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2018-05-23 10:00:00

NORWAY'S OIL EXIT

NORWAY'S OIL EXIT

BLOOMBERG - Norway's $1 trillion sovereign wealth fund cleared a hurdle on its proposed path to exiting oil and gas stocks.

The fund won support from key academics at Norway's top universities, whose responses are part of a hearing process. But more weight will likely be given to the opinion of an expert group, which will give its view later this year before the government and parliament decides.

The fund shocked markets around the world in November when it asked for permission to divest oil and gas companies to reduce financial risk, arguing Norway as a whole is already heavily exposed to oil as western Europe's biggest petroleum producer. At the time of the proposal, the fund held about $40 billion of shares in oil giants such as Exxon Mobil Corp. and Royal Dutch Shell Plc.

In the consultation, academics from the Norwegian School of Economics (NHH), the Norwegian University of Science and Technology (NTNU) and the University of Oslo (UiO) backed the proposal, saying it would help diversify risk for the country.

The arguments for removing oil and gas stocks from the reference index "are very convincing," Knut Anton Mork, a professor at NTNU and a former chief economist at Svenska Handelsbanken AB, said in an April 30 consultation letter.

Professors Gernot Doppelhoffer and Klaus Mohn and associate professors Torfinn Harding and Krisztina Molnar of NHH also supported the plan, as did professors Michael Hoel, Karine Nyborg and Steinar Holden at UiO.

"The advice given by Norges Bank has a solid scientific basis, and has broad support in both national and international academic communities," the UiO professors wrote in their letter.

The University of Stavanger Business School stopped short of endorsing the proposal but said in its letter that the plan was "highly relevant and timely, not least based on the exposure of the Norwegian economy, value creation and national wealth to shocks related to oil and gas markets."

In its letter, the Oslo-based Norwegian Business School said that the central bank was right in considering the issue against Norway's national wealth as a whole, but that the question of whether to dump oil and gas stocks "doesn't have as clear an answer."

"A question of this importance requires comprehensive analyses before the final decision is made," said professors Espen Moen and Richard Priestley and associate professor Espen Henriksen, a former employee at the fund.

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Earlier:

 NORWAY'S OIL PRODUCTION DOWN 34 TBD TO 1.868 MBD
2018, May, 16, 11:50:00

NORWAY'S OIL PRODUCTION DOWN 34 TBD TO 1.868 MBD

NPD - Preliminary production figures for April 2018 show an average daily production of 1 868 000 barrels of oil, NGL and condensate, which is a decrease of 34 000 barrels per day compared to March.

 NORWAY'S RENEWABLE INVESTMENT
2018, April, 9, 11:10:00

NORWAY'S RENEWABLE INVESTMENT

REUTERS - Norway’s $1 trillion sovereign wealth fund should be allowed to invest in unlisted renewable projects such as solar parks and wind farms, the ruling Conservative party voted on Saturday.

 NORWAY'S OIL THREAT
2018, March, 28, 10:50:00

NORWAY'S OIL THREAT

BLOOMBERG - The government has paid out 109 billion kroner ($14 billion) since 2005 to explorers such as Lundin Petroleum AB and Repsol SA. It helped attract more companies to Norway, nearly doubling the pace of exploration and leading to key discoveries such as the multi-billion-barrel Johan Sverdrup field.

 NORWAY'S PETROLEUM RESOURCES: 15.6 BLN M3
2018, March, 4, 11:10:00

NORWAY'S PETROLEUM RESOURCES: 15.6 BLN M3

NPD - The Norwegian Petroleum Directorate’s (NPD’s) estimate for total proven and unproven petroleum resources on the Norwegian continental shelf is about 15.6 billion standard cubic metres of oil equivalents.

 NORWAY DEFENDS OIL
2018, February, 12, 07:10:00

NORWAY DEFENDS OIL

REUTERS - “The Ministry maintains that the Norwegian rules on reimbursement of exploration costs and interest on carry forward of losses ... do not constitute state aid under Article 61 of the EEA Agreement, and are therefore in compliance with the EEA (European Economic Area) law,” the ministry said in a letter.

 NORWAY DIVESTS OIL
2018, February, 7, 07:45:00

NORWAY DIVESTS OIL

BLOOMBERG - Norway’s $1.1 trillion wealth fund shocked the world last year when it announced a plan to divest all its oil and gas stocks, worth $35 billion at the time.

 NORWAY'S OIL PROBLEMS
2018, January, 3, 15:35:00

NORWAY'S OIL PROBLEMS

BLOOMBERG - Norway’s oil production has been halved since a 2000 peak. While natural-gas output has surged, total production is forecast to fall again in the middle of the next decade. A flurry of investment decisions at the end of last year hides a painful truth: after Statoil’s $6 billion Johan Castberg oil field starts production in the Barents in 2022, the project pipeline is scant.

Tags: NORWAY, OIL, FUND