In this article, I will focus on Harvest Natural Resources Inc (NYSE:HNR) and the financial risks related to an oil company without any real revenue for the past 3 years. The Company owns or owned about 3 different oil assets that I will cover here.
1 - Venezuela asset.
HNR owns a 32% interest in Petrodelta (HNR energia, Venezuela) which is a joint venture or JV, forced by the Venezuelan Government in 2007.
The majority owner is PDVSA, the Venezuelan state-owned oil and natural gas company, which exercises most of the control over Petrodelta's operations. PDVSA has been managing very poorly the JV, providing insufficient monetary support in capital expenditures and falling behind in payments to contractors...
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