Traditional concession agreements before 1940 were granted to large territories, sometimes to the whole country, for example. B irak. These grants were long-term (50 to 99 years). The IOC has had all the discretion and control to explore and verify whether or not a particular field can develop. This did not result in delays, postponements or investments expected immediately. This was clearly contrary to the interests of host governments. Treaties do not provide for waivers of unexplored areas. Other more traditional concession agreements have granted the IOC “in situ” oil, with market and price powers. Royalties were flat or fixed for unit rates and were sometimes credited with income tax. There was no or little signing bonus and sometimes no income tax. These conditions have often been “frozen” for the duration of the agreement.

Karoon Energy Ltd (“Karoon”) is pleased to announce that its wholly owned subsidiary, Karoon Petéleo e Ges 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 market and ship crude oil to the Brazilian supply and supply field. As part of the marketing negotiations, Karoon and Shell West agreed on terms and Shell West obtained an internal credit authorization for a $50 million credit facility at Karoon`s Australian level. This lending mechanism will be used as a capital reserve mechanism. Karoon will now try to finalize the loan documents under the usual conditions. The oil and gas industry operates in countries around the world in accordance with a number of types of agreements. These agreements can generally be categorized into one of four categories (or a combination of categories): risk agreements, concessions, production sharing agreements (PSA, also known as production sharing contracts, PSCs) and service contracts. Participation agreements: the NOC is “carried” by an international oil company (IOC). The NOC weighs on the IOC by not fully compensating the IOC for the risks involved in exploration or for making a commercial discovery. The IOC suffers the total losses and therefore needs greater success to compensate, depending on NOC`s share, in the joint venture.

But the IOC benefits, for example, from the fact that the NOC is treated as a partner in nationalist treats. The marketing agreement has a maximum duration of 5 years and provides Karoon with access to Shell West`s global marketing and navigation platform. These agreements are subject to the financial conclusion of the transaction in Bana and entry into the loan facility is conditional on the completion of the diligence and negotiation and the completion of the final documentation.