South Sudan has been barred by a London court from entering into new oil-backed prepayment deals until it settles outstanding obligations to commodities trading house BB Energy.
The High Court decision stems from an ongoing dispute in which BB Energy accuses South Sudan of failing to deliver oil under prepayment agreements struck in 2024 and 2025.
In November last year, BB Energy said it would continue pursuing legal action against South Sudan over its alleged failure to deliver crude oil tied to prepayment agreements valued at about $142 million, covering deals spanning 2024 to 2025, unless the country promptly resumed scheduled deliveries and repayments.
The trader said the dispute arose after expected oil shipments under the financing arrangement were not fully honoured, despite earlier efforts to reach an amicable resolution with South Sudan’s Ministry of Petroleum.
According to court documents seen by Reuters, “there will be a further hearing on the ruling on June 5,” after the initial proceedings were held without defence representation.
