POSITIVE POLITICS?
News Article by FP posted on May 01, 2002 at 14:32:28: EST (-5 GMT)
U.S. envoy could vindicate Talisman over Sudan
Report to be released
by Tony Seskus
Financial Post (Canada)
May 1, 2002
CALGARY - U.S. pressure on Talisman Energy Inc. to sell off its controversial Sudanese oil operations could ease with the release of a report by U.S. special envoy John Danforth.
Talisman has been under pressure to rid itself of its Sudanese assets, with some U.S. politicians pushing for legislation that would bar companies operating there from participating in U.S. financial markets.
But the Canadian oil giant could receive some help from the report by Mr. Danforth, a former senator, who recently returned from the Sudan after helping broker a ceasefire in the Nuba Mountains region.
The report, which is being reviewed by George W., Bush, the U.S. President, is not yet public.
But portions of it leaked to the St. Louis Post-Dispatch show Mr. Danforth believes oil development can be used to help bring peace and stability to the country.
Talisman spokesman Barry Nelson said the company views the report as "important" and welcomes any future involvement by outside nations in helping to bring peace to the area.
"We are the people who have long said, 'Look, oil can fuel peace,' " Mr. Nelson said. "Oil can be a catalyst for peace."
Talisman's production in Sudan is 53,300 barrels a day, which Analysts say accounts for about 10% of the company's cash flow and 16% of earnings.
According to the St. Louis Post-Dispatch, Mr. Danforth proposes Sudan's oil wealth, with reserves estimated at between one billion and five billion barrels, be used as a carrot for peace. He is reported to say the government, which controls the oil fields in south-central Sudan, would agree to share oil revenue with the rebel groups that control most of southern Sudan.
The rebels would suspend their attacks and both sides would agree to international monitoring. The peace, if it held, would permit increased investment by international oil companies -- and thus increased revenue for both north and south.
Mr. Nelson would not comment on whether the report would ease pressure on Talisman to sell. He said shareholders should not expect major news at today's annual general meeting about a deal on its Sudanese assets. A rumour resurfaced yesterday that the company has been discussing an offer from India's National Oil and Natural Gas Corp. |
