Norway’s $780 billion wealth fund put Petroleo Brasileiro SA on a list for a potential divestment because of corruption risks.

The Brazilian oil producer was put under “observation” because of the risk “of severe corruption” after a recommendation by the Council on Ethics, the Oslo-based fund said in a statement on Thursday.

“In accordance with the guidelines, companies may be placed under observation when there is doubt as to whether the conditions for exclusion have been met or as to future developments, or where observation is deemed appropriate for other reasons,” the fund said.

The investor, which holds about 1.3 percent of global stocks, takes into account ethical rules encompassing human rights, some weapons production, the environment and tobacco. It has excluded more than 60 companies after recommendations from the council.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE