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March 30 (Reuters) - Oil and gas producer Harvest Natural Resources Inc, which is facing a severe cash crunch, said it was considering restructuring as a planned sale of its remaining Venezuelan assets was blocked by the local government.
Harvest has tried twice to sell its Venezuelan assets. The company holds a 20 percent stake in Petrodelta, a joint venture with state-owned Petroleos de Venezuela SA.
PDVSA's failure to pay dividends and other contractual breaches resulted in liquidity constraints, Harvest said on Monday.
The company also reported a much wider fourth-quarter loss, mainly as it wrote down the value of its stake in Petrodelta.
Harvest said it was in talks with PDVSA to reach an "amicable exit from Petrodelta", but warned of arbitration if the talks did not lead to a "fair and equitable solution" for its shareholders.
The company said in January that its affiliates had withdrawn an arbitration request against Venezuela related to the proposed sale of its Petrodelta stake to Argentina's Pluspetrol.
Harvest's previous attempt to sell its Petrodelta stake to Indonesian oil company Pertamina fell through in 2013.
Harvest reported cash and cash equivalents of $6.6 million at the end of Dec.31, a massive drop from $120.9 million a year earlier.
The company said its financial statements had been prepared under the assumption that it would continue as a "going concern" - an accounting term for a company's ability to stay afloat and pay its obligations.
Harvest shares were down 1.4 percent at 45 cents in early trading. (Reporting By Manya Venkatesh in Bengaluru; Editing by Saumyadeb Chakrabarty)