Harvest Natural Resources Inc (HNR:US). dropped the most in more than 23 years after announcing the termination of its planned $725 million sale of Venezuelan assets to Indonesia’s state-owned PT Pertamina.
Harvest Natural fell 41 percent to $5.45 at the close in New York, the most since Dec. 1989.
Indonesia’s government voted not to approve Pertamina’s purchase of Harvest Natural’s 32 percent stake in the Venezuelan Petrodelta SA joint venture, Houston-based Harvest Natural said in a statement today. The planned purchase also was subject to shareholder and Venezuelan government approval.
“We are disappointed,” Harvest Natural Chief Executive Officer James Edmiston said in today’s statement. “Harvest remains committed to exploring all possible alternatives to unlock the potential of our assets and maximize value for shareholders.”
Afdal Bahaudin, Pertamina’s investment planning and risk management director, declined to comment on the announcement.
Petrodelta’s six fields hold 221 million barrels of proved, probable and possible oil and natural gas reserves, according to Harvest Natural’s website.
Harvest Natural also operates in China, Gabon, Oman and Indonesia.
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