Africa-Press – South-Sudan. International trading firm BB Energy has filed a lawsuit against the government of South Sudan in a London court, accusing it of failing to deliver oil promised under a pre-payment agreement, according to court documents and a company spokesperson.
A spokesperson for BB Energy who name has been withheld, told Reuters the legal action was a necessary step to protect the company’s contractual rights with the Ministry of Petroleum.
“As yet, they have defaulted on delivery. We are currently in the process of serving formal proceedings; however, we are always looking to find an amicable solution, especially considering our long-term interests in the country,” the spokesperson said.
Reuters said South Sudanese officials did not immediately respond to its request for comment.
This case follows a similar legal dispute brought by oil trader Vitol, which filed a claim in London in May over a cancelled oil cargo. That matter has since been resolved, sources familiar with the situation told Reuters.
In May, a London court also ordered South Sudan to pay $657 million to Afreximbank over defaulted loans, further highlighting the country’s deepening financial crisis.
According to the International Monetary Fund, South Sudan’s public debt reached $3.7 billion in 2023, with $550 million owed to oil companies alone.
Oil output—the backbone of the country’s economy—has been severely affected by conflict and infrastructure issues. South Sudan’s crude production, once as high as 350,000 to 400,000 barrels per day before the civil war, dropped to just 72,000 bpd last year due to a damaged export pipeline.
The line resumed operations in June, with production increasing to 138,000 bpd that month, according to OPEC data.
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