UK Court Rejects Nord Stream Insurance Claim and Anchor-Damage Argument in Pipeline Sabotage Case

A UK High Court ruled against Nord Stream AG’s attempt to recover $662 million in insurance claims from the September 2022 sabotage of the Nord Stream 1 gas pipeline. The judge determined the incident fell under a standard war-risk exclusion, relieving Lloyd’s and Arch of liability.

The court also rejected Nord Stream AG’s argument that separate damage to one section of the pipeline had been caused by a ship’s anchor rather than explosives.

com reported that the ruling removes any realistic prospect of restoring the Nord Stream system, which once carried up to 55 bcm of Russian gas annually to Germany. The decision establishes a precedent for insurers covering critical energy infrastructure when sabotage is linked to interstate conflict.

Renewed fighting broke out in South Sudan’s oil-producing Jonglei State after opposition forces assassinated a government-appointed county commissioner in the contested Akobo West region.

Opposition authorities had claimed control in the region earlier this year, following the detention of opposition leader Riek Machar. UN peacekeepers recently withdrew from the area. Long-delayed elections scheduled for December under the 2018 peace accord that ended South Sudan’s civil war now appear less likely.

The clashes have not directly disrupted oil output, though oil accounts for the overwhelming majority of government revenue. In Sudan, the humanitarian situation in Al Obeid has deteriorated as the UAE-backed Rapid Support Forces tightens its siege of the army-held city. Al Obeid has been without electricity for nearly a month, with fuel shortages and rising food prices deepening the crisis.