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Talisman believes that the countries and communities where we operate should benefit from our operations through the generation of employment, business opportunities, royalties and taxes. Talisman will consider the specific needs and capabilities of these communities through dialogue and consultation. Our commitment includes investing in communities in accordance with the Company’s Corporate Contribution Guidelines and encouraging volunteerism in the communities where we live.
We contributed approximately $3.7 million to hundreds of community projects, both operated and non-operated, across our global operations.
| Operated | Non-Operated | Total | |
| Canada | 1,697 | — | 1,697 |
| US | 82 | — | 82 |
| UK | 445 | — | 445 |
| Indonesia | 89 | 288 | 377 |
| Malaysia /Vietnam | 26 | — | 26 |
| Colombia | — | 168 | 168 |
| Trinidad | 106 | 103 | 209 |
| Algeria | — | — | — |
| Qatar | 20 | — | 20 |
| Peru | — | 78 | 78 |
| Sudan | 646 | — | 646 |
| Total | 3,111 | 637 | 3,748 |
In 2004, Talisman contributed approximately $1.7 million to support health and welfare, the arts, education, the environment and community causes in Canada through 420 community development programs. Major funding included the third installment of our $10 million, 20-year commitment to Calgary’s Talisman Centre. the second most widely visited multi-sport facility in North America, which focuses on innovative programming and leading-edge technology; our final installment of a five-year, $500,000 commitment towards the purchase of a new MRI (magnetic resonance imaging) unit at the Alberta Children’s Hospital; and almost $730,000 in support of Calgary’s United Way campaign through employee donations, a corporate match as well as numerous fundraising activities. Since 2000, Talisman has contributed over $3 million to the United Way of Calgary.
Examples of other Canadian funding included:
Talisman employees are active in their communities and the Company encourages all employees to volunteer in any capacity they can. Though employee volunteer hours are not fully tracked, several significant volunteering efforts occur in support of annual programs and initiatives including the United Way, the Mustard Seed (an organization that provides services for the homeless people of Calgary) and the Alberta Beef Industry.
In 2004, over 100 Talisman employees contributed about 500 volunteer hours to the United Way’s “Days of Caring” program through our employee involvement at the Calgary Mustard Seed and the Association for the Rehabilitation of the Brain Injured and the Bowness Senior Citizens Center.
An important component of our Canadian corporate giving strategy involves our “Investing in our Communities” program, an employee-based program which supports organizations and causes that do not normally fall within the corporate contributions program. The program provides up to $200 to organizations that our full-time employees and their families volunteer with, such as little league teams and community and school fundraisers. In 2004, Talisman received 205 employee requests for funding and invested approximately $42,000 through the program.
In 2004, Talisman (UK) supported 44 separate community development projects. Talisman (UK) was the lead sponsor for the 2004 Juvenile Diabetes Research Foundation Walk to Cure Diabetes in Aberdeen, helping raise almost $520,000 (£226,000) for research into Type 1 diabetes. Talisman (UK) also supported a number of initiatives and learning schemes at Ferryhill Primary School including the Happy Chappy Productions and Totally T-Shirtz, two enterprise companies aimed at teaching children business basics under the national Enterprise Scotland business initiative.
In 2004, the Aberdeen Corporate Contributions budget funded 24 projects. The majority of projects have been small, representing donations in support of community programs in education, youth and health. The major contribution was lead sponsor at a charity event for diabetes research.
The Aberdeen Environmental Corporate Contributions budget funded 11 projects in 2004. Commitments focused on efforts to research and protect local populations of bottlenose dolphins and water birds. Other significant investments included a donation to the Cromarty Ferry to fund the summer operation of the Ferry from Nigg to Cromarty. This is an important service for locals and tourists that improved access in the Cromarty Firth and that has been historically supported by Nigg Terminal Operators. Donations to the Aberdeen Lighthouse Research Facilities and to the Aberdeen University helped fund the study of bottlenose dolphin populations of the Cromarty and Moray Firths.
Flotta Terminal donations supported 9 projects and additional “in-kind” assistance programs including various health projects, school programs, and sports and cultural activities. Major projects funded include sponsorship of the VAO, which assists local welfare organizations and Orkney Carers for respite care and advice for those who care for disabled or elderly relatives at home. Talisman(UK) also sponsored a concert during the 6-day festival involving the Scottish Symphony Orchestra.
In 2004, Talisman’s subsidiary, Fortuna, funded the YMCA, the local college, the Red Cross and various other local associations and groups in upstate New York. Fortuna employees also participated in the Chemung County Soil and Water Conservation District Environmental Field Days at the Park Station Nature Park in Erin, New York. During the event, several hundred sixth-grade students learned about how Fortuna explores for natural gas with an emphasis on ecology.
