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The biggest sovereign wealth fund in the world, Norway’s $1.3-trillion Government Pension Fund Global, slightly lowered its stakes in the world’s top Western oil firms last year, taking a profit from the rise in oil and oil stocks.
The fund is commonly referred to as Norway’s oil fund and it invests in global equities, fixed-income assets, real estate, and renewables.
As of December 31, 2022, the fund held investments in energy companies worth $37.84 billion (377.8 billion Norwegian crowns) excluding cash and derivatives, according to the annual holdings update of Norges Bank Investment Management, which manages the fund.
Government Pension Fund Global held stakes in 213 energy firms in 37 countries, representing 3% of all investments. The largest investments in energy by value were in the five Big Oil firms—Shell, ExxonMobil, TotalEnergies, Chevron, and BP.
The fund has a 3.14% in Shell, historically one of the biggest-value holdings of all companies worldwide the fund is invested in.
As of December 31, 2022, the stake in Shell was valued at $6.1 billion, while Shell’s share price has jumped by 25% over the past year. The fund’s stake in Exxon was worth $5 billion, and Exxon’s stock has surged by 49.50% in one year. The stake in TotalEnergies was worth $4.44 billion at the end of last year, the Chevron holding was valued at the equivalent of $2.9 billion, and the BP stake – at $2.8 billion.
The fund’s total equity investments consist of ownership shares in more than 9,000 companies worldwide. On average the fund owns 1.3% of all listed companies in the world.
With the rise in oil and gas prices, Norway is also benefiting. The country expects to receive a record $89.5 billion (884 billion Norwegian crowns) in oil and gas tax revenue for 2022, triple the previous record in 2021, thanks to soaring gas prices last year, the Norwegian Tax Administration said last week.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.