Saudi-Owned Corral Petroleum To Control Morocco's Refining & Retail Sector.

Corral Petroleum Holding, owned by Al Amoudy family of Saudi Arabia and based in Sweden, is to assume control over the oil refining and retail businesses in Morocco. This will be done through a merger of the country's two oil refining companies in which Corral holds the majority of shares: Societe Anonyme Marocaine de l'Industrie de Raffinage (Samir) and Societe Cherifienne de Petroles (SCP). Samir and SCP have recently agreed to merge during the first quarter of 1999.

Samir and SCP have a combined refining capacity of 155,000 b/d. Corral owns 67.7% of Samir and 73.9% of SCP and its share acquisition took place in May 1997. Elf Aquitaine recently sold its 20.48% equity in SCP to other parties.

During the first half of 1998, Samir's profits rose by 5.9% to MD241.8m ($26.5m), compared with the first half of 1997. But its turnover fell by 20.5% from the first half of 1997 to MD3.1 bn ($339m).

Corral's local unit, Corral Holdings Morocco (CHM) recently decided to merge Samir and SCP so that their resources are pooled together to gain economies of scale and help CHM prepare a long-term programme for expansion. CHM also intends to upgrade the two refineries, as gasoline specifications in Morocco are to be changed by 2003. CHM is to increase their retail networks, which will be placed under a common system.

Expanding LPG Business: SCP's LPG retail network in Morocco is to be expanded through a new 50-50 venture between CHM and a major European oil company. This will require a three-year investment of $40m, half of which will be put up by CHM.

At present, SCP has nine LPG filling units accounting for 40% of the filling sector but only 5% of the LPG retail market. The aim is to more than double the market share. The investment will include acquisition of at least one of the small LPG marketing companies in the country.