Human Rights
- WITH INTERESTS IN POLITICALLY AND SOCIALLY TROUBLED COUNTRIES AROUND THE GLOBE, WHAT STEPS DOES TALISMAN TAKE TO MITIGATE ISSUES THAT ARISE FROM THESE AREAS?
- While emerging issues are difficult to predict, Talisman has learned that due diligence prior to any investment is one of the best ways to mitigate potential issues in our operating areas. Prior to investment, Talisman performs an extensive evaluation of the technical and economic challenges as well as the commercial, legal, political, regulatory, environmental, security and human rights issues related to any investment opportunity. Our decision to invest is based on these above-ground evaluations as well as our resource assessments. Beyond pre-investment due diligence, Talisman also assesses and manages above-ground issues on an ongoing basis, including thorough stakeholder engagement and evaluation of operating performance against our PBCE, specifically the human rights and security components.
Ensuring Safety and Security
The safety and security of our employees and contractors is of paramount importance to Talisman. To ensure that security risks are minimized and that secure environments are established and maintained for our employees and contractors, Talisman continually revises and updates its security practices and policies, benchmarking them against international best practices. Talisman also audits its security practices regularly. In 2005, security audits were completed in Trinidad, Indonesia, Qatar, Sudan, Peru and Colombia.
Voluntary Principles on Security and Human Rights
Talisman's Security Policy incorporates the recommendations found in the Voluntary Principles on Security and Human Rights and provides employees with a framework for creating safe work environments, promotes respect for human rights and advances best practices with governments, joint venture participants and third parties. It also provides contractor personnel, or private security firms supplying security services on the Company's behalf with comprehensive policies and procedures for conducting security operations in accordance with Talisman's standards. Talisman continues to seek ways to further implement the Voluntary Principles throughout our operations and discusses issues related to the Voluntary Principles and their implementation with peer companies, NGOs and governments that are formally part of the Voluntary Principles process.
Implementing the Security Policy
In 2005, Talisman developed a comprehensive Security Manual to better equip senior management in its Indonesian, Qatar and Colombian operating areas with the knowledge and tools needed to address security issues as they arise. The Security Manual lays out security policy and various procedures for dealing with such issues as evacuations and threats to Talisman employees and facilities. The Manual also standardizes alert status across our operations, helping the Company better manage security threats, regardless of location. The Manual will be rolled out globally in 2006.
Participating in Human Rights Dialogue with the United Nations
In 2005, the United Nations High Commissioner for Human Rights appointed John Ruggie as a Special Representative on Human Rights and Transnational Corporations and Other Business Enterprises. His mandate includes, among other things, a request "to identify and clarify standards of corporate responsibility and accountability for transnational corporations and other business enterprises with regard to human rights". Mr. Ruggie invited a select number of global companies in the extractive sector, along with NGOs, academics and experts, to participate in a two-day sectoral consultation on this issue. Talisman, along with three other Canadian companies, participated in this consultation. The issue of the United Nations and its role in addressing human rights and the business sector is important to Talisman and we will continue to engage on this issue with the UN.
Human Rights Advocacy in Colombia
In July 2005, senior Talisman representatives travelled to Bogota to continue the Company's advocacy for the implementation of the Voluntary Principles on Security and Human Rights in Colombia and to better understand the Government of Colombia's efforts to consult with indigenous communities in the Mundo Nuevo Block with respect to oil and gas activities. Meetings were held with Talisman (Colombia)'s co-venturers, the Colombian Association of Petroleum Producers, Ecopetrol (the Colombia state oil company), the Canadian and US embassies and the Office of the Vice- President of Colombia, which has responsibility for the co-ordination of human rights issues for the Colombian government.
Peru Joint Operating Agreement Foundation of Corporate Responsibility
In 2004, Talisman (Peru) secured specific corporate responsibility commitments in a Joint Operating Agreement related to its 25% non-operated interest in Block 64. These include provisions related to the Voluntary Principles on Security and Human Rights, transparency and use of sound industry management practices to minimize the environmental impact of the project. In 2005, Talisman (Peru) met twice with its project co-venturers through an Environmental and Community Relations Subcommittee to continue to closely monitor the human rights, security and environmental situation.
Security Issues in Trinidad
Talisman (Trinidad) developed a comprehensive security plan to ensure site integrity during construction and drilling operations in Trinidad's Eastern Block. A private security company was engaged to manage access to the sites and oversee general security procedures. The Trinidadian Police Service deployed officers to the sites and has been instrumental in maintaining good relations between the Company, contractors and the local population.
Indonesia
In Indonesia, long-standing security measures were reviewed in December to address the ongoing threat of security incidents. Although no major weakness in the security policy was identified, Talisman (Indonesia) takes the security of its people and assets very seriously and will, with the help of internal and external security consultants, continually evaluate its security measures for improvement. Security training is also provided on an ongoing basis, including a crisis management session.
Sudan Legal Update
Talisman continues to be subject to a lawsuit brought by the Presbyterian Church of Sudan and others commenced in November 2001 under the Alien Tort Claims Act in the United States District Court for the Southern District of New York (the "Court"). The lawsuit, which is seeking class action status, alleges that the Company conspired with, or aided and abetted, the Government of Sudan to commit violations of international law in connection with the Company's now disposed, indirect interest in oil operations in Sudan. On August 30, 2005, the Court denied Talisman's motion for Court approval to appeal the Court's prior denial of Talisman's motion for judgment on the pleadings, which sought dismissal of the lawsuit. Also on August 30, 2005, the Court declined to dismiss the lawsuit in response to the filing of a Statement of Interest by the US Department of Justice, expressing the US government's view that the lawsuit interferes with US-Canada relations. On September 20, 2005, the Court denied, for the second time, the plaintiffs motion to certify the lawsuit as a class action. On October 5, 2005, the plaintiffs filed papers to appeal the decision denying class certification. The Company has filed papers opposing the plaintiffs appeal. Talisman believes the lawsuit to be entirely without merit and is continuing to vigorously defend itself.
Evacuation of Sudanese Personnel
Due to localized violence as a result of the death of Dr. John Garang, the leader of the Sudan People's Liberation movement, in late July and concerns about possible deterioration in the security situation in Khartoum, Talisman temporarily closed its Community Development Legacy office in Sudan. After ensuring that local contractors and their families were secure in their homes with sufficient provisions, the Sudan Community Development Director was evacuated to Qatar. During the short period of unrest, the office provided sanctuary to orphaned children from a local school. The evacuation served as a successful evaluation of procedures and demonstrated the importance of good communications when removing people from a potential trouble spot, monitoring from a safe location and returning at the earliest and most appropriate time.
- Talisman works in several areas where the potential for security incidents is high.
-
As part of the Company's ongoing commitment to improved security practices, Talisman completed a Company-wide security exercise in 2005 involving senior management and key personnel from across the Company. Designed to gauge emergency preparedness, participants were presented with a mock emergency scenario in one of Talisman's international exploration areas and were required to respond based on established security procedures and protocols. The exercise was monitored by an independent third party, familiar with best practice in emergency response, and the Company's performance was graded for improvement opportunities. The exercise has helped strengthen Talisman's relationships with Canadian government agencies whose representatives contributed very useful insight. Lessons learned from 2005 are driving a strategic review of crisis management capability in 2006.