A UK court has ruled that BP must pay more than $68m to the National Bank of Abu Dhabi (NBAD) in the case of a surprise closure of Morocco’s refinery, Societe Anonyme Marocaine de l’Industrie du Raffinage (Samir), in August 2015, reported Reuters.
The British energy company sold a cargo of Russian Urals crude to Samir in August 2014 which was not paid for and NBAD took on 95% of that debt. According to the recent ruling, BP did not have the right to pass on the debt as the contract between BP and Samir stipulated that there could be no assignment of obligations or rights without reasonable consent and that Samir’s consent had not been obtained. From this point, NBAD was entitled to claim from BP some $68.9m plus interest that Samir failed to pay the bank. BP declined to comment on the verdict.
The Moroccan refinery known as Samir owe collectively around $1b to its creditors such as Glencore, Vitol and BP, according to AFK Insider.
Furthermore, the efforts to restart the refinery have so far failed. Liquidator Mohamed El-Krimi said that he would only consider bids to buy the Samir refinery with a total capacity of 200,000b/d, that included a production restart.
Earlier Carlyle Group LP hedge fund had lost $400m it has invested during 2015 in a Moroccan oil-refinery deal due to the liquidation.