• The High Court in London lifted an injunction on a 600,000-barrel cargo, allowing South Sudan to sell the crude.

• BB Energy maintains a $188 million claim linked to an undelivered prepayment deal.

• South Sudan’s total oil-linked debt stands at an estimated $2.3 billion.

South Sudan continues to face severe financial pressure as the country manages an estimated $2.3 billion in oil-linked debt. The High Court in London nevertheless allowed the government to load and sell a 600,000-barrel cargo that BB Energy had frozen.

The High Court on 27 November lifted the injunction that had prevented South Sudan from loading the crude shipment. The ruling delivered temporary relief for a government that relies almost entirely on oil revenue. The court permitted the cargo to move to market but left unresolved the broader dispute with BB Energy, which demands $188 million for an unpaid prepayment.

The dispute dates back to February 2024. BB Energy advanced $100 million to the South Sudanese government in exchange for five crude cargoes. Court filings show that the government and Nilepet, the state oil company, failed to deliver any of those shipments. The trader argues that officials diverted the volumes to other buyers despite BB Energy’s contractual priority.

This failure prompted Justice Christopher Butcher on 18 November to freeze a cargo valued at more than $20 million. He ruled that South Sudan and Nilepet did not appear able to satisfy a potential judgment. The global freeze targeted a specific oil asset that BB Energy considered its only available security.

The court sought to limit the economic fallout for South Sudan, whose economy remains highly fragile. It required BB Energy to provide a $25 million bank guarantee to cover possible costs related to storage and handling during the freeze. At a follow-up hearing, the court determined that it no longer needed to maintain the injunction and authorised the loading of the cargo. EuroAmerican Energy and Cathay International Petroleum have expressed interest in purchasing the crude.

BB Energy did not oppose the removal of the injunction because the larger claim remains intact.

The Ministry of Petroleum and Nilepet did not participate in the proceedings or respond to inquiries. The absence comes amid internal transitions, including the appointment of new senior officials. The lack of representation also fits a broader pattern: banks and traders such as Afreximbank and Vitol have recently pursued claims to recover oil-backed debts, sometimes reaching settlements. Available estimates place total outstanding obligations near $2.3 billion.

The speed with which the court lifted the freeze shows its intention to avoid cutting off the country’s primary revenue stream while acknowledging the credibility of BB Energy’s case. The process on BB Energy’s claim will continue, with a trial scheduled for 2026 unless both sides reach a settlement.

This article was initially published in French by Olivier de Souza

Adapted in English by Ange Jason Quenum