Talisman Energy Inc. the Decision to Enter Iraq Essay

Executive summary: Before entering Iraq, Talisman must do their due diligence in order to maximize profits and minimize risks. Due diligence would require a thorough review of both surface and subsurface risks to successfully extracting oil from Iraq and bringing it to market. It is important that they clearly indicate what needs to be done. Given Talisman’s background in Sudan: 1) Being accused of indirectly giving weapons to the Sudanese government by the NGOs which created lots of media attention and bad press. 2) Talisman used their influence and adopted steps to stop human rights abuse in Sudan, leading them to become the largest independent oil and gas firm on the basis of revenue. 3) NGOs and Sudanese people formed a lawsuit†¦show more content†¦Current: in Iraq * As of 2008, the war in Iraq was far from over and there remained considerable, political unrest and the ongoing fighting was considered by many to be a civil war. * With ongoing fighting within Iraq and a relatively new government there is a substantial risk that the government may decide to expropriate the land and nationalize oil production. * Until the country is more stable and law enforcement is effective, there will be ongoing concerns having to deal with corrupt military, police and government representatives. * Within such an environment it would be difficult to ensure the safety of the company employees. * Infrastructure concerns regarding roadways, energy supply, health and communication abilities will add to the difficulties Talisman must factor into their decision. * Potential outside influences from NGOs will also have to be addressed. * However, the upside potential for profitability was enormous with geological surveys estimating Kurdistan reserves at 39 billion barrels. * Surface concerns were mitigated by a number of factors. * The removal of Saddam Hussein and a U.S. backed Iraqi government was considered proof of political stability, especially in the Kurdistan area, which was considered safer than the rest of Iraq. * The Kurds were anxious to advance their decades long desire for autonomy and toShow MoreRelatedTalisman Case in Iraq Essay739 Words   |  3 PagesTalisman Energy INC.: The Decision to Enter Iraq I. Introduction Any company that decides to expand internationally should consider many complexities that it might face. Because of the differences in political system, culture, surrounding environment, and many other factors, there might be great barriers for a firm to expand internationally. The CEO of Talisman Energy Inc and senior executive team have to convince the board of directors to enter Kurdistan region of Iraq. After TalismansRead MoreTalisman Energy Case Analysis1480 Words   |  6 PagesCase Analysis: Talisman Energy Inc: The Decision to Enter Iraq Talisman Energy Inc. after a failed oil venture in Sudan due to poor handling of public relations is contemplating entering Kurdistan after the Iraq War. The Sudanese fiasco was due to a portrayal of Talisman as a conspirator with the Sudanese government in perpetuating regional conflict and funding human rights abuses. The subsequent media firestorm and activist pressure spooked high-stakes investors who forced Talisman to withdraw.Read MoreCase Study6581 Words   |  27 PagesS w 9B09M035 TALISMAN ENERGY INC.: THE DECISION TO ENTER IRAQ Natalie Slawinski wrote this case under the supervision of Professor Pratima Bansal solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal