Bazan Oil Refineries Demands Over $5 Billion for Haifa Bay Evacuation

The Bazan Group has set a price tag of over $5 billion for its planned evacuation from Haifa Bay, a move mandated by a government decision. This substantial sum, reported by Calcalist, includes valuations of the group's operations conducted by BDO and KPMG between 2022 and 2025, which estimated its business value at $3.2 to $3.8 billion. Bazan adds $600 to $800 million based on its own refining profit forecasts.

Bazan CEO Rafael Maman presented these figures to Professor Avi Simhon, head of the National Economic Council and the Prime Minister's economic advisor, who leads a committee tasked with advancing the 2022 government decision to relocate Bazan by the end of the decade. Calcalist previously revealed that Simhon formed an inter-ministerial team to address delays in establishing alternative fuel storage sites across Israel, crucial for replacing the Haifa refinery's operations.

The Bazan management opposes the evacuation, citing the need for energy independence, particularly in light of recent Iranian missile strikes on the complex that caused fatalities and significant damage. Maman's appeal to Simhon is part of the inter-ministerial team's work and relates to a 2007 agreement granting Bazan long-term land lease rights in Haifa Bay to ensure operational stability.

Bazan argues that its valuation is conservative and does not account for potential global refining market shifts. The company also claims the state should cover facility closure and removal costs, provide employee safety nets, and compensate for damages incurred since the government began planning the relocation. Maman stressed this information is critical for any decision-making process.

Simhon acknowledged the demand but stated that while discussions on compensation are ongoing, the amounts discussed are far from Bazan's figures. He reiterated the government's determination to evacuate Bazan due to its negative health and environmental impact and its hindrance to the northern region's development.