Sudan Oil and Gas Market Overview
Sudan’s oil and gas market has undergone significant structural shifts since the country’s secession from South Sudan in 2011, which resulted in the loss of nearly three-quarters of its oil reserves and production capacity. Despite this setback, Sudan remains an important player in the region’s energy dynamics due to its strategic location and legacy infrastructure that continues to serve as a transit and processing hub for South Sudanese crude exports. The oil and gas sector is a critical component of Sudan’s economy, providing essential foreign exchange and fiscal revenues, even as production levels have remained modest. The country has focused on renegotiating transit agreements, rehabilitating its infrastructure, and attracting foreign investment to develop untapped reserves in regions such as the Muglad and Melut Basins. However, political instability, international sanctions, and internal conflicts have significantly constrained growth and deterred sustained foreign participation. Still, Sudan views energy sector revitalization as a pathway to economic recovery and regional integration.
The oil and gas value chain in Sudan is marked by a limited but strategic upstream segment, a functional midstream network, and a struggling downstream industry. In the upstream sector, most of the oilfields lie along the border with South Sudan, with production shared through joint operating companies such as the Greater Nile Petroleum Operating Company (GNPOC). Sudan continues to explore smaller domestic reserves, although technical and financial limitations hamper new field development. The midstream segment remains vital, especially as it hosts pipelines that transport South Sudan’s oil through Sudanese territory to the Port of Sudan on the Red Sea. These pipelines are crucial for regional energy logistics and generate significant transit fees for Sudan. In the downstream segment, the country’s refining infrastructure, notably the Khartoum Refinery, operates below capacity due to aging equipment, feedstock shortages, and frequent disruptions. Domestic fuel supply remains inconsistent, forcing Sudan to rely partially on imports despite its role in the regional oil supply chain. Upgrading refineries and securing steady crude supply remain top priorities for the government as it seeks to stabilize the domestic energy market and reduce import dependency.
Sudan Oil and Gas Market Latest Developments
In January 2025, Sudan lifted a long-standing force majeure on South Sudan’s crude oil exports via its pipeline to Port Sudan, enabling the resumption of a critical revenue stream after relative improvements in security along the transit route.In May 2025, crude oil shipments from South Sudan resumed through Sudanese territory after successful repairs to pipeline infrastructure that had been damaged in a previous airstrike.
In the same month, Sudan’s military-led administration issued a warning that it might suspend the use of its export terminals by South Sudan following repeated attacks on key oil storage depots in Port Sudan.
In January 2025, a massive fire caused by armed conflict destroyed the al-Jaili refinery near Khartoum, which had a capacity of 100,000 barrels per day, effectively halting most of the country’s domestic refining operations.
By late May 2025, Sudan’s crude oil production fell to approximately 24,000 barrels per day less than half of prior output levels while the domestic fuel supply chain collapsed due to widespread infrastructure damage and refinery shutdowns.
Key Takeaways:
The lifting of the force majeure on South Sudanese oil transit has partially stabilized Sudan’s access to transit fees, but the arrangement remains fragile due to volatile security conditions.
The resumption of South Sudan’s oil exports through Sudan reflects the critical importance of pipeline infrastructure, which continues to serve as a mutual economic lifeline for both countries.
Sudan’s threat to suspend South Sudan’s access to export terminals highlights how military conflict is being used as leverage, potentially undermining regional cooperation and energy flows.
The destruction of the al-Jaili refinery represents a major setback, eliminating Sudan’s primary source of refined fuel and increasing reliance on costly imports for domestic consumption.
The fire at the refinery underscores the vulnerability of energy infrastructure to armed conflict and the high economic cost of such disruptions in a politically unstable environment.
With crude production falling below 25,000 barrels per day, Sudan’s upstream segment has reached critically low output levels, raising concerns about the country’s energy independence and fiscal stability.
The refinery disaster has led to acute domestic fuel shortages, triggering inflation in transport and food prices, and compounding humanitarian challenges across the country.
