London’s High Court lifted an injunction on Thursday that had blocked the sale of a South Sudanese crude oil cargo, after the claimant, BB Energy, decided not to seek an extension.
The injunction had been granted on Nov. 18, halting the sale of a 600,000-barrel cargo of Nile Blend crude. The trader will continue to pursue a separate legal claim against South Sudan, alleging the government failed to deliver oil for which BB Energy had prepaid $142 million under supply agreements for 2024-2025.
The injunction was lifted after BB Energy reached an agreement with rival trading firms Euro American and Meridian Energy Pte Ltd, which had intervened in the case. The two firms had purchased the cargo that was under dispute.
The case underscores the risks commodity traders face when entering pre-finance deals with heavily indebted nations like South Sudan to secure oil supplies.
Court documents showed the cargo was awarded by South Sudan to Euro American, and that Meridian paid $30 million for it with the intention to resell to Cathay Petroleum International Ltd.
Loading of the cargo, originally scheduled for Nov. 27, is now expected between Dec. 4-6 after drone strikes in Sudan delayed operations, according to the documents.
BB Energy alleges that South Sudan failed to deliver cargoes scheduled for May, July and September under a pre-financing deal for five oil cargoes this year.
A lawyer for BB Energy told the court that a recent change in South Sudan’s government, including the appointment of a new petroleum ministry undersecretary this week, could allow for more constructive engagement over the contracts.
South Sudan was not represented at Thursday’s hearing.