Verenex deal heads to international court?

TRIPOLI, Libya, June 30 (UPI) -- The National Oil Co. in Libya accused Canadian-based Verenex Energy Inc. of improper bidding maneuvers, delaying a pending sale to China.

Libya said it was investigating claims that Verenex was improperly pre-qualified for bidding rounds for oil fields in Libya under a 2005 deal.

Verenex in a statement on its Web site said it "vigorously denies" the allegations and finds them without merit.

Verenex and China National Petroleum Corp. had moved in February on a $499 million takeover deal, and complaints by Libya to the Chinese company could further delay the acquisition, The Tripoli Post reports.

The delay could mean the deal could be postponed or canceled. Meanwhile, Verenex said if talks with the Libyan government do not provide any concessions, they would take the matter before an international arbiter.

"We believe we have a strong case in the event that we go there," Verenex Chief Financial Officer Ken Hillier told the Post.