Libya still not approved $460m Verenex takeover

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The proposed US$460 million takeover of the exploration and development company Verenex Energy by the China National Petroleum Corporation (CNPC) has still not received approval from Libya.

CNPC had given the Canadian company until August 24 to attain consent but as yet the North African state has remained silent.

"I think it's done, it's over," a Verenex shareholder is quoted by Reuters as saying.

"The Libyans have all the leverage -- they can do what they want and they are going to."

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Libya has the first refusal on buying Verenex, but while overtures have been made no concrete offer has been received.

In June ArabianOilandGas.com reported that the state-owned oil company National Oil Company (NOC) of Libya was to investigate allegations that Verenex was improperly pre-qualified to bid for the Exploration and Production Sharing Agreement that it was awarded in 2005.

In a statement published on the Verenex website, a spokesperson said that the company had received two letters from NOC saying that it was under investigation.

“Verenex considers these allegations to be without merit and vigorously denies them,” the statement said.

“No specific improprieties or details of the allegations have been provided to Verenex.”

“The company observes that the allegations are being made more than four years after the award of exploration rights in Area 47 under a transparent bid process and coincident with a request for consent for the sale of the company,” it added.