Morocco’s government said on Wednesday it will not bow to pressure from the country’s oil refinery operator Societe Anonyme Marocaine de l’Industrie du Raffinage (Samir) and will do everything possible to recover unpaid taxes and protect the refinery’s workers.
Morocco’s tax administration seized the company’s bank accounts last week in pursuit of a 13 billion dirham ($1.3 billion) tax claim.
Samir, which is controlled by Saudi Corral Petroleum Holdings, said earlier this month it was halting production at some units of the 200,000 barrel-per-day (bpd) Mohammedia refinery.
The government statement came a day after a meeting with Saudi billionaire Mohammed al-Amoudi, owner of Corral holdings which controls 67.26 pct of Samir, in an effort to end the company’s financial difficulties. Details of the outcome and what exactly was discussed were not available.
The government said it had taken all necessary measures to ensure enough supplies to the market.
It was unclear what the government declaration means to the company’s top management. Samir declined to immediately comment.
The company posted a record consolidated net loss of 2.5 billion dirhams ($257 million) in 2014, mainly due to inventory revaluation after oil prices fell.
The company had total debt of more than 24 billion dirhams at the end of 2014, according to company data, including billions owed to the government in taxes and social charges. It had a cash-flow deficit of 11 billion dirhams.
As Morocco’s only refinery, its closure would make the country entirely reliant on imports to feed its fuel needs. At just under 300,000 bpd in petroleum consumption, it is Africa’s fifth-largest oil consumer, according to data from the U.S. Energy Information Administration.
Morocco’s financial markets watchdog suspended trading in Samir after the company’s announced on Aug. 6 that it was halting production. Samir shares have lost around 50 percent in 2015 on the Casablanca stock exchange.
Recommended for you