The economic implications are severe: Sudan is losing oil sector income from both upstream operations and downstream refining, weakening its national revenue base.
The crisis has negatively impacted foreign partnerships, including those with Chinese oil companies, as operational assets face prolonged disruptions and security risks.
Sudan’s oil sector recovery will require large-scale investments in infrastructure rebuilding, political stabilization, and renewed international confidence none of which are feasible in the short term given the ongoing civil unrest.
Sudan Oil and Gas Market Report Scope
The "Sudan Oil and Gas Strategic Analysis and Outlook to 2032" is an all-encompassing report that delivers a full-spectrum evaluation of the nation’s oil and gas value chain—from exploration and production fields, refinery and LNG plant operations, to midstream pipelines and storage infrastructure in Sudan. Leveraging robust methodologies and proprietary databases, the study provides detailed asset-level data, historic and forecasted supply-demand trends (2015–2032), and a clear understanding of how recent developments, government policies, and market dynamics shape the sector. The Sudan Oil and Gas report equips industry stakeholders with actionable insights for investment, benchmarking, and strategic planning by profiling operational assets, new projects, and the competitive landscape across upstream, midstream, and downstream segments.
Comprehensive market analytics are complemented by SWOT and investment opportunity analysis, highlighting growth drivers, operational risks, sector-specific challenges, and capital requirements. The study evaluates key companies’ strategies, performance, and market positions, providing an integrated view of where opportunities and bottlenecks exist. The scope extends to Sudan field-wise production, refinery-wise capacity, LNG terminal operations (including liquefaction and regasification units), and product flows through pipelines and storage. The research not only answers core market questions but also uncovers the evolving dynamics that will influence the future trajectory of Sudan country’s oil and gas industry.
- Sudan Asset-by-asset data covers all existing and upcoming oil and gas fields, refineries, LNG terminals, pipelines, and storage facilities, providing a granular view of national infrastructure.
- Historic and projected supply-demand analysis for crude oil, natural gas, and key refined products (gasoline, diesel, LPG, fuel oil, etc.) from 2015 to 2032.
- Recent developments, regulatory changes, and major project announcements are analyzed for their impact on market fundamentals and investment climate.
- Segmented insights into upstream (exploration and production), midstream (pipelines, LNG, storage), and downstream (refining, distribution) operations.
- Comprehensive overview of LNG sector including liquefaction and regasification terminals, contracted versus available capacity, and future outlook.
- Sudan Oil and Gas Industry SWOT analysis and sector-wise benchmarking to evaluate industry strengths, challenges, opportunities, and potential risks.
- Sudan Investment analysis detailing sector growth potential, required capital for new projects, and feasibility of ongoing and planned developments.
- Competitive landscape profiling of leading companies, with business strategies, operational performance, and market shares.
- Infrastructure benchmarking by market concentration in pipelines, refining, LNG, and storage segments, including capacity and utilization rates.
- Answers to key market questions, including evolving Sudan supply-demand dynamics, project status, leading market participants, and the future outlook for capacity, trade, and investment.
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FAQ's
The Sudan Oil and Gas report provides comprehensive intelligence from upstream to downstream—covering exploration blocks, field-level production, refinery operations, LNG terminals, and supply-demand analytics. It empowers executives and investors with actionable insights to assess risks, evaluate opportunities, and optimize Sudan market entry or expansion strategies.
Yes, the report presents detailed data and analysis for all relevant segments present in the country—whether upstream (exploration and production), midstream (LNG terminals, storage facilities, pipelines), or downstream (refineries). This sector-specific granularity ensures accurate benchmarking, planning, and forecasting tailored to the Sudan oil and gas infrastructure.
With detailed coverage of exploration opportunities, trade contracts, regulatory frameworks, and infrastructure projects, the Sudan oil and gas report serves as a critical tool for stakeholders formulating investment strategies, negotiating partnerships, or aligning with national energy policies.
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