Talisman Energy Selling Non-Producing Oil Assets in Peru

Talisman Energy Inc. (TLM), the oil and gas producer whose new Chief Executive Officer Hal Kvisle pledged to “rationalize” the company on Sept. 10, will sell its non-producing oil assets in Peru and is in talks with potential buyers.

The Calgary-based company didn’t get “competitive bids” for its entire position in the South American country in a process that ended on Sept. 11 and began in the spring, and is now “in discussions with several parties” to sell stakes in individual blocks, Phoebe Buckland, a company spokeswoman, said today in a phone interview.

“We’ve been unable to build a material resource position in Peru,” she said. Talisman made a light oil discovery in the Block 64 area that the company operates and is exiting Peru to focus on near-term production of natural gas liquids, Buckland said.

Kvisle, the Talisman director and former CEO of pipeline company TransCanada Corp. (TRP), said in an interview on Sept. 10, the day he took over from John Manzoni, that the company had too many assets and needed to rationalize, continuing to focus on North America, the North Sea and Southeast Asia.

Talisman is the operator of two blocks in the area and has non-operated interests in two other blocks in northern Peru, where it has been exploring since 2004, according to a statement issued in the country and posted on the company’s website.

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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