Talisman Issues Corporate Social Responsibility Report

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FOR IMMEDIATE RELEASE:

Talisman Issues Corporate Social Responsibility Report

Independently Verified Report Sent to Shareholders

CANADA, ALBERTA, CALGARY, Apr. 12 -/E-Wire/-- Talisman Energy Inc. (NYSE:TLM - news; TSE:TLM) released its first independently verified Corporate Social Responsibility Report today. The report focuses on the Company's Sudan operations and measures compliance with the International Code of Ethics for Canadian Business that Talisman adopted in December 1999.

The Corporate Social Responsibility Report was developed with the assistance of experts in business ethics and social auditing. It evaluates Talisman's progress towards achieving objectives in the areas of human rights, community participation, employee rights, ethical business conduct and health, safety and environment.

The report was independently verified by PricewaterhouseCoopers, UK and includes stakeholder commentary gathered during the course of their work. The verification process included site visits to Khartoum, the concession area, a village along the pipeline and interviews with non-governmental organizations in Nairobi that operate in southern Sudan. PricewaterhouseCoopers also interviewed senior management, reviewed policies and processes and tested supporting evidence in the course of its review.

"We hope this report will be received as an honest effort to respond to concerns about our investment in Sudan,' said Dr. Jim Buckee, Talisman's President and Chief Executive Officer. "In preparing this report and having it independently verified we believe we have provided an accurate and balanced picture of what we have done in terms of social responsibility and what we are trying to do in Sudan. To the best of our ability, and with the assistance of stakeholders, we will continue to address social issues in a responsible and inclusive fashion.'

Talisman is one of the first Canadian companies to formally measure social performance against an established code of conduct. The report has established a comprehensive framework from which the company can expand the reporting process in future years.

"Sudan is a poor country in need of economic development and its long running conflict is a tragedy. We believe our actions meet with the standards set in the International Code of Ethics for Canadian Business. We also believe that we are helping the people of Sudan by providing employment and skills training, building local infrastructure, supporting further economic development, and by doing what we can to support peace and stability in the region.'

Talisman's commitment to corporate social responsibility is ongoing. As part of its social responsibility activities in Sudan, it will continue to advocate peace and the fair distribution of oil revenues, especially to the South, as well as continuing to publicly ask all parties to the conflict in Sudan to respect the rights of civilian populations and adhere closely to international human rights standards. Talisman's community development initiatives, including the provision of water wells, health clinics and schools in Sudan, will be expanded, and Talisman will continue to work with PricewaterhouseCoopers to improve both its program and the reporting process. Talisman will also work with non-governmental organizations and other stakeholders.

Talisman Energy Inc. is the largest independent Canadian oil and gas producer with operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also conducting exploration in the United States, Algeria, Trinidad and Colombia. Talisman has adopted the International Code of Ethics for Canadian Business and is committed to maintaining high standards of excellence in corporate citizenship and social responsibility wherever it does business. The Company's shares are listed on The Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.

A copy of Talisman's Corporate Responsibility Report 2000 can be found on the Company's website.

TALISMAN CORPORATE SOCIAL RESPONSIBILITY REPORT 2000

SUDAN OPERATIONS THE INVESTMENT IN SUDAN

Talisman Energy owns a subsidiary, Talisman (Greater Nile) B.V., which is in turn a 25% owner in the Greater Nile Petroleum Operating Company Limited ("GNPOC'). Other partners in the GNPOC consortium include a wholly owned subsidiary of the China National Petroleum Corporation ("CNPC' - 40%), a wholly owned subsidiary of Petronas (35%), the national petroleum company of Malaysia, and Sudapet Ltd. (5%), the national petroleum company of Sudan. Our share of GNPOC oil production accounted for 11% of Talisman's worldwide production in 2000.

OUR DEFINITION OF CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility means conducting activities in an economically, socially and environmentally responsible manner. It also includes working together with stakeholder groups to identify constructive solutions to shared problems. We believe that our operations bring direct benefits to the communities in which we operate including creation of jobs, expansion of local infrastructure and support of community projects that create opportunities for a better future. As a responsible business, we also believe it is our duty to observe and promote ethical business practices and advocate respect and tolerance by and for all people.

GOVERNANCE AND MANAGEMENT

Talisman signed the International Code of Ethics for Canadian Business (the "Code') in December 1999 to supplement its longstanding Corporate Code of Conduct. Corporate Social Responsibility activities and objectives have also been formalized within Talisman's governance and management systems by:

- Creating a dedicated Corporate Social Responsibility Group;

- Including Corporate Social Responsibility clauses, objectives and

targets in the performance contracts of senior executives

including the President and Chief Executive Officer;

- Providing regular updates to the Board of Directors; and

- Establishing a steering committee of senior executives including

the President and Chief Executive Officer and dedicated Corporate

Social Responsibility Group staff, which meets weekly to discuss

corporate social responsibility issues and the Implementation of

the International Code of Ethics for Canadian Business.

