Costa Rica: Oil Drilling Ban Suspended

The Sala IV, Costa Rica’s Supreme Court, suspended president Laura Chinchilla’s decree, which prevented the exploitation of hydrocarbons and the granting of permits for three years, until a constitutional complaint made by the Association of Geologists is resolved.

Therefore, the American company, Mallon Oil, may be able to force the signing of the contract to explore oil in the north and the Caribbean, according to Prensa.com, Panama. Last month, Mallon Oil sued the Costa Rican State after Chinchilla confirmed its decision not to sign an exploration contract with the company. On August 1 the president suspended oil exploitation activities, claiming that the benefits to the nation would not be proportionate to the environmental and economic costs represented, in addition to arguing that Costa Rica lacks suitable legislation to prevent oil spills.

Mallon Oil won the bid to exploit hydrocarbons in the northern part of Costa Rica in 2000, but for 11 years an environmental group has hindered the process by appealling against the permits, reported Prensa.com.

Source: Prensa.com

More on this topic

Costa Rica: Petroleum Company Appeals to Get Contract Signed

September 2011

Mallon Oil Company has filed an appeal in an attempt to get a contract signed for the exploitation of oil and natural gas.

In the appeal to the Constitutional Court, the company is demanding that the Ministry of Environment, Energy and Telecommunications (Minaet) sign the contract for oil and natural gas exploitation in the south, having one a concession for it in a competitive tender eleven years ago.

Costa Rica: Oil Exploration Appeal Dismissed

September 2011

The Constitutional Court has dismissed an appeal brought by the oil company Mallon Oil which requested its contract for oil and gas exploration be signed.

In its ruling, the Constitutional Court informed Mallon Oil that the process they must follow is to make its request via a contentious trial.

Costa Rica Will Not Sign Contract With Mallon Oil

December 2011

The president, Laura Chinchilla, has confirmed the decision not to sign an oil exploration contract with the Mallon Oil Company.

The U.S. company Mallon Oil was awarded a tender eleven years ago, for a contract for oil and natural gas exploitation in the south.

Last August the government declared a three-year moratorium on oil exploration in the country.

Costa Rica Enacts Moratorium on Oil Exploration

August 2011

The presidency of Costa Rica has declared a moratorium of three years for oil exploration in the country.

The decree means the suspension of all procedures related to the exploitation of oil deposits in the territory of Costa Rica, pending a final act to be presented before various state agencies.