The International Centre for Settlement of Investment Disputes (ICSID) has temporarily stayed the enforcement of a USD 150 million damages award against Morocco pending the outcome of an appeal by the kingdom, according to an order issued by the court last week.
The decision follows the Kingdom’s application for a partial annulment of the arbitration award in a high-profile case involving the now-defunct SAMIR oil refinery.
The ICSID’s provisional stay effectively delays Corral Morocco Holding’s ability to enforce payment of damages until the legal proceeding is resolved.
The Swedish company, owned by Saudi businessman Mohammed Al Amoudi, had originally sought USD 2.7 billion in damages. However, the tribunal rejected most of the claim and awarded less than 6% of the damages amount demanded.
Background of the Dispute
The case dates back to 2018, when Corral Morocco Holding filed a claim against the Moroccan state, alleging mismanagement and violation of agreements related to the SAMIR refinery in Mohammedia.
The facility, Morocco’s only oil refinery, went bankrupt in 2015 under a USD 4 billion debt burden and ceased operations in 2016.
The tribunal’s decision acknowledged Morocco’s measures to address SAMIR’s challenges but still ordered Morocco to pay USD 150 million in damages to Corral Morocco Holding.
Following the ICSID’s ruling, Morocco announced its intention to file for a partial annulment, challenging the basis of the award.
Since SAMIR’s closure, Morocco has faced challenges in maintaining its fuel reserves, as the refinery once processed up to 200,000 barrels of crude oil daily.
The government has been actively seeking buyers to restore the refinery in Mohammedia to operation and is developing a new initiative to revitalize the facility.
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