South Sudan has agreed to relax a court injunction that had restricted it from securing new oil prepayment deals after commodities trader BB Energy was awarded three additional crude oil cargoes as part of efforts to resolve a long-running contractual dispute. According to Reuters, the revised arrangement follows a consent order filed at London’s High Court, allowing the government to resume certain oil-backed financing transactions while ensuring that the cargoes allocated to BB Energy are delivered as agreed.
Under the agreement, BB Energy will receive two 600,000-barrel cargoes of Dar Blend crude scheduled for August and November, alongside one Nile Blend cargo due in September. In exchange, the trader agreed to ease the injunction that had prevented South Sudan from accepting advance payments for future crude shipments. The revised order will remain in effect until the end of November 2026, providing temporary relief for the government as it seeks to stabilise oil revenues while continuing negotiations over outstanding obligations.
The dispute stems from a 2025 prepayment agreement under which BB Energy advanced funds to South Sudan in return for multiple crude oil cargoes. The trader alleged that only one shipment was delivered, prompting legal action that resulted in the High Court barring South Sudan from entering into new oil prepayment arrangements until the debt issue was addressed. The latest settlement was reached after negotiations involving South Sudan, BB Energy, and other market participants, with both sides committing to pursue a longer-term resolution of the remaining balance.
For South Sudan, whose economy depends heavily on crude oil exports, the easing of the injunction offers an opportunity to restore access to critical financing while maintaining oil production and export flows. Analysts say the agreement could improve confidence among commodity traders and lenders, although a lasting solution will depend on the government’s ability to honour future delivery commitments and resolve outstanding contractual liabilities.
