Libya's Sovereign Wealth Fund to Take Over the Canadian Company Verenex Energy

摘要

Relations between producing countries and international oil companies have tended to evolve in favor of the former in recent years, but it is very unusual, not to say unique, for one of those countries to take over a foreign company operating on its soil. Yet that is what is due to happen in Libya following the announcement by Verenex Energy Inc. and the Libyan Investment Authority (LIA), the country's sovereign wealth fund, on 18 September that the LIA was to take total control of the Canadian independent. Verenex operates Area 47 in the Ghadames basin and has chalked up a series of exploration successes there. The two sides say they have signed a binding memorandum of understanding (MOU) regarding the takeover and that the LIA is paying Can$7.09 per share in cash for Verenex. A final agreement could be concluded towards 20 October.