BAZAN Group
Israel's largest oil-refining and integrated petrochemical group, operating the Haifa Bay refinery complex.
Last updated August 31, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
BAZAN Group, formerly known as Oil Refineries Ltd. and commonly identified by the ticker ORL, is an Israeli oil-refining and petrochemicals company based in Haifa Bay. Its principal asset is the country's largest integrated refinery and petrochemical complex. The site processes approximately 9.8 million tonnes of crude oil annually and has a reported Nelson complexity index of about 9, allowing it to manufacture a broad range of transportation fuels, industrial feedstocks and chemical products rather than only basic refinery outputs. The complex originated during the British Mandate for Palestine. Consolidated Refineries Limited, a joint venture associated with Shell and the Anglo-Iranian Oil Company, began construction in 1938 near the terminus of the Mosul–Haifa oil pipeline, which connected the Mediterranean port with oil-producing areas around Kirkuk in Iraq. The first unit was completed during the Second World War, and the refinery supplied British and American forces in the Mediterranean and Middle East. The facility was damaged by wartime bombing but repaired and expanded. Following the end of the Mandate and concerns about the Arab League boycott, the British government sold the refinery to the State of Israel in 1958. It was then renamed Oil Refineries Ltd. Over subsequent decades, the site expanded into an integrated industrial platform. Its activities came to include fuel refining, petrochemical production, base oils, paraffin wax, storage, product transportation, electricity and steam supply. For many years the company also owned the Ashdod refinery, giving the state-linked business a dominant position in Israel's refining sector. The structure of the Israeli refining industry changed during the 2000s. The Ashdod refinery was sold to Paz Oil in 2006, while Oil Refineries Ltd. was progressively privatized through institutional share sales and a 2007 Tel Aviv Stock Exchange offering. The company later consolidated important petrochemical operations: the BAZAN and Carmel Olefins businesses merged in 2009, and Haifa Basic Oils was fully acquired in 2010. The group now operates through businesses including Carmel Olefins, Gadiv Petrochemicals and Haifa Basic Oils. BAZAN supplies gasoline, diesel, kerosene, liquefied petroleum gas, naphtha and other refined products, as well as polypropylene, low-density polyethylene, aromatic hydrocarbons, solvents, chemical intermediates, base oils and paraffin wax. More than 70 percent of its output has historically been sold in Israel, with the balance exported. Its customers span transportation, agriculture, manufacturing, plastics, pharmaceuticals, food processing and other industrial sectors. The group directly employs approximately 1,500 people and supports additional contractor employment in the Haifa and northern Israel region. The company has faced persistent criticism over the environmental effects of the large petrochemical concentration in Haifa Bay, particularly air emissions and industrial odors. BAZAN has responded with investments in emissions treatment, natural-gas conversion, environmental monitoring and alternative-fuel initiatives. It connected to Israel's natural-gas grid in 2011, completed a hydrocracking unit in 2012, and later announced programs involving hydrogen, renewable energy, green polymers and cleantech innovation. At the same time, Israeli government bodies have periodically considered reducing or ultimately ending heavy petrochemical activity in Haifa Bay, creating strategic uncertainty for the refinery's long-term operating model. BAZAN remains a publicly traded Israeli refining and petrochemical group. Its positioning combines domestic fuel security, integrated industrial production and a stated transition toward lower-emission fuels, renewable energy and more sustainable polymer products.
