HomeTopicsEnvironment and WildlifeCosta Rica Oilcapades! Ex-Minister Squeezed Out of Sweet Crude Deal

Costa Rica Oilcapades! Ex-Minister Squeezed Out of Sweet Crude Deal

A former Costa Rican government minister is suing a U.S. energy company over a soured oil concession deal that never came to fruition. Roberto Dobles Mora, the former Minister of Environment and Energy, filed a lawsuit in September against Black Hills Corporation (BHC) alleging breach of contract over royalty payments he claims he is owed.

The dispute dates back over a decade to when Dobles entered a consulting agreement with BHC after resigning from his ministerial role in 2009 amidst a separate corruption investigation. As outlined in an exposé by Amelia Rueda, Dobles agreed to advise BHC for $4,000 per month as the company sought oil and natural gas concessions in Costa Rica.

A “Royalty Agreement” was also established entitling Dobles to up to 3% royalties on any oil and gas extracted under the concessions. However, the concessions were never finalized as BHC failed to submit the required environmental impact assessments to move exploration plans forward.

Dobles contends BHC deliberately stalled the concession approval process, hesitant to disclose its overseas fossil fuel interests to stock market analysts and regulators back in the U.S. With the concessions inactive for years, Dobles alleges he lost out on tens of millions in royalty payments he was counting on.

The consulting and royalty agreements relate to exploration rights originally awarded to Mallon Oil Company in 2000 covering over 9,300 square kilometers in northern Costa Rica. BHC acquired Mallon in 2003, inheriting the concessions.

However, BHC struggled to abide by Costa Rica’s stringent environmental policies. Mallon Oil even sued the Costa Rican government in 2011 arguing an environmental impact assessment should not be required simply to begin survey work on the land. Mallon lost this lawsuit on appeal in 2015.

By November 2015, BHC terminated its consulting contract with Dobles but upheld the royalty agreement. In January 2020, after opting not to renew the annual concessions guarantee, BHC lost access to the oil and gas fields completely.

Dobles first faced corruption allegations himself in 2009 when he resigned as Environmental Minister during an investigation into whether he had shown favoritism towards a family-owned mining company. However, he was eventually acquitted of those charges.

Ironically, it was decisions made by Dobles while serving under former president Oscar Arias that opened the door for oil and gas concessions in the first place. This included approving the controversial Crucitas gold mining project in 2008 declaring it in the national interest despite environmental concerns.

The unsuccessful deal with BHC that Dobles is now suing over was crafted in the aftermath of him stepping down from the Arias administration. But Dobles suffered another blow when a U.S. appellate court dismissed the $42 million damages claim against Black Hills Corporation this past October.

With Costa Rica long-considered an eco-friendly bastion, the irony of its former environmental minister pursuing oil concessions after leaving office has not gone unnoticed. And the latest lawsuit only adds another twist to this ongoing saga.

Trending Now

Who Pays Tax on Rent in Costa Rica? The Numbers Don’t Add Up

Costa Rica counts 360,000 rented homes but only 32,373 registered rental income taxpayers, a figure that has barely moved since 2020.

Rebeca Grynspan Strengthens Lead in Race for UN Secretary-General

Costa Rican Rebeca Grynspan topped an informal United Nations Security Council vote for the third time on Tuesday, in what appears to be growing...

Dollar Holds as Central Bank Warns US Rates Could Push It Higher

The dollar has eased from its early-October high, but Central Bank President Róger Madrigal warns a widening US rate gap could lift it again.

Costa Rica Suspends Investigation Into Who Ordered Roberto Samcam’s Murder

Costa Rica’s prosecutor’s office has suspended its investigation into who ordered the 2025 killing of retired Nicaraguan military officer Roberto Samcam, an outspoken critic...

Costa Rica Hotel Project Faces Environmental Damage Allegations

A criminal complaint alleges impacts on waterways, protected areas and forest cover at a luxury hotel project in Manuel Antonio, including sediment runoff toward Playa La Vaca. The developer disputes the accusations and says it has complied with environmental requirements.

Costa Rica Authorities Find Dock Inside Protected Río Tárcoles Area

Environmental authorities are preparing legal action after inspectors found a long walkway, dock and floating platform extending into a protected area along the Río...

Bryan Ruiz Debuts as Costa Rica Coach With Nations League Survival at Stake

Bryan Ruiz coaches Costa Rica for the first time tonight against Nicaragua, with Keylor Navas back and Nations League relegation at stake.

Costa Rica’s New Workplace Harassment Standard Takes Effect Today

A new workplace harassment standard takes effect in Costa Rica today. Here's what changes for employers and workers.

Camera Traps Track Jaguars in Costa Rica’s Tortuguero

Camera traps installed along Costa Rica’s Caribbean coast have identified 11 individual jaguars in and around Tortuguero National Park, offering researchers a closer look...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel