Karoon Energy faces extended 12% Brazil export tax
Key points
- The Brazilian government extended its 12% export tax on crude oil until Dec. 31.
- Karoon Energy shares slipped 0.8% to $1.57 following market reaction to extended offshore levies.
- Karoon stated it will continue to select end markets that yield the highest net realized price.
Karoon Energy (ASX:KAR) faces extended fiscal headwinds after Brazil lengthened its 12% crude oil export tax through Dec. 31.
The policy lengthens a temporary measure originally implemented on March 12 that equates to a 7.92% levy after corporate tax deductions.
Karoon stated that the business will continue to direct oil shipments to whichever end markets deliver the highest net price.
The extension prolongs cost obligations for offshore producers selling Brazilian oil overseas through the close of the calendar year.
Following the announcement, the Karoon Energy share price was down at $1.57.
The producer generates substantial cash flows from its key offshore Baúna oil production asset located in the Santos Basin.
Karoon is simultaneously evaluating regional expansion prospects, including engineering studies on its nearby Neon offshore oil discovery.
