Karoon Energy shares tumble as Brazil extends crude export tax

The news: Shares in Karoon Energy slipped in afternoon trade after the oil and gas producer flagged a 60-day extension of Brazil’s temporary 12% crude oil export tax.

Shares fell 4.6% to $1.39 at 1:56pm AEST.

The context: The temporary levy, introduced on 12 March, was initially due to expire on 9 July, however the Brazilian government has now extended the date by 60 days.

Karoon stated that it will continue to pursue legal challenges to seek full refunds of all tax amounts paid since the policy’s inception.

Under the Mercosur-European union trade framework, any crude oil exports to the EU are eligible for a lower 6% export tax rate, which drops to 3.97% after tax. The company said it will continue to target destination markets that yield the highest realised net price.