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Rabat – Spanish oil company Cepsa and Derhem Holding will create a joint venture in Morocco with the goal of having a network of 100 fuel stations over the next five years.
Cepsa set the ambitious goal of taking over 15 percent of the Moroccan fuel station market in the near future, Spanish business outlet El Economista reported December 7.
Two months ago, Cepsa expressed its interest in expanding its presence in northern Morocco, a “preferred market for expansion due to its proximity to our refineries on the south coast of Spain.”
Read Also: Spain’s CEPSA Oil Company Wants to Expand Presence in Morocco
“In July 2018, we established a 50/50 joint venture with a local partner to commence the development of our business in Morocco, with the objective of opening 30 points of sale by 2020, 100 points of sale by 2023 and a 15% market share in the medium-term (by number of service stations),” the Spanish oil company said in a statement on October 2.
CEPSA aims to focus on retail, business to business sales, and storage.
Taking advantage of its proximity to Morocco, Cepsa can now grow its business by exporting more fuel from its refineries in southern Spain.
The Derhem Holding group has been a major fuel distributor in Morocco’s oil industry for 40 years, especially in Morocco’s southern provinces, via its subsidiary Atlas Sahara.
Petrosud is currently CEPSA’s only presence in Morocco. Cepsa holds a 35 percent stake in Petrosud, “which is focused on the marketing of marine oil at the port of Agadir.”
It will be the first time the company has distribution business outside of Europe.
Cepsa’s investment in Morocco will help the company achieve its goal of increasing its number of service stations to 1,940 stations in Europe, the Canary Islands, and Morocco.
