Nicaragua legalized oil exploitation in its Caribbean waters Wednesday and it will start exploiting a resource that might turn Nicaragua into a Central American exporter, something that may take years, experts said.
A press release from MKJ Exportaciones Internacionales S.A. said Nicaragua will carry out seismic studies that will take a year.The drilling stage will take from one to three years and later, if there are promising results they will go for the production stage.
The Nicaraguan government and the authorities from autonomous regions of the North and South Atlantic signed an agreement to legalize two concession contracts with MKJ.Signed by General Prosecutor Hernan Estrada, the agreement opens doors to a project that may produce incomes for 20 billion dollars.
US enterprise MKJ president Eric Conrad said 48 percent of the extracted crude will remain in Nicaragua. The agreement covers a period of 30 years, renewable for more, by which MKJ will grant 100 percent of the inventories to the Nicaraguan government.
There is still an ongoing investigation on the environmental impact in a very important zone destined for ecological preservation.Nicaragua totally depends on imported oil and by-products to meet its energy needs.
It is expected that over the next days Nicaraguan President Daniel Ortega will announce a series of measures to reduce fuel and energy costs, especially to establish a fixed price for diesel.
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