Harken Oil Company Requests $13 Million

July 7, 2006

Harken Costa Rica Holdings (HCRH) representative Brent Abadie is asking for $13 million in damages from the Costa Rican government for the cancellation of a controversial oil exploration contract, according to the daily La Nación.

Abadie has requested the damages before the Arbitration Center of the Costa Rican Chamber of Commerce, a process that the Costa Rican government has rejected, the daily reported. Abadie filed the case March 28 (TT, April 7).

In 2002, the government, under former President Miguel Ángel Rodríguez, signed a contract granting oil exploration and drilling rights off the Caribbean province of Limón to Harken Costa Rica.

When Abel Pacheco became President in 2002, he decreed a moratorium on all future open-pit mining and oil exploration contracts in the country, though Harken was declared exempt (TT, June 7, 2002).

Following protests against Harken Costa Rica, the Technical Secretariat of the Environment Ministry (SETENA) rejected the company’s environmental-impact study (TT, Oct. 10, 2003). The government then rescinded the contract, saying the company’s non-compliance with study requirements was a contract violation.

HCRH, however, disputed this and filed a request for an international arbitration seeking $57 billion in damages – about four times Costa Rica’s domestic product at the time. It later withdrew its request and entered into settlement negotiations with Costa Rica in January 2004, which later broke down as well (TT, Jan 16, 2004 and March 19, 2004).

 

Facebook Comments

You may be interested

Alajuelense eliminated in the Costa Rican Clausura
Soccer
2 views
Soccer
2 views

Alajuelense eliminated in the Costa Rican Clausura

AFP and The Tico Times - April 21, 2019

Liga Deportiva Alajuelense tied 2-2 against the reigning champion, Club Sport Herediano, and was eliminated from the semifinals of the…

Costa Rica bets on ending fossil fuel use by 2050
Climate Change
16 views
Climate Change
16 views

Costa Rica bets on ending fossil fuel use by 2050

Marco Sibaja / AFP - April 21, 2019

Eric Orlich and his wife Gioconda Rojas own two electric vehicles, which they charge at home in the garage thanks…

Pic of the Day: Costa Rica’s Isla Nublar (aka Cocos Island)
Pic of the Day
91 views
Pic of the Day
91 views

Pic of the Day: Costa Rica’s Isla Nublar (aka Cocos Island)

Alejandro Zúñiga - April 18, 2019

Isla Nublar, the setting for much of the "Jurassic Park" series, is unfortunately not a real Costa Rican island. Cocos…

Do NOT follow this link or you will be banned from the site!