Talisman Energy Inc.: the Decision to Enter Iraq

656 Words3 Pages
Analysis Talisman Energy Inc. investment in Sudan in 1998 was not without its risks. The company faced a variety of scrutiny as well as knowledge whiles conducting business in a country with high political risk. To answer the problem statement on whether they should or shouldn’t enter Iraq, certain questions need to be asked and analyzed. In retrospect, should Talisman have gone into Sudan? Despite its success in extracting its first barrel of oil in July 1999, Talisman was accused of fueling the civil war, believing that the Sudan government used oil revenues to purchase weaponry. Talisman was also accused of being complicit in the genocide that was taking place in Sudan. This by no doubt has a great impact on Talisman’s reputation and caused a stir of controversy. However, it’s also a learning experience for the company when making future decisions and if ever they encounter similar situations they will be better equipped. What are the learnings from Sudan experience? Faced with a lawsuit and threats from major investors to sell shares, Talisman experience educated them on their shareholders sensitivity towards controversial investment. Despite all the controversy Talisman learnt from their mistakes which prompted the company to add the International Code of Ethics for Canadian Business to its existing corporate code of ethics, greater emphasis was placed on establishing a Corporate Responsibility (CR) which was especially important in the decision to enter Iraq. There mistake of investing in Sudan impelled Talisman to become signatory of the United Nations Global Compact as well as to the Extractive Industries Transparency Initiative (EITI). Talisman was also the first Canadian firm to join the Voluntary Principles on Security and Human Rights. How much money can Talisman make by entering Iraq? Talismans gathering of a strong senior management
Open Document