The court directed that the dispute be resolved by the London Court of International Arbitration (LCIA) in the United Kingdom, in accordance with the arbitration clause contained in the oil supply agreement between the principal parties.
Dar es Salaam. Numora Trading PTS Ltd has issued clarification regarding its involvement in an oil dispute case which the Commercial Division of the High Court of Tanzania ordered to be referred to international arbitration in London.
The decision, delivered on February 20, 2026, relates to a contractual dispute filed by Burundi-based oil importer, Prestige Investment SA, over a shipment of 20,000 cubic metres of petrol that had been stored in Tanzania prior to its intended export to Burundi.
The court directed that the dispute be resolved by the London Court of International Arbitration (LCIA) in the United Kingdom, in accordance with the arbitration clause contained in the oil supply agreement between the principal parties.
The case, registered as Commercial Case No. 130 of 2023, was filed by Prestige against UAE-based Lamar Commodity Trading DMCC and other parties, including Nomura Trading Pte Limited, KCB Bank Kenya Limited and Lake Oil Limited.
The dispute stems from a contract signed on 24 June 2022, under which Lamar agreed to supply petroleum products to Prestige through the Port of Dar es Salaam. To facilitate the transaction, Prestige secured a standby letter of credit (SBLC) from KCB Bank Kenya Limited, which was further guaranteed by the Central Bank of Burundi, providing financial assurance for the shipment.
However, the business relationship deteriorated after Lamar declined to release a third shipment of fuel, citing failure by Prestige to fulfil its payment obligations under the agreement. Prestige subsequently filed suit before the Commercial Court in Tanzania, alleging breach of contract and seeking legal remedies against the parties it had named in the proceedings.
In response, Lamar lodged an application seeking a stay of proceedings, arguing that the dispute should be referred to arbitration as stipulated in Clause 10 of the contract, which binds the parties to resolve disputes under English law through arbitration in London.
Delivering the ruling, Justice Gonzi held that once the existence of a valid arbitration agreement is established, courts are generally obliged to stay proceedings unless compelling legal grounds are presented to challenge the validity, operability or enforceability of that agreement.
The judge observed that Prestige had failed to demonstrate any of the conditions required under Section 15(4) of the Arbitration Act, such as proving that the arbitration clause was invalid or incapable of being performed.
“Failure to establish these grounds leaves the court with no option but to grant the application for a stay of proceedings pending arbitration,” ruled Justice Gonzi, ordering that the case be stayed until the dispute is determined through arbitration at the LCIA.
The ruling also addressed the roles of other parties named in the case, including Numora Trading, which had been cited as a respondent alongside financial and logistical entities involved in the broader transaction structure.
The court found that Numora, together with KCB Bank Kenya Limited and Lake Oil Limited, was not required to answer the central question of whether there had been a breach of the oil supply contract, as their involvement in the matter was procedural rather than substantive.
Commenting on the decision, Chief Executive Officer and Founder of Numora Trading, Abdihakin Mahmud Roble, said the ruling confirmed the company’s longstanding position that its role in the transaction was limited and did not extend to the core contractual obligations under dispute.
He emphasised that the court had clearly determined that the substantive issues in the case relate solely to the execution of the oil supply agreement between Lamar Commodity Trading DMCC and Prestige Investment SA.
Quoting the court’s findings, the Chief Executive Officer and Founder said neither Numora, KCB nor Lake Oil was required to address the principal question of whether a breach of contract had occurred, as their roles were confined to procedural aspects within the broader transaction framework.
The Chief Executive Officer and Founder further explained that Numora was not a signatory to the oil supply agreement and therefore bore no legal responsibility for the alleged breach.
He noted that no adverse findings had been made against the company at any stage of the proceedings, reinforcing its position as a non-principal party in the dispute.
He added that all Numora entities, including Numora Trading Pte Ltd in Singapore and its offices in Dubai, Mauritius and Nairobi, continued to operate normally throughout the duration of the case, demonstrating the company’s operational resilience and stability.
Reflecting on the broader implications of the ruling, the Chief Executive Officer and Founder said the decision underscores the importance of arbitration as a preferred dispute resolution mechanism in international trade, particularly in the oil and commodities sector where transactions typically involve multiple jurisdictions, financial institutions and logistics providers.
He noted that arbitration frameworks such as the LCIA provide a neutral and efficient forum for resolving complex cross-border disputes, thereby enhancing predictability and confidence among market participants.
“This ruling affirms what we have consistently maintained from the outset—that our involvement was purely procedural, and the court’s decision reflects that clearly,” said the Chief Executive Officer and Founder, adding that Numora Trading remains committed to upholding high standards of contractual discipline across all markets in which it operates.
He stated that the company continues to focus on its core business activities across Africa, the Gulf and Asia, while maintaining strict compliance with international legal and commercial standards.
The Chief Executive Officer and Founder also used the opportunity to highlight Numora’s track record as a commercial partner rather than a litigant, noting that the company has been involved in structuring trade finance transactions across East Africa in collaboration with major financial institutions.
He cited past engagements with Equity Bank Kenya in facilitating trade finance arrangements for Tanzanian companies, including Nas Hauliers and State Oil Tanzania, where disputes later arose between borrowers and the lending institution without involving Numora as a party to the litigation. In those cases, he said, the lending institution pursued and successfully concluded legal proceedings independently, further illustrating that Numora’s role remained confined to the transactional level.
He explained that the recurring pattern in such matters is that Numora operates as a trade partner, structuring agent or facilitator within complex commercial arrangements, rather than as a party to disputes that may subsequently arise between principal contracting entities.
According to the Chief Executive Officer and Founder, trade finance and commodities transactions in emerging markets often involve a wide range of stakeholders, including lenders, traders, storage providers and logistics firms, each with distinct contractual responsibilities.
In such environments, he said, it is not uncommon for disputes between primary parties to draw in other participants within the transaction chain, even where those parties bear no substantive liability.
He stressed that such developments are a structural feature of international trade markets rather than an indication of wrongdoing, adding that Numora’s record across multiple jurisdictions demonstrates a consistent pattern in which courts and legal proceedings have confirmed that the company is not a principal party to disputes and has not been subject to adverse rulings.
The Chief Executive Officer and Founder reiterated that Numora Trading operates with a strong emphasis on contractual integrity, regulatory compliance and a deep understanding of local market dynamics, positioning itself as a reliable partner in global commodities trading and trade finance.
Numora Trading Pte Ltd is a global commodities trading and trade finance company headquartered in Singapore, with operations spanning East and West Africa, the Middle East, Europe and Asia.
The company deals in crude oil, refined petroleum products and agricultural commodities, while also providing trade finance solutions in collaboration with leading financial institutions and industry partners.
