“This has been described as the largest takeover by a Chinese company in the world, so very serious questions must be raised about the wisdom of such an unprecedented move,” May stated.  “We simply cannot allow strategic energy resources to disappear from Canadian control at such a rate and level with no real oversight.”

State-owned CNOOC was the first Chinese company to make a major acquisition in the Canadian oil industry when it purchased a 17-per-cent interest in MEG Energy for $150-million in 2005.  Then, in 2011, it expanded by acquiring OPTI Canada for $2.1-billion, giving it 35 percent of key assets like the Long Lake oil sands facility.  Nexen controls and operates the remaining 65 per cent of that site.

Foreign control of Alberta’s oil sands has reached a level that could very well be worrying.  This year, PetroChina bought out Athabasca Oil Sands Corp.’s remaining 40-percent stake in the MacKay River – and became the first Chinese company to have full ownership of an oil-sands project.  Last year, deals included Sinopec’s $2.2 billion purchase of Daylight Energy Ltd., its purchase of 9 percent of Syncrude, and CNOOC’s takeover of Opti Canada.

The Nexen mega-deal was announced almost at the same time as a $1.5-billion acquisition by China’s top refiner, Sinopec Corp., of a 49-per-cent stake in the North Sea operations of Talisman – one of Canada’s top oil and gas exploration companies.

“Chinese investment in Canada’s oil sands is not so much about opening new markets in China for Canadian products as it is about nationalizing our valuable resources by Beijing,” said May.  “With investor-state rules, giving corporations even greater power, now under negotiation between the two countries, we may be precluded from implementing more rigorous regulations.

“The prime minister’s eagerness to encourage Chinese investments has already led to gutting of environmental laws in Bill C-38.”

Not all countries are as willing as Canada to hand over their strategic energy interests.  In the US, a negative reaction forced CNOOC to withdraw an $18-billion (U.S.) bid for California-based Unocal Corp.

“The Harper Conservatives added the words ‘national security’ to the Investment Canada Act in 2009, but so far they have refused to define it and have rejected expert advice on the matter,” said May.  “They haven’t even clarified what they consider to be of “net benefit” to Canada when it comes to selling our non-renewable assets.

“We are losing control over energy ownership and planning as we court multi-billion dollar investments from enterprises intrinsically part of a foreign Communist government with an appalling human rights record.”

Anthony Campbell, former head of the Intelligence Assessment Secretariat of the Privy Council Office, wrote:  ‘The servility of Canada’s political leaders…to the obvious manipulations of Chinese strategists who flaunt world trade and financial market principles and jail democracy-promoting authors for 10-year terms is a national disgrace.”

Noting also that a Harris-Decima survey showed that 90 percent of Canadians oppose Chinese companies gaining a controlling interest in or completely taking over a Canadian-owned company, May called for a public inquiry into the Nexen purchase and the status and future of foreign interests in the oil sands.

“I know I’m not alone as I voice my concerns,” May concluded.  “This reckless sell-out cannot continue.”

The post May Demands Public Inquiry into Future of Strategic Resource – Latest Chinese Acquisition in Oil Sands Raises Serious Concerns appeared first on Elizabeth May.

May has met with the members of the Achuar, an indigenous group of people who are from a remote region of Peru where Talisman has been drilling exploratory oil wells since 2004.  A handful of communities in the region have allowed the drilling; however, a majority of the Achuar are opposed.

The Achuar have good reason for concern.  Other parts of the region have been contaminated by US oil companies discharging toxic substances into the watershed, as well as numerous oil spills.  Disease, tumours, skin problems and miscarriages are on the rise. 

“Many Achuar, adults and children, are dealing with severe health problems from exposure to highly toxic substances such as barium, lead and arsenic left behind by the oil companies.  They are simply asking to be left alone. They depend on clean water, clean soil, and uncontaminated fish and game. It is not too much to ask,” said May.

The situation is being monitored carefully by Amazon Watch, who calls the Achuar territory one of the most biodiverse places on earth.

“The Achuar have endured threats and intimidation in their peaceful opposition to the oil drilling.  The drilling needs to stop before things become violent,” said May.  The Achuar have brought charges against Talisman for orchestrating a confrontation between a group of armed pro-oil community members and protesters at a Talisman drilling platform.

“This is an issue of indigenous rights and corporate accountability.  Canadians need to pay attention to how our companies are doing business in other parts of the world, particularly as they are receiving support from the federal government,” said May.

Talisman has received loans from Export Development Canada (EDC) for the past six years of between $100 and $250 million per year.  Repeated calls for development of binding environmental, social and human rights standards for extractive companies that receive support from EDC for their overseas operations have failed.

The Achuar delegation is in Canada to attend the Talisman shareholders meeting in Calgary on May 1st.

The post Talisman Failing to Respect Indigenous Rights in Peru appeared first on Elizabeth May.