Norway Appoints New Minister Of Petroleum And Energy

Norway has appointed Ola Borten Moe as its new minister of petroleum and energy, the government said Friday.

Borten Moe replaces Terje Riis-Johansen, who has been in the post since 2008.

The appointment should have "no impact on the markets" said Stein Bruun, chief economist for SEB bank in Norway .

"In Norway at least this has been expected for some time," Bruun said. "Foreigners might take another view but I don't see a lasting effects on markets," Bruun added.

Like Riis-Johansen, 34-year old Borten Moe is a member of the Center Party, which governs Norway in a coalition with Prime Minister Jens Stoltenberg's Labor Party and the Socialist Left Party.

Borten Moe is seen as a rising star within the ranks of the Center Party, which has strong links with the agricultural sector, and he is tipped for promotion to second-in-command, and ultimately may be a future party leader.

Riis-Johansen, 42, is leaving following criticism of his handling of the building of a carbon capture and storage plant at Mongstad , Norway .

"The government announced this project as ' Norway 's journey to the moon' and it has been delayed quite a few times so there has been a loss of confidence," said SEB's Bruun. "While this has been a problem for the whole government the [petroleum and energy] minister is the man responsible," Bruun said.

Plans by the Petroleum and Energy Ministry to build power lines in western Norway have also proved unpopular with voters on environmental grounds and may have hastened the minister's exit, Bruun said.