Document:

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                                                                   EXHIBIT 10.20

                         HARVEST NATURAL RESOURCES, INC.

                       2004 LONG TERM STOCK INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

         Agreement made at Houston, Texas, USA, as of _______________, by and
between HARVEST NATURAL RESOURCES, INC. (the "Company") and ___________________
(the "Optionee").

         It is hereby agreed as follows:

1.       Grant of Option; Consideration. The Company hereby confirms the grant,
         pursuant to Article 6 of the Harvest Natural Resources 2004 Long Term
         Incentive Plan (the "Plan"), to the Optionee on_____________, of a
         nonqualified stock option to purchase up to ____________________ shares
         of the Company's Common Stock, par value $0.01 per share (the
         "Shares"), at an exercise price of _____________ per share (the
         "Option"). The Option granted hereunder is not intended to constitute
         an incentive stock option within the meaning of Section 422 of the
         Internal Revenue Code of 1986, as amended. The terms of the Option are
         subject to adjustment in certain circumstances, as provided in the
         Plan.

         The Optionee shall be required to pay no consideration for the grant of
         the Option, except for his agreement to serve as a Non-Employee
         Director, Employee or Consultant of the Company or any Subsidiary and
         other agreements set forth herein.

2.       Incorporation of Plan by Reference. The Option has been granted to the
         Optionee under the Plan, a copy of which is attached hereto. All of the
         terms, conditions, and other provisions of the Plan are hereby
         incorporated by reference into this Stock Option Agreement (the
         "Agreement"). Capitalized terms used in this Agreement but not defined
         herein shall have the same meanings as in the Plan. If there is any
         conflict between the provisions of this Agreement and the provisions of
         the Plan, the provisions of the Plan shall govern.

3.       Vesting. Subject to all of the terms and conditions of the Plan and
         this Agreement, including acceleration of vesting in the event of a
         Change of Control or Total Disability, the Optionee may purchase up to
         _____________ Shares upon exercise of this Option on or after
         _____________, an additional _____________ Shares upon exercise of this
         Option on or after _____________, and the remaining _____________
         Shares upon exercise of this Option on or after _____________.

4.       Term and Termination of Service. This Option, to the extent it has not
         been previously exercised, shall expire at 5:00 p.m. (Central Time) on
         _____________ or, if earlier, at 5:00 p.m. (Central Time):

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         (i)      on the date 3 months after the Optionee ceases to be a
                  Non-Employee Director, Employee or Consultant of the Company
                  or any Subsidiary for any reason other than a Change of
                  Control, Total Disability or death;

         (ii)     on the date 12 months after the Optionee ceases to be a
                  Non-Employee Director, Employee or Consultant of the Company
                  or any Subsidiary by reason of Total Disability;

         (iii)    on the date 12 months after the date of the Optionee's death
                  who dies while in the service or employ of the Company or a
                  Subsidiary or within 3 months after the termination of such
                  employment or service; or

         (iv)     on the date 12 months after the Optionee's termination of
                  employment or service if such employment or service is
                  terminated within 730 days after the effective date of a
                  Change of Control.

         Except in the case of a termination subject to (ii) above, the Option
         shall be exercisable after the date of such termination of Optionee's
         service or employment only to the extent the Option was exercisable at
         the date of such termination. In the case of termination subject to
         (ii) above, any Options that are not exercisable shall become
         exercisable effective as of the termination date.

         Notwithstanding anything to the contrary in the Agreement, if and for
         so long as Optionee is subject to an Employment Agreement with the
         Company, then the terms of the Employment Agreement will govern the
         early expiration of the Option including, without limitation, vesting
         and expiration dates. In the event of any conflict between the
         Employment Agreement and the Agreement, the terms of the Employment
         Agreement shall govern.

