Harvest, Pertamina sign share purchase deal on Venezuela asset

By Romel S. Gurky

Houston-based Harvest Natural Resources Inc said its wholly-owned subsidiary, HNR Energia BV, has signed a definitive share purchase agreement with Indonesia?s state-owned oil and gas firm PT Pertamina for the sale of the former company?s interest in Venezuela for US$725 million.

Harvest said in a statement issued on Thursday that the net proceeds from the sale is estimated at $525 million after deductions of transaction related costs and taxes.

Pertamina will purchase Harvest?s 32 percent interest in Petrodelta SA by purchasing HNR Energia BV?s 80 percent interest in Harvest-Vinccler Dutch Holding BV. The effective date of the transaction is January 1, 2012.

The closing of the transaction is subject to, among other things, approvals by the government of Venezuela and the government of Indonesia in its capacity as sole sharasholder of Pertamina and majority stockholder of Harvest. If all of the conditions to closing are not satisfied or not waived on or before March 21, 2013, either Pertamina or Harvest may terminate the share purchase agreement, according to the statement.

Editing by Reiner Simanjuntak