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Costa Rica, China to explore for oil

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MARIANELA JIMENEZ
About 1 pages (325 words)

AP News, December 7th, 2007

Costa Rica and China announced Friday they have agreed to jointly explore for oil and natural gas in the Central American country.

It wasn't clear if the proposed exploration would be on land or offshore.

Environment Minister Roberto Dobles told a news conference with representatives of China National Petroleum Corp., China's biggest oil and gas producer, that his country hopes to guarantee its access to energy, considering soaring crude prices.

"We have the responsibility to ensure the development of the country, always meeting strict environmental standards," he said.

The announcement was immediately criticized by environmentalists, who argued the exploration would pollute the environment, though Dobles said the agreement stipulated that any exploration be done in a way that protects the environment.

He added that it may be four to six years before the project gets started and that the exploration process in general is not as environmentally risky as other aspects of the petroleum industry.

"The worst problems and risks are in maritime transportation and vehicle emissions," he said.

President Oscar Arias supports the use of biofuels and renewable energy sources to replace petroleum. But Dobles said "you can't substitute 100 percent of the petroleum Costa Rica uses."

Arias signed the exploration agreement during an October visit to China, but officials gave no details at the time.

Representatives from the two countries are expected to meet again in February in China to discuss the agreement further. It includes plans to modernize Costa Rica's oil refinery so it can become a regional hub.

Environmentalists successfully pressured former President Abel Pacheco, who left office last year, to cancel a 1998 concession for oil exploration Costa Rica had granted Houston-based Harken Energy Corporation.

The company then sued the Costa Rican government for damages.

In June, Costa Rica recognized China diplomatically after years of allying itself with Taiwan. The move angered the self-ruled island and left it with only two dozen allies in its fight for sovereignty from China.

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MARIANELA JIMENEZ. Costa Rica, China to explore for oil. Copyright 2007  AP News.

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