Benzene Leaks Cause Stock Plunge for Oil Refiner BAZAN

The stock prices of BAZAN and Petrochemicals experienced a significant drop on the stock exchange due to abnormal benzene levels detected near the Haifa oil refinery complex. These elevated levels prompted unusual directives from the Ministry of Health and the Ministry of Environmental Protection. The Ministry of Environmental Protection ordered a halt to maintenance work at the complex, while the Ministry of Health instructed two nearby schools to relocate their classes to alternative sites. In response to investor concerns, BAZAN stated that its assessments regarding the duration and cost of the facility's periodic maintenance work remain unchanged. The company explained that during routine maintenance of its subsidiary Gadiv's aromatic facilities, high benzene concentrations were measured at several monitoring points in the area. Consequently, the relevant work was temporarily suspended and is being coordinated for resumption with the Ministry of Environmental Protection. BAZAN emphasized that despite the work stoppage, its estimates for the maintenance period and cost are unaffected, though these are subject to regulatory approvals, contractor availability, and official directives. The incident began last weekend during maintenance and damage repair work, when exceptionally high benzene levels were recorded at a monitoring station near the Dshaninim industrial zone in Kiryat Ata. Later, high concentrations were also measured at a station near the old Licensing Office in Haifa. The Ministry of Environmental Protection noted a decrease in concentrations in the morning, followed by a renewed increase in the afternoon. The ministry demanded that BAZAN investigate the incident and submit a detailed plan to prevent further leaks as a condition for resuming work. The Ministry of Health advised students at the Social High School and Erezim School in Kiryat Ata to attend classes at alternative locations. Residents within a kilometer of the refinery were advised to limit outdoor activities, especially children and pregnant women, and workers in the industrial zone were told to close windows and use air conditioning. Benzene is a known human carcinogen, raising health concerns, particularly with prolonged exposure. The key question is whether the work stoppage will remain temporary or lead to extended delays in the maintenance schedule, which could have operational and economic consequences. The incident also occurs amidst long-term uncertainty about the future of the oil refinery's operations in Haifa Bay, as the government promotes the cessation of petrochemical activities in the area as part of a development plan.