EMPLOYMENT AGREEMENT



      This Employment Agreement ("Employment Agreement" or "Agreement"),

effective September 1, 2004 is between Harvest Natural Resources, Inc.

(hereinafter sometimes called the "Company") and James A. Edmiston III , a

resident of Texas ("Employee"),



      WHEREAS, the Company desires to secure the experience, abilities and

service of Employee by employing the Employee in the position of Executive Vice

President and Chief Operating Officer of the Company upon the terms and

conditions specified herein;



      NOW, THEREFORE, in consideration of the premises, the terms and provisions

set forth herein, the mutual benefits to be gained by the performance thereof

and other good and valuable consideration, the receipt and sufficiency of which

are hereby acknowledged, the parties hereto agree as follows:



1.    TERM OF EMPLOYMENT.



      Subject to the terms and conditions set forth in this Employment

      Agreement, the Company agrees to employ Employee and Employee agrees to be

      employed by the Company for the term which starts on September 1, 2004 and

      ends on May 31, 2007. On May 31, 2007, and on each one-year period

      thereafter (an "Extension Date") the term of this Employment Agreement

      shall automatically be extended for a one-year period unless and until

      either party has given written notice to the other at least one year

      before any extension date that it or he wishes to terminate this Agreement

      as of such extension date.



2.    POSITION AND DUTIES.



      (a)   Position. Subject to annual election by the Company's Board of

            Directors, Employee's position shall be Executive Vice President and

            Chief Operating Officer of Harvest Natural Resources, Inc.



      (b)   Duties and Responsibilities. Employee's duties and responsibilities

            initially shall be those normally associated with Employee's

            position, plus any additional duties and responsibilities the

            Company initially may assign orally or in writing to Employee.

            Employee shall undertake to perform all Employee's duties and

            responsibilities for the Company and its affiliates in good faith

            and on a full-time basis and shall at all times act in the course of

            Employee's employment under this Employment Agreement in the best

            interest of the Company and Company's affiliates.



      (c)   The Company's Right to Change Position or Duties. Subject to the

            terms of this Agreement, the Company shall have the right, to the

            extent the Company from time to time reasonably deems necessary or

            appropriate, to change Employee's position, or to expand or reduce

            Employee's duties and responsibilities.



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3.    COMPENSATION AND BENEFITS.



      (a)   Base Salary. During the term of this Employment Agreement, Employee'

            yearly base salary shall be not less than $300,000 US (paid

            bi-weekly), which yearly base salary shall be payable from the

            Company's Houston offices to Employee in accordance with the

            Company's standard payroll practices and policies, and shall be

            subject to such withholdings as required by U.S. Federal law and the

            State of Texas, or as otherwise permissible under such practices or

            policies. Base salary for any partial period of employment shall be

            prorated. The Company shall annually review Employee's base salary.



      (b)   Signing Bonus. Employee shall receive a signing bonus of $50,000

            payable to Employee on the date of this Employment Agreement.



      (c)   Annual Bonus. Employee shall be eligible for such annual bonus as

            may be determined by the Human Resources Committee of the Company's

            Board of Directors and the Company's Board of Directors, which bonus

            shall be based on Employee's performance under the performance

            contract guidelines adopted by the Company, the Company's overall

            performance and any special circumstances the Human Resources

            Committee and the Board deem appropriate. Any such bonus is to be

            determined at the discretion of the Company's Human Resources

            Committee and the Board of Directors. Employee acknowledges that the

            Company is not obligated to award him any bonus in any year.



      (d)   Employee Benefit Plans. Employee shall be eligible to participate in

            the employee benefit plans, programs and policies maintained by the

            Company for similarly situated employees in accordance with the

            terms and conditions to participate in such plans, programs, and

            policies as in effect from time to time.



      (e)   Stock Option Award. As of September 1, 2004, Employee was granted a

            stock option to purchase 100,000 shares of the Company's common

            stock under the Company's 2004 Long Term Incentive Plan (the "Plan")

            at the average of the highest price and the lowest price on

            September 1, 2004 for the common stock of the Company as reported by

            the New York Stock Exchange. Except as otherwise provided herein,

            Employee's right to exercise this option shall vest over a three (3)

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