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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden)

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To: Tomas who wrote (1166)7/1/1999 12:26:00 PM
From: Tomas   of 2742
 
Talisman gets tangled in Sudan politics -
Protesters picket outside TSE as oil begins to flow
The Financial Post, July 1
By Claudia Cattaneo

CALGARY - Talisman Energy Inc., Canada's largest
independent oil company, took another barrage of criticism
yesterday over its role in an oil project in Sudan.

The Greater Nile Oil Project, which the Calgary-based
company acquired last year, started producing crude this
week after 25 years of development marred by civil strife.

In Toronto, a group of protesters outside the Toronto
Stock Exchange accused the company of sponsoring
genocide in Sudan.

The Southern Sudanese Community Organization of
Greater Toronto said Sudan's government is counting on
Talisman to generate oil revenues for its military campaigns
against its own people. The Sudanese government has
denied that. The country has been torn by civil war for the
past 16 years. Protesters said 1.9 million people have been
killed, mostly women and children.

James Buckee, Talisman's president and chief executive,
said he fails to see how stopping the project would be a
"humanitarian act."

Saying Sudan needs foreign investment, he quoted
statistics from the International Monetary Fund showing the
Sudanese have a life expectancy of 53.5 years, infant
mortality of 74 per 1,000 live births, an illiteracy rate of
54%, school enrolment of 20% at the secondary school
level and access to safe water available to only 45% of the
population.

"We think it's time to move on," said Mr. Buckee, who's
been drawn into the conflict despite efforts to stay out of
Sudan's complex internal politics.

"Let's try sharing some wealth instead of just sharing
poverty. The government at least says that the revenue will
be used for health, education, etc., especially in the south,"
he said.

Canadian church groups and refugee organizations are
also on Talisman's case. The groups are pressing the
company and the federal government for assurances oil
revenues from the project won't be used to grease the
wheels of war.

As well, they are approaching Talisman shareholders to
raise awareness about the implications of the company's
activities in the region.

Lee Holland, area secretary for East and Central Africa
for the United Church of Canada, said Talisman should
make use of its contacts with the Sudanese government to
press for peace. Mr. Holland is also a member of an
advisory committee on the Talisman issue organized by the
Task Force on Churches and Corporate Responsibility and
of the Sudan Interagency Reference Group.

"They [the company] say they can't do that because that is
political and they don't do political things. Their very
involvement there is a political statement," Mr. Holland said.

Foreign affairs spokesman Andre Lemay said the federal
government has discouraged Talisman for pursuing the
investment. But he said there are currently no domestic laws
or international sanctions preventing companies from doing
business there.

"We are trying to support the Sudan peace process. Once
peace comes back, and violations are stopped, the peace
agreement will serve everyone, including Talisman," Mr.
Lemay said.

Mr. Buckee said he is talking to the Sudanese government
about peace. "When we talk to the ministers, we talk about
ethics and peace, and the government is making attempts at
peace and reconciliations. They are also tired of 10 years of
war."

canoe.com
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