Karoon Energy is partnering with Shell to trade and ship crude oil produced from its Baúna field off the coast of Brazil.
The agreement is for a term of up to five years and provides Karoon with access to Shell West’s global marketing and shipping platform.
Karoon Managing Director Robert Hosking said, “We are very pleased to be partnering with Shell for the marketing and shipping of the Baúna oil production.
“This agreement provides for value add through access to end buyers that are currently buying similar grade of oil out of Brazil and allows Karoon to co-load on larger vessels, reducing transport costs.”
As part of the agreement negotiation, Shell West has obtained internal credit approval for a US$50 million term loan facility with Karoon. It is intended that this loan facility will be used as a reserve working capital facility.
Karoon will now seek to finalise the loan facility documents under the usual commercial terms.