Equinor hit with €60mn penalty over alleged pollution at refinery

Equinor has been hit with a €60mn penalty after Norway’s environmental prosecutor accused the state-owned oil company of inadequate maintenance that allegedly caused illegal gas emissions and oil spills.

The National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) on Tuesday said Equinor had committed “serious violations” of Norway’s Pollution Control Act and failed to maintain its Mongstad oil refinery over several decades.

The company, which has been under investigation since 2021 for the alleged violations between 2016 and 2021, said it would contest the penalty and findings.

State attorney Maria Bache Dahl said one instance, where 40 tonnes of gas consisting of hydrogen sulphide among other substances was released, “represented a risk of fatal outcome for several employees at the plant”.

It was “only coincidence that no one was injured”, she said.

The penalty included a fine of NKr220mn ($22mn) and a confiscation claim of NKr500mn. The total sum of NKr720mn makes it the largest in the history of Norway’s petroleum sector, according to environmental organisation Bellona.

Økokrim said it was the second largest fine it had issued to any company and the largest confiscation claim — which is meant to reflect the savings Equinor made by allegedly failing to adequately maintain the plant.

“The case is an example of how environmental crime is also an economic crime, as the economic savings have led to consequences for the environment,” said Bache Dahl.

Siv Helen Rygh Torstensen, executive vice-president for legal and compliance at Equinor, said the company had “conducted thorough and transparent investigations and implemented a number of measures to correct relevant deviations”.

Equinor “disagree[d] that the company has failed to fulfil its duty” for proper maintenance of its plant over several decades and “therefore does not accept the penalty notice and will clarify the case in court”, she added.

The investigation looked at the release of gases, oil spills and maintenance issues. Økokrim said poor maintenance had contributed to “numerous known and unknown oil spills” on the site, adding that Equinor did not have a permit to discharge oil to the ground.

The Environmental Agency and Bellona reported the case to Økokrim in December 2020.

“Equinor deserves a substantial fine for this environmental violation, but the company’s leadership is being held insufficiently accountable on a personal level. We look forward to addressing this matter in court,” said Bellona’s founder Frederic Hauge.