Allured by the opportunity, the chief executive of Engyn Oil & Gas (a fictional company) started investigating ways to enter the Iraqi market. The CEO soon discovered that the attempt was fraught with hazards.
The largest political minefield was the long running power-sharing dispute between the Kurds of northern Iraq and the central government. During Iraq's post war transition, the Kurds made deals with foreign oil companies independent of the central government and worked ambiguity in constitutional provisions regulating the nation's energy resources. Baghdad rejected the legality of the Kurds' contracts and threatened to disqualify any company that kept one from bidding on new deals through the Oil Ministry. The CEO was faced with a dilemma when Engyn was offered a profitable contract affecting contested territory near the flashpoint city of Kirkuk by the Kurds. Provided two weeks to respond to the proposal, the CEO must evaluate whether signing a contract of doubtful legality together with the business-friendly Kurds was worth alienating the central government and losing access to Iraq's most prized energy resources in the south of the state.
PUBLICATION DATE: September 14, 2012 PRODUCT #: IB102-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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