LONDON – South Sudan faces a new legal challenge in the UK as Dubai-based oil trader BB Energy has filed a complaint in London against Juba, accusing the government of breaching a pre-financing crude oil contract.
Court filings seen by Reuters and confirmed by a company spokesperson, shows that the lawsuit—filed in June 2025—targets the South Sudanese Ministry of Petroleum over missed oil deliveries.
BB Energy claims South Sudan failed to meet its contractual obligations under the oil-for-cash agreement.
Although litigation is underway, the company states it remains open to an amicable resolution.
The case adds to growing concerns about the opaque management of South Sudan’s oil sector, already under scrutiny due to political instability and alleged mismanagement.
Notably, it follows a similar lawsuit by Vitol in May, which ended in a private settlement reportedly linked to a canceled shipment.
The surge in legal disputes highlights South Sudan’s deep-rooted challenges in managing its oil industry amid a severe economic crisis.
In May 2024, the Emirati group HBK DOP proposed a controversial $13 billion, 20-year loan in exchange for discounted rights to all the country’s oil, causing widespread confusion.
Although the government quickly denied these claims, the lack of transparency surrounding such deals casts doubt on governance practices in Juba.
South Sudan remains highly reliant on Sudanese infrastructure for crude oil exports—a vulnerability Khartoum has sought to leverage.
Since 2020, Sudan proposed a barter arrangement exchanging fuel for crude to address its shortages and take advantage of South Sudan’s deliveries, reaching a preliminary agreement for 20,000 barrels per day of oil in return for gasoline.