No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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’s First Gold Lands as Four Clubs enter Copa Centroamericana

The Concacaf Copa Centroamericana kicks off its fourth edition Tuesday, and although opening night belongs to clubs from Belize, Honduras, Nicaragua, Panama and Guatemala,...

Costa Rica Approves Sharp Drop in Super Gasoline and Diesel Prices

Drivers in Costa Rica will soon pay substantially less for super gasoline and diesel after regulators approved fuel-price reductions of up to ₡79 per...

Costa Rica Investigated Possible Drug Money Inside Soccer Club

Costa Rican investigators examined whether money from an alleged international cocaine-trafficking organization was invested in Puerto Golfito F.C., a former second-division soccer club based...

Costa Rica Exhibition Reveals Hidden Meaning of Pre-Columbian Stamps

A new exhibition at the Museums of the Central Bank of Costa Rica is inviting visitors to view pre-Columbian stamps not simply as decorative...

Whale Watching Season Returns to Costa Rica’s Golfo Dulce

Humpback whales are back in Costa Rica's South Pacific, and if you want to see them, the next four months are your window. Whales...

Costa Rica Issues Romería Safety and Traffic Warning

Costa Rica’s traffic plan for the 2026 Romería continues this morning as growing numbers of pilgrims walked toward the Basílica de Nuestra Señora de...

Costa Rica Expels Second-Division Club for 10 Years Over Match-Fixing

The Costa Rican Football Federation has thrown a second-division club out of the sport for ten years after its investigators concluded the team took...

What the Judicial Coup Fight in Costa Rica is Actually About

President Fernández accused four justices of the Constitutional Chamber of staging a coup d'état on Friday and announced that the governing-party legislative bench will...

FIFA’s Plan to Sell World Cup Stakes Lands on Costa Rica’s Desk

Costa Rica's football federation has aligned itself with regional pushback against FIFA's plan to bring private investors into the ownership of its commercial operations,...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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