UK court lifts BB Energy’s injunction to allow the sale of South Sudan oil cargo
The London High Court lifted on Thursday an injunction that prevented the sale of a South Sudanese oil cargo scheduled to be loaded in the next few days. This was after BB Energy, the commodities trader who filed the case, decided to not ask to continue the injunction.
BB Energy has said that it will continue to take legal action against South Sudan for its alleged failure in delivering oil BB had paid $142 millions to South Sudan under prepayment agreements spanning 2024-2025.
BB Energy representatives refused to request an extension of the injunction after reaching agreement with representatives from rival trading firms Euro American Pte Ltd and Meridian Energy Pte Ltd. These firms intervened in the case, having bought the oil cargo.
The case of South Sudan, a debt-ridden country, highlights the risks commodity traders are taking when they enter into prefinance contracts to secure oil purchases.
BB Energy representatives stated that a recent shakeup in South Sudan’s government where a new Petroleum Ministry Undersecretary was named this week meant they could engage with the government more constructively over the contracts.
Documents show that the High Court granted the injunction Nov. 18 pending the return hearing on Thursday. This halted the sale of 600,000 barrels of crude oil Nile Blend due to be loaded on Nov. 27.
Documents from the court show that South Sudan gave Euro American the cargo for which Meridian, a trader, paid $30 million, and then sold it to Cathay Petroleum International Ltd.
Documents show that the cargo will now be loaded on Dec. 4 - 6 after drone strikes in Sudan caused delays to loading operations.
BB Energy reported that South Sudan failed to deliver cargoes that were due to be loaded in May, July and September under its prefinancing agreement for five oil cargoes for this year.
The South Sudanese government was not present at the Thursday court hearing in London. South Sudan's Ministry of Petroleum didn't immediately respond to an inquiry for comment.
Euro American refused to comment. Meridian didn't immediately respond to the'Request for Comment, which was sent out of hours in Asia. BB Energy did not respond immediately to a request for more information. Reporting by Robert Harvey, London; Editing by Elaine Hardcastle
(source: Reuters)
