Different strategies for carbon capture will be used at the Mongstad test facility.
Different strategies for carbon capture will be used at the Mongstad test facility.
Different strategies for carbon capture will be used at the Mongstad test facility.
Different strategies for carbon capture will be used at the Mongstad test facility.

Norway's Statoil has panoramic view of a clean future


  • English
  • Arabic

MONGSTAD, NORWAY // You can see for miles from the top of the 62-metre tower.

Even in the flat light of a winter afternoon beset with lowering snow clouds, the dark shapes of spruce-clad barrier islands loom in the middle distance.

Closer in, on a low headland equipped with jetties for docking tankers and other large ships, a bright flare of gas marks the location of Norway's biggest oil refinery. In another direction, pale cubes of buildings encasing the inner workings of a gas-fired power plant emerge from the gloom.

The refinery and the power plant are sources of waste gases containing carbon dioxide - about 13 per cent and 3 per cent, respectively, - that a year from now will be fed into the bottom of the tower during large-scale experiments to assess the efficiency of emerging carbon-capture technologies. Solutions of amines - organic compounds with an affinity for carbon dioxide - will be introduced near the top of the tower.

"The amine solution flows down, the carbon dioxide comes up to meet it, and the two combine," explains Henrik Andersen, a project manager for carbon-capture technology. "Out of the top comes the cleaned exhaust."

The nearly completed amine tower, pre-built off-site as large concrete modules that were transported by ship for rapid assembly at Mongstad, is the most prominent industrial structure under construction at the technology centre, but it is not the only one. Nearby, the French engineering and transportation firm Alstom is erecting from scratch a more compact unit to test the use of chilled ammonia to remove carbon dioxide from industrial flue gases.

The ammonia process is a new one for carbon capture, developed in the hope of avoiding certain potential problems with the more standard amine-based technology. Those include the possible release of trace amounts of amine into the atmosphere, where the nitrogenous compounds may react with atmospheric gases to form nitrous oxides that have been linked to cancer. Whether the chilled-ammonia process can be sufficiently cost-effective, however, remains to be seen.

"An advantage of having contractors using different building techniques is that we can directly compare the construction strategies," says Sverre Overa, the project manager for the Mongstad centre.

Other points of comparison to be put to the test when both sets of carbon-capture facilities have been built include the respective efficiencies of the two technologies at cleaning gas mixtures that are rich and lean in carbon dioxide. It may turn out that both will be needed in the worldwide fight to mitigate climate change by curbing carbon emissions.

At the Mongstad centre, the first in the world to accommodate such large-scale comparisons, a third plot of land has been reserved for testing a carbon-capture process that has yet to be invented.

The project to develop the test centre was launched in 2006 by the Norwegian government with Statoil, the biggest Norwegian oil company and owner of the Mongstad refinery, as the original industry partner. Royal Dutch Shell and South Africa's Sasol joined subsequently. Additional international partners are being sought.

Sasol, which joined the carbon-capture project two years ago, is especially highly motivated because its coal-to-liquids fuel technology has created one of the biggest concentrated sources of carbon emissions on the planet.

At the moment, there are no plans to store the relatively small amounts of carbon dioxide that will be captured at Mongstad during tests. Nonetheless, gas-handling facilities are under construction so that purified carbon dioxide can be delivered to potential customers. One such deal is already under discussion, Mr Overa said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

UAE currency: the story behind the money in your pockets
The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

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Brief scores:

Day 2

England: 277 & 19-0

West Indies: 154

Coal Black Mornings

Brett Anderson

Little Brown Book Group