Bazan Reports Up to $200 Million in Damage from Iranian Missile Strike

The Bazan Group reported on Wednesday to the Tel Aviv Stock Exchange that the direct damage caused to its Haifa Bay refinery facilities in the recent Iranian missile attack is estimated at $150 to $200 million. The company added that it has already received an advance insurance payment of NIS 160 million (approximately $48 million) to begin addressing the destruction.

“This is an advance payment on account of the total direct damage,” Bazan’s statement clarified. “The company is working with the compensation fund to receive further advances, in line with the progress of restoration activities and related costs.”

Assessment Still Preliminary and Subject to Change

The company emphasized that the damage estimate remains preliminary and subject to significant uncertainty, given the complexity of restoring facilities after a sudden, external-impact shutdown.

“The operation and restoration of the group’s facilities is a complex process with many uncertain elements,” Bazan noted. “The actual extent of the damage, the cost of restoration, and total compensation to be received may differ from current projections.”

Tragic Loss of Life in the Missile Strike

During the Iranian missile barrage, three Bazan employees were killed while sheltering in what was considered the most fortified room in the building. Part of the structure collapsed due to fire, trapping them under rubble. Emergency teams suspect they suffocated from thick smoke and suffered fatal injuries from extreme heat in the impact zone.

Following the attack, Bazan announced the complete shutdown of operations across its refinery and subsidiaries.

“We are working closely with the Electric Corporation to restore power to the complex as quickly as possible,” the company stated. “We continue to assess the full extent of the damage and determine the optimal recovery plan.”

Emergency Construction Authorization Raises Environmental Concerns

To expedite the rehabilitation process, the Minister of the Interior granted Bazan a rare exemption from requiring a building permit, citing national importance under the Planning and Building Law. This exemption allows Bazan to construct replacement facilities without prior approval of detailed plans or environmental assessments.