1.0 EXECUTIVE SUMMARY

The following report outline research that will evaluate the goals and objective within organization. In doing so a series of interview with the relevant personal of Talisman (M) Sdn Bhd is done. Talisman Energy (Talisman) is an independent international upstream oil and gas company undertaking exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids (NGLs). Talisman was establish in 1992. The company primarily operates in North America, the North Sea, and Southeast Asia. It is headquartered in Alberta, Canada and employs over 2,600 people. The Malaysia branch is located at Menara Citibank Kuala Lumpur. Refer to appendix 1 for location and subsidiaries.

Talisman is listed on the Toronto and New York stock exchanges under the symbol TLM. Talisman is also part of the S&P/TSX 60 Index. At year end, the company value was over $16 billion with 1,1019 million shares outstanding

2.0 INTRODUCTION

The history of Talisman Energy (Talisman) dates back to 1953, when the company was established as BP Canada. It later became an independent company, in 1992. In the same year, Talisman Energy discontinued its mining operations in order to focus on its core areas. Talisman Energy (Talisman) is one of the largest independent oil and gas producers in Canada. Its main business activities include exploration, development, production, transportation, and marketing of crude oil, natural gas, and natural gas liquids (NGLs). It has about seven operating subsidiaries. Talisman has ongoing production, development, and exploration operations in North America, the North Sea, Southeast Asia and Australia, North Africa, and Trinidad and Tobago.

Talisman’s operations are conducted principally in five geographic segments: North America, UK, Scandinavia, Southeast Asia, and other. The company produced over 430,000 boe/d in 2008, approximately 50% oil and 50% natural gas.

The North America segment includes operations in Canada and the US. The UK segment includes operations in the UK and the Netherlands. The Scandinavia segment includes operations in Norway and Denmark. The Southeast Asia segment includes operations in Indonesia, Malaysia, Vietnam, Australia, and Papua New Guinea. The other segment includes operations in North Africa, Trinidad and Tobago, Colombia, Peru, and Qatar as well as other international exploration areas.

3.0 ANALYSIS AND FINDING OF THE SUMMARY SCENARIO

3.1 Company Goal and objective

In any planning process, objectives and goals must be carefully established. Starting from the proposed objectives and goals, the strategies to reach them will be outlined

The lack of clarity of the proposed objectives can compromise the whole sequence. According to Oliveira (2002), the objectives serve the following company purposes:

1. provide to people the feeling of a specific and adequate role in the company

2. give consistency to decision making among a large number of different executives;

3. encourage dedication and fulfillment based on expected results; and

4. supply a base for corrective actions and control.

In charting direction of the company Talisman Energy (Talisman) has set three priorities objectives. Refer Table 1

Developing long-term growth opportunities

Building high impact exploration

Continue focusing on current portfolio

Table 1 – Goal & Strategy

The main elements of Talisman’s objective are:

• To establish sustainable, profitable growth from its unconventional gas business in North America, as well as Southeast Asia, and Norway.

• To create an exploration portfolio, which contributes to renewal by finding material hydrocarbons over time.

• And to underpin this with sustainable sources of cash from mature areas, as well as focusing the portfolio.

Two main reasons the objective was introduced were to lower finding and development (F&D) costs, and to increase the reserve life index over time. F&D costs will be bought down in several ways:

• The unconventional business model has structurally lower F&D costs than the conventional gas business model.

• Talisman is looking to expand activity in Southeast Asia, where F&D costs are generally lower.

• If the exploration shift to larger prospects is successful, F&D costs will fall.

3.2 SWOT Analysis

Strengths