Areal picture of SAMIR before its closer in 2015. Source: alarabiya.
Rabat – Saudi Businessman, Mohammed Al Amoudi, is claiming $2.7 billion in compensation following the liquidation of Samir, Morocco’s sole oil refinery, which financially collapsed in 2015 under a crushing debt due to mismanagement.
The news comes following the closure of the arbitration procedure at the International Centre for Settlement of Investment Disputes (ICSID) in 2018.
A source told Morocco World News (MWN) that the country has not yet responded to the claims and is awaiting the verdict from the ICSID.
Morocco has not yet given its official position, the source stressed.
Initiated by Al Amoudi’s Corral Morocco Holding, a subsidiary of his Swedish group, the arbitration sought $2.7 billion in damages, citing violations of protections granted under the 1990 bilateral investment treaty between Sweden and Morocco.
The ICSID, an arm of the World Bank, concluded the arbitration in accordance with its regulations, potentially setting the stage for further legal battles.
Samir’s financial woes date back nearly a decade, with the refinery accruing around 40 billion dirhams ($4 billion) in debt. Of this, 40% is owed to the state through the Customs Administration, while the remainder is divided among Moroccan and international banks.
Banque Populaire alone holds 2 billion dirhams ($200 million) of this debt. The Casablanca commercial court had previously implicated Al Amoudi and Samir’s former management in the financial collapse and extended the refinery’s judicial liquidation.
The refinery ceased operations in 2016 and has since been under judicial oversight, with activities continuing under the supervision of a trustee and a supervisory judge.
