Libya buys Canada oil major after China withdraws bid
WASHINGTON — Libya is set to purchase a Canadian energy major.
Verenex Energy has agreed to a Libyan offer of nearly $300 million in
wake of troubles by the Canadian company.
Under the agreement the
state-owned Libyan Investment Authority would pay 314 million Canadian
dollars [$294 million], or 7.09 Canadian dollars [$6.64] per share.
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Executives said the Libyan offer was less than that offered by China's
state-owned CNPC International in early 2009. In September CNPC withdrew
from its bid to purchase Verenex.
In March 2009, Tripoli blocked a CNPC bid to purchase Verenex, Middle East Newsline reported. The
Canadian firm has been operating Area 47, said to contain 2.15 billion
barrels of crude oil.
In June, Libya's state-owned National Oil Corp. said
Verenex acquired Area 47 through an improper bidding process.