• South Sudan is being sued by BB Energy for failing to honor a prepaid oil delivery contract, marking the second major legal challenge after Vitol’s lawsuit earlier this year.

• The country's oil sector is under intense scrutiny due to a lack of transparency and controversial deals.

• South Sudan’s economy remains fragile and heavily dependent on Sudanese export routes.

Amid a worsening economic crisis, South Sudan faces a new legal challenge in the UK. Dubai-based oil trader BB Energy has filed a complaint in London against Juba, accusing the government of breaching a pre-financing crude oil contract. According to court filings seen by Reuters and confirmed by a company spokesperson, the lawsuit—filed in June 2025—targets the South Sudanese Ministry of Petroleum over missed oil deliveries.

BB Energy claims South Sudan failed to meet its contractual obligations under the oil-for-cash agreement. Although litigation is underway, the company states it remains open to an amicable resolution.

The case adds to growing concerns about the opaque management of South Sudan's oil sector, already under scrutiny due to political instability and alleged mismanagement. Notably, it follows a similar lawsuit by Vitol in May, which ended in a private settlement reportedly linked to a canceled shipment.

An Oil Sector Under Strain amid Legal Battles and Informal Trades

The surge in legal disputes highlights South Sudan’s deep-rooted challenges in managing its oil industry amid a severe economic crisis. In May 2024, the Emirati group HBK DOP proposed a controversial $13 billion, 20-year loan in exchange for discounted rights to all of the country’s oil, causing widespread confusion. Although the government quickly denied these claims, the lack of transparency surrounding such deals casts doubt on governance practices in Juba.

South Sudan remains highly reliant on Sudanese infrastructure for crude oil exports—a vulnerability Khartoum has sought to leverage. Since 2020, Sudan proposed a barter arrangement exchanging fuel for crude to address its shortages and take advantage of South Sudan’s deliveries, reaching a preliminary agreement for 20,000 barrels per day of oil in return for gasoline.

After a pipeline break reduced production to 72,000 barrels per day in 2024, South Sudan increased output to 138,000 barrels per day by June. Still, the country is exposed to external shocks including conflict in Sudan, instability in the Red Sea region, and disrupted shipping routes to Asia.

The growing commercial disputes, fiscal opaqueness, and contested financial decisions risk alienating the few remaining partners interested in South Sudan’s crude. The outcome of the BB Energy lawsuit and Juba’s ability to reassure creditors — especially following a $657 million court judgment in favor of Afreximbank — will be critical. The IMF reports the country owes over $550 million to oil companies and had a public debt of $3.7 billion at the end of 2023.

This article was initially published in French by Olivier de Souza

Edited in English by Ange Jason Quenum