Norway’s sovereign wealth fund may have spared the majors when announcing it was pulling investments from a host of oil and gas producers, but the move will still reverberate in the boardrooms of energy heavyweights like BP and ExxonMobil. With $1tn under management, the Norwegian oil fund is the world’s biggest sovereign investor, owning equity stakes between 1 and 2.5 per cent in all the supermajors. On Friday it said it would divest from smaller exploration and production companies as a means of diversifying Norway’s oil-rich economy’s exposure to the commodity. But while the largest integrated companies were granted a reprieve, justified by their vast refining and trading capabilities that could insulate them should the long-term future of oil demand growth threaten crude prices, Norway has also made clear it expects them to do more. Siv Jensen, Norway’s finance minister, indicated the decision was in part justified by the believe that the energy majors will ultimately have to play a bigger role in the transition towards cleaner fuels and renewable energy.
FT 9th March 2019 read more »