Morocco has successfully defended itself against a lawsuit filed by Corral Morocco Holding, which originally sought $2.7 billion in damages but was awarded only $150 million by a court.
The Moroccan government welcomed the decision while considering an appeal after the Washington-based ICSID ruled in favor of country in the long-running SAMIR refinery dispute.
The dispute centered around the financial difficulties faced by the SAMIR refinery, which is largely owned by Corral Morocco Holding.
Read also: SAMIR: the rise and fall of Morocco’s energy independence dream
Morocco argued that it had taken extensive measures to support the refinery but that the company’s mismanagement led to its downfall.
“We are convinced that Morocco has always had a fair position vis-à-vis Corral group,” the Energy minister, Nadia Fettah said.
Fettah also noted that “the Kingdom nevertheless continues to fulfill its responsibilities and rights, vis-à-vis its partners and international bodies, in full respect of international and bilateral agreements.”
The arbitration process for the decision had been contentious, with Morocco accusing Saudi businessman Mohammed Al Amoudi, representing the Coral Groupof engaging in “blackmail and bullying tactics.”
Moroccan officials have expressed concerns over what they deem to be illegal maneuvers by Al Amoudi, aimed at obstructing the liquidation process of SAMIR.
They allege that the Saudi businessman has promoted unrealistic recovery offers for the refinery, allegedly from unknown entities, and used these offers in bad faith to inflate compensation claims.
SAMIR, which ceased operations in 2016, has been a focal point of Moroccan efforts to sustain its productivity since 2002.
The Moroccan government provided significant resources and tax incentives to support SAMIR, viewing the refinery as strategically important for foreign investments and national development strategies. Despite SAMIR’s financial instability, Moroccan authorities assert their good faith efforts to fortify the refinery’s industrial infrastructure over the years.
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