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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1353)	10/21/1999 9:05:00 AM
From: Tomas	Read Replies (1) \| Respond to of 2742

Talisman in Sudan - Globe & Mail, Thursday, October 21 J. W. Buckee Calgary -- Damien Lewis's article ("Fight for Sudan's oil is killing civilians," Oct. 5) makes several references to Talisman Energy's involvement in Sudan. Mr. Lewis alleges that the local Sudanese populations have been killed and villages destroyed to allow for continuing oil development. For your information, the Heglig and Unity oil fields on the Greater Nile Petroleum Operating Company (GNPOC) concession, of which Talisman is a 25-per-cent owner, are in the midst of a vast, open plain. The fields are almost completely covered by water in the rainy season and there are virtually no permanent towns or settlements. Certainly, we have seen no evidence of any removals of people. The article also greatly inflates the inferred value of the oil, as it wildly exaggerates the reserves, and makes no allowance for deducting the operating and capital costs of production. We estimate the reserves of the GNPOC concession to be about 800 million barrels, which, over the life of the field, may yield the government of Sudan, depending on the international price of oil, approximately $3-billion to $5-billion. What is important, however, is that the new Sudanese constitution stipulates that 40 per cent of this government revenue must go to the producing state, 35 per cent to the Southern Sudanese Co-ordinating Council, and the remaining 25 per cent to the federal union. This is perhaps the most significant factor that could accelerate social development that has ever occurred in the history of the southern Sudanese people.