Norway’s KLP puts BP on watch list over Deepwater oil spill

Influential responsible investor initiates dialogue with oil giant

KLP Kapitalforvaltning, the Norwegian asset manager with NOK180bn (€22.3bn) of assets under management, has formally put oil major BP on watch over the Deepwater Horizon oil spill in the Gulf of Mexico earlier this year.

KLP has a stake of around NOK142m (€17.6m) in BP, as at the end of the last quarter. KLP is also monitoring BP’s co-owner of the Deepwater Horizon rig, Texas-based Anadarko Petroleum Corp., via its research partner GES Information Services.

The Deepwater Horizon blowout earlier this year resulted in 11 deaths, enormous environmental damage and global headlines. BP and Anadarko jointly own the oil project, but BP was the operator, KLP says.

“KLP has commenced dialogue with BP,” KLP said in a statement. “Because of the American authorities’ investigations there are limitations on how much information the company can provide, but the company has itself published an investigation report about the accident that admits severalweaknesses and breaches of guidelines.”
“The company principally blames BP and what they consider to be serious failures by them, since the well was safe and the blowout could have been avoided if BP had applied good oilfield practice,” said KLP’s Head of Responsible Investment, Jeanett Bergan.

KLP also announced that it has reinstated McDermott International to its investment universe, following a twice-yearly review. McDermott had been blacklisted because of its involvement in nuclear weapons, but it has since sold off its stake in the relevant subsidiary Babcock & Wilcox Co.

Meanwhile, KLP has delayed its search for an environmental, social and governance (ESG) research provider. It had issued a request for proposal in September.
KLP Kapitalforvaltning, the asset management arm of NOK267bn life insurer Kommunal Landspensjonskasse, now excludes a total of 56 companies from its investment portfolios.