South Sudan sued for defaulting on oil contract

Trading house BB Energy has filed a case in London against South Sudan for failing to deliver oil owed under a prepayment deal, according to court filings and a company spokesperson, reports BusinessLIVE. In March, the Sudan Government placed its Petroleum Minister and other officials under house arrest. BB Energy filed the case in June, court records show. A company spokesperson said the action was necessary to preserve BB Energy’s rights under a contract with the Petroleum Ministry. '... they have defaulted on delivery,’ the spokesperson said. ‘We are 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.’ Officials in South Sudan did not immediately respond to a request for comment. Oil trader Vitol also filed a case against South Sudan in London in May, but said it had since resolved the issue. Sources said that case related to a single cancelled oil cargo. In May, a London court ordered South Sudan to pay Afreximbank $657m over defaulted loans. The IMF pegged South Sudan’s total public debt at $3.7bn by 2023, with $550m of the total owed to oil companies.

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