Recent exploration of the Gran Tierra Energy (GTE) in Peru found the large oil reserves with a noteworthy production capacity that would definitely generate a significant return on investment for GTE. The CEO of the company needed to plan for a forthcoming strategy session with company’s senior representatives.
However, GTE kept on encountering difficulties such as company’s transformation to new technologies. While entering in Brazil in 2009 the CEO had high expectations from the regions and he and his team supposed that they had precisely considered all the risk and threats exist in the region.
As the undeniably positive improvements in Peru, was dedicating the assets of GTE – somehow small vitality firm as compared to other major rivals - to Brazil operations still justified regardless of the risk? Could GTE turn the circumstance around or ought to the Chief prescribe a divestment of the Brazilian resources? Birgitte Grogaard is affiliated with the University of Calgary.
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