5.       Option Exercise. The Option may be exercised in whole or in part (to
         the extent then exercisable) by contacting the Company's designated
         agent for processing Option exercises. An Option exercise must be
         accompanied by payment in full of the exercise price (i) in cash, (ii)
         through the withholding of shares of Stock (which would otherwise be
         delivered to the Optionee) with an aggregate Fair Market Value on the
         exercise date equal to the aggregate exercise price of the Option,
         (iii) a combination of a cash payment and such surrender of shares,
         (iv) by means of a broker-assisted cashless exercise to the extent then
         permitted under rules and regulations adopted by the Committee, or (v)
         in such other manner as may then be permitted under rules and
         regulations adopted by the Committee. As soon as practicable after the
         valid exercise of the Option, the Company shall deliver to the Optionee
         one or more stock certificates representing the Shares so purchased,
         with any requisite legend affixed.

6.       Non-Transferability. No right or interest of the Optionee in the Option
         shall be pledged, encumbered, or hypothecated to or in favor of any
         third party or shall be subject to any lien, obligation, or liability
         of the Optionee to any third party. The Option shall not be
         transferable to any third party by the Optionee otherwise than (i) by
         will or the laws of

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         descent and distribution, (ii) pursuant to a qualified domestic
         relations order as defined under the Internal Revenue Code or Title I
         of the Employee Retirement Income Security Act of 1974 ("ERISA") to an
         immediate family member, or (iii) to the extent authorized by the
         Committee, to an immediate family member of the Optionee who acquires
         the options from the Optionee through a gift.

7.       Compliance with Laws and Regulations. The obligation of the Company to
         deliver Shares upon the exercise of this Option is conditioned upon
         compliance by the Optionee and by the Company with all applicable laws
         and regulations, including regulations of federal and state agencies.
         If requested by the Company, the Optionee shall provide to the Company,
         as a condition to the valid exercise of this Option and the delivery of
         any certificates representing Shares, appropriate evidence,
         satisfactory in form and substance to the Company, that he is acquiring
         the Shares for investment and not with a view to the distribution of
         the Shares or any interest in the Shares, and a representation to the
         effect that the Optionee shall make no sale or other disposition of the
         Shares unless (i) the Company shall have received an opinion of counsel
         satisfactory to it in form and substance that such sale or other
         disposition may be made without compliance with registration or other
         applicable requirements of federal and state laws and regulations, and
         (ii) all steps required to comply with such laws and regulations in
         connection with the sale or other disposition of the Shares have been
         taken and all necessary approvals have been received. The certificates
         representing the Shares may bear an appropriate legend giving notice of
         the foregoing restrictions on transfer of the Shares, and any other
         restrictive legend deemed necessary or appropriate by the Committee.

8.       Tax Withholding. Whenever Shares are to be delivered upon exercise of
         the Option, the Company shall be entitled to require as a condition of
         delivery or payment that the Optionee remit or, in appropriate cases,
         agree to remit when due an amount sufficient to satisfy all federal,
         state, and local withholding tax requirements relating thereto. The
         Optionee will be entitled to elect to have the Company withhold from
         the Shares to be delivered upon the exercise of the Option, a
         sufficient number of such shares to satisfy the Optionee's federal,
         state, and local withholding tax obligations relating to the Option
         exercise to the extent then permitted under rules and regulations
         adopted by the Committee and in effect at the time of the exercise of
         the Option. In such case, the Shares withheld or the shares surrendered
         will be valued at the Fair Market Value at the time of the exercise of
         the Option.

9.       Optionee Bound by Plan. The Optionee hereby acknowledges receipt of the
         attached copy of the Plan and agrees to be bound by all the terms and
         provisions thereof (as presently in effect or hereafter amended), and
         by all decisions and determinations of the Committee.

10.      Binding Effect: Integration: No Other Rights Created. This Agreement
         shall be binding upon the heirs, executors, administrators and
         successors of the parties. This Agreement constitutes the entire
         agreement between the parties with respect to the Option, and
         supersedes any prior agreements or documents with respect to the
         Option. No amendment, alteration, suspension, discontinuation or
         termination of this Agreement

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         which may impose any additional obligation upon the Company or impair
         the rights of the Optionee with respect to the Option shall be valid
         unless in each instance such amendment, alteration, suspension,
         discontinuation or termination is expressed in a written instrument
         duly executed in the name and on behalf of the Company and by the
         Optionee. Neither this Agreement nor the grant of the Option shall
         constitute an employment agreement, nor shall either confer upon the
         Optionee any right with respect to his continued status with the
         Company.

