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Talisman Energy Inc. the Decision to Enter Iraq Essay

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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 to

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