Harvest Natural Resources Inc. (NYSE: HNR) has announced that the share purchase agreement (SPA) between Petroandina Resources Corp. N.V., Pluspetrol Resources Corporation B.V., Harvest and HNR Energia B.V., a wholly-owned subsidiary of Harvest, for the purchase of Harvest's remaining interests in Venezuela for a purchase price of $275.0 million in cash has been terminated. The termination, according to a release from Harvest, was a result of the failure to obtain approval of the transaction from the government of the Bolivarian Republic of Venezuela by December 31, 2014.
As a result, Harvest will retain its 20.4% interest in Petrodelta and Petroandina will retain its 11.6% interest in Petrodelta, which it had purchased from Harvest for $125 million in cash on December 16, 2013.
James A. Edmiston, president and CEO of Houston-based Harvest, 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."
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