends on the individual I am dealing with. There is no specific answer that fits every aspirants.
However, I will offer a general advice. All aspirants should endeavour to enhance their employability constantly. Information is key. Be well informed about the industry and get relevant information concerning career fields you can or want to delve into. Keep your eyes wild open for available vacancies and be active on LinkedIn. Network, not only for the sake of knowing people, but for getting valuable information. Pay attention to job vacancy requirements. Never overlook seemingly little opportunities, even in small firms. I give an example. While I was working in the FMCG industry, I was looking forward to moving to the oil industry. I knew the oil industry places a lot of priority on safety. That partly made me develop keen interest in safety at my workplace. I joined the safety team and I became the safety coordinator for my plant. I embarked on some notable projects to improve our safety performance. I included the information on my CV and it went a long way in helping me in my interviews and securing jobs in the oil industry.

http://www.jarushub.com/common-questions-and-answers-on-oil-and-gas-careers-iii/
http://www.jarushub.com/common-questions-answers-on-oil-gas-careers-iv/

I will also write a bit about contract staffing in the industry. I will answer the following later:

1. How do oil firms recruit contract staffs? And why do they recruit contract staffs?

2. What's the remuneration package like for contract staffs?

3. How secure is the job of a contract staff in oil companies?

4. Do contract staffs get converted to permanent staffs? If yes, what's the process?

5. How can I form an indigenous oil servicing company?

tanx sir.... i have realy learnt alot from you...

Very insightful...keep them coming.

Great...insightful.

My question: How much do doctors earn in the industry? How frequent do they recruit doctors and what's the process for recruitment? Is there a demand for medical practitioners in oil firms?

All these oil and gas talks shaaa... The main koko na to get appointment letter with them....


It's well. . Nice article oga xfire..

i learnt so many things here, we will get there one day.Thanks egbon.

@ xfire I enjoy and learnt a lot from here , am a recent graduate of chem engr . pls I must commend your good job may good Lord bless u. pls keep the lecture coming

insightful indeed
In this era of low crude prices and the resultant negative effect in the industry especially as it relates to heightened loss of jobs and income, graduates need to look beyond the industry.
I'm and oil and gas professional, and I must admit that most people, especially contract staffs and employees of oil servicing firms like Schlumberger are scared stiff of losing their jobs.
I just read online that Schlumberger wants to lay off 11,000 employees this quarter, totalling 20,000 personnel rendered jobless so far this year.
Most of the IOCs in Nigeria are downscaling due to poor funding of JV by government, uncertainty in PIB because the govt wants to increase tax on oil, high level of insecurity, massive corruption, multiple taxation, crude oil theft and low crude prices.
Nigeria is producing less than we were producing 16 years ago. That means the industry has not grown over the years. How then do we expect the industry to recruit?
i will advise all graduates to be versatile and look beyond the industry. The days of jumbo pay package may be over soon.
xfire, comment

gudrated:
insightful indeed
In this era of low crude prices and the resultant negative effect in the industry especially as it relates to heightened loss of jobs and income, graduates need to look beyond the industry.
I'm and oil and gas professional, and I must admit that most people, especially contract staffs and employees of oil servicing firms like Schlumberger are scared stiff of losing their jobs.
I just read online that Schlumberger wants to lay off 11,000 employees this quarter, totalling 20,000 personnel rendered jobless so far this year.
Most of the IOCs in Nigeria are downscaling due to poor funding of JV by government, uncertainty in PIB because the govt wants to increase tax on oil, high level of insecurity, massive corruption, multiple taxation, crude oil theft and low crude prices.
Nigeria is producing less than we were producing 16 years ago. That means the industry has not grown over the years. How then do we expect the industry to recruit?
i will advise all graduates to be versatile and look beyond the industry. The days of jumbo pay package may be over soon.
xfire, comment

Unfortunately, you are right.
The oil industry has not grown over the years in Nigeria. The industry would have experienced enormous growth and influx of investment if well nurtured. A combination of bad policies, uncertainty and massive corruption has stifled growth in the sector.
However, the focus here is not on the state of the industry but on career prospects based on numerous enquiries I receive on a regular basis.

xfire:
Unfortunately, you are right.
The oil industry has not grown over the years in Nigeria. The industry would have experienced enormous growth and influx of investment if well nurtured. A combination of bad policies, uncertainty and massive corruption has stifled growth in the sector.
However, the focus here is not on the state of the industry but on career prospects based on numerous enquiries I receive on a regular basis.

so Mr. Xfire, what'll be the fate of those eyeing the oil industry?

dawtune:
so Mr. Xfire, what'll be the fate of those eyeing the oil industry?

