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

Woman Sought After 74-Year-Old American Found Dead in Playas del Coco

Police in Guanacaste are seeking a woman seen leaving a Playas del Coco condominium where a 74-year-old American man was later found dead.

Rents in Costa Rica Outpace Inflation Nearly 10 to 1 but Leases Cap the Hit

Rents rose 3.27% in a year while inflation was 0.34%. Here is what the law lets your landlord charge mid-lease and at renewal.

Thousands of European Investors Fear Losses as Costa Rica Teak Scheme Collapses

More than 6,000 Europeans paid about 200 million Swiss francs for teak trees on 60 Costa Rica plantations. The seller is bankrupt and Swiss prosecutors are investigating.

Costa Rica’s Rebeca Grynspan Leads UN Race but Faces Two Potential Vetoes

Costa Rican diplomat Rebeca Grynspan remains the leading candidate to become the next secretary-general of the United Nations, but a new round of voting...

Costa Rica’s Public Schools Have Lost 180,000 Students in Five Years

Public school enrollment in Costa Rica has fallen 16.5% since 2021 as births decline, while private schools have added more than 12,000 students.

Costa Rica Raises Mandatory Vehicle Insurance Rates for 2027

Anyone owning a car in Costa Rica will face higher mandatory insurance costs in 2027, with private vehicles, motorcycles and buses among the categories...

Costa Rica’s President Says US Government Already Operates on Costa Rican Soil

President Laura Fernández said U.S. government agencies already carry out operations on Costa Rican territory, describing them as the continuation of existing security arrangements...

Snoop Dogg’s Costa Rica Promoter Says He Once Turned Down a Suitcase of Cash

Don Stockwell, the promoter of Snoop Dogg's now-canceled Costa Rica concert, told prosecutors he once rejected a suitcase full of cash and never suspected drug money.

Brazil’s Luisa Stefani Wins Wuhan Open Title and Takes Lead in WTA Doubles Race

Brazil's Luisa Stefani and Canadian partner Gabriela Dabrowski captured their sixth doubles title of the 2026 season on Sunday, defeating defending champions Storm Hunter...
Loading…

Latest News from Costa Rica

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