Nicaragua Legitimates Oil In Caribbean Waters

Oil in Nicaraguan Caribbean coast is now legalized. It happened Wednesday and, as experts claim, exploiting a resource may turn Nicaragua into a Central American exporter.

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.

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.

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.