HNR Energia BV, a wholly owned subsidiary of US oil exploration company Harvest Natural Resources Inc (NYSE: HNR), has entered into a definitive share purchase agreement (SPA) that will see Indonesia’s national oil company PT Pertamina (Persero) pay USD725m (EUR578m) in cash for Harvest’s Venezuelan assets.
Under the terms of the transaction, PT Pertamina will acquire the 32% stake held by Harvest in Petrodelta SA through buying HNR Energia’s 80% holding in Harvest-Vinccler Dutch Holding BV. Texas-based Harvest said it expected the deal to produce net gains of about USD525m after transaction costs and taxes are deducted.
One closing condition is the receipt of approvals from the governments of Venezuela and Indonesia. The SPA can be terminated by either side in case that all closing conditions have not been met by 21 March 2013.
Harvest’s president and CEO James A. Edmiston described the entry into the SPA as a major step towards completing the execution of the strategic alternatives initiative Harvest launched in 2010. The deal is testament to Petrodelta’s potential and underscores the success achieved by Harvest and Petrleos de Venezuela SA (PDVSA) during their 20-year partnership.
Edmiston went on to add that the transaction would provide numerous future options for Harvest and its shareholders. Furthermore, it will give Petrodelta and PDVSA an international partner with the strength and financial means to ensure Petrodelta’s future success.