Trafigura Beheer BV was in hot water last week after buying a cargo of Nile Blend crude aboard the MT Ratna Shradha, which was poised to offload at Japan's Kiire terminal, owned by JX Nippon Oil & Energy.
"This is stolen oil and our legal experts are pursuing whoever buys it," said South Sudan's Information Minister Barnaba Benjamin after the country took legal measures to track down several vessels carrying the stolen oil across the globe.
South Sudanese authorities said the MT Ratna Shradha, owned by India Steamship, a unit of Chambal Fertilizers & Chemicals Ltd., was loaded with 600,000 bbl of oil provided by Khartoum-based oil producer Greater Nile Petroleum Operating Co. between Jan. 19-20.
GNPOC is owned by China National Petroleum Corp., Malaysia's Petronas, India's ONGC Videsh Ltd., and Sudan's Sudapet.
'Sudan steals oil'
Altogether, South Sudan has accused Sudan of stealing more than $815 million of its crude, and halted its oil production in late January amid an escalating dispute over oil-transit fees.
Benjamin said his country is further investigating some unnamed Chinese companies for their alleged role in helping Sudan steal its oil. Juba also has accused Chinese firms of under declaring oil wells as well as colluding with Sudan to block shipments through pipelines in December and January.
The accusations are said to be threatening South Sudan's relations with China, the largest buyer of its oil. Several Chinese-owned enterprises are currently engaged in circuitous talks with South Sudan over their oil production licenses.
Until January, landlocked South Sudan, which voted for independence from Sudan last summer, had been relying on pipelines and ports in Sudan to ship about 350,000 b/d of oil to export markets, mainly in Asia and Europe.
'Transit fees owed'
While Sudan has insisted that South Sudan pays up to $32/bbl for crude shipped through its pipeline and export facilities, Juba insists it will pay around $1/bbl. As a result, Khartoum confiscated vessels carrying Juba's crude as compensation for transit fees owed.
That's where Trafigura comes in, saying that it had bought oil from South Sudan in the past, but denying that it had knowingly bought any stolen oil—a statement it repeated long and loud.
In an effort to offload the oil in Japan, Trafigura last week said an English court would allow delivery of the MT Ratna Shrada's cargo, but would hold the proceeds related to the cargo until the court establishes the ownership.
"We can confirm that the English court has ordered that delivery can be made, and that the court will hold all proceeds related to the cargo until ownership is legally established," Trafigura said.
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