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Calgary's Verenex may soon be in hands of Chinese By Carrie TaitDecember 15, 2008 CALGARY -- Verenex Energy Inc., which opened up data rooms to potential suitors at the end of November, could find itself in the hands of China’s largest oil company in a deal worth US$300-million.China National Petroleum Corp. is bidding on the Calgary-based oil and gas junior, which has oil assets in Libya, according to a report in Hong Kong’s South China Morning Post. "We don’t comment on these kinds of rumours," said Jim McFarland, Verenex’s chief executive. He would not say whether CNPC is one of the companies reviewing Verenex’s books, citing confidentiality agreements with all potential bidders. "That process is still underway," he added.Indonesia state-owned energy company, Pertamina, which already has assets in Libya, is also reportedly pursuing a bid. Verenex owns a 50% stake in a large oil deposit named Area 47 in the Ghadames Basin in western Libya. Area 47 is estimated to contain upwards of 2.15-billion barrels of oil, according to the South China Morning Post. Production is set to commence sometime in 2011, the report said. The report of a Verenex bid follows others that Sinopec Group, the largest oil refiner in China, was trying to finalize a US$1.8-billion bid for Tanganyika Oil, which is also based in Calgary and owns assets in Syria.Tanganyika, which also trades on the Stockholm exchange in Sweden, saw its shares soar as much as 10% overnight on the report, according to Bloomberg News.
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