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Destruction of Sudan’s Al-Jaili Oil Refinery: Economic Implications and Recovery Challenges

The Al-Jaili oil refinery in Sudan has been heavily damaged due to ongoing conflict, resulting in a halt of operations and dependence on costly fuel imports. Economists have noted that the refinery’s closure has led to a severe shortage of hard currency and increased challenges for the nation. Recovery efforts may take years and substantial financial resources.

The prolonged conflict in Sudan has severely damaged the Al-Jaili oil refinery, the largest in the country, located approximately 70 kilometers north of Khartoum. Captured by the paramilitary Rapid Support Forces (RSF) in April 2023, the facility faced relentless artillery exchanges, forcing it to cease operations by July 2023. Although recaptured by the regular army in January 2024, much of the refinery lies in ruins, halting any recovery efforts.

Once capable of processing 100,000 barrels per day, the Al-Jaili refinery fulfilled approximately half of Sudan’s fuel demand, including 50 percent of petrol, 40 percent of diesel, and substantial portions of cooking gas. “With its closure, Sudan has been forced to rely on imports to fill the gap,” noted economist Khalid el-Tigani. The war’s ongoing turmoil has resulted in a severe shortage of hard currency, which is crucial for these imports.

Following its reconquest, the refinery was further damaged by a massive fire, with accusations exchanged between the RSF and the regular army regarding the cause. An AFP team witnessed the devastation, observing burned-out vehicles and the remains of storage tanks. The refinery, built in phases between 2000 and 2006 at an initial cost of $2.7 billion, is now estimated to require at least $1.3 billion for repairs.

A refinery engineer indicated that even with necessary financing, it would require a minimum of three years to restore operations fully. Although Sudan once thrived on its oil reserves developed in the 1970s and 1980s, secession by South Sudan in 2011 significantly diminished output. Additionally, the ongoing conflict has jeopardized the arrangement that allows South Sudan to export its oil through Sudanese pipelines, posing further economic challenges to both nations.

In summary, the Al-Jaili oil refinery’s destruction due to armed conflict reflects the broader crises faced by Sudan amid war. The refinery’s critical role in meeting the country’s fuel needs is now compromised, pushing Sudan to seek costly imports. The anticipated lengthy and expensive repairs exacerbate the nation’s economic struggles, underscoring the dire impact of ongoing hostilities on vital infrastructure.

Original Source: www.youralaskalink.com

Victor Reyes

Victor Reyes is a respected journalist known for his exceptional reporting on urban affairs and community issues. A graduate of the University of Texas at Austin, Victor has dedicated his career to highlighting local stories that often go unnoticed by mainstream media. With over 16 years in the field, he possesses an extraordinary talent for capturing the essence of the neighborhoods he covers, making his work deeply relevant and impactful.

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