If the Iraqi Oil Ministry held its first licensing round after the fall of Saddam Hussein, were set several known oil reserves for money than at any other time in history. Attracted by the opportunity, began the chief executive of Engyn Oil & Gas (a fictitious company) ways to enter the Iraqi market. The CEO soon discovered that the endeavor was fraught with risks. The largest political minefield was the long duration power-sharing dispute between the Kurds in northern Iraq and Zen … Read more »

If the Iraqi Oil Ministry held its first licensing round after the fall of Saddam Hussein, were set several known oil reserves for money than at any other time in history. Attracted by the opportunity, began the chief executive of Engyn Oil & Gas (a fictitious company) ways to enter the Iraqi market. The CEO soon discovered that the endeavor was fraught with risks. The largest political minefield was the long duration power-sharing dispute between the Kurds in northern Iraq and the central government. During the Iraq war after the transition, the Kurds exploited ambiguity in the constitutional provisions of the country’s energy resources and conduct business independently of the central government with foreign oil companies. Baghdad rejected the validity of the Kurdish contracts and threatened every company that has a disqualifying condition by the Oil Ministry of the tender for new offers. If the Kurds Engyn offered a lucrative contract with disputed area near the flashpoint town of Kirkuk’s CEO was faced with a dilemma. Given two weeks to respond to the offer, had the CEO to determine whether the signing of a contract of uncertain legality aligned with the business Kurds was worth alienating the central government and lose access to valuable energy Iraq’s resources in the south of the country .

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from
Condoleezza Rice,
Amy Zegart,
Charles Nicas
Source: Stanford Graduate School of Business
19 pages.
Release Date: 14 September 2012. Prod #: IB102-PDF-ENG
Engyn in Iraq: the choice between Baghdad and Erbil HBR case solution