The Council on Ethics recommends that Oil & Natural Gas Corp Ltd (ONGC) be excluded from investment by the Government Pension Fund Global due to an unacceptable risk that the company is contributing to serious violations of the rights of individuals in situations of war or conflict.

ONCG is an integrated oil- and gas company engaged in production of oil in South Sudan. For years, a violent conflict has been underway in the country, during which the civilian population has been subjected to acts of extreme violence. Control of the petroleum resources in the country has been a key driver in the conflict. In this context, ONGC participates in two joint ventures with, among others, the South Sudan’s state oil company Nilepet.

The Council considers that ONGC through its operations has accepted a risk of contributing to serious abuse committed to enable oil production in the country. The Council also takes into consideration that actors who are directly or indirectly responsible for grave violations are providing services to the joint ventures and are responsible for the security at the oil fields that the joint ventures operate.

The Council on Ethics submitted its recommendation 8 January 2021. Norges Bank announced its decision to exclude the company from investment on 2 September 2021.

Please find the Council’s recommendation here.