Last update:
2016-02-16

Moratorium on Oil Exploration Harken Energy, Costa Rica

After more than a decade of legal struggles coupled with the mobilization of the local population and the civil society, the sentence from late 2014 left Harken Energy with no compensation for the annulment of its oil concessions along Costa Rica coasts.


Description:

In 2000, Harken Costa Rica Holdings LLC, subsidiary of the U.S. Harken Energy, received a 20-year concession to look for and exploit offshore oil resources in the province of Limn, 188 kilometers northeast of San José. Local fishermen, environmentalists and indigenous groups opposed the future potential Harken’s activities since they would endanger the coral reefs and mangrove swamps.  In 2002, a moratorium on oil exploration came into effect, halting drilling activities in Costa Rica, after sustained pressure from civil society. On September 16th 2003, the Texan multinational Harken Energy filed a claim with the International Centre for Settlement of Investment Disputes (ICSID), an institution of the World Bank Group based in Washington, D.C., for US$57 million compensation from the Government of Costa Rica, for loss of potential earnings. The claim is opposed by social movements and environmentalists, who dispute the legitimacy of the claim. The complaint was also opposed by the Minister of Environment because the North-American oil company did not even try first to resolve the dispute through local and national judicial instances.

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Basic Data
Name of conflict:Moratorium on Oil Exploration Harken Energy, Costa Rica
Country:Costa Rica
State or province:San Jose
Location of conflict:Talamanca area
Accuracy of locationMEDIUM (Regional level)
Source of Conflict
Type of conflict. 1st level:Fossil Fuels and Climate Justice/Energy
Type of conflict. 2nd level:Oil and gas exploration and extraction
Specific commodities:Crude oil
Project Details and Actors
Project details

Type of populationUnknown
Start of the conflict:12/1999
Company names or state enterprises:Harken Costa Rica Holdings LLC (HCRH) from United States of America
Harken Energy from United States of America
MKJ Xploration from United States of America - sold its Costa Rican interests to Harken Energy
Relevant government actors:Environment Ministry's Technical Secretariat (SETENA) - Costa Rica, Municipality of Talamanca - Costa Rica, Contentious Administrative Court - Costa Rica
International and Finance InstitutionsThe World Bank (WB) from United States of America
International Monetary Fund (FMI)
International Centre for Settlement of Investment Disputes (ICSID) from United States of America - Harken's claim against the Costa Rican government, later withdrawn
UNESCO - United Nations Educational, Scientific and Cultural Organization (UNESCO) from France
Environmental justice organizations (and other supporters) and their websites, if available:Action for Anti-Oil Struggles (Acción de Lucha Antipetrolera : ADELA) - Costa Rica, OIlwatch Costa Rica, Asociación de Ecología Social Costarricense (AESO)
Conflict and Mobilization
IntensityLOW (some local organising)
Reaction stagePREVENTIVE resistance (precautionary phase)
Groups mobilizing:Indigenous groups or traditional communities
Local ejos
Local government/political parties
Social movements
Fisher people
Forms of mobilization:Creation of alternative reports/knowledge
Development of alternative proposals
Public campaigns
Impacts of the project
Environmental ImpactsPotential: Air pollution, Biodiversity loss (wildlife, agro-diversity), Fires, Global warming, Soil contamination, Oil spills, Deforestation and loss of vegetation cover, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion
Other Environmental impactspotential impacts on mangroves and coral reefs
Socio-economical ImpactsPotential: Loss of traditional knowledge/practices/cultures, Militarization and increased police presence, Land dispossession, Lack of work security, labour absenteeism, firings, unemployment, Loss of livelihood
Outcome
Project StatusStopped
Conflict outcome / response:Institutional changes
New legislation
Strengthening of participation
Development of alternatives:The Town Hall of Talamanca declares itself a territory free from oil exploration.
Do you consider this an environmental justice success? Was environmental justice served?:Yes
Briefly explain:A moratorium on oil exploration came into effect, halting drilling activities in Costa Rica, after sustained pressure from civil society. And the multinational company received no compensation for it.
Sources and Materials
Related laws and legislations - Juridical texts related to the conflict

International Labour Organisation (ILO) Indigenous and Tribal People Convention #169

1994 hydrocarbons law, designed to comply with World Bank and IMF-sponsored structural adjustment programs

U.S.-Central American Free Trade Agreement (CAFTA) signed in May 2004 between the US and Guatemala, El Salvador, Honduras, Costa Rica, Nicaragua
[click to view]

Resolution 019-2005-P-MINAE by Costa Rican government which invalidates oil drilling concessions to Harken

Sentence No. 1754-2014, December 2014 in favor of the State (vs. Harken Energy)
[click to view]

References to published books, academic articles, movies or published documentaries

Las empresas petroleras: las nuevas socias de las Naciones Unidas. Oilwatch, 2002
[click to view]

El alto costo del petroleo barato. World Rainforest Movement, 2000
[click to view]

Moratoria a la exploracion y explotacion de hidrocarburos en areas naturales protegidas. Oilwatch, 2006
[click to view]

Actividades hidrocarburiferas en areas protegidas. Oilwatch, 2003
[click to view]

Ecological debt and oil moratorium in Costa Rica, Oilwatch Costa Rica, August 2005
[click to view]

The threat to the environment from the Central America Free Trade Agreement (CAFTA): The case of Harken Costa Rica Holdings and offshore oil by Friends of the Earth and NRDC
[click to view]

Resolution 248-2008
[click to view]

Sentence No. 1754-2014
[click to view]

Guerra y petroleo: artifices de la historia del siglo XX. Oilwatch, 2002
[click to view]

Links to general newspaper articles, blogs or other websites

Grupo Adela
[click to view]

Harken oil versus Costa Rica, Ecologist, 34 :4, May 2004
[click to view]

Pacheco Stands Firm Against Oil Drilling, Adela, 10/10/2003
[click to view]

Free trade agreement threatens Costa Rican environmental protections, N. Martinez, 27/03/2004
[click to view]

Costa Rica: Oil extortion, WRM's bulletin Nº 75, October 2003
[click to view]

Costa Rica gana batalla legal contra petrolera, E & N, 17/12/2014
[click to view]

Mal precedente sería pagar a Harken, Semanario Universidad, 12/02/2004
[click to view]

Costa Rica gana juicio a petrolera Harken, Federacion Ecologista, 16/12/2014
[click to view]

Related media links to videos, campaigns, social network

David derrota a Goliat: Harken fuera de Costa Rica, 4/03/2015
[click to view]

Other documents

Protest organized by oilwatch and ADELA in February 2004 during Harken's representative Robert Torricelli's visit Source: http://semanariouniversidad.ucr.cr
[click to view]

Meta information
Contributor:Lucie Greyl & Camila Rolando Mazzuca
Last update16/02/2016
Comments
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