Talisman signals it may leave Sudan

After months of saying it is right to stay in Sudan, Talisman Energy is now suggesting that it may sell its Sudan interest to avoid losing its New York Stock Exchange listing.

At the Talisman annual meeting May 3, CEO Jim Buckee faced continuing criticism from church and human rights groups who maintain that the company’s activities in Sudan are helping to support a regime waging war against its population and involved in human rights atrocities.

In a release before the annual meeting, the Taskforce on the Churches and Corporate Responsibility (TCCR) criticized a report issued by Talisman on its corporate responsibility, saying the report only serves "to confirm shareholder misgivings and to aggravate their frustration." Talisman "cannot ensure that the government will allocate oil revenues for human development in the south, as promised."

But the company defended its stance. "I think we are right," he told reporters after the annual meeting. "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."

More recently, however, Buckee has signalled that Talisman is considering leaving Sudan. He told reporters at the Canadian Association of Petroleum Producers conference June 18 that Talisman may sell its interest in Sudan. The change of heart was brought about by the possibility that Talisman may lose its New York Stock Exchange listing. The US House of representatives has voted in favour of a bill proposing that companies operating in Sudan be barred from listing their stock on US capital markets.

“We can’t afford to be offside US law,” Buckee said after the petroleum conference. “I don’t think anybody could afford not to have access to the US capital markets. No asset is worth more than that.”

For more information, see TCCR.

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