BB Energy lifts first South Sudan oil cargo after court dispute

2026-02-16 - 12:49

BB Energy says it has lifted its first cargo of South Sudanese crude oil under renewed repayment arrangements, marking a breakthrough months after a court dispute over a US$100 million oil-backed loan. In a statement released to Eye Radio, the London-headquartered energy trader confirmed the shipment of approximately 600,000 barrels of Dar Blend crude under its prepayment agreement with the Government of South Sudan. “The lifting of this cargo represents an important first step and a very positive development for both BB Energy and the Republic of South Sudan,” said Mohamed Bassatne, Chief Executive Officer of BB Energy. The development follows a legal battle in November 2025, when BB Energy secured an urgent injunction from the London High Court preventing South Sudan from selling a 600,000-barrel cargo to third parties. The company argued the shipment formed part of a prepayment deal signed in February 2025, under which it advanced US$100 million to the government in exchange for future crude deliveries. At the time, the court heard that South Sudan had failed to deliver agreed cargoes and instead sold oil to other buyers, leaving at least US$61.5 million outstanding under the arrangement. The injunction temporarily blocked the sale of the cargo pending further proceedings. In its latest statement, BB Energy said the current shipment follows “constructive engagement with the highest authorities” at the Ministries of Finance and Petroleum. According to the company, both parties have now developed a comprehensive repayment framework and forward cargo delivery schedule. Draft documentation is under review by South Sudanese authorities, with further meetings scheduled in Juba to finalise the agreement. Bassatne said the progress came following instructions from President Salva Kiir Mayardit and acknowledged the roles of Finance Minister Dr. Bak Barnaba Chol and Petroleum Minister Dr. Chol Deng Thon Abel. “We now look forward to concluding the comprehensive agreement covering the remaining deliveries under our prepayment arrangement as soon as possible,” he said. BB Energy noted that deliveries under the original agreement were affected by exceptional circumstances, including the February 2024 pipeline rupture that disrupted South Sudan’s oil exports and contributed to financial pressures. South Sudan, which relies heavily on oil exports for revenue, has accumulated significant oil-backed debt in recent years. As of mid-2025, outstanding oil-backed obligations were estimated at about US$2.3 billion, according to previous analyses of court and government records. The latest shipment signals a possible easing of tensions between the trader and the government, as both sides work toward settling the outstanding balance and restoring regular crude deliveries.