Nicaraguan efforts to explore petroleum threaten Honduran sovereignty

By DANIEL MEYER

TEGUCIGALPA — During the past few days, a dispute between Honduras and Nicaragua has intensified as Nicaragua threatens to grant multinational corporations permission to carry out explorations for petroleum in maritime areas that Honduras claims as its own. 

Honduras claims that the maritime border between the two countries was established as the 15º N Latitude. This demarcation has been respected by Nicaragua until the last few years. Presently Nicaragua claims that the demarcation is the 17º N, not the original 15º N latitude. 

In 1999 the Honduran authorities presented the case to the International Court of Justice in The Hague. The Court stated it would take anywhere from two to four years to reach a decision. 

Nicaragua has been exploring its coastal areas for petroleum since the 1940´s, the first well ever drilled in the Caribbean was in 1957.
No further explorations were done until 1965. At that time several large multinational companies were allowed to explore areas along the Caribbean and wells were drilled. It was established that petroleum did exist in the Caribbean basin in commercial quantities. 
From 1981 until 1992 a study was conducted in conjunction with the ex-U.S.S.R. The study included information on how much petroleum and natural gas occurred in the area.

In 1995 the Nicaraguan Institute of Energy (INE) released a report summarizing all the exploratory activity that had taken place in Nicaragua. In this document they presented a map indicating that all oil explorations were done between 15º N to 10.56º N latitude, an area that includes the entire Caribbean coastline of Nicaragua.

In 2002 Enrique Bolanos was installed as the president of Nicaragua. One of his campaign goals was to lift his country from poverty by developing the petroleum industry. 

In a current publication from the INE, they state that the maritime border between Honduras and Nicaragua is located at the17º N latitude. Immediately after issuing the statement, the Nicaraguan government began offering concessions to multinational corporations to explore and drill the ocean basin in the Caribbean from the 17º N to 10º 56` N latitude. This area surpasses the traditionally recognized maritime limit set at 15º N latitude.

On July 5th 2002, Nicaraguan authorities granted permission to multinational corporations to explore the areas above the 15ºN latitude. Honduran authorities trust that these corporations will refrain from making multi-million dollar investments in an area that is under dispute between two separate nations. 

The risk for these companies would be too great. Still Honduras authorities are on the “look out” and are considering what possible actions to take while awaiting word from The Hague.

Maduro proposes to Nicaragua joint petroleum exploitation

In an attempt to strengthen the process of Central American Integration, on Tuesday Honduran President Ricardo Maduro proposed to Nicaragua and El Salvadoran Tuesday the joint exploitation of maritime areas in dispute in the Atlantic and Pacific Oceans, reported the daily La Tribuna.

Maduro proposed exploitation with Nicaragua on the Atlantic coast, after a debate arose concerning limits when the neighboring country made a bid to explore for oil in areas Honduras partially claims. 
The President also spoke of joint utilization of resources found in the Gulf of Fonseca, shared by Honduras, El Salvador and Nicaragua.
Maduro stated that in a meeting held at the beginning of July with the President of Nicaragua, Enrique Bolanos, he proposed signing an “a document of agreement to develop mechanisms that would permit both countries to take advantage of the Caribbean Sea in different ways.”
“To avoid having to go all the way to the International Court of Hague over differences and for us to function in a cooperative manner in the zone,” the President stated on Radio America.
Honduras and Nicaragua have been litigating maritime borders at the International Court since last year.
The President also proposed a tri-national management of the Gulf of Fonseca.
Some analysts argue that border differences could obstruct the regional integration process that seeks to stimulate economic growth in region.
“Once and for all we should all advance towards Central American integration that without a doubt will prepare us for solidly to enter the world competitively.”
“Six or seven million Hondurans, El Salvadorans or Nicaraguans is not the same as more than 30 million Central Americans together.”