South Sudan Blocked From New Prepay Oil Contracts Pending BB Energy Debt Case

Mintesinot Niggusie

A London court has imposed restrictions preventing South Sudan from entering into any new oil prepayment agreements until outstanding debts to commodity trading house BB Energy are resolved, in a dispute over crude oil deliveries under contracts signed in 2024 and 2025.

The High Court order, issued on Friday, will remain in effect until a further hearing scheduled for June 5, or earlier if the debt is settled, according to court documents cited in reporting.

The ruling bars South Sudan from accepting new prepayments or entering any arrangement that functions as a prepayment structure for cargoes of Dar Blend or Nile Blend crude oil.

It further warns that any individual or entity aware of the order who assists in breaching its terms may face contempt of court proceedings, with penalties including imprisonment, fines or asset seizure.

BB Energy initiated legal proceedings last year, alleging that South Sudan failed to deliver crude oil purchased under prepayment agreements covering 2024 and 2025.

The initial hearing was held without legal representation for South Sudan, according to the court record.

In earlier proceedings, BB Energy allowed a separate injunction involving a specific cargo to expire in November after reaching an agreement with South Sudan’s Ministry of Petroleum aimed at resolving earlier claims.

The trader said it loaded one cargo in February under a 2025 prepayment arrangement but has not received additional oil shipments since.

BB Energy said in comments cited in reporting that the court order would help ensure crude cargoes remain available to meet existing commitments rather than being diverted into new prepayment deals with other counterparties.

Officials from South Sudan’s Ministry of Petroleum and government spokesperson Ateny Wek Ateny did not immediately respond to requests for comment, according to reporting.