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

Costa Rica Removes Don Pepe Figueres Monument After Protest Vandalism

Costa Rica’s Ministry of Culture and Youth removed the bronze monument to former President José Figueres Ferrer from San José’s Plaza de la Democracia...

Diesel Up 17% as Costa Rica Prices Rise for a Second Straight Month

Costa Rica's cost of living is climbing again. Consumer prices rose 0.39% in October, and the year-on-year rate reached 0.55%, the second straight month...

Honduran Migrant Caravan Heads to US Amid Midterm Elections

Dozens of people left northern Honduras yesterday in a caravan bound for the United States, hoping the congressional elections will weaken U.S. President Donald...

Call Center Cuts Costa Rica Job Pledge Over Asian Competition

A Costa Rica call center cut its free zone hiring pledge from 111 to 45 jobs, blaming cheaper rivals in Asia.

Democrats Win Congress but Costa Rica’s US Tariff Stays

Democrats won control of both chambers of the US Congress in Tuesday's midterm elections. The result hands President Donald Trump a divided government for...

Corcovado’s Sirena Station Is Back to 366 Visitors a Day. Who Decided?

Corcovado National Park has spent the past five months caught in a tug of war that has left many in the Osa Peninsula's conservation...

Local Elections Drove Costa Rica’s CPTPP Reversal, Sources Say

Concerns about the 2028 municipal elections helped drive Costa Rica's decision to abandon its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific...

Prison Cases at Costa Rica’s Constitutional Court Jump 124% Amid Crackdown

Prison-related cases at Costa Rica's Constitutional Chamber rose from 2,130 in 2020 to 4,780 in 2025, as tougher prison rules collide with the state's duty to feed and treat inmates.

Red Tide Spreads in Costa Rica’s Gulf of Nicoya and Cooking Won’t Make Shellfish Safe

SENASA widened the Gulf of Nicoya red tide ban. Cooking doesn't make oysters, mussels or pianguas safe.
Loading…

Latest News from Costa Rica

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