London Blocks South Sudan Crude Oil Sale Over Unpaid $100 Loan

(LONDON) – South Sudan has been stopped from exporting a major crude shipment after a London court issued an urgent order in favour of global energy trader BB Energy, which is seeking to recover a $100 (one hundred million) dollar loan the government has not repaid.

The court decision, delivered on 18 November by Justice Christopher Butcher, prevents the government from selling or transferring a 600,000 (six hundred thousand) barrel cargo that had been scheduled for export on 27 November. The shipment is valued at more than $20 million (twenty million dollars).

According to the ruling, BB Energy paid South Sudan one hundred million dollars in February as part of a settlement linked to a dispute involving Petronas. In return, the government is said to have agreed to repay the loan through five cargoes of Dar or Nile blend crude during 2025. The company told the court that none of the promised shipments were delivered. Instead, the judge said the government sold available cargoes to other buyers, leaving BB Energy owed sixty one point five million dollars.

The injunction also prevents the transfer of the crude to EuroAmerican Energy in Dubai or Cathay Petroleum in Singapore. Both companies had shown interest in buying the shipment but had not made any advance payments.

South Sudan did not appear before the court and has not responded to legal notices from BB Energy. Justice Butcher said there were concerns over the ability of the government or Nile Petroleum, which guaranteed the deal, to compensate the company if the case proceeds. He also pointed to the difficulty of enforcing financial rulings in South Sudan and mentioned concerns linked to corruption.

The case draws renewed attention to South Sudan’s dependence on oil backed loans. Estimates from July place the country’s outstanding oil linked debt at about two point three billion dollars, involving lenders such as Afreximbank, QNB and the UAE based trader Nasdec. Other disputes involving Vitol and Afreximbank have also come to light as the government seeks more than two point five billion dollars in fresh borrowing from Chinese and Indian state oil firms.

A United Nations report from September warned that South Sudan has lost nearly $390 Million (three hundred ninety million dollars) in potential revenue due to discounted crude sales and increased caution among financiers asked to support the country’s oil exports.

The blocked sale adds further pressure at a time when the country is already dealing with weakened production, transit disruptions and tight liquidity. Industry analysts say continued reliance on advance oil payments may limit future earnings and restrict the government’s capacity to fund essential services.

BB Energy Wins Injunction Against South Sudan in Oil Case