Canada's Verenex Energy is running short of time to get Libyan approval for its $460 million sale to China, making some investors pessimistic that the deal will go ahead.

Verenex, a small Canadian oil company working in Libya, needs Libyan consent by August 24 for the China National Petroleum Corporation (CNPC) deal to go ahead. While Libya has said it will pre-empt the bid, it has not made a formal offer and has not given consent to the Chinese deal, according to a report in our sister newspaper Gulf Daily News.

Investors in Verenex were prepared for the possibly of the deal collapsing, but some said they still expected Verenex and the Chinese to continue to seek Libyan approval for the share sale.

'I think it's done, it's over,' said one holder of Verenex shares. 'The Libyans have all the leverage - they can do what they want and they are going to.'

Libya, home to Africa's largest oil reserves, has attracted interest from oil firms since most international sanctions were lifted in 2004. But Verenex's problem highlights that emerging markets are not for the risk averse.