Haifa Oil Refinery Estimates $5 Billion Cost for Bay Relocation

The Bazan oil refinery holding company has submitted an estimate of over $5 billion to the Israeli government for the cost of relocating its assets from the Haifa Bay area, as mandated by a 2022 government decision. The figure was conveyed by Bazan CEO Rafael Maman to the head of the National Economic Council and economic advisor to the Prime Minister, Professor Avi Simhon, who leads the committee overseeing the Haifa Bay development and the government's relocation plan.

Bazan is reportedly opposing the planned move, which involves replacing its refining capacity with imported products. The company argues that lessons from prolonged regional conflicts underscore the necessity of maintaining Israel's energy independence. The holding company contends that the $5 billion estimate is conservative and does not account for potential global shifts in refining capacity or hundreds of millions of dollars in damages already incurred since the relocation preparations began.

Furthermore, Bazan believes the state should cover the expenses associated with closing the facility, dismantling its infrastructure, and providing social benefits for its employees.