Moroccan oil refiners to merge in 1999

June 24, 1998 Morocco's main oil refiner Samir is expected to merge with refinery Societe Cherifienne des Petroles in the beginning of 1999.
Samir Chairman Abderrafie Menjour said: "The merger between Samir and SCP refineries will be discussed by the management in September...It is expected to take place in the beginning of 1999."
Samir is located in the port town of Mohammedia on the Atlantic coast near Morocco's financial centre of Casablanca while SCP, which refines 20 % of the country's oil needs, is established in the northern city of Sidi Kacem.
The merger is expected to create a synergy, downsize the production costs and safeguard the interests of the 2 companies' shareholders, Menjour said.
As main operator on the domestic oil market, Samir refines 80 % of Morocco's oil product needs.
"To meet the market demand, Samir imported 4.5 mm tonnes of crude oil at $ 19.67 per barrel, Cost & Freight included in 1997," he said.
Saudi Arabia was the main provider of crude oil with 46.4 %of Arabian Light and 10.1 % of Arabian Extra Light in 1997, he said.
Morocco oil imports from Iraq and Iran stood, respectively, at 13 and 3 % of total. Crude imports from Nigeria stood at around 24 % in the same period, he added.
Morocco, which has no oil of its own, depends largely on crude imports to meet local industry demands for energy products.
Last year, the majority stakes of SCP and Samir capital were both acquired by the Sweden-based Saudi Corral Petroleum Holding AB, at more than $ 400 mm as part of the ongoing government privatisation programme.
Menjour told that Corral group plans to invest the equivalent of $ 500 mm on a 5-year period "to upgrade Samir's infrastructures, refining capacities and products."
"Samir's current financing capacity stands at 7.5 bn dirhams," he added.

Samir made a net profit of 514 mm dirhams and a turnover of 7.8 bn dirhams last year.