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Ivey Publishing
Talisman Energy Inc.: The Decision to Enter Iraq
Product Number:
9B09M035
Publication Date:
05/13/2009
Revised Date:
07/02/2009
Length:
17 pages
Product Type:
Case (Field)
Source:
Ivey
In June 2008, the chief executive officer of Talisman Energy Inc. (Talisman) and his senior executive team met with the company's board of directors. The purpose of this meeting was to debate Talisman's proposed entry into the oil-rich Kurdistan region of Iraq. This move was potentially very lucrative for Talisman but was fraught with risks. These risks were exacerbated by Talisman's previous foray into Sudan; during that expansion Talisman had been accused of complicity in human-rights abuses, stemming from industry-accepted royalties and fees it had paid to the government. This payment of fees was held as an example by public interest groups to allege that Talisman was indirectly funding the Sudanese civil war. Talisman's reputation had suffered to the point where the ire of investors and U.S. and Canadian governments was sufficient for Talisman to exit Sudan in 2003. There were many questions about the proposed move to Iraq, including the political situation, the views of the U.S. and Canadian government, and especially the US$220 million fee payable to the Kurdistan Regional Government. Should Talisman enter Iraq, and if so, could they avoid experiencing the same outcome as Sudan?
Issues:
Corporate Responsibility; Risk Management; Political Environment; Sustainable Development
Disciplines:
General Management/Strategy,  International
Industries:
Mining, Quarrying, and Oil and Gas Extraction
Setting:
Canada;United States;Iraq;Sudan, Medium, 2008
Intended Audience:
Undergraduate/MBA
Price:
$3.95 CAD / $3.95 USD Printed Copy
$3.40 CAD / $3.40 USD Permissions
$3.40 CAD / $3.40 USD Digital Download
Associated Materials
Use With: 7B09M035 (15 min)
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