Haifa Extends Bazan Permits by 60 Days Amid Legal Battle Over Refinery Operations
Haifa Municipality extended Bazan's temporary business permits by 60 days following a legal petition. Meanwhile, the refinery group received clean air orders impacting maintenance works at its Gadiv plant.
The Oil Refineries Ltd. (Bazan) group informed investors on the Tel Aviv Stock Exchange that the Haifa Municipality has extended the temporary business operation permits for the group's companies by 60 days, subject to several conditions. The disclosure revealed that the companies filed a petition against the municipality demanding the renewal of the permits, which were set to expire. Following the legal action, the municipality announced the extension and scheduled a hearing within 30 days.
The petition was filed after the municipality summoned the group for a hearing and subsequently postponed it without extending the expiring business licenses. Bazan asked the court to compel the municipality to renew the temporary permits, simultaneously requesting interim injunctions to ensure their validity until a final ruling is reached.
Following the court filing, the municipality notified the group of the 60-day permit extension under specific conditions. Bazan stated that it updated the court regarding the development and is currently evaluating the implications of the municipality's decision on the ongoing legal proceedings.
In parallel, Bazan reported a separate development concerning benzene emissions and operations at its Gadiv petrochemical plant. The company received an administrative order under the Clean Air Act, outlining a framework to curtail or halt renovation works based on stringent benzene environmental thresholds. This follows the suspension of maintenance works at Gadiv's aromatic units announced earlier.
Bazan noted that it is proceeding with scheduled maintenance at its fuel units and is operating in full coordination with the Ministry of Environmental Protection regarding the Gadiv facilities. Despite the delays, the company emphasized that its preliminary assessments regarding the financial impact of the maintenance cycle remain largely unchanged.
Nevertheless, the company cautioned investors that its projections regarding the duration, costs, and financial implications of the works remain uncertain and depend, among other factors, on regulatory approvals from the Ministry of Environmental Protection and contractor availability.
