Sudan: State oil company China National Petroleum Corp., or CNPC, already holds a 40-per-cent stake in Sudanese Greater Nile Petroleum Operating Co., or GNPOC;
French oil heavyweight TotalFina SA has embarked on a global expansion, including into Sudan.
"Talisman would be a well-priced bite for them," Brian Prokop, an analyst with Peters & Co. of Calgary, said.
Martin Molyneaux, an analyst with FirstEnergy Capital Corp., said that replacing Talisman with another foreign oil company will not help the people of Sudan.
Mr. Buckee, who declined to identify interested buyers, nevertheless threw out several hints.
There are "a lot of people in the Middle East and further east than that who need oil and are less concerned about the political impact."
Mr. Buckee also said Talisman will announce a "modest" foreign acquisition this week aimed at establishing the company in what could be a new core area.
"We've been evaluating other opportunities for new country entry and bolstering positions in various places."
Mr. Prokop said the acquisition could be in the range of $500-million, roughly the difference between his projected cash flow for Talisman of $3.2-billion for the year and Talisman's capital spending plans of $2.8-billion.
Regarding the Sudanese property, he said Talisman also could consider a "swap" of those assets with properties elsewhere in the world that produce similar volume. "That would be the best situation for them."
From The Globe & Mail, June 19 |
