Talisman Energy Inc.
) announced plans to wind up its activities in Peru, putting an end
to the company's eight-year-long efforts to establish an operation
base in the country.
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The company's Peruvian subsidiary - Talisman Peru B.V. - has
decided to stall its exploration activities in the Maranon Basin.
Talisman enjoyed operating rights in Blocks 64 and 103, while it
had non-operated interests in Blocks 123 and 129.
Talisman management affirmed that although the company encountered
some light oil in Block 64 in Situche Central field, it failed to
set up a strong material resource base in the western South
While the company shared a healthy rapport with the Peruvian
government and local authorities, Talisman faced criticisms from
the environmental non-governmental organizations for conducting
operations without the approvals of indigenous groups.
Calgary, Alberta-based Talisman will work toward completing its
ongoing commercial contracts and handing over the licenses of the
fields to new operators, before exiting the country.
An independent oil and gas exploration and production company -
Talisman - has solid business in Western Canada and in the U.K.
North Sea, while offering exposure to some of the most prospective
unconventional natural gas plays in North America and high-impact
exploration prospects worldwide..
In late July,
China Petroleum and Chemical Corporation
), aka Sinopec agreed to purchase a 49% stake in the North Sea
assets of Talisman for about $1.5 billion.
Over the last few years, Talisman has been disposing its non-core
oil and gas properties around the world, thereby freeing up capital
to concentrate on longer-term oil and gas prospects in prolific
regions across the globe such as Canada, the U.S. and Southeast
Talisman holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Moreover, considering
the fundamentals on the long run, we maintain our Neutral
recommendation on the stock.