(LONDON) – South Sudan is facing fresh legal action in London after international oil trading firm BB Energy filed a case accusing the government of failing to deliver crude oil under a pre-payment agreement. The case, lodged at a London court last month, highlights the country’s growing financial difficulties and ongoing disputes over oil backed deals.
According to court records and a spokesperson for BB Energy, the company took legal steps after South Sudan did not fulfil its contractual obligations. The contract was with South Sudan’s Ministry of Petroleum, and the agreement involved the government supplying crude oil in exchange for upfront financing. However, BB Energy claims the oil deliveries have not been made.
“They have defaulted on delivery,” the spokesperson said. “We are currently in the process of serving formal proceedings, but we are always seeking an amicable solution, especially given our long term interests in the country.”
So far, South Sudanese officials have not issued any public response to the lawsuit.
This is the second such case to emerge in recent months. In May, global oil trader Vitol also filed a case against South Sudan in London. That dispute reportedly involved a cancelled oil cargo and was later resolved, according to sources familiar with the matter.
These cases come amid broader concerns about South Sudan’s rising debt and economic instability. In May, a London court ordered the government to pay Afreximbank $657 million (about 3 trillion SSP at the current exchange rate of $1 = 4,600 SSP) following a loan default.
Public Debt Overview (as of 2023)
| Debt Category | Amount (USD) | Amount (SSP) |
|---|---|---|
| Total Public Debt | $3.7 billion | 17.02 trillion SSP |
| Owed to Oil Companies | $550 million | 2.53 trillion SSP |
| Afreximbank Judgment | $657 million | 3.02 trillion SSP |
The International Monetary Fund (IMF) estimates that South Sudan’s total public debt reached $3.7 billion by the end of 2023. Of that amount, approximately $550 million (around 2.53 trillion SSP) is owed to oil companies through similar pre-financing arrangements.
South Sudan, which is heavily dependent on oil revenues, has seen its production levels plummet in recent years. Before the civil conflict, the country produced between 350,000 and 400,000 barrels of crude oil per day. However, output dropped drastically to just 72,000 barrels per day last year, mainly due to a damaged pipeline that disrupted exports.
Oil Production Trends (Barrels Per Day)
| Year/Period | Estimated Output (bpd) |
|---|---|
| Pre-civil war peak | 350,000 – 400,000 |
| 2024 (damaged pipe) | 72,000 |
| June 2025 (recovery) | 138,000 |
Oil exports resumed in June 2025 following the repair of the pipeline, and production rose to 138,000 barrels per day, according to data from the Organisation of the Petroleum Exporting Countries (OPEC). However, the increase may not be enough to meet the country’s financial obligations or restore investor confidence.
In March this year, the government placed its petroleum minister and other key officials under house arrest, a move that raised further concerns about transparency and governance in the oil sector.
South Sudan continues to rely on oil as its primary source of income, but ongoing legal disputes, falling output and mounting debt are increasingly putting its economic future at risk.
