Norway's national energy company, Equinor, is confronting a colossal financial penalty totalling £53 million following a major investigation into repeated oil spills and dangerous gas leaks at its Mongstad refinery. Authorities have directly linked the incidents to what they describe as years of insufficient maintenance at the critical facility.
Record-Breaking Fine for Systemic Failures
Norway's economic crime agency, Økokrim, announced the punitive action, accusing Equinor of enabling "extensive and long-term pollution" at the North Sea coastal plant. The penalty comprises a £16 million fine and a confiscation order of £37 million, marking a historic sanction. "Økokrim takes the matter very seriously, which is reflected in the size of the fine," the agency stated, noting the confiscation sum is the highest ever demanded from a Norwegian company.
The probe was initiated in 2020 after the Norwegian environmental non-governmental organisation Bellona reported a series of oil leaks. Bellona's founder, Frederic Hauge, said their investigation revealed "a company in deep systemic crisis," prompting their report out of fear a serious accident was imminent.
A Catalogue of Leaks and Near-Miss Incidents
Prosecutors established that multiple leaks occurred at Mongstad between 2016 and 2021. The most severe incident involved the release of 40 tonnes of gas, containing highly concentrated hydrogen sulphide. State attorney Maria Bache Dahl, who led the prosecution, emphasised the grave danger: "The release represented a risk of fatal outcome for several employees at the plant. Økokrim believes that it was only coincidence that no one was injured."
Equinor's Legal Challenge and Defence
Equinor has formally contested the penalty notice, setting the stage for a court battle. Siv Helen Rygh Torstensen, the firm's executive vice-president for legal and compliance, disputed the agency's core allegations. "We 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 cost through inadequate maintenance," she stated.
Torstensen further argued that Økokrim has not specified the exact nature of the alleged punishable negligence. Consequently, the company "does not accept the penalty notice and will clarify the case in court." The outcome of this legal proceeding will determine whether the record penalty is upheld.
