Harvest in new deal for Venezuelan assets

Harvest Natural Resources Inc. has reached an agreement to sell its Venezuelan interests and continues to seek a buyer for its remaining exploration and production holdings, which are in Gabon (OGJ Online, Mar. 30, 2015).

The company and a wholly owned subsidiary, HNR Energia BV, have entered a complex agreement with private investment firm CT Energy Holding SRL for the transfer of Harvest’s Venezuelan properties, held through equity affiliate Petrodelta SA.

Petrodelta produces about 43,000 b/d of oil from six fields in eastern Venezuela.

The new deal settles obligations Harvest incurred in a deal with CT Energy last June that provided funding needed to sustain Petrodelta’s operations and made CT Energy a 16.8% shareholder of Harvest.

At closing, CT Energy will deliver to Harvest $80 million in cash and a 6-month note for $12 million. It will cancel $30 million in debt and surrender its Harvest stock, recently worth $4.247 million, and warrants Harvest carries as a liability of 9.564 million.

CT Energy will receive a 51% interest in Harvest-Vinccler Dutch Holding BV, through which HNR Energia owns the Venezuelan interests.

Harvest has tried to sell its Venezuelan interest in the past and briefly sought international arbitration last year, saying resistance by the government impeded transactions and contributed to its liquidity problems. At the time, it said it was exploring restructuring options.

In Gabon, Harvest holds a 66.667% operated interest in a production sharing contract covering a 680,000-acre offshore block.

If it doesn’t find a buyer, the company said, it will “operate and develop those assets in the ordinary course of business.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...