(Corrects to show that Shell and ENI not put on formal observation)
OSLO, Oct 14 (Reuters) - Norway's government has barred its $790 billion oil fund from investing in five companies due to ethical issues and placed another two on observation for environmental issues, the finance ministry said on Monday.
The fund, one of the world's largest investors, will not be allowed to invest in WTK Holdings Berhad, Ta Ann Holdings Berhad, Zijin Mining Group, Volcan Compania Minera and Zuari Agro Chemicals Ltd .
The government has also asked the fund to include oil spills and environmental conditions in the Niger Delta as a consideration, but it did not put Royal Dutch Shell and Eni on observation, despite the recommendation of its Ethics Council.
It also asked the fund to raise issues about mining-related environmental damage with AngloGold Ashanti. (Reporting by Balazs Koranyi; Editing by David Goodman)