SAMIR dispute: Morocco rejects $2.7 billion compensation claim by Saudi billionaire

CASABLANCA – Morocco rejected a 27 billion dirham ($2.7 billion) compensation demanded by Saudi businessman Mohammed Al Amoudi, representing the Swedish Corral Group, in the ongoing dispute over SAMIR, the Moroccan oil refinery company.

The demand was submitted on behalf of SAMIR, which is undergoing judicial liquidation in the Commercial Court in Casablanca.

The rejection came during the latest arbitration sessions held by the International Center for Settlement of Investment Disputes (ICSID) in Washington D.C., a move that could trigger a lawsuit between the two parties, especially after Morocco accused the Saudi businessman of blackmail and illegal maneuvers in a bid to thwart SAMIR’s liquidation.

SAMIR, which is the sole oil refinery in Morocco, ceased its operations in 2016 after going bankrupt in 2015 due to a series of financial difficulties.

The company owes a debt of approximately 40 billion dirhams ($4 billion), 40% of which is held by the State, through the Customs Administration, and the rest distributed between Moroccan and international banks. For its part, Banque Populaire has a claim of 2 billion dirhams ($200 million).

The Commercial Court in Casablanca held SAMIR’s former management, including Al Amoudi, responsible for the oil refinery’s financial collapse and approved the extension of its judicial liquidation.

On January 26, 2023, the Minister Delegate to the Prime Minister in charge of Relations with Parliament, and Government spokesperson, Mustapha Baitas, made it clear that it would be illusory to think that this case could be resolved without taking into consideration its outcome at the level of International Justice.

The fate of the hundreds of refinery employees remains one of the major sticking points. Minister of energy transition, Leila Benali, had repeatedly stated that the settlement of the refinery case will take into consideration the interests and rights of employees.