Introduction
Many
factors have contributed to the continuation of civil war between Sudan’s
Islamic government and southern rebel factions composed of Christians and
tribalists. However, the war, which began in 1983, may well have ended by now
if it weren’t for revenues being collected from the government’s oil
production. Money collected from oil revenues has allowed the government to
purchase more sophisticated weaponry and thus prolong the war and increase the
devastation of the people of South Sudan.
Oil Production in
Sudan
Sudan’s
oil production is carried out by the Greater Nile Petroleum Operating Company
(GNPOC). Obviously Sudan cannot make a profit from its oil unless it has a
market in which to sell it. Sadly, several oil companies have become Sudan’s
partners in crime as they provide the market, and therefore the finances,
needed for Sudan to continue its war. The GNPOC has four economic partners:
the China National Petroleum Corp. (40% partner), Petronas, a Malaysian
state-owned company (30% partner), Talisman Energy, a private Canadian company
(25% partner) and Suda-Pet, a state-owned Sudanese company (5% partner).
Probably the most surprising member on this infamous list is Talisman Energy.
Talisman
Energy began its operations in Sudan in October of 1998 with the acquisition
of Arakis, another Canadian oil company. Talisman operates several oil fields
in its concession in the Heglig area. It also has a 25% interest in the
GNPOC’s 1500km oil pipeline which extends from the southern oil fields to
Port Sudan on the country’s eastern coast.
Talisman Claims
vs Reality
While
Talisman ensures its investors that it has the highest ethical standards, the
reality of the situation is much different.
On December 10, 1999 Talisman became a signatory to the International
Code of Ethics for Canadian Businesses. This code, among other things, states
that the signatory will 1) support and promote the protection of international
human rights within our sphere of influence and 2) not be complicit in human
rights abuses. However, research
carried out at the behest of Canadian Foreign Minister Lloyd Axworthy suggests
that an airstrip associated with Talisman’s operations in Sudan has been
used by Government of Sudan (GOS) military forces. Helicopter gunships and
Antonov bombers have both utilized Talisman’s airstrip on their way to
bombing raids in southern Sudan. In the year 2000 it was estimated that the
GOS used such Antonov aircraft to bomb approximately 113 civilian targets.
Hospitals, churches, schools, and relief agencies have all been targets of
government bombings. Thus, by conceding use of its airstrip to the GOS,
Talisman is indirectly participating in governmental attacks on civilians,
which have killed hundreds of people.
In
an article in the Calgary Herald Talisman President and CEO, Jim Buckee,
claimed that “staff in the field have not seen any evidence of forced
displacement or relocation in our area of operations, which is located on a
flood plain with minimum permanent settlements.” Claiming there are few or
no permanent residents in the area of their oil fields is a convenient way for
Talisman to avoid living up to the standard they uphold on their company web
site (www.talisman-energy.com):
“Talisman is a good neighbor in communities where we operate. We routinely
consult with residents and landowners…” Once again, however, the Harker
report found Talisman’s claims to be false. In fact, the GOS has been
forcefully evacuating people from the Heglig area since it began oil
exploration in 1992. Residents of villages close to Heglig have been
permanently displaced to “peace camps” and other areas have continued to
suffer attacks including bombing, looting, rapes, abduction., etc. If Talisman
is unaware of the government’s continuing efforts to displace area civilians
it is only because they have not been diligent to find out what is going on in
their own “backyard.” This is difficult to believe.
Talisman in the
United States
Talisman
Energy currently trades 20% of its shares in the United States. The company
tries to assuage US investors by ensuring that funds raised from US investors
are “insulated from investments in Sudan.” In fact, an executive order
signed by President Clinton in 1997 “prohibit[s] US persons from contracting
to underwrite or purchase shares in new public offerings if the proceeds were
for the use to support a project in Sudan after the effective date of the
order.” This means that the proceeds from Talisman stock bought in the US
cannot be directly used in Sudan. Yet why would we choose to pad the pockets
of a company that obviously has no respect for human rights or concern for the
people of southern Sudan?
US Response
Legislation
is being proposed that would effectively de-list companies who do business
with the Sudanese government from the New York Stock Exchange (NYSE). This
means that Talisman would no longer be able to sell any stock on the NYSE
regardless of how the proceeds would be spent. This legislation is an
amendment to the Sudan Peace Act, which was passed by the US Senate on
November 19, 1999. Capital market sanctions were added to the bill when it
passed the House of Representatives on October 24, 2000. Thus, the two
legislative bodies must now come together to decide whether the amendment
should become part of the law.
Recommended
Actions
Write
your senator, encouraging him or her to support capital market sanctions
against companies aiding and abetting the genocide in Sudan. Also, write the
US President, encouraging him to sign the Sudan Peace Act into law. You may
also write to US organizations that currently possess Talisman stock. Many
companies have already divested from Talisman. However, Fidelity Investments,
a large mutual funds company, still possesses 5.124 million shares of Talisman
stock (as of June 2000).
Important
Addresses:
Fidelity
Brockerage Services
100
Summer St.
Boston, MA 02110
Tel: 1-800-771-7213
The Honorble
(Senator’s Name)
United States Senate
Washington, DC 20510
|
Talisman
Energy, Inc.
Suite 3400, 888-3 St. S.W.
Calgary, Alberta, Canada
T2P 5C5
Tel:
(403) 237-1234
Fax:
(403) 237-1902
|
This report, “Human Security in Sudan: The Report of a Canadian Assessment
Mission” (commonly known as the Harker report) may be downloaded in PDF
format from the Canadian Department of Foreign Affairs and International Trade
web site at www.dfait-maeci.gc.ca/africa/sudan-e.asp
International Christian Concern is
a human rights organization based in Washington, D.C. that serves as a watchdog and
advocate for religious freedom worldwide.
