Energy, Oil & Gas

Sudan’s oil sector suffers $20bn in losses

Sudan’s Minister of Energy and Petroleum, Dr Mohieddin Naim, stated that the nation’s energy and oil sectors have suffered losses estimated at $20 billion as a result of the ongoing conflict, with significant damage to infrastructure and production facilities, reported Actum Sudan.

Naim detailed the extensive damage to oil infrastructure, including the destruction of facilities and the loss of crude oil and petroleum products stored in strategic reserves.

OIL INFRASTRUCTURE DEVASTATED BY WAR

“The damage encompasses the physical structures of oil installations, the loss of crude oil and petroleum products stored in strategic reserves from the Khartoum Refinery’s production,” Naim said.

He also highlighted deliberate sabotage in the oil fields, theft of cables specific to the wells, and the destruction of worker accommodations and spare parts warehouses.

Despite these setbacks, Naim assured that there is no fuel crisis affecting civilians or the armed forces.

“Most of the secure states are enjoying electricity,” he said, noting ongoing efforts to restore services in recently liberated areas such as Al Gezira state in central Sudan.

KHARTOUM REFINERY SHUTDOWN AND WIDESPREAD DAMAGE

The Khartoum Refinery, a pivotal facility for the country’s oil processing, has been severely impacted.

“The refinery has completely ceased operations due to the war,” Naim stated.

He described the destruction of the crude oil depot, resulting in the loss of approximately 210,000 barrels of crude, and the demolition of other facilities, including gasoline and diesel storage tanks, all of which were filled with petroleum products at the time of their destruction.

In December 2024, satellite imagery confirmed extensive damage and widespread fires at the Al Jayli refinery, Sudan’s largest oil processing facility, following an attack amid the civil conflict.

The refinery, capable of processing 100,000 barrels of oil daily, suffered significant economic implications due to its incapacitation.

The Sudanese military and the Rapid Support Forces (RSF) traded accusations over responsibility for the destruction.

GOVERNMENT PLANS FOR REHABILITATION AND NEW REFINERY

Looking ahead, Naim expressed optimism about rehabilitating the Khartoum Refinery.

“We hope to rehabilitate the Khartoum Refinery anew to return to its former state, or even better,” he said.

Additionally, he revealed government plans to construct a new refinery in Port Sudan as a separate project.

TALKS WITH CHINA AND INDIA ON OIL SECTOR INVESTMENT

Efforts to restore the energy sector include engaging with international partners.

Naim mentioned discussions during his visits to China and India about the return of initial partners to Sudan’s oil industry.

“I sensed from them a serious desire to work with Sudan in the oil sector,” he noted, expressing confidence in Sudan’s ability to regain its natural position in oil production.

As Sudan grapples with the devastating effects of prolonged conflict on its energy infrastructure, the government’s plans for reconstruction and international collaboration signal a concerted effort to revitalise this critical sector.