Norway: World's largest wealth fund to divest from co's that explore for oil & gas

Author: Rob Davies, The Guardian, Published on: 13 March 2019

"Norway's $1tn wealth fund to divest from oil and gas exploration", 8 March 2019

The world’s largest sovereign wealth fund, which manages $1tn (£770bn) of Norway’s assets, is to dump investments in firms that explore for oil and gas...

The Government Pension Fund Global (GPFG), whose assets exceed those of rival sovereign wealth funds such as China’s, said it would phase out oil exploration from its “investment universe”...

GPFG said the decision was motivated by a desire to protect the Norwegian economy by reducing exposure to oil price falls, rather than climate concerns.

It will retain stakes in fossil fuel companies as long as they have some involvement in renewable energy. Its stakes in large firms with renewable units include 2.4% of Shell and 2.3% of BP, because it believes they will play a major role in developing green energy...

Greenpeace UK’s oil campaigner [...] said: “This partial divestment from oil and gas is welcome, but not enough to mitigate Norway’s exposure to both global oil and gas prices and the wider financial ramifications of climate change.

“However, it does send a clear signal that companies betting on the expansion of their oil and gas businesses present an unacceptable risk, not only to the climate but also to investors... [also refers to Tullow Oil, Premier Oil, Soco International, Ophir Energy and Nostrum Oil & Gas]

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Related companies: BP Nostrum Oil & Gas Ophir Energy Premier Oil Royal Dutch Shell (Shell) SOCO International Tullow Oil