Gulf News
Saadallah Al Fathi, Special to Gulf News
Iraq and two strategic partners are in lead to relaunch operations at Mohammadiya facility.
Iraq is reported to be making an offer to Morocco that may result in relaunching operations at the shuttered 200,000 barrels a day refinery in Mohammadiya. If the deal goes through, and I am enthusiastic, it could prove strategic to both. Dow Jones had reported BB Energy and another European oil company are partnering Iraq in the bid.
Morocco’s single refinery ceased operations in August 2015 due to mounting debt and forcing it to be placed under liquidation by a court ruling. The refinery was originally built in 1959 as a joint venture with Eni, but the Moroccan government took total ownership in 1973. The original capacity of 2.25 million tonnes a year (mty) was increased to 10-mty and many process units were renewed over time, especially during the implementation of the conversion and upgrade facilities from 2005.
The refinery is highly complex, with fuel oil production minimised to increase production of gasoline and diesel. Product specifications were also improved and low-sulphur diesel (50 ppm) marketed since 2009. The plant even established its own distribution network to gain value from marketing.
The refinery was privatised again in 1997 whereby Corral Holdings Societe Marocaine d’Industrie de Raffinage (Samir), a Saudi Arabian investment group, took 67.27 per cent and the rest remaining with the government. The shares were freely traded on the Casablanca stock exchange.
Morocco has limited oil and gas resources and depends almost completely on imports. Its oil consumption rose from 6.43-mty in 2002 to almost 16-mty in 2015 and is probably higher now. However, crude oil imports in 2013 were only 5.49-mty as the refinery also depends on imports of other components for its conversion facilities and blending to the tune of 2-mty a year.