Talisman (Trinidad)’s most significant community development achievement in Trinidad in 2004 was signing a Memorandum of Understanding with the United Nations Development Program (UNDP). The main objective of this partnership is to provide support to a pilot project to upgrade the Rio Claro Learning and Development Centre for Special Children. Talisman (Trinidad) and the Canada Fund for Local Initiatives provided direct funding. UNDP will coordinate an outreach program for the families of the children attending this school. This is Talisman (Trinidad)’s first collaboration with the United Nations in the spirit of the Global Compact and further projects with the UNDP are under consideration.
In 2004, Talisman’s subsidiaries in Indonesia supported community programs in each area of its operations including Tanjung, Ogan Komering and Corridor. Tanjung project contributions included funding for kindergarten teachers and doctors, medical supplies and the provision of fresh water supply for local communities. The Ogan Komering operation continued its support of national sports week, the improvement of regional infrastructure and provided school supplies to local children. Corridor project contributions focused on infrastructure development and capacity building.
Talisman’s subsidiaries contributed to the Terry Fox Run in Malaysia (over 200 employees and contractors participated in the run). We also continued our support of beach and coral preservation. In Vietnam, Talisman’s subsidiaries contributed to scholarships for the less-fortunate and disabled children and cancer research.
Talisman’s Colombia community development work focused in and around our subsidiary’s indirect interest in the Tangara Block. Extensive community relations activities were conducted through Talisman (Colombia)’s co-venturer related to the drilling of the Tangara-1 well. Significant stakeholder consultations were carried out with communities, local associations and various levels of government. A number of workshops were also conducted in conjunction with the Red Cross and the Colombian National Health Director’s office.
Talisman (Peru)’s operating co-venturer in Block 64 has entered into two agreements with the OSHAM federation (the Federation) that represents the indigenous communities within the exploration area. These agreements establish ground rules for the relationship between the operator and the local communities during the exploration phase of the project. The 10 communities represented by the Federation voted to approve the drilling of up to eight wells and seismic activities within Block 64. In exchange, these communities are being compensated for the use of their land during the proposed exploration program. The Federation manages these funds and decides which community projects to support. These projects have ranged from awarding scholarships to the purchase of communications equipment, medical supplies and education materials. In addition, the Federation and the operator have jointly developed a code of conduct that regulates exploration activities and the interactions between the operator, contractors, workers and the local communities.
In 2004, significant progress was made on two proposed medical projects in the Hassi Messaoud region. Talisman (Algeria) B.V.’s operating co-venturer met with various stakeholders to review project proposals and seek input on potential areas of investment. Basic medical aid continues to be the greatest regional need. As such, we continue to explore potential investments in local hospitals.
In 2004, Talisman contributed about $18,000 to the Shafallah Centre for Children with Special Needs. “The donation is in accordance with the company’s Policy on Business Conduct and Ethics, which include commitment, beyond profitability, to maintain high ethical, environmental and social standards and support of the local communities,” said Roger Myers, Talisman Qatar General Manager.
Talisman opened its office in Doha, Qatar after being awarded block 10 offshore by Emiri decree in April 2003. The Company holds an exploration and production-sharing contract with Qatar Petroleum for an initial five-year exploration period and will commit $30bn in the search for hydrocarbons. The Company completed a 3D seismic acquisition program in block 10 in 2004 and will commence drilling operations in 2005.
Since the sale of Talisman’s indirect interests in Sudan in March 2003, the Company has continued to honour previously made commitments to the community development programs developed from 1999-2003. Today, the Unity State Model Farm, the Agriculture and Community Development Program and the Basic Adult Learning and Training programs endure as a testament to the Company’s commitment to improve education, health and economic realities for those Sudanese living near or within the Greater Nile Petroleum Operating Company concession. It is Talisman’s intent that the three remaining programs become self-sufficient. In the event they are not, the Community Development Legacy Office will endeavour to find funding partners. Talisman is committed to funding these programs through 2005.
The Unity State Model Farm and Agriculture and Community Development Program provide food security, improved agriculture training and an income source, derived from the sale of crops and animals. About 12,000 acres were ploughed and seeded in the GNPOC concession along the Nuba Mountains. The output is split amongst participating villagers and a community fund that can be used as needed for the mutual benefit of the villagers.
The first phase of the Basic Adult Learning and Training project concentrated on basic literacy for adults. This component continues but is now being complimented with secondary literacy training and life skills training. Life skills mainly focus on micro credit and other income generating activities. Successful participants of the initial programs now teach these programs. The graduates return to their respective villages and train future trainers. This process is more successful by teaching the skills in the respective villages rather than participants travelling to other villages – some of which are a considerable distance.