Talisman Case in Iraq
Talisman 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 Talisman's scandal in Sudan, taking any other step into an unstable region carries a great risk.
II. The Problems 1. Talisman Energy Inc. started as a small independent oil company which needed to grow and expand internationally since that North America offered only limited growth potentials. 2. Talisman Energy Inc. has suffered a great loss not only financially but also the company's reputation was affected after NGOs accused Talisman of fueling the civil war in Sudan. Some of the major investors threatened to sell their shares if Talisman didn't leave Sudan. 3. The price of oil reached 130$ per barrel, while the world demanded for oil, oil companies had to enter sensitive environments and countries to search for oil. Talisman decided to enter Kurdistan of Iraq as it is an oil rich region. 4. Kurdistan has been trying to separate from the rest of Iraq for many years, but they couldn't do so because they were fought by Saddam Hussain and his troops. Now, they won't miss any opportunity to have their independence. 5. Iraq is still an unstable country with all what it went through during the war with Iran and the US invasion.
III. The Suggested Solutions Since that Talisman is looking for an oil-rich regions, and found that Kurdistan is a good place to invest they should take some steps to avoid any future conflicts and minimize the risks. These steps are as follows:
Talisman should be very transparent about where their money is going.
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 Talisman's scandal in Sudan, taking any other step into an unstable region carries a great risk.
II. The Problems 1. Talisman Energy Inc. started as a small independent oil company which needed to grow and expand internationally since that North America offered only limited growth potentials. 2. Talisman Energy Inc. has suffered a great loss not only financially but also the company's reputation was affected after NGOs accused Talisman of fueling the civil war in Sudan. Some of the major investors threatened to sell their shares if Talisman didn't leave Sudan. 3. The price of oil reached 130$ per barrel, while the world demanded for oil, oil companies had to enter sensitive environments and countries to search for oil. Talisman decided to enter Kurdistan of Iraq as it is an oil rich region. 4. Kurdistan has been trying to separate from the rest of Iraq for many years, but they couldn't do so because they were fought by Saddam Hussain and his troops. Now, they won't miss any opportunity to have their independence. 5. Iraq is still an unstable country with all what it went through during the war with Iran and the US invasion.
III. The Suggested Solutions Since that Talisman is looking for an oil-rich regions, and found that Kurdistan is a good place to invest they should take some steps to avoid any future conflicts and minimize the risks. These steps are as follows:
Talisman should be very transparent about where their money is going.