Neptune Energy announced today it will spend more than $1 billion (1) over the next five years securing energy supplies for the UK and speeding the transition to net zero.
Neptune currently operates around 11% of the UK’s gas supply from fields in the UK’s Southern North Sea and the Norwegian North Sea. It is one of the UK’s lowest carbon producers, with the carbon intensity of its production at 1.7 kg /boe compared with the industry average of 20 kg /boe (2).
Following the publication of the Government’s British Energy Security Strategy, Neptune will accelerate investment to increase energy supply to the UK.
Supporting energy security in the short-term
Investing in energy supply in the mid-term
Delivering long-term development options
Pete Jones, CEO of Neptune Energy, said: “Securing lower carbon energy supplies is a national priority for the UK and Neptune has an important role to play. The Government’s Energy Security Strategy gives clarity on the key role of the North Sea in providing this security and its importance in the energy transition.
“While the UK represents just 10% of Neptune’s production, it is an important growth area for us, with investment options in the North Sea that will not only increase the UK’s energy security, but also support jobs and boost the supply chain.”
In the last three years, Neptune has spent more than $500 million securing energy supplies for the UK – equivalent to $3 for every $1 Neptune has earned in the UK. In addition, the company has spent more than $500 million (3) developing new projects around its Gjøa hub in Norway, which exports gas to the UK via the St Fergus gas terminal.
Since 2018, it has contributed more than $1.8 billion to UK GDP and supported an average of 3,270 jobs each year. For every Neptune employee in the UK in 2021, around 18 jobs were supported elsewhere in the domestic economy (4).
(1) $1 billion includes capex and pre-development, exploration, opex and abex.
(2) North Sea Transition Authority, UKCS offshore carbon intensity 2020 figures.
(3) Includes capex and pre-development, exploration, opex and abex.
(4) Neptune Energy’s economic impact (Europe, Indonesia) report by Oxford Economics
