The Al-Jaili oil refinery in Sudan has suffered catastrophic damage due to ongoing conflict, impacting the nation’s fuel supply and economy. After being shut down in July 2023 and recaptured in January 2024, the refinery necessitates over $1.3 billion in repairs and is expected to take at least three years to restore operations. Sudden currency depreciation exacerbates the crisis, leaving fuel imports unaffordable for most citizens.
The ongoing conflict in Sudan has severely damaged the Al-Jaili oil refinery, the largest in the country, leading to a significant dependence on fuel imports. Located 70 kilometers north of Khartoum, the refinery was seized by the Rapid Support Forces shortly after hostilities began in April 2023. Artillery bombardments led to the complete shutdown of the facility by July 2023. Although the regular army recaptured the refinery in January 2024 during a broader offensive, operations remain halted due to extensive destruction.
Once capable of processing 100,000 barrels of crude oil per day, the Al-Jaili refinery provided nearly half of Sudan’s fuel supply. Economic expert Khalid el-Tigani noted that before its closure, the facility fulfilled 50% of petrol, 40% of diesel, and 50% of cooking gas requirements. Now, the country needs to rely on fuel imports, creating financial strain amid a struggling economy.
Sudan’s currency has drastically depreciated, now trading at 2,400 to the dollar compared to 600 before the conflict, rendering fuel imports unaffordable for most citizens. During the army’s offensive in January, the refinery suffered extensive fire damage, with accusations exchanged between the RSF and regular army regarding the cause of the blaze.
An AFP visit to the refinery revealed a landscape of destruction: blackened tanks, burnt vehicles, and gutted control rooms characterize the site. The plant’s construction cost was $2.7 billion, mainly funded by China. Current estimates to repair and restore operations stand at $1.3 billion, with a minimum three-year timeline for completion, pending financing and parts availability from abroad.
Although Sudan once thrived due to its oil reserves, the secession of South Sudan in 2011 resulted in a loss of 75% of its oil production. South Sudan continues to depend on Sudan’s pipelines to export its oil, contributing to Sudan’s limited hard currency. Despite hardships, exports resumed in January 2024 after nearly a year of disruption.
The devastating impact of the war in Sudan on the Al-Jaili oil refinery highlights the broader economic crisis facing the nation. Heavy reliance on fuel imports has strained the economy, with currency depreciation making basic commodities unaffordable. The extensive damage to the refinery necessitates significant investments for repairs and restoration, further complicating Sudan’s recovery efforts amid ongoing conflict and infrastructural challenges.
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