China’s exit from Sudan oil fields deepens crisis for war-ravaged economy
December 9, 2025 (KHARTOUM) – The decision by the China National Petroleum Corporation (CNPC) to dissolve its partnership in Sudan’s oil sector ahead of schedule has deepened the economic gloom hanging over the war-torn nation, following the seizure of the strategic Heglig oil field by the paramilitary Rapid Support Forces (RSF).
The departure of the state-owned Chinese giant threatens to scrub Sudan from the map of global oil producers and choke off a vital economic lifeline for both the Khartoum government and its southern neighbour, South Sudan.
In a letter dated Nov. 19, CNPC cited “force majeure” to the Ministry of Energy and Oil, requesting the early termination of its production-sharing and pipeline agreements for the Balila field, Block 6. The move brings an abrupt end to a decades-long partnership that was originally set to expire in 2026.
The withdrawal comes as the RSF consolidates control over key infrastructure in West Kordofan, leaving the army with a dwindling foothold in the country’s energy heartland.
‘Financial black hole’
For Beijing, the decision appears to be a calculation of profit over politics.
Adel Ali Ibrahim, a former Minister of Energy and Mining, told Sudan Tribune that the sector has effectively collapsed. With the Khartoum and El Obeid refineries shuttered and major pipelines threatened, the venture had become a financial burden.
“We heard this position from them in official meetings,” Ibrahim said, noting that since 2008, Beijing has enforced a policy of cutting off foreign investments that fail to fund themselves.
With production in Block 6 halted since October 2023 and infrastructure crumbling under the weight of the conflict, the project could no longer justify the cost. Prior to declaring force majeure, CNPC had already slashed its workforce by 60% and suspended contractors.
“The destruction in the field and the prolonged stoppage due to the war reached a point where silence… was impossible,” Ibrahim said.
A chilling signal
The exit of a strategic partner like CNPC sends a chilling signal to future investors, according to Ayman Abu Al-Joukh, former General Manager of the state-run Sudapet.
Even before the war, the partnership was strained. Abu Al-Joukh noted that CNPC had been reluctant to increase output due to mounting debts owed by the Sudanese government following the secession of South Sudan in 2011.
While the “force majeure” clause provides a legal exit, the security vacuum on the ground made operations untenable.
Saad Al-Din Al-Bushra, a former State Minister for Oil, emphasized that the logistical nightmare of transporting crude through active combat zones poses a risk not just to profits, but to human life.
“The matter is not related only to production but to people’s lives,” Al-Bushra said. He warned that restoring the industry would require immense capital, particularly to repair pipelines and technical facilities targeted during the fighting.
Regional ripple effects
The collapse of Sudan’s oil production—which plummeted from around 120,000 barrels per day (bpd) in 2018 to roughly 35,000 bpd recently—has broader geopolitical implications.
The Heglig area houses a central processing facility that handles 130,000 barrels of South Sudanese oil daily. This crude, produced in the southern Unity State, relies on Sudanese infrastructure to reach international markets. The shutdown of Chinese operations in Heglig jeopardises Juba’s primary revenue stream.
Economic analyst Abdul Azim Al-Mahal noted that the security breakdown has driven capital flight toward Egypt and Ethiopia.
“It is extremely difficult for a foreign company to endure a security deterioration that has extended for more than seven years,” Al-Mahal said, adding that the departure of Chinese firms, who traditionally defended Sudan in the UN Security Council, represents a significant diplomatic loss.
While some analysts speculate that Western majors like Chevron—which originally discovered Sudan’s oil in the 1970s—might eventually fill the void, the immediate outlook remains bleak.
“If new negotiations take place after the war… Chinese investment in oil will definitely return,” Ibrahim predicted. “But not now.”