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Wednesday, November 30, 2016
A London high court has determined that BP must pay more than $68 million to the National Bank of Abu Dhabi (NBAD). The court order is in regards to the surprise closure of Morocco’s Samir refinery in 2015 and a cargo of Russian crude that BP sold to the refinery that was not paid for. NBAD took on 95% of that debt.
The London High Court ruled that BP did not have the right to pass on the debt. It said 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.
It said NBAD was entitled to claim from BP some $68.9 million plus interest that Samir failed to pay the bank.
Samir owes oil and trading companies an estimated $1 billion for a crude tab that has gone unpaid. The refinery was shut in August 2015 due to financial difficulties after the government said the refiner owed more than $1 billion in taxes.
Samir is currently in liquidation. Liquidator Mohamed el-Krimi is considering bids to buy the refinery. El-Krimi was cited by Reuters as saying he would only consider bids that included a production restart.
The ruling placing the refinery in liquidation gives el-Krimi and his managing team until December 21 to restart the refinery in order to secure a buyer and a better price for the plant.
Samir ran into financial difficulties and halted production in 2015 before a court ruling placed it in liquidation and named an independent trustee to run it.
Its closure has made Morocco reliant on imports at a time when the North African kingdom is getting its finances back on track by tackling huge deficits.
El-Krimi said he will invite buyers to submit expression of interest in the coming weeks “Once we finish evaluating the company’s assets, and once the judge in charge validates the results, we will launch the process,” El-Krimi told Reuters.
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