Morocco – Spanish oil company Cepsa and Moroccan company Derhem Holding have announced the launch of a new network of service stations in Morocco.

Derhem Holding is a Moroccan holding company active in several sectors including hydrocarbons, maritime, and fishing.

A statement from Cepsa revealed that the decision to launch service points in Morocco is in line with the company’s international expansion and “the reinforcement of its integrated business model.”

Director of Marketing at Cepsa Alvarado Diaz Bild said that Morocco is a “key region for Cepsa.

“We had a presence in the country for the last 30 years and we are now eager to embark on this new project in partnership with a local expert Derhem Holding,” added Bild

He recalled that the company was keen to expand into Morocco due to its proximity to the company’s refineries.

Both Cepsa and Derhem Holding will operate in North Africa country through a “50:50 joint venture partnership,” the statement revealed.

The agreement of an estimated value of about 133.4 million (€120 million), includes “developing direct sales to other operations industrial customers and the public sector.”

For the president of the Derhem Holding firm, Dahman Derhem, the joint venture is part of the strategic partnership between Morocco and Spain.”

The two companies are also planning to build a storage terminal at the port of Jorf Lasfar, one of Morocco’s largest hubs.

Cepsa also expressed satisfaction with securing its exclusive position as the first Spanish “brand in the Moroccan service stations market.”

The oil company which deals in fuels, asphalt, and lubricants and exports 2 million tons of fuel for land and air transport per year aims to expand its presence with at least 100 points of sale within the next five years.