Friday, 17 November 2017

Norway's state fund 'needs to drop oil and gas investments'

Norway's government has been told its state-run fund should drop its investments in oil and gas stocks.

Norges Bank manages Norway's $1 trillion (£758bn) sovereign wealth fund on behalf of the government.

It said the step would make the country "less vulnerable to a permanent drop in oil and gas prices", and its advice was not based on a price forecast or the sector's sustainability.

Around 6% of the fund, worth £28bn, is invested in oil and gas stocks.

"This advice is based exclusively on financial arguments and analyses of the government's total oil and gas exposure," said the bank's deputy governor Egil Matsen.
Norges Bank's proposal must now be reviewed by Norway's Finance Ministry, which has said it will announce its own view in the autumn of next year.

If it decides to back the central bank's proposal, the country's parliament would be able to vote on it in June 2019 at the earliest.

BBC      News.