Norway’s pension fund has opted to continue its scepticism to Eni and Shell over their environmental record in Nigeria, while selling out of Delek Group.
Norges Bank set out its observations and exclusions, saying that Delek – now known as NewMed Energy – was too high risk. The Israeli company has too much chance of “contributing to or being responsible for serious breaches of ethical norms”, Norges said.
The ethics council gave its recommendation to exclude Delek in May this year. Norges specifically linked this to the company’s “petroleum prospecting offshore West Sahara”.
NewMed struck a deal in December 2022 to take a 37.5% stake in the Boujdour Atlantique licence. Kosmos Energy previously held the area and pulled out in 2018. It too had faced pressure from activists over its investment in the licence, which Morocco claims. The United Nations sees Western Sahara as “non-self-governing”.
According to Western Sahara Resource Watch (WSRW), Norway’s investment in NewMed was worth around $57 million. In February, the NGO said Norway’s pension fund was the second largest investor in the company.
In notes on its decision, Norway said NewMed’s investment in the licence “is not conducted in accordance with the wishes and interests of the people of Western Sahara, and because it contributes to maintain an unresolved situation for the area”.
Norway divested its stake in Kerr McGee in 2005 over the US company’s investment in Western Sahara. It excluded Kosmos in 2016.
Israel’s relationship with Morocco has improved as a result of the Abraham Accords, signed in 2020. Since the invasion of Gaza in October, this has become trickier, but for now the two countries remain aligned. There have been protests in Moroccan cities over Israel’s actions.
Nigeria
The Norwegian pension fund has taken the decision to continue its special observation of Shell and Eni, by another two years.
The Council on Ethics launched this special observation of the two companies in March 2013. The group flagged the “unacceptable risk that the companies contribute to or are responsible for severe environmental damage … based on the companies’ activities in the Niger Delta”.
During this 10-year period, Norges has held regular meetings with the companies. “Overall, the Executive Board finds that there is still a forward-looking risk of norm violation,” it said.
However, the investments have been “constructive and the Board notes that the companies have publicly expressed an ambition to divest the relevant assets in the Niger Delta”.