Calgary's Talisman Energy is good at finding oil. The company also has a talent for tapping into controversy while doing so.

Talisman is the third largest independent energy producer in Canada with operations around the world. In the late 1990s, Talisman made an investment to help the government of Sudan develop its oil fields. The company was targetted by human rights groups who accused Talisman of helping the government fuel its civil war against southern Sudan.

Eventually, Talisman wearied of the public relations battle - and, perhaps, of its discounted share price due to the negative publicity - and sold its Sudanese operations to India's national oil company in 2003.

Now, Talisman is in the media spotlight due to its activites in Peru. Talisman currenty operates three test wells in the area designated as Oil Block 64 by the Peruvian government in the northwest of the South American country. Full production is set to begin next year.

Recently, the leader of an indigenous group of Amazonian peoples travelled to Canada with members of the group Amazon Watch.

Peas Peas Ayui, head of the Achuar People's Federation, or FENAP, met in Calgary with the president of Talisman.

According to Gregor MacLennon of Amazon Watch, Ayui told Talisman president John Manzoni that his people want Talisman to stop oil drilling on their territory. MacLennon adds that Talisman must listen to local residents concerns.

Talisman's general manager of Peruvian operations, Alan Murray, says it has stopped activities in one area in response to FENAP's concerns. However, Murray disputes the claim that the Achuar represented by Peas Peas Ayui are directly affected by his company's work. And he says Talisman has signed agreements with other indigenous groups who are the owners of the land.

Nevertheless, Murray says Talisman welcomes the dialogue with the Achuar.

Jose Zorilla works for a Calgary-based company called the Human Environment Group.

Currently, he is conducting socio-economic impact studies of a natural gas development in southern Peru.

There is no Canadian involvement in that project. But Zorilla says the issues with indigenous communities are similar.

"In that area people have a love-hate relationship with the company," said Zorilla.

"They like the fact that they have motors for their boats, better houses, better health services... but they also have more access to alcohol and the social problems that brings, they have noise from helicopters every day, they are nervous that there will be a spill and kill ltheir rivers or get them sick."

Zorilla adds that the indigenous land claims process in Peru complicates the situation and that the Peruvian government agency that administers these indigenous areas is sometimes reluctant to get involved in disputes between the resource companies and the communities.

Talisman also calling for Peru's government to take a mediator's role.

Spokesman Alan Murray says the company wants the talks to take place in Peru with all parties involved.

For its part, Amazon Watch is warning there could be protests and the potential for conflict in the area if Talisman goes ahead with full-scale oil production and the construction of a pipeline next year.