Harvest ends $725M sale of Venezuelan interests

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Associated Press

Posted on February 20, 2013 at 8:00 AM

Updated Wednesday, Feb 20 at 11:32 AM

HOUSTON (AP) — Energy company Harvest Natural Resources says it is dropping a planned $725 million sale of its Venezuelan interests to Indonesia's national oil company after that country's government declined to approve the deal.

Harvest says it is disappointed the deal fell through, and its shares fell almost 35 percent in premarket trading.

Harvest had announced the agreement in June between its subsidiary HNR Energia BV and Indonesian government-owned PT Pertamina.

It expected net proceeds of about $525 million from the deal. Harvest called the deal a big step forward in a strategic alternatives initiative that it started in 2010.

Harvest Natural Resources Inc. 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 dropped $3.16 to $6 in premarket trading Wednesday.

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