Talisman Energy Inc. is an upstream oil and gas company located in Canada. Talisman purchased Arakis Energy in 1998 having the largest asset and a stake in GNPOC. After entering Sudan Talisman’s political and economic situation became insecure. They were accused for being part of and helping the Sudan Government with the civil war. They were also being blamed by the human rights commission in Sudan of providing of weapons; which ultimately led Talisman to sell their assets in Sudan. Talisman is now contemplating entering Kurdistan region of Iraq which could be a very beneficial move for them but also a huge risk because of the prior involvement in Sudan. The Kurdistan Regional Government is asking Talisman for $220 million for letting them search for oil in Kurdistan. Knowing the region of Iraq, Syria recently it is questionable what the $220 million will be used for, because it could be used for terrorist …show more content…
Entering the market generated a good return on investment for them but due to external factors their stock prices dropped. Talisman was able to calculate their financial risks well; having good relations with the government, financial partners were thrilled to back them up. Ultimately the risks they faced relating to legal structure, public relations and firm size were detrimental to their company and their reputation. It turned out to be an issue that dented Talisman’s character leading to media controversy and anti-oil protests made it worst. The civil war and genocide claims on Talisman tremendously hurt their reputation which made it a bad decision for Talisman to go into Sudan. This issue has helped the oil and gas industry because it was a mistake companies could learn from. In the end it was a bad decision by Talisman to have gone into Sudan to conduct business but this could be used as learning and can assist in decisions made in the