Talisman booming, but keeping an eye on US

The Canadian-based Talisman Energy Incorporated, which has faced strong criticism over its operations in war-torn Sudan, on Monday announced that it had increased profits by 11 percent in the second quarter of the year to US $237 million or $1.71 a share, the 'Calgary Post' reported. The company's half-year profits soared 39 percent to US $583 million, the highest in its nine-year history, the report added. Yet, Talisman's success has not translated into a significantly improved share price (US $58.80 after Monday's results), and its chief executive, Jim Buckee, conceded that the company's Sudan operations could be keeping its share price down, the newspaper reported. Religious and human rights groups have been critical of oil operations in Sudan, including Talisman's, and alleged that Sudanese government troops and pro-government militias were committing rights abuses and depopulating concession areas to make way for oil production. Talisman was closely watching US policies in regard to firms operating in Sudan, on which it has sanctions, and which could result in a prohibition on Talisman raising money in US capital markets, the 'Calgary Post' reported. "We intend to remain compliant with US laws. However, I am hopeful that capital market sanctions will not be enacted against oil companies operating in Sudan, particularly given the recent views stated by the Bush administration [against such measures] and by the absence of these provisions in the [Sudan Peace] Bill approved by the Senate," the paper quoted Buckee as saying. If push came to shove, and Talisman were to be denied access to US capital markets, then it would sell its US assets, according to oil industry analysts quoted by the newspaper. Moreover, the company was fostering closer relations with its Malaysian partner in Sudan (Petronas), which could, at some point in the future, allow it to undertake an asset swap that would allow it exit Sudan, the analysts added.