Talisman Energy Inc. (Talisman) can be an independent Canadian oil and gas manufacturer. Talisman is a company that has been through a great deal of criticism due to their negative experience in Sudan in previous years. They were falsely accused of numerous things such as fueling the civil battle, believing the Sudanese Govt was applying oil income to purchase tools, and of staying complicit in human rights abuses due to fees and royalties paid out to the authorities for the rights to learn oil and gas. Now, Talisman can be faced with your decision of whether or not they have to enter into Kurdistan, knowing that the same thing can happen presently there as it performed in Sudan. The KRG is seeking $220 million in exchange intended for allowing Mascota to search for oil reserves. Not knowing what the KRG will use the money for, many people to improve monetary development as well as to purchase tools creates a problem for Mascota. The board of directors had first-hand experience of the damage to Talisman's reputation. With proper research and continuous re-evaluation from the situation in Kurdistan, Talisman should at this point find it better to discover personal risk and solve complications before that they arise. Trouble Statement
Talisman Energy Inc. has encountered problems in past times when entering into politically unpredictable markets in other countries. Now they are really faced with the decision whether to the oil-rich Kurdistan region of War, knowing you will find great risks associated with that. If they decide to enter in Kurdistan, will they do it with out facing similar problems because they did in Sudan? Examination
Talisman's affinity for pursuing olive oil exploration inside the Kurdistan area of Iraq has been molded by many factors. First being that Kurdistan is usually estimated to obtain 39 , 000, 000 barrels of oil stores. Second, Mascota was hopeful about the ability for overseas oil corporations to tap into Iraqi oil now that Saddam Hussein had been defeated. Finally, the Kurdistan area was viewed as drastically safer than the rest of Korea. Talisman Energy Inc. is a company who has encounter doing business in countries with high politics risk. Personal risk can be caused by turmoil and physical violence, terrorism and kidnapping, house seizure, insurance plan changes, and local content requirements (Wild & Wild, Worldwide Business, 2012). Corruption sometimes plays a role in foreign business. See table you for the Corruption understanding index. The bigger the CPI score the less corruptive the country can be. Table you Corruption Perception Index CountryCPI Score
Finland9. 0 to 10. zero
Canada8. 0 to 8. 9
United States of America7. 0 to 7. 9
Spain6. 0 to 6. 9
Hungary5. 0 to 5. 9
Greece4. 0 to 4. 9
Mexico3. 0 to 3. 9
Russia2. zero to installment payments on your 9
Iraq1. 0 to 1. 9
Mascota is now facing the decision of whether or certainly not they should get into Kurdistan provided the uncertainness in this kind of unstable place. Have they completed the proper research to proceed into War. Iraq is actually a region with high personal risk observe Exhibit 1 (Wild & Wild, Worldwide Business, 2012). Exhibit you Political risk around the World
In retrospect, should Talisman have gone into Sudan?
Mascota made a fantastic decision by entering Sudan. They were aware of the risks however the rewards were potentially substantial. It was that is why they got the chance. They were faced with a large number of challenges such as being blamed for impacting on the City War. Defeating these difficulties only built the company more robust and more proficient for comparable future conditions. What are the learnings in the Sudan knowledge?
Talisman learned a great deal through the Sudan encounter. They founded a dedicated Corporate Responsibility Group (CR) in answer to the incidents in Sudan. The CR group have got...