Talisman to stay in Sudan - 'We are right': Energy giant turns down offers for African interests
Financial Post, May 2
By Claudia Cattaneo, Calgary Bureau Chief
CALGARY - A defiant Jim Buckee, president and chief executive of Talisman Energy Inc., said yesterday after a raucous annual meeting he has received several offers for the company's controversial operations in war-torn Sudan, but he does not want to sell.
"I think we are right," Mr. Buckee told reporters after Talisman's annual meeting was nearly hijacked for the third year in a row by protesters. "We send Canadians, Canadian values down into this area that needs it, and we are moving behaviour, we are moving opinion by our presence, by our systems on health, safety, environment, human rights, corporate contributions," he said.
Mr. Buckee said observers are coming around to Talisman's point of view that withdrawal from Sudan would not help solve the conflict.
The controversy overshadowed the oil and gas company's strong first-quarter results and the introduction of a 60¢ a share annual dividend.
"Talk to the displaced people who are suffering," pleaded Mel Middleton, one of several human-rights activists who secured a proxy to get into the heavily guarded meeting, which at times degenerated into a shouting match that required Peter Widdrington, Talisman's chairman, to cut off debate.
"The evidence is there, but you have chosen not to look for it," Mr. Middleton said.
"We, the people of southern Sudan, love Canadians," said Peter Both, one of dozens Sudanese refugees who travelled to Calgary for the meeting. "But you cannot do business in a war situation."
Outside, about 200 protesters beat drums, waved crosses and placards denouncing the company, which also has operations in Canada, the North Sea and Indonesia.
"A share for Talisman is a share in genocide," said one sign.
"Oil has brought death," said another.
Talisman is a part owner of an oil project in the East African country with the Chinese, Malaysian and Sudanese state oil companies.
Human rights organizations and churches say the Sudanese government is using oil revenues to fund a war against southern rebels that, along with a heavy drought in much of the region, has claimed two million lives.
Mr. Buckee repeatedly drew applause from shareholders and employees over his passionate defence of Talisman's activities in the country and its efforts to influence its government.
"We share the same values you do," he told critics. "We are doing good things in Sudan."
The company beefed up its efforts to put its Sudanese operations in a positive light by showing videos of a school and hospital it is supporting near its oil installations.
It also showed satellite images of its oil concession area in Sudan -- shot over the past 35 years -- that it says refute claims of widespread population displacement.
Also yesterday, the company said its profit in the first quarter ended March 31 jumped to $346-million, from $206-million in the same period a year ago. Cash flow climbed to $764-million, up from $571-million last year.
Cash flow is on track to hit $3-billion for the year if commodity prices continue to remain high, the company said.
Talisman said it would pay its first semi-annual dividend of 30¢ a share June 29 to shareholders of record June 8. The dividend would make it possible for a larger number of funds to invest in Talisman, whose stock price has been dogged by the Sudan controversy.
Canada's largest oil and gas independent, Talisman said it is well on its way to becoming the country's first oil company to produce 500,000 barrels of oil equivalent per day.
Mr. Widdrington, who retired as chairman after more than 25 years of guiding the company and its predecessor, praised Talisman's track record and took a parting shot at the "destructive criticism." He is being replaced by David Powell, former president and chief executive of Home Oil Co.
"We have in this company people who are God-fearing, just like everyone else in this room," he said.
"I see a great success down the road. Talisman, rock on."
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