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Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: Andy who wrote (686)	1/6/2000 8:00:00 AM
From: Tomas	Respond to of 1713

Axworthy protests Sudan's tactics in oil fields - Globe & Mail, January 6 JEFF SALLOT Parliamentary Bureau Ottawa -- Foreign Affairs Minister Lloyd Axworthy has called in Sudan's charg‚ d'affaires to demand an explanation after finding out that the Sudanese military is using a civilian airstrip in the heart of the country's rich oil fields as it wages war against rebel forces. A special Canadian fact-finding mission discovered the apparent violation of Sudan's pledge to refrain from using oil development as cover for military operations. Talisman Energy Inc. of Calgary is a major partner in the Sudanese oil development with the Khartoum government and China's state oil company. Mr. Axworthy said Talisman officials also know of the flights, and have strongly protested against the use of the airstrip by the military. Mr. Axworthy said he has sent a letter of protest to Sudanese President Omar Bashir. In an interview, he said military use of the airstrip at the Heglig oil field "would be a serious incursion and would impact on the safety and security of people in the area." He added that it would also undermine efforts by Canada and other countries to broker a negotiated peace. The minister said that investigator John Harker, on a visit to the region last month, uncovered evidence that military helicopters and Russian-made Antonov aircraft use the airfield. The twin-engine Antonov can be used both as a military transport and as a bomber. Mr. Harker was appointed by Ottawa two months ago to determine whether oil development by Talisman and its partners is helping the Islamist regime in Khartoum to prolong the bloody civil war against Christian and other religious minorities in the southern part of the country. A former head of international affairs for the Canadian Labour Congress, Mr. Harker is not expected to present his full report until later this month. But he gave Mr. Axworthy early notice of evidence that the airstrip is being used by the military so that Ottawa could blow the whistle on the operations right away. Talisman spokeswoman Jackie Sheppard said company employees first noticed the military aircraft using the airstrip in the oil-concession area last November, and brought it to Ottawa's attention. The employees could not see whether the aircraft were unloading military supplies or troops or simply refuelling, she said. "We don't really know what they were doing." Talisman officials said they too had seen military aircraft at the landing strip, and "had objected strenuously to the Sudanese government," but the company believes it is powerless to stop military flights, Mr. Axworthy added. Ms. Sheppard said Talisman employees have not seen any military aircraft after making the protest known to Khartoum in November. The airfield is immediately adjacent to the oil-consortium complex at Heglig, about 800 kilometres southwest of Khartoum. Sources say it would be difficult for military aircraft to use the field without attracting the attention of oil workers. Talisman, which has a 25-per-cent stake in the oil project, is the target of harsh criticism by church and human-rights groups who say that civilians have been forced from their lands by oil development, and that oil money enables the Khartoum regime to continue Africa's bloodiest and longest civil war. The groups want investors to sell Talisman shares, and they urge U.S. authorities to have the company's New York Stock Exchange listing lifted. The U.S. government considers the Sudanese government to be a leading sponsor of international terrorism.

To: Andy who wrote (686)	1/7/2000 6:02:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Talisman divestment campaign unpopular - Survey finds 90% favour Sudan stake The Globe & Mail, Friday, January 7 STEVEN CHASE, Alberta Bureau Calgary -- A divestment campaign against Talisman Energy Inc. for its controversial Sudan operations doesn't appear to be finding many takers, suggests a new, informal survey by a leading Canadian oil analyst. Martin Molyneaux of FirstEnergy Capital Corp. in Calgary says he's talked to between 30 and 40 of Talisman's institutional investors since mid-November and has found that more than 90 per cent want the company to keep its Sudan operations. "We've surveyed a whole raft of institutions and the vast majority we've talked to, in excess of 90 per cent, want Talisman to keep Sudan." Mr. Molyneaux's comments come as more reports trickle in about sales and potential sales of Talisman stock by large institutional investors. Another major U.S. investment fund has sold its stake in Talisman because of its lagging performance and one of the company's biggest American investors has responded to a call for divestment by investigating controversy over Talisman's $735-million Sudan operations. Mr. Molyneaux has more than once been ranked the top oil equity analyst in Canada by consulting firm Brendan Wood International, following surveys of institutional investors on criteria such as credibility. His findings suggest frequent reports of sales of Talisman stock by major investors don't represent a broad groundswell against the firm and its operations in war-torn Sudan, which has become an international human rights pariah after allegations of slavery, genocide and forced clearing of settlements in the country. Talisman, which has a 25-per-cent stake in the oil project, is the target of harsh criticism by church and human rights groups who say civilians have been forced from their lands by oil development, and that oil money enables the Khartoum regime to continue Africa's bloodiest and longest civil war. The groups want investors to sell Talisman shares, and they urge U.S. authorities to have the company's New York Stock Exchange listing lifted. But Mr. Molyneaux said those who make investment decisions think Sudan is better off because of the Canadian company's presence. "A lot of these investors think it's better for us, from a political point of view, for us to be there than not there." He pointed to reports in The Globe and Mail yesterday that both Talisman and Ottawa are protesting the military use of civilian airfields in Sudan as evidence Canada can exert influence in the African country. "I think most people think, kind of like I do, that what you do is take a pro-active approach and keep the assets [instead of taking] a reactive approach and wash[ing] my hands of Sudan." The California Public Employees Retirement System (Calpers) was one of the major investment funds to recently pull out of Talisman. Calpers told a legislative committee in the state Wednesday that external investment managers cleaned out its position in Talisman at the end of 1999. Spokeswoman Pat Macht said the decision was purely financial. "It probably had something to do with the fact their stock price performance of late hasn't been that good." Talisman's share price has lagged its peers during the oil recovery of 1999, suffering what analysts such as Mr. Molyneaux estimate is a $4 to $5 discount because of controversy over its Sudan operations, which have come under increasing scrutiny from the Canadian and U.S. federal governments. Whether the share discount will be lifted depends largely on the contents of a report by a Canadian fact-finding mission to Sudan, to be released later this month.