Libya creeps a bit further

Libya has been getting tough with foreign oil companies, and now in one stroke has screwed both Chinese and Canadian companies:

China National Petroleum Company said Tuesday that it was withdrawing its $460 million bid to buy the Libyan assets of Canadian oil producer Verenex Energy amid stiff resistance to the transaction from the Libyan government.

The Libyan government is now expected to acquire Verenex’s Libyan assets at a lower price than what the Chinese were offering. Verenex’s shares tumbled 19 percent on the news Wednesday.

This sort of meddling - not allowing a foreign owner to realize full market value for its holdings - will raise fears of a "creeping nationalization" of the nations oil assets, and may chill foreign investment (although some countries are still trying pretty hard).