Local opposition: the South Atlantic Autonomous Region is one of the poorest areas of central America
Nicaragua seeks to end drilling dispute
Nicaragua's new leftist government is holding talks with an autonomous region on the Caribbean coast to try to end a legal dispute that has prevented two small US companies from exploring for oil and gas offshore, the foreign ministry said.
Foreign investors are closely watching President Daniel Ortega to see whether he will welcome the private sector or try to increase state control over business like his ally Venezuelan President Hugo Chavez.
Nicaraguan Foreign Minister Samuel Santos met leaders of the South Atlantic Autonomous Region this week to discuss the need for development there and their fears that oil exploration might damage the fishing and tourism industries, the ministry said in a statement today, Reuters reported.
US companies Infinity Energy Resources Inc. and MKJ Exploration last year signed a $100 million contract with the previous Nicaraguan government to explore in the Caribbean but a court last August halted the deal after complaints from the regional council.
"In the meeting, the government promised to consult with the communities with the aim of unblocking ... the process to be able to continue with the oil exploration concession," the ministry said.
It said the Sandinista government, which took office on 10 January, wanted to see the dispute resolved "as soon as possible".
Nicaraguan officials say there is definitely oil in its Caribbean waters but it is not clear whether extracting it would be commercially viable.