HOUSTON – 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.
Shares fell almost 35 per cent 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 Texas 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.