SONARA loses final UK appeal over CFA42.8 billion Sahara Energy claim

Cameroon’s state-owned refinery Sonara has lost its final attempt before the UK Supreme Court to challenge a $76.97 million claim, or about CFA42.8 billion, awarded to Sahara Energy Resource Ltd and Sahara Energy Resource DMCC.

On June 29, 2026, the UK’s highest court refused Sonara permission to appeal, leaving in place a Feb. 6 Court of Appeal ruling in favor of Sahara Energy.

In case UKSC/2026/0046, Lord Briggs, Lord Burrows and Lord Doherty found that Sonara’s application did not raise a point of law of general public importance. The Supreme Court therefore did not reconsider the merits of the dispute.

Sonara had challenged the interpretation of a joint report it signed with Sahara Energy in September 2019. It also raised its financial dependence on the Cameroonian government and the absence of a specific repayment schedule in the document.

The refusal ends Sonara’s attempt to overturn the Court of Appeal decision before the Supreme Court. That ruling had reversed an earlier High Court judgment in favor of the Cameroonian refinery.

$76.97 Million Recognized in a 2019 Agreement

The dispute stems from crude oil cargoes that Sahara supplied to Sonara between 2013 and 2016. The refinery paid the principal amounts on the invoices and contractual interest after legal proceedings began.

Three categories of claims remained unresolved: additional interest tied to Sahara’s financing costs with its banks, foreign-exchange losses, and bank penalties associated with letters of credit used to finance the cargoes.

The companies reviewed those claims during a reconciliation meeting at the Limbé refinery on Sept. 4 and 5, 2019.

The “Joint Report” signed after the meeting classified the additional interest and foreign-exchange losses as “Undisputed Claims,” for a combined $76,967,673.97. Bank penalties totaling $50,760,089.41 were classified as “Disputed Claims.”

The interpretation of that distinction ultimately determined the outcome of the case.

Initial Victory Overturned on Appeal

On Dec. 9, 2024, London’s High Court initially sided with Sonara. It found that the Joint Report constituted a legally binding agreement for some claims, but not for the additional interest and foreign-exchange losses. Sahara’s remaining claims were therefore dismissed.

Sahara appealed and secured a reversal on Feb. 6, 2026.

In its [2026] EWCA Civ 54 judgment, the Court of Appeal found that “Undisputed Claims” should carry its ordinary meaning: the claims in question were no longer contested.

The judges also found that nothing in the Joint Report made Sonara’s commitment conditional on prior approval from the Cameroonian government. According to the court, the fact that the parties still had to discuss a repayment schedule or flexible payment arrangements did not alter their existing agreement on the validity and amount of the claims.

The Court of Appeal therefore ruled in Sahara’s favor on the $76.97 million in additional interest and foreign-exchange losses.

Sahara Loses Additional $50.76 Million Claim

The oil trader’s victory was only partial. The Court of Appeal upheld the dismissal of its $50.76 million claim for bank penalties and charges, finding that an indemnity provision in the 2013 contract did not allow Sahara to pass those costs on to Sonara.

Sahara Energy also sought to challenge that part of the ruling before the Supreme Court. Its application for permission to appeal, filed as UKSC/2026/0047, was also rejected on June 29, 2026.

The judges found that Sahara’s application raised neither an arguable legal issue that warranted Supreme Court intervention nor a point of law of general public importance.

Both companies therefore failed to overturn the portions of the Court of Appeal judgment they challenged. Sonara remains bound by the ruling on the $76.97 million claim, while Sahara cannot recover the additional $50.76 million it sought in bank penalties.

Payment of CFA42.8 Billion Not Established

The Supreme Court’s refusal does not constitute a new financial award. It leaves the Court of Appeal judgment in place.

The public court documents reviewed establish Sahara Energy’s recognized $76.97 million claim. They do not, however, establish that Sonara has already paid the amount, equivalent to about CFA42.8 billion.

Judicial recognition of the debt and its payment are separate matters. At this stage, no identified public information establishes that Sonara has paid the amount in full.

Source: Business in Cameroon