SAMIR Case: Morocco, Corral Holdings File for Rectification of ICSID Ruling

The Moroccan government and Swedish group Corral Holdings have both filed appeals with the International Centre for Settlement of Investment Disputes (ICSID) seeking rectification of the tribunal’s ruling in the long-running dispute over the SAMIR oil refinery.

Doha – The Moroccan government and Swedish group Corral Holdings have both filed appeals with the International Centre for Settlement of Investment Disputes (ICSID) seeking rectification of the tribunal’s ruling in the long-running dispute over the SAMIR oil refinery.

On July 15, the ICSID tribunal ordered Morocco to pay $150 million in damages to Corral Holdings, the majority shareholder in SAMIR.

While significantly less than the $2.7 billion initially sought by Corral, the Moroccan government still deemed the ruling unsatisfactory and vowed to appeal.

According to the ICSID website, the rectification requests from both parties were registered on September 3, just within the 45-day window following the initial ruling.

Under ICSID rules, parties can seek a supplementary decision or rectification if they believe the tribunal omitted key points or made material, calculation or similar errors.

The Saudi-Ethiopian billionaire Mohammed Al-Amoudi’s Corral Holdings argued that Morocco was responsible for SAMIR’s 2015 bankruptcy and sought $2.7 billion in compensation. However, the tribunal rejected most of Corral’s claims.

Morocco contends it bears no responsibility for the refinery’s demise, pointing to Corral’s failure as majority shareholder to inject necessary funds to save the company despite promises to do so. The $150 million award, while substantial, falls far short of Corral’s demands.

Government sources indicate Morocco will vigorously argue its case in the rectification proceedings, maintaining that Corral was responsible for SAMIR’s collapse. Experts suggest the final award could be revised downward in Morocco’s favor.

The SAMIR affair dates back to August 2015 when Morocco’s sole oil refinery ceased operations after Corral failed to pay mounting debts to crude suppliers. The refinery was subsequently placed in liquidation. The case has major implications for Morocco’s energy sector and investor confidence.

While ICSID judgements are binding, the rectification process offers both sides a final chance to contest points of law or fact. The tribunal will examine the merits of the respective rectification requests before issuing its final ruling, a process that could take several more months.