By Ebi Kesiena
A court in the United Kingdom has halted the sale and export of a South Sudanese crude oil shipment following the country’s alleged failure to repay a $100 million loan owed to international energy trader, BB Energy.
The High Court in London, presided over by Judge Christopher Butcher, on Friday issued an injunction preventing Juba from exporting a 600,000-barrel consignment scheduled to leave Port Sudan on 27 November. The order, dated 18 November, bars South Sudan from delivering, selling or disposing of the shipment until the court determines whether the government breached its financing agreement with BB Energy.
According to the Sudan Post, the disputed cargo, valued at about $20 million, is among the oil consignments BB Energy claims it is entitled to under a February 2024 financing arrangement. Under that deal, the firm advanced $100 million to South Sudan, with an understanding that the loan would be repaid through regular crude oil deliveries.
However, court filings cited in the report allege that South Sudan failed to meet its obligations, diverting crude shipments to other buyers instead of supplying the agreed volumes to BB Energy. The company claims the diversions resulted in substantial financial losses and forced it to seek legal redress in the UK to prevent what it described as “further dissipation of assets” meant to service the outstanding loan.
With the injunction now in place, the multimillion-dollar shipment will remain frozen pending further court hearings to determine whether South Sudan is in breach of the loan agreement and whether BB Energy is entitled to compensation or other remedial measures.
