Talisman Energy Inc., once dogged by protesters for its investments in wartorn Sudan, was recognized Monday for its ethical conduct by an anti-corruption watchdog.
But controversy continues to follow the company.
A group of South American natives is in Calgary to attend its annual meeting Wednesday – with faces painted and crowns of colourful toucan feathers – to ask shareholders to stop Talisman plans to explore for oil on two enormous concession blocks in Peru.
Transparency International said Monday Talisman and two other Calgary-based companies, Petro-Canada and Nexen Inc., set an example along with firms from Norway for the rest of the world to follow.
The report cites Talisman for above-average transparency in its dealings with five host countries where it has operations: Algeria, Indonesia, Malaysia, Norway and the U.S.
“We’ve been issuing independently reviewed corporate responsibility reports since 2000 and in those reports we break down royalties and taxes paid to host countries,” said Talisman spokeswoman Teri Keyser, who pointed out the company was also recognized in 2005.
Talisman CEO and president John Manzoni is to meet Monday behind closed doors with a delegation of two Americans from California-based lobby group Amazon Watch and four Peruvians – a lawyer and three native leaders.
Native leader Carlos Mukuin Tiris, founder of AIM, a federation of Achuar communities in the Pastaza river basin, told the Herald Monday his group opposes any kind of petroleum development in the region, in spite of potential job creation.
“No, we really don’t see things working well at all. In fact, it generates more problems,” he said in Spanish, translated by Maria Ramos of Amazon Watch, which is paying for the trip to Calgary.
“Sure, we need jobs but not with the oil company. We are looking for ways that don’t damage our forests, our land, because the land is like our mother.”
He said AIM has the support of people in the region.
But Keyser said it’s not true that most local people oppose Talisman’s development.
“We actually consult with and receive formal consent from the communities in our operating areas,” said Keyser.
She said each adult member of the seven communities in the 761,000-hectare Block 64, for example, was asked to vote and Talisman’s plan had to get two-thirds approval before an environmental impact assessment (EIA) could be approved.
The two concessions cover about 1.6 million hectares in northeastern Peru.
U.S. giant Occidental Petroleum Corp. had a 25 per cent interest and was the operator of Block 64 until 2007, when Talisman, which also had a 25 per cent stake, bought the share and took over as operator.
“It’s very early days,” said Keyser. “For all of Peru, capital spending in 2008 will be approximately $15 million.”
Talisman plans to drill two wells on Block 64 in 2008-09. It has scheduled seismic exploration on Block 101, in which it has a 70 per cent interest, in 2009. It has interests in two other blocks, bringing its total Peruvian land assets to about 3.2 million hectares.
