Morocco and Corral holdings seek correction of ICSID ruling in SAMIR refinery dispute

The long-standing dispute over Morocco’s sole oil refinery, SAMIR, has taken another turn as both the Moroccan government and Swedish firm Corral Holdings have filed appeals with the International Centre for Settlement of Investment Disputes (ICSID).

The appeals seek to rectify a recent tribunal decision that ordered Morocco to pay $150 million in damages to Corral Holdings, the majority shareholder of the now-defunct SAMIR refinery.

The ICSID tribunal’s decision, delivered on July 15, was seen as a partial victory for Morocco since the damages awarded were significantly lower than the $2.7 billion initially claimed by Corral Holdings.

Nevertheless, the Moroccan government expressed dissatisfaction with the ruling and announced its intention to appeal.

According to ICSID’s website, both parties submitted requests for rectification on September 3, within the 45-day window allowed following the tribunal’s initial decision.

Under ICSID rules, parties may request an additional decision or rectification if they believe the tribunal overlooked key points or made errors in calculations or other material aspects.

The dispute dates back to August 2015, when SAMIR, Morocco’s only oil refinery, ceased operations after Corral Holdings failed to settle mounting debts with crude suppliers.

The refinery was subsequently placed into liquidation, sparking a legal battle that has had significant repercussions on Morocco’s energy sector and investor confidence.

Saudi-Ethiopian billionaire Mohammed Al-Amoudi’s Corral Holdings argued that Morocco was responsible for SAMIR’s collapse in 2015 and sought $2.7 billion in compensation.

However, the ICSID tribunal rejected most of Corral’s claims, instead awarding the reduced amount of $150 million.

Morocco, for its part, maintains that it is not to blame for SAMIR’s downfall, arguing that Corral Holdings, as the majority shareholder, failed to inject the necessary capital to save the company despite its commitments.

The $150 million award, although substantial, falls far short of Corral’s original demands.

Government sources indicate that Morocco will vigorously defend its position during the rectification process, insisting that Corral bears the primary responsibility for SAMIR’s bankruptcy.

Industry experts suggest that the final award could be revised further in Morocco’s favor, depending on the outcome of the rectification requests.

While ICSID rulings are binding, the rectification process offers both parties a final opportunity to challenge points of law or fact.

The tribunal will review the validity of each party’s rectification claims before issuing a final decision, a process that could extend for several more months.