8th Mar 2019 11:08
LONDON (Alliance News) - The Norwegian government has decided its sovereign wealth fund will sell off all its investments in oil and gas companies, it said on Friday, with the exception of the state oil producer.
Norway's sovereign wealth fund, formally known as the government Pension Fund Global, is valued at around GBP782 billion and has investments in over 9,000 companies worldwide. It has 341 investments in the oil & gas industry, worth a total of USD37 billion.
In a statement on Friday, Norway's Finance Ministry said the move will reduce the risk to the Norwegian economy from oil price volatility.
The move, it stressed, does not reflect any opinion on the future of the oil & gas industry, Norway itself being a major producer from the North Sea.
"The oil industry will be an important and major industry in Norway for many years to come. The state's revenues from the continental shelf are, as a general rule, a consequence of the profitability of exploration and production activities," said the ministry.
"Therefore this measure is about diversification."
Exploration & production companies will be phased out "over time", it added, while the government also said climate risk is an important financial factor in the decision.
Norway will not be selling down its 67% stake in state energy firm Equinor ASA.