Harvest Natural Resources sells stake in Venezuela
Harvest Natural Resources sells its stake in Venezuela to Indonesian company for $725 million
HOUSTON (AP) -- Harvest Natural Resources Inc. announced Thursday that it is selling its interests in Venezuela to the national oil company of Indonesia for $725 million cash through a shared purchase agreement.
The news sent shares of Harvest soaring in after-hours trading.
Under the arrangement, PT Pertamina will buy Harvest's 32 percent interest in its Venezuelan affiliate Petrodelta S.A. by purchasing the 80 percent stake that Harvest subsidiary HNR Energia B.V. has in Harvest-Vinccler Dutch Holding B.V.
Harvest expects to net proceeds of roughly $525 million from the deal.
The boards of both Harvest and Pertamina have approved the transaction; it still needs the approval of the Venezuelan government,
Harvest CEO James Edmiston said the deal is a significant step forward in the strategic alternatives initiative that the company began in 2010.
The energy company is based in Houston but has operations in Venezuela, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom.
Its shares jumped $4.12, more than 84 percent, to $9 in after-hours trading. Shares fell 40 cents to close regular trading at $4.88.
