Petroleum trading company BB Energy has obtained an urgent injunction from the High Court in London, preventing South Sudan from selling about 600,000 barrels of crude that were scheduled for export at the end of November. The order follows the government’s failure to repay a $100m loan received in February 2024.
Global Trade Review, a platform focused on international trade and finance, reported on Tuesday that the shipment — valued at no less than $20m — was suspended because of the default in the oil prepayment contract.
The South Sudanese government had intended to use part of the loan, issued by a Dubai-based subsidiary of BB Energy, to resolve an earlier dispute with Petronas, Malaysia’s state oil and gas company.
Under the agreement, repayment was to be made through five cargoes of Dar blend or Nile blend, the two crude grades produced in South Sudan. None of these deliveries have been made.
Instead, BB Energy claims that some volumes were allocated to other buyers — a situation described in the High Court judgment based on evidence submitted by the company.
The UK court ruled that BB Energy could request suspension of the sale while the dispute is under review.
Court documents suggest the injunction is based on concerns that South Sudan may be unable to repay the amounts owed.
BB Energy estimates the outstanding debt at no less than $61.5m, excluding undelivered cargoes.
The judge noted that it would be unreasonable to rely later on damages that may not guarantee full recovery, given South Sudan’s apparent financial incapacity.
South Sudan’s oil sector crisis
South Sudan’s oil sector is facing its deepest crisis in years.
The civil war in neighbouring Sudan since 2023 crippled one of the main pipelines transporting South Sudanese crude to export terminals.
A rupture in early 2024 further disrupted flows, leaving the country unable to ship its oil — a commodity that accounts for over 90% of government revenue.
These disruptions have strained state finances and triggered fiscal distress, with salary arrears reported across the public sector.
A report by the Sudd Institute in October revealed that South Sudan faces several oil-backed loans and an external oil debt of up to $2.3bn, much of which remains unpaid.
The $100m loan involving BB Energy is one of these obligations.
Despite ongoing efforts to reach an amicable resolution, BB Energy has now been forced to defend its rights in court.
The High Court confirmed it will review the merits of the case, with the injunction remaining in place until a final ruling is issued.