Countries › Costa Rica › Guide › 12. Sectors › Oil, gas and fuels in Costa Rica: the petroleum moratorium to 2050, the RECOPE monopoly and the 2026 opening to biofuels and green hydrogen

Oil, gas and fuels in Costa Rica: the petroleum moratorium to 2050, the RECOPE monopoly and the 2026 opening to biofuels and green hydrogen

Last verified: 2026-10-30 · Status: Changing

The State owns all petroleum and hydrocarbons, and an executive moratorium blocks oil exploration and exploitation onshore and offshore until 31 December 2050. Import, refining and wholesale distribution of crude and derivatives are a State monopoly run by RECOPE, while retail and transport are ARESEP regulated public services. Ley 10967 of August 2026 lets RECOPE trade biofuels and green hydrogen and form public private alliances.

Key facts

End date of the petroleum exploration and exploitation moratorium	2050-12-31 dateDE 36693 art. 1 as amended by DE 41578, as of 2026-10-30 · in force
Minimum royalty above 1,000 barrels a day	15 %Ley 7399 art. 48, as of 2026-10-30 · in force
Maximum hydrocarbon contract term	26 yearsLey 7399 art. 24, as of 2026-10-30 · in force
Wholesale import, refining and distribution of fuels	State monopoly (RECOPE) textLey 7356 art. 1, as of 2026-10-30 · in force

The rule

1. The State has absolute, inalienable and imprescriptible ownership of petroleum and all hydrocarbon deposits in the national territory.Ley 7399, Ley de Hidrocarburos, art. 1, 1994-05-03 official text · verified 2026-10-30

2. A national moratorium until 31 December 2050 applies to any activity aimed at exploring and exploiting petroleum deposits in continental and marine territory.DE 36693-MINAET, Declara Moratoria Nacional para la explotación petrolera, as amended by DE 41578-MINAE, art. 1, 2019-02-25 official text · verified 2026-10-30 · changed: DE 41578-MINAE (Gaceta 130 of 11 July 2019) extended the moratorium from 15 September 2021 to 31 December 2050.

3. If the moratorium ends, contracts would allow exploration of up to three years plus up to three one year extensions (each with at least one exploratory well) and exploitation of up to 20 years, with a total cap of 26 years; at the end all wells and facilities pass free to the State.Ley 7399, Ley de Hidrocarburos, art. 23 and 24, 1994-05-03 official text · verified 2026-10-30

4. Contract areas are blocks of up to 200,000 ha, with caps of nine offshore, six onshore or eight mixed blocks per contractor.Ley 7399, Ley de Hidrocarburos, art. 25, 1994-05-03 official text · verified 2026-10-30

5. Production royalty scale on gross volume: at least 1% up to 20 barrels a day, 4% from 21 to 100, 6% from 101 to 300, 8% from 301 to 500, 10% from 501 to 1,000 and 15% from 1,001.Ley 7399, Ley de Hidrocarburos, art. 48, 1994-05-03 official text · verified 2026-10-30

6. Import, refining and wholesale distribution of crude oil and its derivatives (fuels, asphalts and naphthas) for national demand are a State monopoly, administered by RECOPE while it is wholly State owned; its shares cannot be sold or pledged.Ley 7356, Monopolio en favor del Estado para la importación, refinación y distribución al mayoreo de petróleo, art. 1 to 3, 1993-08-24 official text · verified 2026-10-30

7. RECOPE may now research, import, export, process, store, transport and sell in bulk hydrocarbons and by products from sources other than petroleum, including biofuels and green hydrogen for energy use, in competition and under ARESEP regulation, and form public public and public private alliances, after filing technical studies with the sector ministry.Ley 10967, Ley para promover la transición energética en el sector combustibles (reforming Ley 6588 art. 6), art. 1, 2026-08-05 official text · verified 2026-10-30 · changed: Ley 10967 (Gaceta 152, Alcance 106 of 13 August 2026, in force that day) widened RECOPE's purpose and added Ley 6588 art. 6 bis on the transition to renewables.

8. ARESEP regulates the supply of hydrocarbons, derivatives, gas, green hydrogen and biofuels for energy use, asphalts and naphthas, both to distribution terminals and to final consumers, and fixes transport tariffs; MINAE authorises the final consumer service.Ley 7593 ARESEP, as amended by Ley 10967, art. 5(d), 2026-08-05 official text · verified 2026-10-30 · changed: Ley 10967 added gas, green hydrogen and biofuels to the regulated fuel supply service in August 2026.

9. Gas imports by RECOPE cannot be used as a reason to delay, replace or cut investment in renewable energy.Ley 6588 art. 6 bis, added by Ley 10967, art. 2, 2026-08-05 official text · verified 2026-10-30

Daily production (barrels)	Minimum royalty
0 to 20	1%
21 to 100	4%
101 to 300	6%
301 to 500	8%
501 to 1,000	10%
1,001 and above	15%

Hydrocarbon royalty scale on gross production (Ley 7399 art. 48); dormant while the moratorium lasts.

Worked example

A biofuel producer wants to supply blended fuel. It cannot import or distribute fuels wholesale itself, because that is RECOPE's monopoly, but since August 2026 RECOPE may buy biofuels or partner with private producers under Ley 10967, with prices subject to ARESEP. Retail service stations still need MINAE authorisation and ARESEP regulated margins.

Step by step

Confirm the activity is outside the RECOPE wholesale monopoly (for example retail, distribution without fixed point, LPG bottling or biofuel production for sale to RECOPE).
Obtain MINAE authorisation and comply with ARESEP tariffs and technical rules.
For biofuel or hydrogen supply, approach RECOPE on alliances once it files its technical studies with the ministry.
Track the moratorium: no new petroleum exploration permits until 2050.

Common traps

The moratorium is an executive decree upheld by the Constitutional Chamber; it can be changed by decree, but no petroleum exploration is possible today.
The moratorium text covers petroleum deposits; any natural gas project would still need a special legislative framework under Constitution art. 121(14) and Ley 7399.
Private fuel imports for resale are not allowed under Ley 7356.

Sources

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