History
BAZAN Group's industrial history begins with the development of the Haifa refinery during the British Mandate. Consolidated Refineries Limited, a joint venture involving Shell and the Anglo-Iranian Oil Company, began building the complex in 1938. The location was strategically connected to the Mosul–Haifa oil pipeline, which brought crude from the Kirkuk region of Iraq to the Mediterranean. M. W. Kellogg carried out the principal engineering work with assistance from the Jewish construction company Solel Boneh. The first refinery unit was completed in 1944. The complex initially had annual crude-processing capacity of approximately two million tonnes and was subsequently expanded toward four million tonnes. During the Second World War it supplied refined fuels to British and American forces operating in the Mediterranean and Middle East. Italian bombing caused repeated damage during the early war years, but repairs allowed the refinery to continue operating. The site was also the scene of the violent events known as the Haifa Oil Refinery massacre. On 30 December 1947, members of the Irgun threw bombs at a crowd of Arab workers outside the refinery, killing six people and injuring dozens. A subsequent riot led to the deaths of Jewish workers and further injuries. The episode occurred amid the wider communal conflict surrounding the end of the British Mandate. In 1958, concerns about the Arab League boycott contributed to the British government's sale of Consolidated Refineries Limited to the State of Israel. The company was renamed Oil Refineries Ltd. Under Israeli ownership, the Haifa complex underwent decades of expansion, modernization and diversification. It became an integrated refining and petrochemical platform supplying fuels and industrial materials to the domestic market. For much of its history, Oil Refineries Ltd. also owned the Ashdod refinery in southern Israel. This gave the company a dominant position, and for a period it effectively held a monopoly over Israeli oil refining. That structure changed in the 2000s, when the Government Companies Authority initiated privatization. The Ashdod facilities were sold to Paz Oil on 1 August 2006. In 2007, institutional investors acquired a substantial shareholding, additional shares were sold to the Ofer-Federman group, and the remaining equity was offered to the public on the Tel Aviv Stock Exchange. The group's petrochemical integration continued through corporate consolidation and acquisitions. BAZAN and the Olefins companies merged in 2009. Haifa Basic Oils was fully acquired in 2010. The group's operating platform came to include Carmel Olefins, Israel's sole producer of several important petrochemical materials used in plastics; Gadiv Petrochemicals, which makes aromatic hydrocarbons, solvents and intermediates; and Haifa Basic Oils, which produces base oils and paraffin wax. In 2012, the company commissioned UOP hydrocracking technology to produce products including liquefied petroleum gas, naphtha and kerosene. Environmental concerns have been a defining part of BAZAN's modern history. The concentration of refineries and petrochemical plants in Haifa Bay has been associated with air pollution, odors and emissions concerns. BAZAN connected its plants to Israel's natural-gas distribution network in 2011, replacing much of its previous fuel-oil use and reducing emissions while lowering energy costs. It completed a hydrocracking unit in 2012 and acquired systems in 2014 to address odors and volatile organic compounds. In 2020, it issued a corporate-responsibility report that described progress in areas including benzene-emission reduction. The company has also attempted to reposition itself beyond conventional refining. BNNovation was launched in 2018, followed by participation in ESIL Technologies and a Haifa Bay environmental innovation laboratory in 2019. In 2020, BAZAN announced a hydrogen project and signed a polymer-related memorandum with Mazrui International. In 2021, it presented a strategy centered on renewable energy, alternative fuels and green polymers, while setting out substantial planned capital investment. These initiatives have developed against continuing public and governmental debate over whether heavy industry should remain in Haifa Bay. A government committee in 2021 recommended eventual closure of the group's facilities within ten years. The historic site also changed physically. Cooling towers were retired in 2008, with one adapted as a visitor center. Another historic tower unexpectedly collapsed in June 2020. In June 2025, the refinery was struck by Iranian missiles during the Twelve-Day War. BAZAN reported extensive damage, a complete shutdown and three employee fatalities, making the attack a major disruption in the site's history.
- 2025
Refinery struck during regional war
[1]Missile strikes caused extensive damage, a shutdown and three employee deaths, according to company reporting cited in the reference material.
- 2021
Alternative-energy strategy presented
[1]BAZAN presented a strategy emphasizing renewable energy, alternative fuels and green polymers.
- 2018
BNNovation launched
[1]The group launched an initiative focused on innovation in energy, renewable energy and industrial technology.
- 2012
Hydrocracking unit commissioned
[1]BAZAN commissioned UOP hydrocracking technology to expand production of LPG, naphtha and kerosene-related products.
- 2011
Conversion to natural gas
[1]The plants connected to Israel's natural-gas grid and shifted their main power source away from fuel oil.
- 2010
Haifa Basic Oils fully acquired
[1]BAZAN completed the full acquisition of Haifa Basic Oils.
- 2009
BAZAN and Olefins merger
[1]The group merged with the Olefins companies, reinforcing its refining-to-petrochemicals integration.
- 2007
Public offering on the Tel Aviv Stock Exchange
[1]Following privatization transactions, the company completed a public share offering and began trading under ORL.
- 2006
Ashdod refinery divested
[1]The Ashdod refinery was sold to Paz Oil during the restructuring of Israel's refining industry.
- 1958
Refinery transferred to Israel and renamed
[1]The British government sold the refinery to the State of Israel, which renamed the company Oil Refineries Ltd.
Products and positioning
Israel's largest integrated oil refiner and petrochemical producer, with a domestic-fuel-security role and an increasingly stated focus on alternative fuels, lower-emission operations and sustainable polymers.
Oil refining
Refined transportation fuels
BAZAN's core refinery produces fuels for Israel's transportation system, including gasoline, diesel and kerosene-related products. The refinery's complexity allows it to convert a range of crude inputs into higher-value products and to support domestic supply across private, public and industrial users.
