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 to Offer No-Appointment Driver’s Tests at National Stadium

Costa Rica’s Ministry of Public Works and Transport will hold a special no-appointment driving test event at the National Stadium on Wednesday, June 17,...

Costa Rica Braces for Extended El Niño With Water Rationing and Inflation on the Horizon

Costa Rica is bracing for an extended El Niño event that meteorologists now expect to grip the country from June through the second half...

Peru’s Ignacio Buse Stuns Tommy Paul in Hamburg, Ends 19-Year ATP Title Drought

Peruvian qualifier Ignacio Buse outlasted American sixth seed Tommy Paul 7-6(6), 4-6, 6-3 on Saturday to win the Bitpanda Hamburg Open, capturing his first...

Costa Rica Opens New Arrivals Area at San José Airport Ahead of Summer Travel

Costa Rica’s main airport opened a new international arrivals area today, giving passengers arriving at Juan Santamaría International Airport a larger and more organized...

Costa Rica Court Keeps Papagayo Hotel Development Restrictions in Place

Costa Rica’s Constitutional Chamber has confirmed that the moratorium on tree-felling permits in the Gulf of Papagayo Tourism Pole remains fully in force, keeping...

Costa Rica Opposition Defends Mining Ban as Crucitas Crisis Deepens

Four opposition factions in Costa Rica's Asamblea Legislativa have closed ranks against the executive branch's bid to reopen metallic open-pit mining in Crucitas, ratifying...

El Salvador Added to Wanderlust 2026 Green Travel List

British travel magazine Wanderlust placed El Salvador on its Green Travel List for the first time in the 2026 edition. The publication singled out...

Costa Rica Airport Partners With U.S. Embassy on Travel Safety

Guanacaste Airport in Liberia has become the first airport in Costa Rica to partner with the U.S. Embassy to promote the Smart Traveler Enrollment...

Costa Rica Braces for Heavy Rain as Tropical Wave No. 5 Arrives

Costa Rica will see a steady increase in rainfall through the final week of May, with Tropical Wave No. 5 expected to deliver the...
🌴 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

Live prediction market odds via Kalshi. Updates every 60 seconds.
Kalshi is available to US residents 18+. The Tico Times may earn a commission from new signups.

Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel