Advice from Norges Bank on the benchmark index for the Government Pension Fund Global (GPFG)

The Ministry of Finance has today received a recommendation from Norges Bank to remove the oil and gas sector from the equity benchmark index for the GPFG. Decisions on the composition of the benchmark index are made by the Ministry of Finance.

The oil and gas sector currently spans a broad range of energy-related activities, including companies classified as integrated oil and gas, oil service and renewable energy.

The advice from Norges Bank is based on assessments of the exposure to oil price risk in the wealth of the Norwegian government. The Bank states that the advice does not reflect any particular view of future movements in oil and gas prices or the profitability or sustainability of the oil and gas sector.

 -  The issues raised by Norges Bank are complex and multifaceted. The advice from the Bank requires a thorough assessment, in line with established practice for key decisions on the management of the Fund. Furthermore, the Government is responsible for the Norwegian economy as a whole and must take a broad and comprehensive approach to this issue, says Finance Minister Siv Jensen.  

In the White Paper to Parliament on Long-term Perspectives on the Norwegian Economy 2017, the Ministry addressed the sensitivity of Norway’s national wealth to a permanent drop in petroleum revenues. A broad set of policy instruments were considered in this regard.

Going forward, the Ministry of Finance will obtain further information and notify Parliament about the ongoing work in the Report on the Management of the Government Pension Fund, to be submitted in the spring of 2018. The Government aims to conclude on this matter in the fall of 2018.

Press release from Norges Bank