The Al-Jaili oil refinery in Sudan has been severely damaged due to two years of conflict, cutting off vital fuel supplies and causing economic strain. Captured in April 2023 and recaptured in January 2024, the facility requires an estimated $1.3 billion for repairs, with operations at a standstill. The Sudanese economy is further threatened by currency devaluation and dependency on imports amid the civil war.
The Al-Jaili oil refinery, Sudan’s largest facility, has suffered extensive damage during nearly two years of conflict. Captured by the paramilitary Rapid Support Forces shortly after hostilities began in April 2023, the refinery had been targeted by artillery exchanges, leading to its closure in July 2023. The regular army regained control in January 2024, but operations remain halted, with significant portions of the facility in ruins.
Once capable of processing 100,000 barrels of crude oil daily, the refinery was essential for meeting over half of the nation’s fuel demands, supplying 50% of petrol, 40% of diesel, and 50% of cooking gas, as noted by economist Khalid el-Tigani. The ongoing conflict has forced Sudan to rely heavily on imported fuel, creating a reliance on private sector imports and worsening an already dire economic situation.
The economic crisis exacerbated by the war has led to a severe shortage of hard currency, with the Sudanese pound sharply devaluing from 600 to approximately 2,400 per dollar. The rising costs of imported fuel are now beyond the reach of most citizens. During the army’s attempt to reclaim the refinery, a massive fire damaged the remaining structure, with conflicting sides blaming each other for the inferno.
An assessment of the facility revealed extensive destruction. The refinery, originally built at a cost of $2.7 billion with substantial Chinese investment, is estimated to require a minimum repair cost of $1.3 billion to restore functionality. Even under ideal financial circumstances, repairs may take at least three years, according to refinery engineers, with some components needing to be sourced from abroad. This situation poses a continued threat to Sudan’s economy, previously robust due to oil reserves discovered in the late 20th century but significantly challenged after South Sudan’s independence in 2011, which took a large portion of oil production with it.
With the pipeline used for South Sudan’s oil exports disrupted by ongoing fighting, the precarious relationship between the two nations could further complicate the availability of crucial resources, extending the humanitarian and economic impacts of the conflict.
The Al-Jaili oil refinery’s devastation highlights the broader economic ramifications of the ongoing conflict in Sudan. With the dependency on fuel imports increasing and the nation’s currency plummeting, the challenges to restoring the refinery and the economy are profound. The urgency for repairs and the continued dual dependency on local and foreign resources underline the significant hurdles Sudan faces amidst the ongoing war.
Original Source: www.youralaskalink.com
