South Sudan Faces Legal Battle in London Amid Oil Debt Crisis and Political Turmoil
Trading house BB Energy files case against South Sudan for failing to deliver oil under a pre-payment deal.
London, July 24, 2025 - In the midst of an ongoing oil debt crisis and political turmoil, South Sudan is facing a legal battle in London.
Trading house BB Energy has filed a case against South Sudan for failing to deliver oil owed under a pre-payment deal, according to court filings and a company spokesperson.South Sudan, one of the poorest countries in the world, has endured two civil wars over the past 15 years and continues to grapple with increased debt and a shaky peace deal.
In March, the government placed its petroleum minister and other officials under house arrest.
The legal action by BB Energy DMCC was filed last month, as indicated by court records.
A company spokesperson informed Reuters that the action is necessary to preserve BB Energy's rights under a contract with the Ministry of Petroleum.The spokesperson stated, "As yet, they have defaulted on delivery." Efforts are currently being made to serve formal proceedings, while an amicable solution is sought, especially considering the long-term interests in the country.
The South Sudanese government has not yet responded to a request for comment on the case.This legal battle comes amid other financial disputes involving South Sudan.
In May, oil trader Vitol filed a similar case against South Sudan in London but later resolved the issue.
Sources informed Reuters that this particular case was related to a single cancelled oil cargo.
Furthermore, in May, a London court ordered South Sudan to pay Afreximbank $657 million over defaulted loans.
The International Monetary Fund (IMF) has estimated South Sudan's total public debt at $3.7 billion as of 2023, with approximately $550 million owed to oil companies.Before the civil war erupted, South Sudan's crude oil production reached its peak at 350,000 to 400,000 barrels per day.
However, this drastically tumbled to just 72,000 bpd last year due to a damaged oil pipeline that halted exports.
The pipeline resumed operations in June, and South Sudan managed to pump 138,000 bpd that month.
Trading house BB Energy has filed a case against South Sudan for failing to deliver oil owed under a pre-payment deal, according to court filings and a company spokesperson.South Sudan, one of the poorest countries in the world, has endured two civil wars over the past 15 years and continues to grapple with increased debt and a shaky peace deal.
In March, the government placed its petroleum minister and other officials under house arrest.
The legal action by BB Energy DMCC was filed last month, as indicated by court records.
A company spokesperson informed Reuters that the action is necessary to preserve BB Energy's rights under a contract with the Ministry of Petroleum.The spokesperson stated, "As yet, they have defaulted on delivery." Efforts are currently being made to serve formal proceedings, while an amicable solution is sought, especially considering the long-term interests in the country.
The South Sudanese government has not yet responded to a request for comment on the case.This legal battle comes amid other financial disputes involving South Sudan.
In May, oil trader Vitol filed a similar case against South Sudan in London but later resolved the issue.
Sources informed Reuters that this particular case was related to a single cancelled oil cargo.
Furthermore, in May, a London court ordered South Sudan to pay Afreximbank $657 million over defaulted loans.
The International Monetary Fund (IMF) has estimated South Sudan's total public debt at $3.7 billion as of 2023, with approximately $550 million owed to oil companies.Before the civil war erupted, South Sudan's crude oil production reached its peak at 350,000 to 400,000 barrels per day.
However, this drastically tumbled to just 72,000 bpd last year due to a damaged oil pipeline that halted exports.
The pipeline resumed operations in June, and South Sudan managed to pump 138,000 bpd that month.
