LIMA, Sept 13 Canada's Talisman Energy Inc
is giving up its eight-year-long effort to produce oil
in Peru, the company said on Thursday, as it continues to shed
assets in a bid to boost its share price.
The energy producer, which replaced its CEO on Monday after
an eight-month review of strategy and operations, said it could
not afford to chase expensive long-term prospects in
The company, with operations in North America, the North Sea
and Southeast Asia, has been discussed as the next big takeover
target in the Canadian oil patch following Nexen Inc,
which has agreed to be acquired by Chinese state-owned CNOOC Ltd
in a $15.1 billion deal that is not finalized.
Talisman's withdrawal from Peru will open its concessions in
the Maranon Basin in the north of the country, including the
40,000 barrels of light oil it discovered in block 64, to new
"We haven't been able to generate a substantial production
potential in the blocks we control in Peru, despite our
discovery in block 64," spokeswoman Veronica Bonifaz said.
"After reviewing our global portfolio we've decided to focus on
near-term liquid hydrocarbons."
Talisman said it will work with government regulator
Perupetro on the transition of its holdings as it wraps up
The company currently operates blocks 64 and 103, and has
non-operated interests in blocks 123 and 129 in Peru.
Shares in the firm have lagged its senior Canadian oil and
gas producer peers as it struggled with decade-low natural gas
prices and some production delays, such as in the Norwegian
North Sea where its Yme project is more than a year behind
The indigenous rights group Amazon Watch celebrated
Talisman's latest announcement and credited persistent local
opposition to oil drilling in the biodiverse region.
"Talisman's exit sends a clear message to the oil industry:
trampling indigenous rights in the rush to exploit marginal oil
reserves in the Amazon rainforest is not an option," Peru
program coordinator Gregor MacLennan said in press release.
Bonifaz said Talisman's decision had nothing to do with
opposition from indigenous groups.
"We don't operate in the territory of communities that
oppose our activities, we only work in places where we have the
support of communities," she said.