Norway Fines Equinor Record Sum for Mongstad Refinery Pollution

Norwegian police have issued a substantial penalty against energy company Equinor, comprising a fine of 220 million Norwegian kroner (NOK) and the confiscation of an additional 500 million NOK. The total penalty of 720 million NOK is a consequence of alleged severe violations of the Pollution Control Act at Equinor's Mongstad refinery, attributed to 'years of inadequate maintenance'. Equinor has publicly stated its disagreement with the penalty and its intention to challenge the decision in court.

Investigation and Penalties

The penalty was issued by Økokrim, Norway's National Authority for Investigation and Prosecution of Economic and Environmental Crime. Økokrim views the case as 'extremely serious', highlighting the magnitude of the violations. The confiscation amount of 500 million NOK is reportedly the largest ever imposed in Norway, while the 220 million NOK fine is the second largest for a Norwegian company.

The investigation into the Mongstad refinery's operations began in 2020, following reports from the environmental non-governmental organization Bellona. Charges were formally filed in May 2021. The alleged pollution incidents, which include illegal gas emissions and oil spills, are said to have occurred between 2016 and 2021.

Details of the Violations

The core of the charges revolves around 'inadequate maintenance' at the Mongstad refinery, Norway's sole oil refinery, located approximately 60km north of Bergen on the west coast. One particularly severe incident cited by authorities involved the release of 40 metric tons of gas, including highly toxic hydrogen sulfide. This release was deemed to have posed a 'risk of fatal outcome for several employees at the plant', with Økokrim stating it was 'only coincidence that no one was injured'.

Bellona, which first reported the refinery to authorities in 2020, cited 'oil leaks into the ground, failure to implement measures to stop the pollution, and insufficient efforts to limit environmental damage'. Frederic Hauge, Bellona's founder, described the situation as a 'deep systemic crisis' and 'systematic environmental crime marked by gross negligence'.

Equinor's Response and Legal Challenge

Equinor has firmly rejected the allegations, stating that it 'disagree that the company has failed to fulfil its duty of proper maintenance of the plant over several decades and that the company has saved costs through inadequate maintenance'. The company's legal and compliance executive vice-president, Siv Helen Rygh Torstensen, emphasized that Equinor has conducted 'thorough and transparent investigations and implemented a number of measures to correct relevant deviations'. Equinor also noted that the case concerns 'historical matters related to emissions and discharges that the company itself has uncovered, investigated and improved'. As a result of this disagreement, Equinor will contest the penalty notice in court.