Talisman to sell Sudan assets for $758 million
31 Oct 2002
Talisman Energy has entered into a definitive agreement to sell its indirectly held interest in the Greater Nile Oil Project in Sudan to ONGC Videsh for approximately US$758 million (C$1.2 billion).
Talisman, one of Canada's largest independent oil and gas producers, expects the sale to be completed by December 31, 2002.
The completion of the transaction is subject to certain conditions, primarily relating to obtaining consents from the government of Sudan and the other consortium members and to the waiver or expiry of rights of first refusal.
Talisman has had preliminary discussions with the government of Sudan about the proposed sale and believes that the required consents will be obtained.
Commenting on the sale, Talisman's President and CEO, Dr. Jim Buckee said: 'We have consistently said that we liked our position in Sudan, the people and the project. But, we have also always said that we would sell at the right price.
'Talisman's shares have continued to be discounted based on perceived political risk in-country and in North America to a degree that was unacceptable for 12% of our production.
'Shareholders have told me they were tired of continually having to monitor and analyse events relating to Sudan. We are encouraged by recent developments in Sudan, but had to weigh all possible outcomes against having a firm and fair offer, in hand, right now. Selling our interest in the project resolves uncertainty about the future of this asset.'
