‘Shock wave’ for energy markets as Norway’s enormous US$1 trillion sovereign wealth fund dumps oil and gas investments
- China’s CNOOC could be among 134 groups affected, as well as Chesapeake of the US, Canada’s EnCana, France’s Maurel and Britain’s Tullow
- The divestment was hailed by the environmental lobby, but was based on financial considerations for the world’s largest sovereign wealth fund
Norway’s sovereign wealth fund, the world’s biggest thanks to petrodollars, will sell off stakes in oil and gas exploration and production companies to reduce its exposure to black gold, the government said Friday.
While the decision is based solely on financial considerations and not on the environment or climate change, a divestment – even partial sell-off – by an investor worth more than US$1 trillion was seen as a major blow to polluting fossil fuels and was swiftly hailed by the environmental lobby.
The fund was built on revenue from Norway’s oil and gas industry.
Norway is the biggest oil and gas producer in western Europe. It said the divestment was specifically targeting exploration and production companies, “rather than selling a broadly diversified energy sector”.