The Canadian government will not impose sanctions on the operations of Calgary-based Talisman Energy Inc. in a major Sudan oil project.
Canadian Foreign Affairs Minister Lloyd Axworthy announced several diplomatic initiatives, including use of Canada's presidency of the United Nations Security Council in April, to try to deal with the human impact of a long-running civil war.
Talisman said it welcomed Ottawa's decision not to impose economic sanctions in the Sudan situation.
"Renewed Canadian commitment to Sudan and the removal of the threat of sanctions are certainly good news for our company and the people of Sudan," said Talisman CEO Jim Buckee.
"We endorse Minister Axworthy's commitment to enhanced involvement by Canada in fostering an end to the conflict in Sudan. The needs of this country for both peace and development are great."
Talisman has a 25% interest in the Greater Nile Oil Project (GNOP), which is currently producing about 160,000 b/d of crude oil. Other partners are the state oil companies of China, Malaysia, and Sudan. Human rights groups have alleged widespread human rights abuses in Sudan and that oil revenues help finance a long-running civil war.
Findings, recommendations
A report by Ottawa special investigator John Harker, released Feb. 14, said evidence gathered during a 3-week fact-finding mission to Sudan and the oil field area indicates that oil development is exacerbating the situation in Sudan. The report says a civilian airstrip serving the oil fields was used by military aircraft in operations and Talisman may have been aware of this. The report also says that roads built by the oil companies were used by troops in military operations. It also found evidence of slavery or abduction of women and children by armed militias.
The report stops short of recommending sanctions but says Talisman must work to help end the civil war and to meet its human rights responsibilities and obligations in full.
The report said that there are only two ways of neutralizing the negative impact of oil: to halt production until peace is attained or to set the Sudanese government's oil revenues aside for use when such a peace is in place. It recommends that Canada provide support for forensic accounting and auditing to make sharing of revenues between north and south Sudan feasible and to play a part in a trust-fund solution to the use of oil revenues.
"Talisman should make it clear that it acknowledges the destructive impact of oil extraction and will work towards a trust-fund arrangement for sharing of oil revenues in Sudan," the report says.
Ottawa's steps
Ottawa said it will take a number of steps to try to end the civil war in Sudan and related abuses. These include:
- Support a return visit to southern Sudan of UN investigator Leonardo Franco, whose previous report found widespread human rights abuses and displacement of populations to make way for oil development.
- Provide financial assistance to combat the abduction of women and children.
- Open a Canadian consular office in Khartoum.
- Use Canada's UN Security Council presidency in April to address the humanitarian impact of the civil war.
