Talisman Energy and its Sudan Investment

Authors: Burton, B; Globerman, S
Source: The Case Research Journal
Year: 2005
Number of pages: 18

[This document has not yet been rated] [You must be signed in as faculty to rate this document]   1581 views

Abstract:

Calgary, Alberta-based Talisman Energy is facing a public-relations nightmare and an ethical dilemma concerning its investment in the Greater Nile Petroleum Operating Company (GNPOC), a joint venture operating in Sudan. Talisman's 25 percent interest in GNPOC is profitable and stands to become more so, as Sudan's vast oil reserves are tapped. However, religious and secular human-rights activists have attacked Talisman's involvement in Sudan as promoting abuses, including forced displacement and slavery, through its indirect financial support of the Sudanese government in its civil war with southern rebels. Talisman argues in favor of a policy of constructive engagement in Sudan. The US government is moving closer to placing sanctions on Talisman that would prevent the firm from raising capital in US capital markets. Talisman executives must decide whether this profitable investment should be kept, or whether the ethical and/or public-relations problems make the investment too problematic.