                                               HARVEST NATURAL RESOURCES, INC.

                                               BY:
                                                    --------------------------
                                                      Peter J. Hill

                                               TITLE:        President and CEO
                                                       -----------------------

                                               OPTIONEE:

                                              --------------------------------

                                               DATE:
                                                      ------------------------

Attachment (copy of the Plan)

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                                                                   EXHIBIT 10.21

                         HARVEST NATURAL RESOURCES, INC.

                       2004 LONG TERM STOCK INCENTIVE PLAN

                       DIRECTOR RESTRICTED STOCK AGREEMENT

         Agreement made at Houston, Texas, USA, as of __________, by and between
HARVEST NATURAL RESOURCES, INC. (the "Company") and __________ (the "Grantee").

         It is hereby agreed as follows:

1.       Grant of Stock; Consideration. The Company hereby confirms the grant
         (the "Grant"), pursuant to Article 8 of the Harvest Natural Resources
         2004 Long Term Incentive Plan (the "Plan"), to the Grantee of
         __________ shares of Stock of the Company's Common Stock, par value
         $0.01 per share (the "Restricted Shares"). The Grant granted hereunder
         is not intended to constitute "performance based compensation" as that
         term is used in Section 162(m) of the Internal Revenue Code of 1986, as
         amended.

         The Grantee shall be required to pay no consideration for the Grant,
         except for his agreement to serve as a Non-Employee Director of the
         Company or any Subsidiary and other agreements set forth herein.

2.       Incorporation of Plan by Reference. The Grant has been granted to the
         Grantee under the Plan, a copy of which is attached hereto. All of the
         terms, conditions, and other provisions of the Plan are hereby
         incorporated by reference into this Restricted Stock Agreement (the
         "Agreement"). Capitalized terms used in this Agreement but not defined
         herein shall have the same meanings as in the Plan. If there is any
         conflict between the provisions of this Agreement and the provisions of
         the Plan, the provisions of the Plan shall govern.

3.       Restriction Period. Subject to all of the terms and conditions of the
         Plan and this Agreement, including the lapse of restrictions in the
         event of a Change of Control, the period during which the restrictions
         set forth in this Agreement and the Plan shall apply to the Restricted
         Shares shall commence on ____________ and expire on ____________ (the
         "Restriction Period"). At the end of the Restriction Period, all
         restrictions under the Plan applicable to the Restricted Stock shall
         lapse, and, subject to paragraph 7 of this agreement, a stock
         certificate for the number of shares of Common Stock equal to the
         number of Restricted Shares shall be delivered to you or your
         beneficiary or estate as the case may be.

4.       Restrictions. Restricted Stock will be represented by a Stock
         certificate registered in the name of the Grantee. Such certificate,
         accompanied by a separate duly-endorsed stock power, shall be deposited
         with the Company. The recipient shall be entitled to receive dividends
         during the Restriction Period and shall have the right to vote such
         Restricted Stock and all other stockholder's rights, with the exception
         that (i) the recipient will not

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         be entitled to delivery of the Stock certificate during the Restriction
         Period, (ii) the Company will retain custody of the Restricted Stock
         during the Restriction Period, (iii) none of the Restricted Stock may
         be sold, transferred, assigned, pledged or otherwise encumbered or
         disposed of during the Restriction Period and (iv) all of the
         Restricted Stock shall be forfeited and all of your rights to such
         Restricted Stock shall terminate without further obligation on the part
         of the Company unless your remain in the continuous service of the
         Company or a Subsidiary during the Restriction Period.

         Notwithstanding anything to the contrary in this Agreement, if a
         Non-Employee Director terminates service for Good Reason, the
         Restriction Period will continue and will lapse as if such Non-Employee
         Director had continued in service of the Company. As used herein, the
         term "Good Reason" shall mean a termination of service as a director
         due to (i) Total Disability; (ii) death; (iii) resignation as a
         director of the Company for any reason other than as a result of
         removal for cause by the board of directors of the Company; or (iv) the
         director does not stand for reelection or is not reelected at an annual
         meeting of stockholders.

