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At Talisman, acting responsibly means using new technologies and innovation to create economic benefit in all our operations, finding ways of reducing our environmental impact and using industry best practice to extract oil from regions considered already exhausted or too costly. See below for examples.
In 2004, Talisman completed construction of a 10-megawatt, cogeneration power plant at our Edson, Alberta natural gas processing facility. The $21 million plant will be the first of its kind at a sour gas processing facility in Alberta and among the first retro-fits of an existing facility to cogeneration. The Edson natural gas plant is the largest Talisman-operated plant in Canada, processing about 200 mmcf/d.
The new cogeneration facility is more efficient than the existing plant in producing utility steam, reducing the amount of natural gas needed to operate the sour gas processing plant by 12%, or about 700 mcf/d. It will also produce 2 megawatts of electricity, more than is needed for operations and enough power to serve about 1,000 area homes. The project will also reduce the Edson plant’s direct carbon dioxide emissions by 22,000 tons a year and indirect emissions by 82,000 tons a year.
When Talisman first entered the North Sea oil and gas industry 10 years ago, many established global energy companies were looking to leave the area, citing diminishing reserves and high operating costs as prohibitive to long-term prosperity in the area. Talisman has employed innovation and existing infrastructure to create new value in this once mature basin and extend the life of our investments in the area.
In 2004, Talisman announced a $770 million development of two oil fields about 160 kilometres northeast of Aberdeen, Scotland. The fields will be developed using sub-sea tie-backs to existing facilities 55-kilometres away.
Talisman is one of the most active explorers in the North Sea Virtually all of Talisman’s North Sea growth has been the result of internally generated opportunities. Talisman has about 600 staff onshore at its North Sea headquarters in Aberdeen and 2,600 staff and contractors in Aberdeen, offshore and at its two oil terminals at Nigg and Flotta.
In 2004, Talisman (UK) announced plans to construct a $58-million deepwater wind farm demonstrator project adjacent to the Company’s Beatrice field, 25-kilometres off the east coast of Scotland.
“The existing infrastructure at Beatrice offers a unique opportunity to test the feasibility of wind farms in water depths of 35 to 45 metres, while optimizing the value of our existing facilities,” said Dr. Jim Buckee, President and CEO during the announcement. “We hope to show that it is possible to transfer complementary oil and gas skills into the offshore renewable energy business, providing additional opportunities for investment and employment in the North Sea.”
The demonstrator project will receive $7 million in funding from each of the Scottish Executive and the UK Department of Trade and Industry and $10 million from the European Commission. Talisman and their co-venturer in this project will each contribute over $17 million.
Initially, the two 5-MW turbines will provide electric power for Beatrice. During the five-year period of the demonstrator project, Talisman (UK) will collect performance data, look for ways to reduce costs and develop operating procedures. If the project is successful, Talisman (UK) will consider the construction of a full-scale offshore wind farm including building up to 200 turbines linked to the Beatrice platform. A commercial venture could generate almost 20% of Scotland’s current electricity demand (enough energy to power a million average UK homes) while extending the life of our Beatrice facility. The project is the largest renewable energy development in Scotland and could become the world's largest wind farm.
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In August 2004, Talisman’s subsidiary and its co-venturers announced an agreement for the sale of 2.3 trillion cubic feet of natural gas over a 17-year period from the Corridor project in Indonesia. The agreement and the resulting construction of a major pipeline linking the island of Sumatra with major gas markets in West Java will allow the commercialization of substantial incremental volumes of gas from the Corridor project. The natural gas sale underpinned further expansion of gas production and processing facilities at the Corridor project. This delivery of natural gas is expected to reduce air pollution in Jakarta and reduce the cost of power by replacing other fuels used for power generation, such as diesel.
In October 2004, a letter signed by Friends of the Earth Scotland, Amnesty International, the World Development Movement Scotland and the Centre for Human Ecology, was sent to the Scottish Executive questioning the government’s decision to provide funding to the Beatrice Wind Farm Project as a result of Talisman’s previous involvement in Sudan. Talisman is committed to addressing concerns such as these and improving dialogue with all stakeholders in an effort to improve understanding of our global activities. As such, Talisman continued its dialogue with Amnesty International following the receipt of the letter by the Scottish Executive, addressing their concerns regarding this particular project. If your organization would like to know more about what we’re doing, see the inside back cover of this Report for information on how to contact us.