IN THE NEWS / Canada urged to act against Talisman's Sudan project
CALGARY, Nov 18 (Reuters) - A church group harshly critical of
Talisman Energy Inc. and its Sudan oil project has urged Canada's
government to take action against the company by making it too tough
for Talisman to operate in the war-torn African nation.
The Inter-Church Coalition on Africa told Canadian Foreign Minister
Lloyd Axworthy in a letter he should bring in legislation making Sudan
operations unwieldy for Talisman, suggesting he insist on export permits
for oil equipment and even impose economic sanctions on the country.
The Toronto-based organization, which includes such mainstream
churches as the Anglican Church of Canada, Presbyterian Church in
Canada and United Church of Canada, has long protested Canadian oil
industry involvement in Sudan.
Its opposition stems from its belief that Sudan's Islamist government,
which it accuses of "ethnic cleansing" activities and other human rights
abuses, will use the oil and profits from it against anti-government rebels,
extending a 15-year civil war in the impoverished country.
Also signing the letter were 10 other organizations, such as the
Canadian Labor Congress, Mennonite Central Committee, Freedom
Quest International and Steelworkers Humanity Fund.
"We want the government to take the issue of Talisman and other
Canadian companies lining up at the trough, so to speak, more seriously
and enact some legislation that will make it more difficult for Talisman to
go about its business," coalition director Gary Kenny told Reuters on
Wednesday.
Calgary-based Talisman, one of Canada's biggest oil and gas
companies, recently gained a 25-percent stake in a $1.4-billion southern
Sudan oil project by taking over Arakis Energy Corp.
Other partners in the development, which includes a vast, oil-rich
drilling concession and a 930-mile (1,500 km) pipeline to the Red Sea,
are China National Petroleum Corp., Malaysia state oil company
Petronas and the Sudan government. Production of 150,000 barrels a
day is scheduled to start next year.
The church group said it wanted Axworthy to place the nation on
Canada's "Area Controls List," which would require exports to Sudan,
including equipment and technology needed for Talisman's operations, to
have export permits.
It also suggested he use a special law that would allow Canada to
impose economic sanctions on Sudan without a resolution from an
international body like the United Nations.
So far Canada has resisted sanctions against Sudan. By contrast, the
U.S. has blacklisted Sudan as a nation it said supported terrorism.
In addition, the coalition asked Axworthy to turn down any requests
from Talisman or other Canadian firms for financing or risk insurance
from the government's Export Development Corp.
Foreign Affairs officials were not available for comment.
Talisman Chief Executive Jim Buckee has said several times since
launching the Arakis takeover that his company would bring with it
much-needed investment dollars, western oil expertise and technology.
That would lead to new economic prosperity throughout the
famine-struck nation, which would mean new hospitals, education
systems and other projects, Buckee, one of Canada's most respected
oilmen, has said.
"He's said if you just ignore investment opportunities, it's not really
doing the people involved a service," Talisman spokesman Dave Mann
said. "There is a civil war going on in the southern part of the country and
there are allegations being thrown back and forth and we're not going to
pick sides."
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