Liquid Gold: Harvest Natural Resources
HOUSTON, June 21, 2012 /PRNewswire/ --Harvest Natural Resources, Inc. (HNR) (Harvest or the Company) today announced that its wholly-owned subsidiary,HNR Energia B.V., has signed a definitive Share Purchase Agreement (SPA) with PT Pertamina (Persero), the national oil company of Indonesia (the Buyer), to sell all of the Company's interests in Venezuela for $725.0 million in an all-cash transaction. Net proceeds from the sale are estimated to be approximately $525.0 million after deductions for transaction related costs and taxes.
The Buyer will purchase Harvest's 32 percent interest inPetrodelta, S.A. by purchasing HNR Energia B.V.'s 80 percent interest inHarvest-Vinccler Dutch Holding B.V. The effective date of the transaction is January 1, 2012.
The closing of the transaction is subject to, among other things, approval by the Government of theBolivarian Republic of Venezuela, the Government of Indonesia in its capacity as the Buyer's sole shareholder and a majority of the Company's stockholders. If all of the conditions to closing are not satisfied or not waived on or before March 21, 2013, either the Buyer or Harvest may terminate the SPA. The Boards of Directors of Harvest andPertamina have each approved the transaction.
James A. Edmiston, President and CEO of Harvest, said, "The signing of the SPA represents a significant step forward in the strategic alternatives initiative we began in 2010 and clearly validates the potential of Petrodelta's business and Harvest's twenty year partnership with PDVSA in Venezuela."
Edmiston continued, "This transaction will not only provide Harvest and its shareholders with numerous options for the future, but will also provide Petrodelta and PDVSA with a strong, well-financed international partner capable of contributing to Petrodelta's future growth."