By an OGJ Online Correspondent
CALGARY, June 19 -- Talisman Energy Inc., Calgary, Tuesday said it was evaluating offers for its 25% interest in a controversial Sudan oil project that has been the target of ongoing protests by human rights groups and now is the subject of US legislation.
The House of Representatives recently approved the Sudan Peace Act, which included an amendment to ban non-US oil companies operating in Sudan from selling stock on US exchanges.
The US State Department has said the legislation could infringe on the prerogatives of the US Securities and Exchange Commission. White House spokesman Philip Reeker has said the administration also might have reservations about the bill.
Reeker has said the administration "supports generally" the aims of the Sudan Peace Act.
Talisman is listed on the New York Stock Exchange, while Lundin Oil AB, a Swedish oil company with an interest in two oil exploration blocks in Sudan, is listed on the NASDAQ. Lundin said Tuesday economic sanctions could penalize Sudan.
Talisman CEO Jim Buckee said Talisman intends to remain in compliance with laws in all jurisdictions in which it operates. He said the legislation would discourage foreign companies from listing stocks on US financial exchanges.
Buckee declined to name the parties expressing interest in Talisman's Sudan holdings. "While in Sudan, Talisman continues to be a strong advocate for human rights and carry out major humanitarian programs," Buckee said. Talisman contributes to medical facilities and other infrastructure in Sudan.
Talisman's 25% interest in the Greater Nile Oil Project is worth up to $1.5 billion (Can.). Partners are the state oil companies of China, Malaysia, and Sudan.
Sudan represents 10% of Talisman's operations. The company is active in western Canada, the UK North Sea and Indonesia. Buckee said Talisman is close to announcing an international acquisition.
Lundin Oil CEO Ian Lundin said his company would welcome a different approach by the US government to find a peaceful solution to the conflict in Sudan. "To penalize Sudan with further economic sanctions at this important stage of its development could potentially have a devastating effect on all the people."
