The Uncertain Fate of Morocco’s SAMIR Refinery: A Call for Revival Amidst Legal Battles
The SAMIR refinery, once a beacon of Morocco’s energy sector, stands silent. Its closure in 2015 left a void, sparking a complex legal battle and raising concerns about the country’s energy security. Now, amidst ongoing arbitration with former majority shareholder, Saudi-Ethiopian billionaire Mohammed Hussein Al Amoudi’s Coral Petroleum, workers are making a heartfelt plea: revive the refinery before its assets dwindle away.
A Legacy of Disputes and Financial Strain
The heart of the issue lies in the privatization of SAMIR in 1997. Coral Petroleum, acquiring a 67% stake, pledged to modernize and expand the refinery. However, accusations of mismanagement, mounting debts, and unfulfilled commitments plagued the company. By 2015, SAMIR was forced to cease operations, leaving Morocco grappling with significant financial losses and a dependence on imported refined petroleum products.
The International Centre for Settlement of Investment Disputes (ICSID) became the battleground for a protracted legal battle between Morocco and Coral Petroleum. Al Amoudi sought a staggering $2.7 billion in compensation, claiming the Moroccan government’s actions led to SAMIR’s downfall.
A Glimmer of Hope or Further Entanglement?
In July 2024, the ICSID delivered a mixed verdict. While rejecting the bulk of Coral Petroleum’s claims, it ordered Morocco to pay $150 million, citing harm to the company’s investments. This decision, met with disappointment in Morocco, has prompted the government to explore all avenues of appeal.
Al Hussein El Yamani, Secretary General of the National Union of Petroleum and Gas and head of the National Front for the Rescue of the Moroccan Oil Refinery, highlights the urgency of the situation. He argues that restarting SAMIR’s operations is crucial to stem the tide of financial losses, which have already surpassed 100 billion dirhams (
