Morocco’s only refinery, Samir, has been granted an additional six months by a Moroccan court to resume production and attract a buyer during a court-ordered insolvency.

The 200,000 bpd refinery ceased production in August 2015 as a result of financial difficulties and afterwards a court ruling placed it in bankruptcy and then named an independent trustee to operate it but they have not been able to resume production in the first deadline it had not succeeded invited bids for its tenders to purchase crude oil.

The shutting down of the refinery has made the country depend on imports at a time when Morocco is recovering its finances back by confronting huge shortfalls.

Samir, has also been battling with its creditors which includes oil traders and banks who it owed millions. According to the Moroccan government, Samir owes 13 billion dirhams in taxes and its total arrears have reached about 44 billion dirhams.

Sources have said that the trustee has till January 21, 2017 to resume production in order to end the liquidation process.

In March, Samir opened a tender to purchase 8 million bbls of regular Urals or Kirkuk crude oil for supply from April through June. The Company’s officials revealed that they have been in negotiations with exporters and trading houses.

However, the government has vowed to do everything possible to regain unpaid taxes and protect the refinery's workers, Reuters reports.

Anita Fatunji