Talisman Energy Inc. ( TLM - Analyst Report ) announced plans to wind up its activities in Peru, putting an end to the company’s eight-year-long efforts to establish an operation base in the country.

The company’s Peruvian subsidiary – Talisman Peru B.V. – has decided to stall its exploration activities in the Maranon Basin. Talisman enjoyed operating rights in Blocks 64 and 103, while it had non-operated interests in Blocks 123 and 129.

Talisman management affirmed that although the company encountered some light oil in Block 64 in Situche Central field, it failed to set up a strong material resource base in the western South American country.

While the company shared a healthy rapport with the Peruvian government and local authorities, Talisman faced criticisms from the environmental non-governmental organizations for conducting operations without the approvals of indigenous groups.

Calgary, Alberta-based Talisman will work toward completing its ongoing commercial contracts and handing over the licenses of the fields to new operators, before exiting the country.

An independent oil and gas exploration and production company – Talisman – has solid business in Western Canada and in the U.K. North Sea, while offering exposure to some of the most prospective unconventional natural gas plays in North America and high-impact exploration prospects worldwide..

In late July, China Petroleum and Chemical Corporation ( SNP - Analyst Report ) , aka Sinopec agreed to purchase a 49% stake in the North Sea assets of Talisman for about $1.5 billion.

Over the last few years, Talisman has been disposing its non-core oil and gas properties around the world, thereby freeing up capital to concentrate on longer-term oil and gas prospects in prolific regions across the globe such as Canada, the U.S. and Southeast Asian belt.

Talisman holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Moreover, considering the fundamentals on the long run, we maintain our Neutral recommendation on the stock.