Our business strategy calls for the acquisition and development of assets in a number of countries to diversify our asset base and reduce the overall risk of our international investment portfolio. We prefer to enter target markets at an early stage and partner with local companies to establish a presence in our target areas of operation and facilitate stronger relationships with local government and markets. We seek operational and financial control of major decisions for development, production, staffing and financing for each project to ensure maximum returns on investment.


The events in Venezuela clearly demonstrate that one of the key elements to the success of an internationally focused upstream strategy is regional and country diversification. A key to weathering future geopolitical storms will be to create a quality portfolio with adequate diversity of political risk. We continue to believe that the truly transformational growth opportunities lie in countries that some deem “challenging,” and we continue to focus our growth efforts on those countries. In 2006, we broadened our growth focus to include selected countries in the Confederation of Independent States, the Asian sub-continent, the Middle East, North Africa and the Far East.