Energy stocks in the Government Pension Fund Global

The Government has today presented their report to the Storting about energy stocks in the Government Pension Fund Global.

8 March 2019

 According to this report the Government would like to remove companies classified as Exploration and Production companies by the index provider FTSE from the fund’s reference index.

“The Government follow the intentions in our advice from 2017. By removing exploration and production companies the goal is to make the government’s wealth less vulnerable to a permanent drop in oil prices,” says Deputy Governor Egil Matsen.

According to the FTSE’s definition, the fund held Exploration and Production companies with an approximately value of 66 billion kroner by the end of 2018. This corresponds to 1.2 percent of the fund’s equity holdings. The report will be discussed by the Parliament and the Ministry of Finance and Norges Bank will thereafter make an execution plan. The companies will be phased out over a longer period.

Press release from the Ministry of Finance and The report to the Parliament