Global Policy Forum

By Chris Varcoe

Talisman Energy Inc. boss Jim Buckee said he's received many offers for his company's stake in a controversial Sudanese oil project, but Canada's biggest petroleum producer is staying put in the war-torn African country. Despite fierce criticism from human rights groups and church organizations for its work in Sudan, Talisman has developed the Greater Nile Oil Project along with the Khartoum government and state-owned oil companies of Malaysia and China.

While analysts say Talisman shares have been trading at a discount because of the controversy, Buckee said he's not about to sell the 25-per-cent stake in Greater Nile, which pumps out 45,000 barrels per day for the Canadian firm. ''We have been contacted by a number of people over the possibility of selling it and in time, we might do that,'' Buckee told an investment forum Monday held by the Canadian Association of Petroleum Producers. ''It's a tremendous project . . . My inclination is to stay there for the time being.''

Critics contend that money from the venture is allowing Sudan's Islamic-backed government to wage war against Christian and animists in the country's south. Talisman maintains that Greater Nile is helping the impoverished country rebuild its economy.

Talisman continues to drill in Sudan and has also made two small oil discoveries on its properties, which are spread over 12 million acres. Buckee said Talisman's share of production from Greater Nile will grow to 55,000 barrels of oil per day next year. Talisman also continues to look at adding a new core area to its portfolio, he added, such as Latin America, the Middle East and northwest Africa, or exploration in the deep waters off countries such as Mauritania or Morocco.