Saudi Aramco Delays Restart of Jazan Refinery After Yemeni Attack

RIYADH, Saudi Arabia – Saudi Aramco has announced a postponement of the restart of the Jazan Refinery in Saudi Arabia, following an attack on the facility by the Ansar Allah, a rebel group in Yemen. The extended shutdown is expected to last more than a month, as maintenance and repairs are being carried out.

The Jazan Refinery, one of the key facilities for PetroRabigh, a 400,000-barrel-a-day refinery joint venture, was previously scheduled to resume operations after several weeks of maintenance. However, the recent attack by Ansar Allah has resulted in significant damage to the refinery, necessitating additional repairs.

Ansar Allah, also known as the Houthis, have been launching attacks on Saudi targets, including oil facilities, in retaliation for the involvement of Saudi Arabia in the Yemen conflict. The group has claimed responsibility for several attacks in recent months, including an assault on the Abqaiq oil processing facility in September 2020.

A spokesperson for Saudi Aramco said that the company is working closely with PetroRabigh to assess the damage and implement the necessary repairs to ensure the safe resumption of operations. The Jazan Refinery was one of the first facilities to be targeted by Ansar Allah, with a drone attack in January causing significant production disruptions.

The delay is likely to have a ripple effect on the global oil market, as PetroRabigh is a key contributor to Saudi Arabia’s crude oil production. Analysts expect the extended shutdown to result in reduced oil exports from Saudi Arabia, potentially contributing to higher global oil prices.

Saudi Aramco and PetroRabigh have not provided a specific date for the resumption of operations, citing ongoing assessments of the damages. The attack on the Jazan Refinery highlights the growing threat posed by proxy groups in the region and underscores the need for enhanced security measures to protect critical infrastructure.

While the impact of the attack on the global oil market is uncertain, the incident serves as a stark reminder of the vulnerabilities of Saudi oil infrastructure and the ongoing risks associated with conflicts in the Middle East.

As the situation develops, Saudi Aramco and PetroRabigh will continue to work together to determine the best course of action to restore the refinery to full production.