Morocco’s trade unions have called again for the reopening of Saudi-owned “Samir” refinery which stopped operations in 2015 due to mounting debts exceeding $4.4 billion.
The facility has remained closed while enduring prolonged legal, financial, and international arbitration battles over its debts. The Unions’ call comes after Morocco’s parliament rejected a proposal in June to acquire the refinery, leaving Morocco entirely dependent on refined fuel imports.
The “National Front to Save Samir”, which groups Morocco’s trade unionists, former refinery workers, economists, and civil society figures said re-starting the 150,000-barrels-per-day (bpd) refinery has become today necessary to reduce a costly petrol import bill and take advantage of the widening price margin between crude oil and refined products due to the supply disruptions following Hormuz Strait’s closure.
“Restarting the Mohammedia refinery could serve as a lever to strengthen Morocco’s energy security,” said the National Front in a statement, noting the refinery has the capacity to provide about 3.2 million tons of refined products annually to the local market, more than half the total domestic demand of around six million tons.
In February, press reports said that the Dubai-based MJM Investments submitted an offer of around $3.5 billion to acquire Samir refinery but it was rejected by court.
Hundreds of workers who have lost their jobs following the liquidation of Morocco’s sole oil refinery have frequently demonstrated to demand its re-opening.
The refinery was built and run by the state from 1959 until 1997, when it was sold to Swedish company Corral Morocco Holdings, which belongs to Saudi-Ethiopian billionaire, Sheikh Mohammed Hussein Al Amoudi.
