Samir: The National Front Calls for the Revival of Refining in Morocco

The National Front for the Preservation of the Moroccan Oil Refinery (FNSS) reignites the debate on the future of Samir and Morocco’s energy sovereignty. The coalition, which includes unions, political parties, and associations, is calling for the resumption of refining activities and expresses surprise that this issue is not included in the new government’s agenda, especially considering that the Mohammedia refinery has been under judicial liquidation since 2016.

This mobilization comes eight months after a commercial court rejected an Emirati offer of $3.5 billion, approximately 34.44 billion dirhams, for the company’s assets. The absence of a buyer and uncertainties surrounding potential operational resumption continue to fuel calls for the revival of this strategic industrial facility.

FNSS Places Energy Sovereignty Back on the Agenda

During an executive board meeting, the FNSS announced its intention to continue advocating with various influential sectors in the country. Their demands include energy sovereignty, the creation of added value, job preservation, and workers’ rights.

The collective also draws a connection between the shutdown of Samir and the high prices of fuels at the pump. Since its establishment on July 14, 2018, it has defended the reactivation of the refinery as a potential lever to strengthen national oil processing capabilities and reduce the country’s dependence on imported refined petroleum products.

In this context, the FNSS laments that the future of Samir is not a priority for the new government. For its members, the ongoing liquidation without a long-lasting industrial solution leaves a question hanging that transcends the mere fate of the company.

Court Dismisses Emirati Offer of $3.5 Billion

On Friday, February 27, the Casablanca commercial court deemed the proposal from MJM Investments Limited, a Dubai-based investment firm, inadmissible. The judges noted the lack of a complete file and a firm, unconditional commitment, as well as the absence of a binding timeline for the facility’s recommissioning.

Correspondence sent to the court president indicated a proposal of approximately $3.5 billion for acquiring the refinery’s assets. According to the information provided, it was the highest offer submitted since competitive bidding commenced in 2017.

However, the investor conditioned its commitment on two requirements: comprehensive access to the Mohammedia site and an in-depth technical assessment of the production units, storage capabilities, and infrastructure. This process was meant to allow the investor to evaluate the condition of facilities that had been inactive for over ten years and to estimate the work needed to bring them back online in accordance with industrial and environmental standards.

Judicial Evaluations Significantly Below the Proposed Offer

The amount proposed by MJM Investments greatly exceeded the estimates established in the judicial process. Experts appointed by the court had appraised the total assets of Samir at $2.16 billion, approximately 21.25 billion dirhams. The refinery alone was valued at $1.49 billion, or about 14.66 billion dirhams.

Based on international expertise, the judge-commissioner hoped for a sale of around $2.5 billion, close to 24.6 billion dirhams. In February 2023, the Casablanca commercial court reissued the call for bids at approximately $2 billion and received fifteen proposals.

An expert in the energy sector assessed that the Emirati offer was disproportionate given the value of a facility stripped of certain assets that had been sold or devalued since 2017. A source close to the case flagged the approach as "pure bluff," citing a lack of sufficiently robust financial guarantees.

MJM Investments: A Profile More Focused on Finance and Real Estate

Founded in 2017 by Emirati investor Musab Jassim, MJM Investments Limited positions itself as a private equity firm specializing in structured financial arrangements, mezzanine financing, leveraged buyouts, and growth capital.

Its activities are primarily directed towards real estate in the United Arab Emirates and Turkey. The company claims a portfolio of $25 million, roughly 246 million dirhams. Its declared experience is thus focused on property and financial operations, rather than on industrial activities related to oil refining.

Its governance includes Vice Chairman Sheikh Adel Al-Qassimi, an Emirati lawyer, CFO Anindya Chattopadhyay, presented as a former banker specialized in financial engineering, and Edwin Lee Am, an executive from an international investment bank.

The investor also highlights a platform dedicated to strategic infrastructures in Morocco, developed in partnership with Canmoro Data. Furthermore, British investment bank Barclays sent a letter of support indicating its willingness to consider funding and backing the acquisition, potentially covering the full amount. However, this potential support remained subject to the bank’s internal procedures, feasibility studies, risk analysis, and necessary regulatory approvals.

Proposal for Nationalization Rejected by the Senate

The debate on the future of Samir has also gained a political dimension. On June 16, the Senate rejected a bill intended to transfer the refinery’s assets to the state.

Supporters of the bill emphasized the importance of a public refining tool to bolster national fuel reserves and ensure supply stability. The political bureau of the Party of Progress and Socialism (PPS) denounced this vote on June 23 while criticizing the government’s refusal to cap fuel prices.

The acknowledged liabilities of Samir exceed 30 billion dirhams, more than half of which pertains to public debts. Since 2016, the commercial court has renewed the authorization for the company to continue its operations every three months. While awaiting a potential buyer, the trustee has been granted the right to generate revenue from the facility’s storage capacities.

Nearly a Decade of Procedures Without a Definitive Solution

Since the first calls for bids, the courts have dismissed about fifteen acquisition proposals. Around twenty foreign investors expressed interest as early as 2017, including Swiss commodity trader Glencore and American fund Carlyle, who were involved in an effort to recover about $600 million, nearly 5.9 billion dirhams, in loans extended to the refinery before its bankruptcy.

In 2019, Petroen submitted an offer of 24 billion dirhams, relying on a promised bank guarantee from Canaccord Genuity, established in Dubai, within fifteen days of the award.

However, these various attempts have not led to an effective resumption of refining activities. The proliferation of offers, evaluations, and judicial proceedings illustrates the complexity of a case that intertwines financial stakes, technical constraints, and national strategic interests.

Samir: A Strategic Industrial Tool Idle Since 2015

Founded by the state in 1959, Samir was designed to process up to 200,000 barrels of crude oil per day, equivalent to around ten million tons per year. Its facilities boast two million cubic meters of storage capacity.

Before the suspension of its production in August 2015, the refinery covered up to 65% of Morocco’s petroleum needs. Its shutdown occurred within a context of debt nearing 40 billion dirhams. The Casablanca commercial court declared its judicial liquidation on March 21, 2016.

Privatized in 1997, the company fell under the control of Corral Morocco Holdings, the holding company of Saudi businessman Mohammed Al-Amoudi, who acquired a 67.27% stake for approximately four billion dirhams. The businessman later claimed $2.7 billion in damages from the Moroccan state.

In July 2024, the International Centre for Settlement of Investment Disputes (ICSID) affiliated with the World Bank dismissed most of Corral’s claims.

Today, the future of Samir remains contingent on a solution that can reconcile asset value, financing requirements, repair costs, and energy policy objectives. The renewed mobilization of the FNSS thus places the issue of national refining back at the heart of the debate on Morocco’s supply security, without any definitive announcement on resumption or nationalization being available in the existing information.