Libya bidding lower for Verenex against CNPCI offer

Libya is interested in buying Verenex Energy Inc., Calgary, for a reduced price compared with the $499 million (Can.) offer put in by CNPC International Ltd. (CNPCI).

Aug 28th, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 28 -- Libya is interested in buying Verenex Energy Inc., Calgary, for a reduced price compared with the $499 million (Can.) offer put in by CNPC International Ltd. (CNPCI).

Reports suggest that the Libyans want a 10% discount and Verenex is frustrated with the blockage by the country’s National Oil Corp. and the General People's Committee of Libya over the sale of the company to CNPCI.

The date for CNPCI’s purchase expired on Aug. 24, but neither party has ended the deal, Verenex said.

The company is prepared to file a lawsuit against the Libyan authorities arguing that the “consent cannot be unreasonably withheld.” It is still in discussions with the Libyan authorities to reach an amicable solution to the current impasse.

Verenex has warned that the sale terms might be changed or could be cancelled altogether.

In March Verenex said it would temporarily reduce the pace of its exploration program in Libya from the original 2009 budget adopted in October 2008 (OGJ Online, Mar. 11, 2009).

Contact Uchenna Izundu at uchennai@pennwell.com.

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