Table of Contents
Key Points:
- The ICSID awarded Corral only $150 million, a mere 6 percent of the $2.7 billion sought in the SAMIR refinery case.
- SAMIR Oil Refinery collapsed in 2015 due to financial mismanagement, resulting in a debt of around MAD 40 billion ($4 billion).
- Morocco plans to seek annulment of the ruling while considering new projects to revitalize the SAMIR site in Mohammedia
Ethiopia’s richest man, Mohammed Al-Amoudi, has faced a significant setback in Morocco. On Monday, the International Centre for Settlement of Investment Disputes (ICSID) dismissed the majority of claims brought by Corral Morocco Holding against the Moroccan state regarding the SAMIR refinery.
The ICSID awarded Corral a mere $150 million in compensation, a fraction – five percent – of the $2.7 billion the company sought, according to a statement from the Ministry of Economy and Finance.
Financial Collapse and Mismanagement
Saudi Businessman Mohammed Al Amoudi had claimed $2.7 billion in compensation following the liquidation of SAMIR, Morocco’s sole oil refinery. The company collapsed financially in 2015 under a crushing debt due to mismanagement.
In the statement, Nadia Fettah confirmed the decision and indicated that Morocco is considering all legal avenues, including seeking annulment of the ruling.
Throughout the ICSID proceedings, Morocco defended its actions regarding the SAMIR refinery. Minister Fettah emphasised that since 2002, Morocco has taken extensive measures to support and develop the refinery’s operations.
Despite these efforts, Corral Morocco Holdings, the primary shareholder, was unable to stabilise the refinery’s financial condition.
“Morocco remains committed to upholding its responsibilities and rights towards international partners and organisations, in full compliance with international and bilateral agreements,” Fettah stated.
Efforts and Challenges in Refinery Stabilisation
Minister Fettah expressed confidence in Morocco’s stance throughout the dispute. “We believe that Morocco has always maintained a fair position vis-à-vis the Corral group,” she noted, asserting that Morocco has met all its contractual obligations to the refinery’s main shareholder.
SAMIR’s financial woes date back nearly a decade, with the refinery accumulating around MAD 40 billion ($4 billion) in debt. Of this, 40 percent is owed to the state through the Customs Administration, while the remainder is divided among Moroccan and international banks.
Fettah further explained that chronic financial and management issues, stemming from the main shareholder’s failure to fulfil its contractual duties, prevented a turnaround of the refinery.
Mentioning the strategic importance of the refinery, the minister also noted that Morocco has consistently allocated the necessary resources to ensure its operation and development.
An official from the Ministry of Energy Transition and Sustainable Development, currently in Washington, disclosed that a new project is under consideration to revitalise the SAMIR site in Mohammedia.
Minister Fettah also highlighted Morocco’s commitment to creating a secure environment for investors. “Morocco offers a business climate that provides undeniable economic opportunities at the crossroads of high-potential markets,” she said.
She further added that Morocco is dedicated to advancing its energy and petrochemical sectors while strengthening its leadership in renewable and emerging energies like hydrogen.
