Neptune Supports European GDP Growth: Study

UK-listed producer Neptune Energy contributed an estimated $2.8bn gross value added (GVA) to the gross domestic product (GDP) of the four European countries where it operates in 2019, half of which was in Norway. It supported 11,500 jobs.

For 2018, the comparable figures were $2.6bn and 9,400 jobs. In the case of the UK, it provided an estimated $438mn gross value added (GVA) contributions to GDP, up from $422mn in 2018. It also supported 2,800 jobs there last year, it said April 15.

A study by Oxford Economics quantified the direct impact Neptune has through its gas-weighted operations and the indirect impact generated through its supply chain, as well as induced impact due to spending by Neptune staff and suppliers’ staff within their local economies.

Companies that make a significant contribution to the UK economy may be eligible for funding aid during the Covid-19 crisis, but this study was due to happen anyway and the company told NGW it had not considered that source of funding as an option. Operations are understood to be continuing as normal, as far as possible.

The study found that for every Neptune employee in the UK, around 16 jobs were supported elsewhere in the domestic economy, primarily due to Neptune’s spend on capital goods and services in relation to its operated gas production platform, Cygnus, in the southern North Sea which supplies about 6% of UK domestic gas demand. For every $1 GVA directly generated by Neptune, another $1.5 was also supported elsewhere in the UK economy.

UK managing director Alexandra Thomas said the study showed the important contribution the oil and gas sector makes in the UK that goes far beyond its core function of producing and supplying energy.