Sunday 21 April 2019

Sovereign wealth funds lay foundations for a low-oil future | Financial Times

Sovereign wealth funds lay foundations for a low-oil future | Financial Times:

Norway’s plan to ditch a host of oil and gas companies has highlighted the pressure on petroleum-rich sovereign funds to cut their exposure to a sector that is facing serious questions from investors over its long-term prospects.

Norway’s $1tn sovereign wealth fund, the biggest in the world, last month said it planned to divest holdings worth about $7.5bn from oil and gas companies that focus on exploration and production.

It stopped short of dumping larger energy companies such as BP and ExxonMobil but the move, which is subject to parliamentary approval, is still likely to result in one of the largest divestments of fossil fuel assets. The fund owns oil and gas shares worth about $37bn in its $623bn equities portfolio.

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