Harvest closer to transferring assets to Venezuela company

Harvest Vinccler said the Venezuelan Ministry of Energy and Petroleum published a resolution defining the coordinates of six fields to be transferred to a mixed company.

Sept. 4, 2007

By OGJ editors
HOUSTON, Sept. 4 -- Harvest Vinccler, a unit of Harvest Natural Resources Inc. (HNR), said the Venezuelan Ministry of Energy and Petroleum published a resolution defining the coordinates of six fields to be transferred to a mixed company.

HNR and Corporacion Venezolana del Petroleo SA (CVP) are forming a mixed company, Petrodelta SA. Mixed companies are part of Venezuela's changing arrangements with international oil companies (OGJ, Apr. 25, 2005, p. 48).

The latest terms calls for Harvest Vinccler to contribute Uracoa, Tucupita, and Bombal field rights to Petrodelta. Harvest Vinccler has operated these fields since 1992.

In June, the Venezuela National Assembly approved the direct award of Isleno, Temblador, and El Salto fields to Petrodelta.

James A. Edmiston, HNR president and chief executive officer, said the resolution clears the way for the signing of a conversion contract, marking progress toward formation of Petrodelta and the eventual signing of a transfer decree.

HNR will own 40% of Petrodelta, and CVP will own 60% (OGJ, Apr. 24, 2006, p. 38).