In December 2013, Harvest Natural Resources and its wholly-owned subsidiary, HNR Energia B.V. (HNR Energia), have signed a SPA to sell, in two separate transactions, all of Harvest’s assets in Venezuela to Petroandina Resources N.V. and Pluspetrol Resources for an aggregate of $400m in cash.
The first transaction was closed by HNR Energia and Petroandina Resources for a cash purchase price of $125m while the closing of the second transaction for a cash purchase price of $275m was subject to approval by the Government of the Bolivarian Republic of Venezuela.
However, the agreement has now been terminated as the Government of the Bolivarian Republic of Venezuela has failed to approve the transaction by 31 December 2014.
Harvest president and CEO James Edmiston said: "After three years of our best efforts, we are both disappointed and frustrated that the sale of our interests in Petrodelta has once again been effectively denied by the Government of Venezuela and CVP.
"As a result of this development, in the near term, Harvest will focus on strengthening its balance sheet and exploring alternatives with regard to our interests in Petrodelta and Gabon. These actions may include efforts to monetize our Dussafu asset."
With the SPA termination, Harvest will now retain its 20.4% stake in Petrodelta while Petroandina will retain its 11.6% interest in Petrodelta, which was purchased from Harvest for $125m in December 2013.
