Personnel Number and Structure

GRI: 102-8, 405-1

In 2019, the average number of Zarubezhneft Group employees was 12,588 people, 1% lower than in 2018. Due to measures taken to increase business efficiency, the number of employees decreased: by 1.2% in the Socialist Republic of Vietnam, and by 9.4% in the Republic of Srpska (Bosnia and Herzegovina). At the same time, the number in Russia increased by 4.1% due to RMNTK Nefteotdacha JSC and Zarubezhneftestroymontazh LLC business expansion. In addition, the Company entered into a new project in the Republic of Uzbekistan (JV ANDIJANPETRO LLC was established in August 2019).

Number of Company Staff by Operating Country, persons G4–10
Operating country Actual
2016 2017 2018 2019
Total Group 13,846 13,245 12,681 12,588
Russia 3,627 3,909 3,851 4,011
Socialist Republic of Vietnam 8,079 7,252 6,790 6,711
Republic of Srpska (Bosnia and Herzegovina) 2,127 2,073 2,029 1,839
Republic of Cuba 13 11 11 11
Republic of Uzbekistan 16

In general, the average number of the Group’s employees is tending to decrease, which is due to measures to enhance business performance. Despite the decrease in JV Vietsovpetro’s personnel due to the establishment of JV ANDIJANPETRO LLC in Uzbekistan in August 2019, the number within the Upstream segment remained substantially unchanged. The employees number growth in the Service and Other Assets segment is associated with RMNTK Nefteotdacha JSC and Zarubezhneftestroymontazh LLC business expansion.

Number of Company Staff by Areas of Activity, persons
Area of activity Actual
2016 2017 2018 2019
Total Group 13,846 13,245 12,681 12,588
Management company 322 326 317 315
Zarubezhneft JSC branches and representative offices 26 25 24 24
Upstream 9,402 8,813 8,415 8,408
Downstream 2,127 2,073 2,029 1,839
Services 1,969 2,008 1,896 2,002

For Zarubezhneft Group, the Upstream segment traditionally remains a priority development area, as it makes up 67% of the total personnel. The number of employees in Downstream and Services and Other Assets segments was 30%.

Oil production activities are associated with heavy physical loads, work at remote fields, and rotation method of work, therefore, 82% of the Group’s personnel are men.

The personnel composition by position category is designed to ensure balance between managers, experts, and operating personnel.

More than half of Zarubezhneft Group employees, 56%, have higher education. The employees having secondary and vocational secondary education certificates also make up a significant portion of the total personnel number.

The personnel composition by age is traditionally shaped in such a way that two-thirds of the employees are in their 30–50s, an age group that shows the best balance of physical abilities and professional experience.

From 2016 to 2018, the average age of Zarubezhneft Group personnel remained as high as 42 years; however, in 2019, due to the ongoing measures to enhance business performance at the enterprises in Bosnia and Herzegovina and at JV Vietsovpetro, the average employee age increased to 43 years.

Complying with the International Labor Organization Convention No. 138 On the Minimum Age for Admission to Employment and Russian labor legislation, Zarubezhneft takes a tough stance against hiring workers under 18 years old for work at production facilities, regardless of the legislation of the country of project implementation.

As a rule, employment contracts for an indefinite period are concluded between the Company and employees. Fixed-term employment contracts are mainly concluded for the period of primary employees’ parental leave. All Company employees work on a full-time basis, hiring workers for part-time or seasonal work is not practiced.

Personnel Structure by Area of Activity, %
Personnel Structure by Area of Activity, %
Personnel Structure by Position Category, %
Position category as of Dec. 31, 2017 as of Dec. 31, 2018 as of Dec. 31, 2019
Management 16.0 16.0 15.6
Experts 41.1 40.9 42.7
Employees 0.2 0.3 0.3
Workers 42.7 42.8 41.4
Personnel by Age, %
Age as of Dec. 31, 2017 as of Dec. 31, 2018 as of Dec. 31, 2019
Under 30 13 11.6 10.5
From 30 to 50 60 61.5 61.7
Over 50 27 26.9 27.8
The structure of recruited personnel in 2019 with a breakdown by gender, %
The structure of recruited personnel in 2019 with a breakdown by gender, %
Personnel composition with a breakdown by position categories (as of December 31, 2019), %
Personnel composition with a breakdown by position categories (as of December 31, 2019), %
Personnel composition by education level (as of December 31, 2019), %
Personnel composition by education level (as of December 31, 2019), %
Personnel breakdown by age (as of December 31, 2019), %
Personnel breakdown by age (as of December 31, 2019), %