Harvest Natural Resources, Inc. has announced that Harvest Vinccler, C.A. (HVCA), its 80 percent owned Venezuelan subsidiary, received $27 million in U.S. dollars and 58 billion bolivars (the local Venezuelan currency equivalent to $27 million U.S. dollars at the official exchange rate) as partial payment for its 2005 first quarter deliveries of oil and gas to Petroleos de Venezuela, S.A. (PDVSA). The amount of the payment due May 31, 2005 was $64 million.
Harvest President and Chief Executive Officer, Dr. Peter J. Hill, said, "While we acknowledge the delayed partial payment, the payment shortfall and receipt of a portion of the fee in bolivars are not consistent with the terms of our operating service agreement. We are hopeful of resolving the payment issues and negotiating other outstanding items to the mutual benefit of Harvest and PDVSA as we seek to transition HVCA to a mixed company."