Personnel headcount and structure

In 2018, the headcount within the Zarubezhneft Group of Companies of Companies was 12,681 people, which was 4% less than in 2017. The personnel headcount decreased due to the headcount optimization measures being carried out: in Russia – by 1.5%, in the Socialist Republic of Vietnam – by 6.3% in the Republic of Srpska (Bosnia and Herzegovina) – by 2.1%.

Company headcount dynamics by countries of presence, persons
Country of presence Actual
2015 2016 2017 2018
Total for the Group of Companies 14,531 13,846 13,245 12,681
Russia 3,302 3,627 3,909 3,851
Socialist Republic of VietnamThe personnel of JV “Vietsovpetro” was previously accounted for in the headcount in the Socialist Republic of Vietnam. 8,857 8,079 7,252 6,790
Republic of Srpska (Bosnia and Herzegovina) 2,356 2,127 2,073 2,029
Republic of Cuba 16 13 11 11

In general, the average headcount of the Group of Companies has a tendency for decrease, which is due to the ongoing headcount optimization measures within the Group of Companies: headcount decrease was 5.5% in the "Service and other assets" segment, 4.5% in the Upstream segment and 2.1% in the Downstream segment.

Company headcount dynamics by the areas of activities, persons
Area of activities Actual
2015 2016 2017 2018
Total for the Group of Companies 14,531 13,846 13,245 12,681
Managing company 320 322 326 317
Zarubezhneft JSC branches and representative offices 30 26 25 24
UpstreamDue to the headcount reporting expansion starting 2018, the current version of the Reports accounts for all personnel of other Blocks and Service projects of “Vietsovpetro”. 9,972 9,402 8,813 8,415
Downstream 2,356 2,127 2,073 2,029
Services 1,853 1,969 2,008 1,896

At this, the Upstream segment, which comprises 66% of all personnel, continues to be the priority area of the Group of Companies’ development. The headcount of downstream and services and other assets amounted to 34%.

Personnel structure by areas of activities, %
Gender balance, %
Dynamics of changes in the personnel structure by the categories of positions, %
Name as of 31.12.2016 as of 31.12.2017 as of 31.12.2018
Managers 19.0 16.0 16.0
Experts 33.0 41.1 40.9
Clerks 2.0 0.2 0.3
Workers 46.0 42.7 42.8

The personnel of the Zarubezhneft Group of Companies is predominantly men, who make up 82% of the headcount. This is because oil production requires working at remote fields (including on a rotational basis), and involves a significant share of physical labor, including at the drilling rigs (particularly at the JV “Vietsovpetro” facilities in Vietnam).

Personnel structure by categories of positions is formed to ensure balance between the managers, experts and workers.

More that the half of the Group of Companies' employees have higher education. However, considering the large number of workers, a significant part comprises employees with secondary and vocational secondary education.

The age structure of personnel is traditionally formed in such a way that two thirds of it belong to the age category of 30-50 years. Such a strategy ensures the best balance of the qualities that are critical for a production company: physical capabilities and work experience. Traditionally, the significant specific weight is accounted for by the younger employees – 11.6%, which establishes a sustainable basis for the development of new projects. Considering these factors, the Group maintains its average personnel age at the level of 42 years.

Personnel structure by education level (as of December 31, 2018), %
Personnel composition by age (as of December 31, 2018), %
Changes in personnel composition by age, %

Acting within the International Labor Organization Conventions No. 138 – Concerning the Minimum Age of Work and the Russian Labor Law, Zarubezhneft JSC takes a tough stance against hiring workers under the age of 18 to work at its production facilities, regardless of the legislative framework of the country where the Company is implementing the project.

Permanent employment contracts are concluded with the Company's employees. Fixed-term employment contracts are concluded only for key employees’ parental leaves. All the Company’s employees work on a full-time basis. The Company does not employ part-time or seasonal workers.