Morocco has been undergoing an all-time low in the oil refinery sector. The only oil refinery in this region had to be shut down in the year 2015 due to a long-running financial crisis. But the Moroccan oil refinery is all set to get back into the oil business with a massive fund it recently received. The court-appointed manager of this refinery, Samir, said that a foreign conglomerate has put forward a financial offer for the business worth almost $3 billion. The name of the investor has been kept anonymous due to unknown reasons.
The Moroccan oil refinery used to produce 200,000 barrels a day. After it was shut down due to financial issues, a court ruling placed it into liquidation and appointed an independent trustee to run it. The trustee, Mohamed El-Krimi, confirmed the news to the press and said that the refinery is expecting more such expressions of interest. He also states that the company was planning to introduce an expression of interest this week but they received this fund on Wednesday itself. Despite not declaring the name of the investor, El-Krimi confirmed the news that they received the Moroccan refinery offer through an Italian law firm Studio Mazzanti and Partners.
Even though the refinery received an offer of an impressive amount, they are still seeking other potential buyers. This is to speed up the working and improve their quality. With reference to the interest of buyers in the refinery, the production of crude oil will begin again. The court will also support the expressions of interest initiative. The shortage in the supply of crude oil has been frustrating to the nation. This might put an end to it.
The Moroccan oil refinery offer
Last week, the court gave El-Krimi a timeline of three months to end the liquidation process and seek buyers. He was working on evaluating the company’s debt and assets since the court ordered the liquidation. The Moroccan government states that the refinery owes $1.3 billion in taxes and its debt is worth around $4.5 billion. The court in charge of its liquidation will decide the market price on the basis of experts’ reports. The court will declare it on Monday.
Morocco is heavily dependent on energy imports to meet the ever-rising demand. Hence it has been trying to cut down on oil and coal import costs. Such efforts include supporting new production methods and looking for renewable energy alternatives. The only Moroccan oil refinery used to produce 60 percent of the country’s need for fuel derivatives. If the refinery is successful in reviving itself with financial help, it can reduce the dependence on imports. This will also result in less expenditure on energy resources.