Crude Oil Marketing Agreement

As part of the marketing deal negotiations, Karoon and Shell West have now agreed on terms for Karoon`s $50 million Australian-level loan facility, and Shell West has been granted an internal loan clearance. This loan facility will be used as a reserve resource facility. Karoon will now try to finalize the credit facility documents on the usual commercial terms. These agreements are subject to the financial conclusion of the Baúna transaction and entry into the credit facility is subject to the conclusion of due diligence, as well as the negotiation and completion of the final documentation. Module Objective: The objective of this module is to examine how crude oil markets and prices are set on the basis of global and regional supply and demand, how organizations such as OPEC influence these markets, and how crude oil is sold and traded at the wholesale level. Robert Hosking, Managing Director of Karoon, said: „We are very pleased with the partnership with Shell to market and ship Baúna`s oil production. This agreement adds value to access to end buyers who currently buy similar oil grades from Brazil and allows Karoon to load onto larger ships, reducing transportation costs. Overall, Karoon expects net return prices for FOB Baúna production to remain higher. The commercialization agreement has a maximum term of 5 years and gives Karoon access to Shell West`s global marketing and shipping platform, Karoon Energy Ltd („Karoon”), is pleased to announce that its 100% subsidiary Karoon Petróleo e Gás Ltda („KPG”) has signed a marketing agreement with Shell Western Trading and Supply Limited („Shell West”). a member of the Royal Dutch Shell plc group to trade and ship crude oil production from the Baúna field in Brazil. Rockhopper Exploration delivers Sea Lion Farm-in-Update ExxonMobil said it would abandon sale of Bass Strait assets in Australia The UK`s North Sea industry is calling for rapid support for a low-carbon energy transition.

Image: Royal Dutch Shell headquarters in the Netherlands. (Source: P.L. van Till on nl.wikipedia) Crude oil trading: Use of physical and financial contracts In this module you will find multimedia symbols as shown below. Click these icons to open flash videos, interactive media, or audio segments. Module Guide: To start this module, click „Preview” below. Please note that Petroleum Online is designed to be completed gradually. While you study learning and assessments in each section, the following section links are enabled…