Sudan's Oil Sector Faces $20 Billion in Losses Amid Ongoing Conflict
Energy Minister reveals extensive damage to oil and electricity infrastructure as Sudan continues to grapple with the impacts of war.
Sudan's Minister of Energy and Oil, Dr. Mohi El-Din Naim, has confirmed that the ongoing conflict has severely impacted the country's energy and oil sectors, estimating losses at approximately $20 billion.
In an exclusive interview, Naim detailed the breadth of the damage, indicating significant harm to oil installations along with widespread devastation to electricity facilities across the nation.
The minister pointed out that the oil sector has suffered from both damage to infrastructure and the loss of stored crude oil and petroleum products located in strategic reserves, including those from the Khartoum refinery.
Specific incidents of deliberate sabotage included the destruction of oil fields, theft of cables related to wells, and damage to living quarters for workers and spare parts warehouses, alongside vandalism to ministry headquarters.
Despite these challenges, Naim stated that there is currently no fuel crisis affecting civilians or the armed forces, with most secure states enjoying stable electricity supply.
Efforts are underway to restore services in areas recently liberated from Rapid Support Forces (RSF) control, including the central state of Al-Jazeera.
The minister expressed optimism regarding the rehabilitation of the Khartoum refinery, aiming to restore it to its previous operational capacity, or even improve its conditions.
Plans are also in place for a new refinery to be established in Port Sudan as a separate project.
Naim highlighted the enormous efforts made by electricity companies to repair extensive damage in complex and hazardous conditions, successfully restoring many power lines in states like Khartoum and Al-Jazeera.
During recent visits to China and India, Naim noted a keen interest from original investment partners to return and engage in Sudan's oil sector, indicating a significant potential for the revival of production.
Furthermore, there is a comprehensive plan to rebuild and rehabilitate the areas devastated by the war in both the oil and electricity sectors.
The minister acknowledged the challenges posed by the conflict, which has resulted in a significant reduction of operational capacity in the energy sector, with only about 20% of personnel currently active, as many are on leave due to the war.
However, he confirmed that staff salaries are continuing and job security is maintained for when normal activities resume.
In terms of impact on electricity, the conflict has resulted in the loss of over 700 megawatts of thermal generation capacity due to the shutdown of multiple plants, along with significant damage to the electricity transmission network, including 800 kilometers of power lines.
Efforts to restore electricity supply continue, even amid speculation of potential internal collaboration with RSF forces to target specific energy assets.
Naim confirmed that investment opportunities remain, particularly in secure areas, while negotiations with foreign investors are ongoing despite the backdrop of conflict.
As the military dynamics evolve in Sudan, the armed forces have intensified operations to reclaim strategic sites in Khartoum, including key institutions such as the central bank, further complicating the situation for oil and electricity sectors amid ongoing hostilities.
In an exclusive interview, Naim detailed the breadth of the damage, indicating significant harm to oil installations along with widespread devastation to electricity facilities across the nation.
The minister pointed out that the oil sector has suffered from both damage to infrastructure and the loss of stored crude oil and petroleum products located in strategic reserves, including those from the Khartoum refinery.
Specific incidents of deliberate sabotage included the destruction of oil fields, theft of cables related to wells, and damage to living quarters for workers and spare parts warehouses, alongside vandalism to ministry headquarters.
Despite these challenges, Naim stated that there is currently no fuel crisis affecting civilians or the armed forces, with most secure states enjoying stable electricity supply.
Efforts are underway to restore services in areas recently liberated from Rapid Support Forces (RSF) control, including the central state of Al-Jazeera.
The minister expressed optimism regarding the rehabilitation of the Khartoum refinery, aiming to restore it to its previous operational capacity, or even improve its conditions.
Plans are also in place for a new refinery to be established in Port Sudan as a separate project.
Naim highlighted the enormous efforts made by electricity companies to repair extensive damage in complex and hazardous conditions, successfully restoring many power lines in states like Khartoum and Al-Jazeera.
During recent visits to China and India, Naim noted a keen interest from original investment partners to return and engage in Sudan's oil sector, indicating a significant potential for the revival of production.
Furthermore, there is a comprehensive plan to rebuild and rehabilitate the areas devastated by the war in both the oil and electricity sectors.
The minister acknowledged the challenges posed by the conflict, which has resulted in a significant reduction of operational capacity in the energy sector, with only about 20% of personnel currently active, as many are on leave due to the war.
However, he confirmed that staff salaries are continuing and job security is maintained for when normal activities resume.
In terms of impact on electricity, the conflict has resulted in the loss of over 700 megawatts of thermal generation capacity due to the shutdown of multiple plants, along with significant damage to the electricity transmission network, including 800 kilometers of power lines.
Efforts to restore electricity supply continue, even amid speculation of potential internal collaboration with RSF forces to target specific energy assets.
Naim confirmed that investment opportunities remain, particularly in secure areas, while negotiations with foreign investors are ongoing despite the backdrop of conflict.
As the military dynamics evolve in Sudan, the armed forces have intensified operations to reclaim strategic sites in Khartoum, including key institutions such as the central bank, further complicating the situation for oil and electricity sectors amid ongoing hostilities.
