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

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To: Razorbak who wrote (1334)9/29/1999 9:14:00 AM
From: Tomas  Read Replies (1) of 2742
 
Sudan: Talisman believes pipe explosion deliberate - Financial Post, September 29

Timing coincided with meeting in Sudanese capital
By CLAUDIA CATTANEO, The Financial Post

CALGARY - A pipeline explosion last week that
temporarily halted the flow of crude oil from a controversial
oilfield in Sudan appears to have been staged to coincide with
a meeting in the Sudanese capital of Khartoum of the board of
directors of Talisman Energy Inc., a company spokesman
claimed yesterday.

David Mann said it was "awfully coincidental" that the
explosion occurred while the company's nine-member board
was meeting in Khartoum to take a first-hand look at the
project. The meeting also involved a directors' visit to oil
installations in southern Sudan, discussions with Sudanese
government officials and a tour of Khartoum's poor areas.

"It was no secret that our board of directors was there. ...
The irony is that if they were doing it to influence board
opinion at Talisman, if it was orchestrated in fact for this, it
had the opposite effect. It gave them a chance to talk to the
government about security issues," Mr. Mann said.

Robert Bandeen, a Talisman director, said the board came
away from the experience feeling reassured about the project
and about Sudan as a fairly stable country. "[The blast] didn't
affect us one way or another," said Mr. Bandeen, chairman of
Toronto-based management company Cluny Corp.

A Muslim rebel group claimed responsibility for the
explosion which occurred in a remote area about 280
kilometres northeast of Khartoum.

Talisman, Canada's largest oil and gas producer, originally
downplayed the Sept. 20 explosion as "a minor incident." An
investigation was immediately launched by the Sudanese
government, which is responsible for securing the pipeline.
The damage was repaired in 48 hours and the pipeline is again
transporting 127,000 barrels a day to tankers in Port Sudan.

Talisman has been criticized by Canadian church groups and
human rights organizations for taking a 25% stake in the
Greater Nile Oil Project, which includes a world-class oil field
and a pipeline. Oil started flowing this summer.

The groups say oil revenues from the project are helping
Sudan's extremist government fuel a civil war that has claimed
1.9 million lives over the past 16 years and resulted in
widespread famine and even slavery. Sudan's national oil
company owns 5% of the project, the national petroleum
company of China 40%, and the national oil company of
Malaysia the remaining 30%.

Talisman's view is that oil revenues will improve Sudan's
standard of living, addressing some of the causes of the
conflict. To help better make its case, it recruited Stuart
McDowall, Canada's ambassador to the United Arab
Emirates until August, as director-general, Sudan public
relations. His responsibilities include relations with
governments, non-government organizations and community
development in Sudan.

canoe.ca
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