- Karoon Energy (KAR) receives approval from the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) for its updated Baúna development plan
- This decision is expected to be formalised in the next few days and will be subject to signing an amendment of the current concession contract
- Once formalised, the reduced royalty rate will apply to all incremental production from the Baúna, Piracaba and Patola oil fields
- The updated royalty rates are expected to take effect from the beginning of the month
- Shares in Karoon are up 6.28 per cent, trading at $2.20 at 2:29 pm AEDT
Karoon Energy (KAR) has received approval from the Board of the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP) for its updated Baúna Area development plan.
This includes the intervention work recently completed and the ongoing Patola development, and the parties have agreed on a reduction in the royalty rate on the incremental production from the BMS-40 license which lies within the Patola oil field.
This decision is expected to be formalised in the next few days but will be subject to signing an amendment of the current concession contract.
Once formalised, the reduced royalty rate will apply to all incremental production from the Baúna, Piracaba and Patola fields resulting from the investments in the Baúna interventions and the Patola development.
“To encourage the ongoing development of mature oil and gas fields, ANP has reduced royalty rates on a number of late life fields onshore and offshore Brazil,” Karoon Energy CEO and Managing Director Dr Julian Fowles said.
“The successful Baúna field intervention campaign and the Patola development, which is currently underway, are aimed at doubling production from the field.
“The incremental revenues generated from this major investment will benefit all stakeholders.”
The updated royalty rates are expected to take effect from the beginning of October after the intervention programme was completed.
Shares in Karoon were up 6.28 per cent, trading at $2.20 at 2:29 pm AEDT.