The research quantified the direct impact Neptune has on the UK, Norway, Germany and the Netherlands through its operations, but also the indirect impact generated through its supply chain and the induced impact due to spending by Neptune staff and suppliers’ staff.
The figures for 2018 show that for every one Neptune employee in Europe, the company supports seven more.
In the UK, Neptune contributed $422 million to the country’s GDP and supported 2,100 jobs. For every Neptune employee in the UK, around 28 jobs were supported elsewhere in the domestic economy, primarily due to Neptune’s spend on capital goods and services.
In Norway, Neptune contributed $1.4 billion to the country’s GDP, equivalent to 0.32% of Norwegian GDP in 2018. Neptune supported 1,400 jobs and for every one Neptune employee in Norway, the company supported five elsewhere. Norway had the biggest spend on capital goods purchases of the four European countries in which the company operates, with the majority on drilling rigs from local suppliers.
In the Netherlands, Neptune contributed $490 million in GVA to Dutch GDP and supported 2,800 jobs. For every Neptune employee in The Netherlands, around eight jobs are supported elsewhere in the domestic economy. The Netherlands had the largest spend of the four countries on operational goods and services, mainly driven by expenditures on helicopter transport and contractor staff.
In Germany, Neptune contributed $334 million in GVA to German GDP, supporting 3,100 jobs. For every Neptune employee in Germany, around five jobs were supported elsewhere in the domestic economy. Germany was the largest beneficiary of induced GVA out of the four countries, as German employees tend to spend a larger portion of their salaries domestically.
Jim House, CEO of Neptune Energy, said: “This study shows the important contribution companies can make to national and local economies, stimulating growth, securing employment and putting supply chains to work. As our investment programme ramps up in 2020, we expect our economic contribution to grow, providing more opportunities for more people throughout the communities in which we operate.”
Pete Collings, Oxford Economics’ Director of Economic Impact Consulting in Europe, added: “By supporting jobs, stimulating economic activity and generating tax revenue, the impact of Neptune’s activities is shown to extend well beyond its core function of producing energy. Our research clearly demonstrates the significant contribution that a successful company can make to the economy as a whole, the labour market and Europe’s public finances.”
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About Neptune Energy Group
Neptune Energy is an independent global E&P company with operations across the North Sea, North Africa and Asia Pacific. The business had production of 162,000 net barrels of oil equivalent per day in 2018 and 2P reserves at 31st December 2018 of 638 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.