Talisman Energy Inc.

:
The decision to enter Iraq
Problem Statement
Independent Canadian oil and gas producer
John Manzoni weighs the pros and cons of
entering Iraq
Sudan experience

Stakeholders
Talisman
Renamed after British Petroleum
Small Independent Canadian oil and gas
producer
Limited resources
Domestic competition forced Talisman to
look outside Canadian market

John Manzoni
Chief Executive Officer of Talisman
Highly experienced individual
Assigned to find an alternative location
Wants to avoid earlier problems that arose in
Sudan

The Board Members
Present during Sudan Crisis
High risk, high reward
Determine whether or not Talisman will
operate in Iraq

Kurdistan Regional Government
Tumultuous history in Iraq
Distinct culture separates them from other
Iraqis
Recognized by U.S. government
Sought autonomy and established the KRG
Opposed by neighboring countries

Marathon Oil
U.S. based company
Discouraged from Investing in Iraq
Sold assets to WesternZagros

WesternZagros
Canadian Firm
Raised $180 million to fund its exploration in
Kurdistan
Talisman discussed with KRG to enter into a
joint venture with WesternZagros
Issues
Uncertainty of the $220MM fees
Sudan experience
Oil permits and licenses issued by KRG
Oil pipeline through southern Iraq

Issues
Issues cont
Security concerns
Political resistance
Limited funds and technology
Alternatives
Enter Into Kurdistan
Enter the Kurdistan region alone
Commence a joint operations agreement
with Western Zagros
Dont enter into Kurdistan
Continue financing the oil extractions in the
bituminous sands of Alberta
Invest money in researching other viable
options.
Recommendation
Enter the Kurdistan Region upon finishing all
precautionary steps


We cant really choose where we work. I think for a company of our size, which is not in the oil sands and is looking
to the international arena to continue its growth, from an exploration perspective, we are having to move into more
and more challenging environments.

- Meg Mahnas: Talismans ex vice president of corporate affairs

Steps:
Consult with Canadian & US governments before, during and after
entering Kurdistan
Consult any and all affiliated NGOs to establish transparency and gain
perspective on above ground risks
Establish relations with local broadcast media
Maintain public and transparent records of fees paid to KRG and how they
were allocated (?)