South Sudan has committed to deliver two crude oil cargoes to energy trader BB Energy by November 2026 following a London court ruling in a dispute over a US$100 million oil-backed financing agreement.
The government issued irrevocable allocation letters confirming that the cargoes will be delivered before the end of November, according to BB Energy, which announced the development on June 18.
The commitment comes after more than a year of disagreement over a prepayment deal signed in February 2025 under which BB Energy advanced US$100 million to South Sudan in exchange for five crude oil cargoes scheduled for delivery during the year.
Only one of the five cargoes was delivered, prompting the trader to initiate legal proceedings in the United Kingdom.
On May 15, a London court granted an injunction preventing South Sudan from entering into new oil-backed prepayment agreements or pledging future crude cargoes to other creditors while the dispute remained unresolved.
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The injunction was upheld on June 17 when Judge Mark Pelling ruled in favor of BB Energy and rejected efforts to have the order lifted.
The judge found that BB Energy was entitled to the injunction unless compelling evidence showed that it caused unfair harm to an innocent third party.
Three commodity trading firms BGN, EuroAmerican and Chiangwei had also asked the court to remove the injunction, arguing that they needed access to cargoes linked to their own financing agreements with South Sudan.
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However, the court rejected those requests, noting that the companies had been warned by BB Energy’s lawyers in December 2025 about the ongoing dispute and chose to proceed with their transactions regardless.
The case has drawn attention to South Sudan’s increasing difficulties in meeting obligations under oil-backed financing arrangements, which have become an important source of funding for the government.
According to trade finance reports, institutions including Qatar National Bank, African Export-Import Bank and UAE-based trader Nasdec General Trading have collectively extended more than $2 billion in similar financing facilities to South Sudan.
The country has reportedly struggled to fully meet delivery commitments tied to some of those agreements.
Oil remains the backbone of South Sudan’s economy, accounting for between 85% and 90% of government revenue, making uninterrupted crude exports critical to public finances and economic stability.
A two-day hearing is scheduled for early July to determine whether the injunction should remain in force while the broader legal dispute continues through the courts.
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The outcome could have significant implications for South Sudan’s ability to secure future oil-backed financing and manage its obligations to existing creditors.
