Earlier this year, the Spanish company said that it wants to expand its presence in Morocco due to the country’s proximity to its refineries on the south coast of Spain.
Derhem Holding is a Moroccan holding company active in several sectors including hydrocarbons, maritime, and fishing.
A statement from the company said on October 21 that the decision to launch points in Morocco is in line with the country’s international expansion and “the reinforcement of its integrated business model.”
Both Cepsa and Derhem Holding will operate in North Africa country through a “5:50 joint venture partnership.”
The agreement of an estimated value of €120 million, includes “developing direct sales to other operations industrial customers and the public sector.”
The two companies are also planning to build a storage terminal at the port of Jorf Lasfar, one of Morocco’s largest hubs.
Cepsa also expressed satisfaction with securing its exclusive position as the first Spanish “brand in the Moroccan service stations market.”
The company aims to expand its presence with “at least 100 points of sale 4% of the market share) in the next five years.”
Both Cepsa and Derhem Holding aim to “contribute to generating competitiveness in the growing Moroccan energy market.”
Director of Marketing at Cepsa Alvarado Diaz Bild said that Morocco is a “key region for Cepsa. We had a presence in the country for the last 30 years and we are now eager to embark on this new project in partnership with a local expert Derhem Holding.”
He recalled that the company was keen to expand into Morocco due to its proximity to the company’s refineries “and our extensive experience allow us to enter solidly in this growing market, where we expect to continue to increase our activity.”
For the president of the Derhem Holding firm, Dahman Derhem, the joint venture is part of the strategic partnership between Morocco and Spain.”
Cepsa said that it has been supplying the Moroccan market for over three decades.
The proximity of its refineries has enabled the sale of fuels, asphalts, and lubricants. Cepsa exports over 2 million tons of fuel for land and air transport per year.