No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveEsso, Gov’t Settle Dispute, Gas Rationing Continues

Esso, Gov’t Settle Dispute, Gas Rationing Continues

MANAGUA – The government and Esso Standard Oil signed an agreement Sept. 13 settling a nearly month-long dispute over Customs duties that led a judge to embargo some of the U.S. oil company’s assets in Nicaragua.

The accord was drawn up in the Pacific port city of Corinto by Esso executive Gabriel Cedeño and the head of Nicaraguan state oil company Petronic, Rodolfo Zapata.

Part of the pact calls for Esso, a subsidiary of U.S. oil giant ExxonMobil Corp., to lease fuel tanks in Corinto to Petronic when the state-owned firm requires extra capacity to handle shipments of oil from Venezuela, whose leftist government supplies crude to Nicaragua and other nations in the region on generous terms.

At the same time, the agreement returns to Esso’s control seven storage tanks that were seized Aug. 17 at the request of Nicaragua’s Customs service, which alleged that the U.S. firm owed some $2.9 million in unpaid Customs duties.

The Corinto industrial complex, where the storage tanks are located, is to be managed jointly by Esso and Petronic.

Esso’s spokesman in Managua, Gerardo Gonzalez, told reporters that his firm and Petronic will share responsibility for safety and security around the Corinto storage tanks until at least the end of this year.

The accord makes no mention of the original dispute over Customs duties, providing fodder to those who argued the original dispute never had anything to do with taxes in the first place (NT, Aug. 31).

The signing coincided with the arrival in Corinto from Venezuela of the tanker Caribbean Unity, carrying 100,000 barrels of diesel and 20,000 gallons of gasoline.

Despite the apparent settlement, the national press reported over the weekend that many of the Esso, Shell and Texaco gas stations in downtown Managua and in the surrounding departments are still without regular and super gasoline. Some people, including Vice-President Jaime Morales Carazo, are blaming the gas shortage on Esso as a tit for tat payback for the embargo last month.

 

Trending Now

Budget Travel Options Expand with Frontier’s Houston to Central America Flights

Frontier Airlines has launched new nonstop flights from Houston to key Central American cities, offering lower fares for U.S. travelers and stronger links across...

Guatemala Dismantles Los Moisés Migrant Smuggling Network Targeting US Border

Guatemalan officials arrested 14 people tied to a migrant smuggling operation aimed at the United States, striking a blow to illegal crossings in Central...

Vote recount in Honduras advances amid mistrust and Trump reprisals

In a warehouse the size of two basketball courts, hundreds of people are manually reviewing the votes that will decide the winner of Honduras’s...

Venezuelan Migrants Are Key to Latin America’s Economy, IOM Says

Venezuelan migrants make a “key” economic contribution to the countries where they live, undermining claims that they are merely a burden, according to a...

US Forces Seize Second Oil Tanker Amid Tightened Blockade on Venezuela

United States forces intercepted a second oil tanker in international waters off Venezuela's coast on Saturday, escalating tensions in the Caribbean as President Donald...

WTA Crowns Gauff-Zheng Rome Semifinal as 2025 Match of the Year

The WTA has named the grueling Rome semifinal between Coco Gauff and Qinwen Zheng as its 2025 Match of the Year, a fan-voted honor...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica