HKN Inc fka HKNI

[jmhollen]

HEC Costa Rica compensation news - January 11, 2004 12:17am San Jose, Jan 10 (EFE).- Costa Rica is willing to negotiate paying U.S. company Harken Costa Rica Holdings between $3 million and $11 million as compensation for having canceled its oil-drilling contract.

Costa Rica's Environmental Secretariat, or Setena, rejected an environmental impact statement submitted by the company in March 2002 on the grounds that it lacked guarantees that the environment would not be damaged.

In response, the U.S. company announced it would sue Costa Rica for $57 billion in the Washington-based International Centre for Settlement of Investment Disputes (ICSID).

Environment and Energy Minister Carlos Manuel Rodriguez told La Nacion newspaper that he was willing to negotiate with Harken the amount necessary to reimburse it for the expense of prospecting for for oil in the Caribbean - $11 million according to the company and $3 million according to the Costa Rican government.

The official said the government preferred to seek an out-of-court settlement that get involved in expensive international litigation.

Costa Rica will discuss compensation with the company's representative, former U.S. Sen. Robert Torricelli, when he arrives in the country next week.

Environmental protection groups and tourism-related businesses adamantly opposed Harken's oil drilling, on grounds that it would seriously damage ecotourism, which is well developed along Costa Rica's Caribbean coast. EFE

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Copyright © 2004 EFE News Services (U.S.) Inc.

http://www.hoovers.com/harken-energy/--ID__10705,ArticleID__NR20040111530.1.2_4a200003781643c0--/fre....