Refined petroleum products · 2012
Liquefied petroleum gas and naphtha
The refinery produces liquefied petroleum gas and naphtha, which serve energy, chemical and industrial applications. These products are generated through the group's integrated refining configuration, including hydrocracking capability commissioned with UOP technology.
Petrochemicals
Carmel Olefins polymers
Carmel Olefins manufactures standard and specialty grades of polypropylene and a broad range of low-density polyethylene. These materials are used as feedstocks and resin inputs by plastics converters and other manufacturers.
Petrochemicals · 1974
Gadiv Petrochemicals products
Gadiv Petrochemicals produces aromatic hydrocarbons, aliphatic solvents and chemical intermediates. Its products serve pharmaceutical, plastics, food and general chemical applications.
Specialty petroleum products
Haifa Basic Oils products
Haifa Basic Oils produces base oils and paraffin wax for industrial and manufacturing customers. A significant portion of this output has historically been exported to overseas buyers.
Industrial services
Industrial utilities and logistics
In addition to fuels and chemicals, BAZAN provides storage and transportation services for oil products and supplies electricity and steam to industrial customers in the surrounding region.
Controversies
2011
Haifa Bay pollution controversy
BAZAN's large refinery and petrochemical complex has faced sustained public criticism and regulatory scrutiny over air pollution, odors and emissions in the densely industrialized Haifa Bay area. The controversy has included debate over the health and environmental consequences of maintaining heavy petrochemical activity at the site.
Marketing campaigns
- 2021Renewable energy and alternative-fuels strategy
Israel
BAZAN presented a plan to expand beyond conventional refining into renewable energy, alternative fuels and lower-impact polymer products, with objectives for increasing green-polymer output.
Outcome. The strategy became a central part of BAZAN's stated response to environmental pressure and the possible long-term transformation of Haifa Bay.
- 2019Haifa Bay environmental innovation laboratory
Israel
BAZAN partnered with EDF Renewables Israel and Johnson Matthey after winning a tender to establish an environmental innovation laboratory in Haifa Bay.
Outcome. The project positioned the company within a regional effort to develop cleaner industrial technologies.
- 2018BNNovation
Israel · International technology and industrial ecosystem
BAZAN created BNNovation to encourage development and collaboration among smaller and larger companies working in energy, renewable energy and industrial technology.
Outcome. The initiative was followed by participation in cleantech and environmental innovation platforms.
Brand decisions
2025
Temporary shutdown after missile strikeOtherBackground
The Haifa refinery was struck during the Twelve-Day War.
Action taken
BAZAN reported heavy facility damage, a complete shutdown and a temporary closure after two Iranian missiles hit the complex.
Aftermath
Three employees were reported killed, and the incident became a major operational and safety disruption.
2021
Green polymers and alternative-energy transformationStrategyBackground
The company was responding to environmental criticism, changing regulation and proposals to close heavy industrial facilities in Haifa Bay.
Action taken
BAZAN announced a long-term investment program focused on renewable energy, alternative fuels and green polymers, including targets for green-polymer production.
Aftermath
The strategy sought to preserve an industrial role for the group while reducing its dependence on conventional refining.
Planned capital investment. USD 1.5 billion (Through 2030)
2020
Hydrogen production and transport projectProduct launchBackground
BAZAN was exploring lower-carbon energy businesses and potential new vehicle fuels.
Action taken
The company announced a project to create, compress and transport hydrogen for possible use in hydrogen-powered vehicles.
Aftermath
The project formed part of the group's broader alternative-fuels and energy-transition agenda.
Project value. USD 3.7 million (Announced December 2020)
2011
Switch to natural gasStrategyBackground
The refinery sought to reduce emissions and improve operating economics as Israel's national natural-gas distribution network became available.
Action taken
BAZAN shifted its main power source from fuel oil toward natural gas.
Aftermath
The change was expected to reduce air pollution and lower fuel-related costs.
Expected annual savings. USD 200 million (Announced in connection with the 2011 conversion)
2006
Divestment of Ashdod refineryM&ABackground
The Israeli government was restructuring and privatizing the refining sector, which had previously been dominated by the state-linked company.
Action taken
The Ashdod facilities were sold to Paz Oil.
Aftermath
BAZAN's business became more concentrated around the Haifa complex and its integrated petrochemical subsidiaries.
Sale price. ILS 3.5 billion (2006)
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/bazan-group · Editorial policy · How profiles are compiled