UK Court Eases Order on South Sudan Oil Prepayment Dispute

BP Energy, a commodities trading firm, has consented to a relaxation of a judicial order in the High Court of London that previously barred prepayment for oil sold by South Sudan, according to BP Energy and a legal document reviewed by Reuters.

This agreement follows BP Energy's receipt of three crude oil shipments between August and November and represents the latest development in the company's legal challenge concerning South Sudan's alleged failure to deliver oil that BP Energy had paid for in advance.

The consent decree dated July 3 authorizes BP Energy to receive two shipments of Dar crude, each totaling 600,000 barrels, scheduled for delivery in August and November, along with one shipment of Nile crude of the same volume to be delivered in September.

The order stipulates that the arrangement permits prepayment under specified conditions for Dar and Nile crude oil from South Sudan, excluding the shipments allocated to BP Energy, contingent upon receipt of those shipments.

A company spokesperson stated, "Given these contracts, BP Energy has agreed to ease the current restrictions that prevented the Republic of South Sudan from accepting prepayments for crude oil shipments," adding that the easing will remain effective through the end of November.

A consent decree submitted to the court confirms that an agreement has been reached between the parties involved.

Previously, in May, the High Court in London ruled that South Sudan was prohibited from entering into any new prepayment contracts for Dar and Nile crude oil until it settled outstanding debts owed to BP Energy and until further hearings were held.

BP Energy indicated that the three shipments will contribute toward repaying the amount owed to the company, though it did not disclose the volume of oil or the exact monetary sum involved.

The company loaded the first shipment in February under a prepayment contract dating back to 2025.

BP Energy noted that this complex legal matter involving multiple parties was resolved through discussions with the Republic of South Sudan and other market participants.