The Council on Ethics recommends that Delek Group Ltd be excluded from the Government Pension Fund Global because the company is responsible for a serious violation of fundamental ethical norms. The background is the company’s petroleum prospecting offshore Western Sahara.

The company has entered into an agreement with Moroccan authorities for petroleum exploration offshore Western Sahara. Morocco does not have legal, sovereign rights over this area’s natural resources.

The Council has considered that Delek Group’s exploration activities offshore Western Sahara must be considered a serious violation of fundamental ethical norms as per the Fund’s ethical guidelines, as the activity 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. With regard to the risk of future violations, the Council point out that the exploration agreement has a term of up to eight years.

The Council on Ethics issued its recommendation on exclusion on 30 May 2023. Norge Bank announced its decision to exclude the company on 18 December 2023.

Please find the Council’s recommendation here.