Harvest Natural Resources, Inc. announced that Harvest Vinccler, C.A., its 80 percent owned Venezuelan subsidiary (HVCA) will experience a further delay in the payment for 2005 first quarter deliveries of oil and gas to Petroleos de Venezuela, S.A. (PDVSA). A payment in the amount of $64 million was due on May 31st, and
officials from PDVSA had assured HVCA that payment would be received during the week ending June 10th. HVCA has been informed by PDVSA that an agreement on the payment process to pay its contractors has been reached between PDVSA and the Venezuelan Central Bank. The Company understands that other oil and gas service contractors doing business in Venezuela have similarly had their payments delayed.
Harvest President and Chief Executive Officer, Dr. Peter J. Hill, said,
"We are disappointed with the delay, particularly in the face of repeated assurances from senior PDVSA executives. We will preserve all of our options for recovery in accordance with our contract. We remain hopeful and committed to finding a mutually satisfactory resolution to all issues with PDVSA and to the migration of our current agreement to a mixed company structure under the Organic Hydrocarbon Law."