The International Centre for Settlement of Investment Disputes (ICSID) on Monday rejected Corral Morocco Holding’s demand for 2.7 billion dollars in the case against the Moroccan State.
The ICSID awarded this company a compensation of only 150 million dollars, or less than 6% of the amount the group demanded in the 2018 case.
SAMIR, Morocco’s sole oil refinery, went bankrupt in 2015 due to mismanagement and mounting debt that had reached $4 billion. The refinery officially closed its doors in 2016.
In a statement to Morocco’s News Agency MAP, Economy and Finance Minister Nadia Fettah stated that Morocco has taken note of the award and is examining all options, including lodging an action for annulment before the ICSID.
The Minister said that during the ICSID arbitration proceedings, Morocco defended its position and presented all the measures taken to assist SAMIR.
The government mobilized significant public assets since 2002 to safeguard and grow the activity of the oil refinery, the minister pointed out, adding that Morocco will remain committed to “fulfilling its responsibilities and rights, vis-à-vis its partners and international bodies, in full respect of international and bilateral agreements”.
The Minister added that the North African country is confident that it has met all of its contractual obligations to the Mohammedia oil refinery’s majority stakeholder.
She stated that the company’s recovery has never been achieved due to the continuous financial and managerial issues caused by the primary shareholder’s failure to meet his contractual responsibilities.
The Casablanca commercial court had declared that Saudi Businessman, Mohammed Al Amoudi, Corral Morocco Holding’s owner, and Samir’s former management were involved in the financial collapse.
Morocco, which has long regarded the oil refinery as a strategic asset, has deployed all available resources to ensure its efficient operation and expansion, she stated.
An official from the Ministry of Energy Transition and Sustainable Development informed MAP that a new initiative is being developed to revitalize the SAMIR site in Mohammedia.
Nadia Fettah added that Morocco is proud of having a secure environment for investors and a business climate that offers undeniable economic opportunities at the crossroads of high-potential markets.
She concluded by saying that the government will spare no effort to ensure the development of the energy and petrochemical sector in Morocco, while consolidating its leadership in renewable and future energies such as hydrogen.
Since its shutdown in 2016, the government has attempted to find a buyer to restart the oil finery. The facility’s closure negatively impacted the country’s fuel reserves, as it had a processing capacity of up to 200,000 barrels of crude oil daily.