The Corporate Social Responsibility Report 2000 - Sudan Operations presents Talisman's efforts to demonstrate compliance with respect to the Code in Sudan in accordance with the terms established by a shareholder's resolution approved at Talisman's Annual Meeting on May 3, 2000.

To measure performance, Talisman first had to translate the Code into clear and definable actions that could be implemented in Sudan. This was done with the assistance of experts in business ethics, social auditing and international law.

The Amnesty International Guidelines for Companies, Social Accountability 8000, the United Nations Global Compact, the Taskforce on the Churches and Corporate Responsibility Benchmarks for Measuring Business Performance and the Global Sullivan Principles were also reviewed.

The Corporate Social Responsibility Report 2000 - Sudan Operations has been independently verified by PricewaterhouseCoopers and includes stakeholder commentary gathered during the course of their verification work. This commentary was selected by PricewaterhouseCoopers to represent a balanced range of opinions regarding Talisman and its investment in Sudan. The verification process included site visits to Khartoum, the concession area, a village along the pipeline and interviews with six Nairobi based non-governmental organizations based operating in southern Sudan.

OBJECTIVES ACHIEVED IN 2000

- Developed a draft framework for the provision of security in Sudan in consultation with a number of organizations

- Facilitated the adoption of a Code of Ethics by GNPOC which includes formal guidelines and principles for the protection of human rights

- Funded the Pipeline Compensation Committee to compensate people whose land use was affected by the pipeline

- Developed a detailed human rights monitoring and investigation program manual based on the Universal Declaration of Human Rights to address concerns arising from GNPOC operations

- Implemented a human rights awareness program for Talisman employees within Sudan

- Provided human rights and modern peacekeeping training to the four most senior GNPOC security staff and Talisman's human rights Field Coordinator at the Lester B. Pearson Canadian International Peacekeeping Training Centre

- Opposed non-defensive use of concession infrastructure including airstrips and roads

- Advocated the protection of human rights in Sudan in numerous meetings with Sudanese government officials and in public statements Community Participation

- Formalized a consultation process with members of local communities to explore opportunities for improvement in the areas of health, water, learning and capacity building

- Funded two separate community development programs (Talisman and GNPOC)

- Completed 15 independent Talisman projects for a total cost of $1,000,000

- Major concession area projects include Heglig hospital, five clinics, emergency relief, water wells and water storage and four schools

- Hired three dedicated community development employees

- Employed 100 Sudanese employees at Talisman's representative office in Khartoum at December 31, 2000

- Seconded human resources professionals to GNPOC to develop a formal Sudanization program to ensure that 90% of GNPOC employees are Sudanese nationals by 2007. Sudanese nationals held 72% of all skilled and unskilled positions at GNPOC at December 31, 2000

- Added a provision that promotes the use of local labour (people from the concession area) to GNPOC invitation to bid documents

- Drafted a procurement policy that gives preference to local suppliers

- Advocated to the Government of Sudan that the benefits of oil must be shared amongst all the people of Sudan and that a transparent process for the reporting of oil revenue expenditures should be established Employee Rights

- Developed formal training policies for local workers at Talisman and GNPOC

- Provided training for 1,159 participants in 67 different GNPOC programs

- Approved a $5,997,901 ($4,000,000 US) GNPOC 2001 training budget

- Adopted a formal policy to ensure that candidates are not discriminated against on the basis of specific ethnic or religious grounds

- Adopted a formal policy respecting the cultural, spiritual and social needs of local employees

- Drafted an employee grievance and disclosure policy and procedure

Ethical Business Conduct

- Implemented an Ethical Business Conduct Management System

- Provided training for expatriate employees in Sudan to facilitate the integration of the International Code of Ethics for Canadian Business in all policies and practices

- Promoted corporate standards regarding ethical business conduct within GNPOC Health, Safety and Environment

- Adopted Talisman's Health, Safety and Environment Policy at Talisman (Greater Nile) B.V.

- Initiated waste management improvements at Heglig, including collection and centralized containment of well workover fluids and spilled oil

- Established preventative maintenance programs, safety meetings and planned inspections

- Delivered over 600 person days of safety and loss control training to GNPOC employees

- Conducted an independent review of the GNPOC health, safety and environmental management system

In the first year the challenge was to create a framework (the Sudan Operating Principles) to implement the principles of the International Code of Ethics for Canadian Business within its Sudan operations. The Company will expand the reporting process in future years, utilizing the benchmarks and framework created in 2000 to present more quantifiable measurements. The recommendations provided by PricewaterhouseCoopers through their verification work will provide initial direction to improve both the program and the reporting process. The Company will also engage with its stakeholders to determine what they would like reported how, and to work with NGO's and other organizations to explore other methods and approaches to verification.

Talisman Energy Inc.

Talisman Energy Inc., David Mann, 403/237-1196, [REDACTED-EMAIL]

http://www.talisman-energy.com

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