Norway's Oil Fund Removes Petrobras From Observation on Reduced Corruption Risk
December 03 2019 - 5:57AM
Dow Jones News
By Dominic Chopping
Norges Bank Investment Management, the arm of Norway's central
bank that manages the country's trillion-dollar oil fund, said
Tuesday that it has removed Brazilian oil company Petroleo
Brasileiro SA Petroleo Brasileiro S/A (PETR4.BR) from its
observation list following a recommendation from the fund's council
on ethics.
Petrobras was placed under observation in 2016, with a view to
the fund potentially withdrawing its investments in the company due
to risk of severe corruption.
At the time, Petrobras was facing accusations of bribery and
kickbacks.
"The Council on Ethics believes that the risk of corruption is
now reduced," it said in a statement.
"This assessment is based, among other things, on the legal
settlement with the U.S. authorities, which confirms that Petrobras
has implemented comprehensive improvement measures since the
investigation began in 2014."
At the end of 2018, the oil fund had around $659.5 million
invested in Petrobras, representing a 0.83% stake in the
company.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
December 03, 2019 05:42 ET (10:42 GMT)
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