See question ooo. Keep eyeing and working towards it
The fact that the industry has not grown does not mean that companies are not recruiting.

How about employees of indigenous oil companies? Are they well paid?

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Feex:
See question ooo. Keep eyeing and working towards it
The fact that the industry has not grown does not mean that companies are not recruiting.

ok bro, thanks much....

Good afternoon sir

I actually opened an account to ask u this enquiry. Thank u for this thread.

I have an OND and HND in mechanical (production) option with Upper Credit (gpa 3.33/4). What r my chances of getting a job in d oil sector? what are the certifications dat will improve my chances?

nice

Cool.

Feex:
How about employees of indigenous oil companies? Are they well paid?

Oga, did you even read the post at all? That's how people fail in exams.

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thanks for this thread.

please i need your assistance in another area. i studied petroleum engineering and graduated 4 years ago.

all these while i have been working in telecomms. i recently got an invite from an oil firm for 2 weeks ( i asked for the time so i can prepare aince it's been a while i did anything oil & gas).

now my dilemma is that the insider that pushed my cv told me i will be given a basic test on PE and he won't be able to get samples for me.

it's been 4+ years since i graduated and i'll be doing a lot of reading to get myself back and it won't be possible for me to do that because of my current job.

if you can help me with a link or sample (if you have any) of the kind of questions. i don't need answers, just questions related to PE usually asked on entry level tests. i will be very grateful

that way i can quickly practice on the necessary areas instead of going through the whole books. and you know how diverse the course is.

thanks.

stillchris:
thanks for this thread.

please i need your assistance in another area. i studied petroleum engineering and graduated 4 years ago.

all these while i have been working in telecomms. i recently got an invite from an oil firm for 2 weeks ( i asked for the time so i can prepare aince it's been a while i did anything oil & gas).

now my dilemma is that the insider that pushed my cv told me i will be given a basic test on PE and he won't be able to get samples for me.

it's been 4+ years since i graduated and i'll be doing a lot of reading to get myself back and it won't be possible for me to do that because of my current job.

if you can help me with a link or sample (if you have any) of the kind of questions. i don't need answers, just questions related to PE usually asked on entry level tests. i will be very grateful

that way i can quickly practice on the necessary areas instead of going through the whole books. and you know how diverse the course is.

thanks.

i don't ve a past question but PE past ques for revolves mainly around reservoir engrg. Revise your 300 level reservoir engrg course i guess u r good to know

2.2

stillchris:
thanks for this thread.

please i need your assistance in another area. i studied petroleum engineering and graduated 4 years ago.

all these while i have been working in telecomms. i recently got an invite from an oil firm for 2 weeks ( i asked for the time so i can prepare aince it's been a while i did anything oil & gas).

now my dilemma is that the insider that pushed my cv told me i will be given a basic test on PE and he won't be able to get samples for me.

it's been 4+ years since i graduated and i'll be doing a lot of reading to get myself back and it won't be possible for me to do that because of my current job.

if you can help me with a link or sample (if you have any) of the kind of questions. i don't need answers, just questions related to PE usually asked on entry level tests. i will be very grateful

that way i can quickly practice on the necessary areas instead of going through the whole books. and you know how diverse the course is.

thanks.

4yrs ago is nt much of a long time.
Engineering is nt something that zaps easily from ones memory.
U should still have some of ur key text books and notes.
Dnt jst read any topic. Find out What aspect of services the company renders ot what aspects of oil and gas business d company is into dat would guide ur choice of topics u read.

For eg, if a Geology graduate is preparing for an Oil and Gas test and is expecting geology questions. I would advice the person to Study areas like: Petroleum Geology, Stratigraphy, Petrophysics & Sedimentary Geology of Nigeria. So u should know d aspects of Petroleum Engineering that suits that focuses on what line of biz d company is into.