By Robert Harvey and Sam Tobin LONDON (Reuters) -London's High Court lifted an injunction on Thursday preventing the sale of a South Sudanese crude oil cargo due to load in the coming days, after the
UK Court Permits Sale of South Sudan Oil Cargo
By Robert Harvey and Sam Tobin
LONDON (Reuters) -London's High Court lifted an injunction on Thursday preventing the sale of a South Sudanese crude oil cargo due to load in the coming days, after the claimant, commodities trader BB Energy, decided not to ask for the injunction to be continued.
BB Energy said it will continue to pursue legal action against South Sudan over its alleged failure to deliver oil BB paid $142 million for in prepayment deals spanning 2024-2025.
BB Energy's representatives declined to ask for the injunction to be extended after reaching an agreement with representatives of rival trading firms Euro American and Meridian Energy Pte Ltd, which intervened over the injunction having purchased the oil cargo.
The case against debt-laden South Sudan highlights the risks commodity traders take when entering prefinance agreements to secure oil offtake.
BB Energy's representatives said that a recent shake-up in South Sudan's government, where a new petroleum ministry undersecretary was appointed this week, meant it could engage more constructively with the government over the contracts.
The High Court had awarded the injunction on Nov. 18, pending Thursday's return hearing, halting the sale of a 600,000-barrel cargo of Nile Blend crude oil due to load on Nov. 27, court documents showed.
South Sudan awarded Euro American the cargo, which trader Meridian paid $30 million for, to then resell to Cathay Petroleum International Ltd, court documents showed.
The cargo is now set to load on Dec. 4-6 after drone strikes in Sudan delayed loading operations, the documents showed.
BB Energy said that South Sudan had failed to deliver cargoes due for loading in May, July and September under its prefinancing deal for five oil cargoes this year.
South Sudan was not represented at the court hearing in London on Thursday. South Sudan's Ministry of Petroleum did not immediately respond to a request for comment.
Euro American declined to comment. Meridian did not immediately respond to Reuters' request to comment, which was sent outside of its business hours in Asia. BB Energy also did not immediately respond to Reuters' request for further comment.
(Reporting by Robert Harvey in London;Editing by Elaine Hardcastle)
