Karoon Energy Updates on Brazilian Crude Oil Export Tax
Key points
- Temporary 12% tax extended by 60 days
- Industry pursuing legal challenges for refunds
- Exports to EU may qualify for lower 6% tax
Full summary
Karoon Energy Ltd. announced that the Brazilian government has extended the temporary 12% (7.92% after tax) crude oil export tax by 60 days, which was set to expire on July 9, 2026. The industry is actively pursuing legal challenges to seek refunds for amounts paid under this tax since its inception on March 12, 2026. Additionally, any oil exports to European Union destinations may be eligible for the 6% export tax treatment (3.97% after tax) available under the Mercosur-European Union trade framework. Karoon Energy will continue to select the end market for its production that yields the highest realized net price.
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