The Al-Jaili oil refinery in Sudan has incurred severe damage due to prolonged conflict, leading to a reliance on expensive fuel imports. After being captured by the RSF, it was later recaptured by the regular army, but extensive destruction has halted operations. Rehabilitation costs are estimated at $1.3 billion, with repairs expected to take three years.
The Al-Jaili oil refinery, Sudan’s largest, has suffered significant damage due to ongoing conflict, resulting in the country becoming heavily reliant on costly fuel imports. Captured by the Rapid Support Forces (RSF) shortly after fighting erupted in April 2023, the refinery faced relentless artillery bombardments, leading to a complete shutdown in July 2023. Although the regular army regained control in January 2024 during a broader offensive, operations remain halted due to extensive destruction across the facility.
The once-functional refinery, capable of processing 100,000 barrels of crude oil daily, satisfied approximately half of Sudan’s fuel demand, including 50 percent of petrol, 40 percent of diesel, and 50 percent of cooking gas. Its closure has forced Sudan to depend on imported fuel, leading to significant economic strain as hard currency dwindles amidst escalating conflict.
As fighting ravaged the area, a massive fire gutted the facility upon the army’s recovery of the site. The RSF attributed the blaze to airforce “barrel bombs,” while the regular army accused the RSF of intentionally destroying vital infrastructure. Reports indicate that rehabilitation of the refinery necessitates a minimum investment of $1.3 billion, with repairs projected to last at least three years, contingent on financing and the acquisition of necessary parts.
Established in two phases at a construction cost of $2.7 billion, the refinery was built primarily by Chinese interests, which still hold a 10 percent stake. Post-2011 secession of South Sudan severely impacted Sudan’s oil production, resulting in the loss of around 75 percent of output. However, South Sudan continues to depend on Sudanese pipelines for oil exports, an arrangement now threatened by ongoing hostilities.
The Al-Jaili oil refinery’s devastating destruction highlights Sudan’s precarious fuel supply situation as the country grapples with the repercussions of its ongoing civil conflict. The significant financial investment and time required for rehabilitation underscore the extensive economic impact of the war, which has crippled the nation’s infrastructure and exacerbated reliance on costly fuel imports. As the situation evolves, the challenges surrounding Sudan’s oil production and recovery remain critical to its future stability.
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