5.       Non-Transferability. The Grant shall not be transferable to any third
         party by the Grantee otherwise than by will or the laws of descent and
         distribution.

6.       Compliance with Laws and Regulations. The obligation of the Company to
         deliver Restricted Shares is conditioned upon compliance by the Grantee
         and by the Company with all applicable laws and regulations, including
         regulations of federal and state agencies. If requested by the Company,
         the Grantee shall provide to the Company, as a condition to the
         delivery of any certificates representing Restricted Shares,
         appropriate evidence, satisfactory in form and substance to the
         Company, that he is acquiring the Restricted Shares for investment and
         not with a view to the distribution of the Restricted Shares or any
         interest in the Restricted Shares, and a representation to the effect
         that the Grantee shall make no sale or other disposition of the
         Restricted Shares unless (i) the Company shall have received an opinion
         of counsel satisfactory to it in form and substance that such sale or
         other disposition may be made without compliance with registration or
         other applicable requirements of federal and state laws and
         regulations, and (ii) all steps required to comply with such laws and
         regulations in connection with the sale or other disposition of the
         Restricted Shares have been taken and all necessary approvals have been
         received. The certificates representing the Restricted Shares may bear
         an appropriate legend giving notice of the foregoing restrictions on
         transfer of the Restricted Shares, and any other restrictive legend
         deemed necessary or appropriate by the Committee.

7.       Tax Withholding. Upon lapse of the restrictions applicable to the
         Restricted Stock (or if you make the election under Section 83 (b) of
         the Code to be taxed immediately upon the award of such shares), you
         must arrange for the payment to the Company of applicable withholding
         taxes resulting therefrom promptly after you have been notified of the
         amount due by the Company. If no election is made under Section 83 (b)
         of the Code, you must pay such withholding taxes or have Restricted
         Stock withheld upon the lapse of restrictions applicable to the
         Restricted Stock.

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8.       Grantee Bound by Plan. The Grantee hereby acknowledges receipt of the
         attached copy of the Plan and agrees to be bound by all the terms and
         provisions thereof (as presently in effect or hereafter amended), and
         by all decisions and determinations of the Committee.

9.       Binding Effect: Integration: No Other Rights Created. This Agreement
         shall be binding upon the heirs, executors, administrators and
         successors of the parties. This Agreement constitutes the entire
         agreement between the parties with respect to the Grant, and supersedes
         any prior agreements or documents with respect to the Grant. No
         amendment, alteration, suspension, discontinuation or termination of
         this Agreement which may impose any additional obligation upon the
         Company or impair the rights of the Grantee with respect to the Grant
         shall be valid unless in each instance such amendment, alteration,
         suspension, discontinuation or termination is expressed in a written
         instrument duly executed in the name and on behalf of the Company and
         by the Grantee. Neither this Agreement nor the grant of the Grant shall
         constitute an employment agreement, nor shall either confer upon the
         Grantee any right with respect to his continued status with the
         Company.

                                             HARVEST NATURAL RESOURCES, INC.

                                             BY:
                                                  ------------------------------
                                                    Peter J. Hill

                                             TITLE:       President and CEO
                                                     ---------------------------

                                             GRANTEE:

                                             -----------------------------------
                                             (Name)

                                             DATE:
                                                    ----------------------------

ELECTION (FOR U.S. CITIZENS ONLY):

As permitted under Section 83 (b) of the Internal Revenue Code of 1986, as
amended, I intend to make the following irrevocable election:

[ ]      I intend to make the election permitted under Section 83 (b) of the
         Internal Revenue Code of 1986, as amended, to be taxed immediately on
         the award of the Restricted Shares. I understand the consequences and
         procedures for making this election, and I understand that it is my
         responsibility to file the election with the Internal Revenue Service.

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[ ]      I do not intend to make the election permitted under Section 83 (b) of
         the Internal Revenue Code of 1986, as amended, and will be taxed upon
         the lapse of restrictions applicable to the Restricted Shares.

                                                     ---------------------------
                                                     Grantee

Attachment (copy of the Plan)

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