Brazil extends crude oil export tax by 60 days
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- The Brazilian government has extended its 12% temporary crude oil export tax for an additional 60 days.
- Karoon Energy shares fell to $1.40 following the extension of the temporary export levy.
- The company will target specific end markets to achieve the highest possible realised net oil prices.
The Brazilian government extended its 12% temporary tax on crude oil exports for 60 days, impacting Karoon Energy (ASX:KAR).
The levy was introduced on March 12 and was originally scheduled to expire on July 9.
The oil industry continues to pursue legal challenges against the policy to secure refunds for all paid taxes.
Shipments to European Union destinations are expected to receive a lower 6% tax rate under Mercosur trade rules.
The company stated it will select global end markets that yield the highest realised net price for production.
Following the announcement, the Karoon Energy share price was down at $1.40.
The international oil producer maintains active exploration and production assets across Brazil, Australia, and the United States.
