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<FILENAME>h12356exv10w18.txt

<DESCRIPTION>EMPLOYMENT AGREEMENT - KARL L. NESSELRODE

<TEXT>

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                              EMPLOYMENT AGREEMENT





This Employment Agreement ("Employment Agreement"), effective November 17, 2003

is between Harvest Natural Resources, Inc. (hereinafter sometimes called the

"Company") and Karl L. Nesselrode, a resident of Texas, ("Employee"), the terms

and conditions of which are 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 November 17, 2003 and ends on May 31, 2005.

On May 31, 2005, and on each anniversary 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 Vice President

                  Engineering and Business Development 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.



3.       COMPENSATION AND BENEFITS.



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

                  Employee' yearly base salary shall be not less than $170,000

                  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.





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         (b)      Signing Bonus. Employee shall receive a signing bonus of

                  $20,000 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 Options. As of November 17, 2003, Employee was granted a

                  stock option to purchase 36,000 shares of the Company's common

                  stock under the Company's 2001 Long-Term Stock Incentive Plan

                  at the closing price on November 17, 2003 for the common stock

                  of the Company as reported in the Wall Street Journal.

                  Employee's right to exercise this option shall vest over a

                  three (3) year period: 12,000 shares on November 17, 2004;

                  12,000 shares on November 17, 2005; and 12,000 shares on

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