India closes in on Talisman's Sudan assets

Abstract

Talisman said it would sell out after fierce opposition to its Sudanese involvement from religious and human rights groups.

Two state-owned Indian firms, Oil and Natural Gas Corp. and Indian Oil Corp., look set to buy Canadian Talisman Energy's 25% stake in Greater Nile Petroleum Operating Co. (GNPOC) in Sudan for $750 million. Reports suggest the deal is now awaiting final cabinet approval. Sources close to the deal say Malaysian Petronas and China National Petroleum Corp., which have first right of refusal in any Talisman sale, have given their verbal consent.

Talisman said it would sell out after fierce opposition to its Sudanese involvement from religious and human rights groups. The US Congress recently tried to jumpstart legislation imposing sanctions on foreign investors in Sudanese oil, which would hit Talisman's US stock market listing, but the State Department is opposed (EC Jun.7,p6).

Talisman has always argued that its presence in Sudan allows it to influence the government. If it quits, some are concerned that operations might be taken over by companies less subject to shareholder pressure.