BAZAN Group

BAZAN Group
Public
Traded asTASEORL
IndustryPetrochemical industry
Founded1958; 61 years ago (1958)
Headquarters,
Area served
Middle East
Key people
Yossi Rosen, (Chairman)
Aharon (Arik) Yaari, (CEO)
ProductsPetroleum products
Petrochemicals, Oil refining
RevenueIncrease US$13.520 billion (2015)[1]
Decrease US$562.52 million (2015)
Decrease US$272.49 million (2015)
Total assetsIncrease US$4.470 billion (2015)
OwnersIsrael Corp. (33%)
Israel Petrochemical Enterprises ltd (15.5%)[2]
Number of employees
1,800 (2015)
SubsidiariesCarmel Olefins Ltd.
Gadiv Petrochemical Industries Ltd.
Websitewww.bazan.co.il
The iconic cooling towers of the Haifa oil refinery.

BAZAN Group, (formerly Oil Refineries Ltd.) (ORL or BAZAN, Hebrew: בז"ן – בתי זיקוק לנפט בע"מ‎), is an oil refining and petrochemicals company located in Haifa Bay, Israel. It operates the largest oil refinery in the country. ORL has a total oil refining capacity of approximately 9.8 million tons of crude oil per year.[3] ORL provides a variety of products used in industrial operations, agriculture and transportation.[4]

History[edit]

The company's beginnings date back to the British Mandate for Palestine when Consolidated Refineries Limited (CRL), a joint venture of Shell and the Anglo-American Oil Company (now Esso),[5] started constructing a sprawling refinery complex which sat at the end of the British-built Mosul-Haifa oil pipeline which stretched from the oil fields near Kirkuk in then British-controlled Iraq.[6]

Construction of the first refinery unit started in 1938 and was carried out by the M. W. Kellogg Co. with assistance from Solel Boneh, with an annual capacity of two million tons of crude oil. Construction was completed in 1944, increasing the annual yield to four million tons of crude oil.[7]

During World War II, the complex supplied refined products to British and American forces operating in the Mediterranean and North African theaters, and was bombed many times during the early stage of the war,[8] by Italy.[9] Damage to the refineries was quickly repaired.[10][11]

Due to concerns about the Arab League Boycott, the British Government sold CRL to the State of Israel in 1958 which then changed its name to Oil Refineries Ltd.[12][13][14]

Since then the complex has undergone significant expansion and upgrades. In the past, ORL also owned the Ashdod Oil Refinery in southern Israel and therefore as a company, it held a monopoly over oil refining in the country. This changed in 2006, when Israel's Government Companies Authority, headed by Eyal Gabbai started privatization processes.[15]

On August 1, 2006, the Ashdod facilities were sold to the Paz Oil Company for 3.5 billion NIS.[16] In February 2007, 44% of the shares were sold to institutional investors.[17] Following this, 46% were sold to the Ofer-Federman group at 3.30 NIS per share,[18] with the remaining shares sold in an IPO on the Tel Aviv Stock Exchange in 2007.[19][20] There were more than 5,500 requests to buy shares, and unprecedented number.[21]

Since 2008 the company's historic cooling towers have not been in use. One of the towers was converted into a visitor's center, which is open to the public for free, multi-sensory tours.[22]

Subsidiaries[edit]

Carmel Olefins is Israel's sole manufacturer of petrochemical products that are used as raw materials for the plastics industry. Carmel manufactures standard and special grades of polypropylene (PP) as well as a broad range of low density polyethylene (LDPE) grades.[23]

Gadiv Petrochemicals manufactures and supplies a range of petrochemicals products including aromatic hydrocarbons, aliphatic solvents and intermediates for pharmaceutical, plastic, food and chemical industries.[24][25]

Environmental impact[edit]

BAZAN Group's vast petrochemical plants have released significant amounts of pollution to the environment around Haifa Bay. The company has set goals to reduce air pollution,[26] including investing over a billion dollars to develop environmentally-friendly systems.[27]

Starting in March 2011, after being connected to the new national natural gas distribution grid, the plants switched to using natural gas[28] (rather than mostly fuel oil) as their main power source, thus greatly reducing the amount of air pollution emanating from the complex.[29] In 2012, the company also completed a hydrocracking unit.[30] The switch to natural gas was expected to save the company US$200 million per year in fuel and other costs.[31]

See also[edit]

References[edit]

  1. ^ "Oil Refineries Ltd". Tel Aviv Stock Exchange. 2011. Retrieved 31 August 2011.
  2. ^ http://www.4-traders.com/OIL-REFINERIES-LTD-6499299/company/
  3. ^ "Bazan Group Oil Refineries Ltd". 19 June 2017. Retrieved 18 February 2019.
  4. ^ "BAZAN Group". www.israelcorp.com. Retrieved 2019-05-05.
  5. ^ Bialer, Uri (1998). Oil and the Arab-Israeli Conflict, 1948-1963. Springer. p. 13. ISBN 0230377742.
  6. ^ Semiat, Raphael (October 2015). "Israel's Chemicals Industry: From the Desert to the Dead Sea". aiche.org. Retrieved 5 May 2019.
  7. ^ Naor, Mordechai. Oil refineries: 60 years of energy in 2000.
  8. ^ "This Week in History: Italy bombs Tel Aviv - Features - Jerusalem Post". www.jpost.com. Retrieved 2019-05-05.
  9. ^ Tribune, International Herald (2015-07-16). "1940: Rome Reports Bombing Haifa". IHT Retrospective Blog. Retrieved 2019-05-05.
  10. ^ "Ofer-Federman Group Wins Control of Haifa Oil Refineries". Haaretz. 2007-02-20. Retrieved 2019-05-05.
  11. ^ Arielli, Nir. "'Haifa is still Burning': Italian, German and French Air Raids on Palestine during the Second World War". Middle Eastern Studies. 46 (3): 331–347. ISSN 0026-3206.
  12. ^ "Shell and British Pertoleum Close Down Distribution in Israel". www.jewishvirtuallibrary.org. Retrieved 2019-05-05.
  13. ^ Rubner, Alex (1960). The Economy of Israel. Praeger. p. 29.
  14. ^ "בזן". גלובס (in Hebrew). 2014-01-19. Retrieved 2019-05-05.
  15. ^ "State Prepares to Privatize Oil Refineries". Haaretz. 2003-07-29. Retrieved 2019-05-05.
  16. ^ "Paz Wins Ashdod Refinery Tender". Haaretz. 2006-08-01. Retrieved 2019-05-05.
  17. ^ "Israel to sell Oil Refineries Haifa plant in Feb". Reuters. 2007-01-10. Retrieved 2019-05-05.
  18. ^ "Ofer-Federman Has Lost 15% of Its Investment in Oil Refineries, on Paper". Haaretz. 2007-02-21. Retrieved 2019-05-05.
  19. ^ "Paz Wins Ashdod Refinery Tender". Haaretz. 2006-08-01. Retrieved 2019-05-05.
  20. ^ Maimon, Avner (March 2017). "The Israeli Refining & Petrochemicals Market Bazan Group" (PDF). iene.eu. Retrieved 5 May 2019.
  21. ^ "Ofer-Federman Group Wins Control of Haifa Oil Refineries". Haaretz. 2007-02-20. Retrieved 2019-05-05.
  22. ^ "The startling rehabilitation project of Haifa oil refineries cooling tower | Guy Shachar". guyshachar.com. Retrieved 2019-05-05.
  23. ^ "Start-Up Nation Finder - Israeli innovation network". Start-Up Nation Finder. Retrieved 2019-05-13.
  24. ^ "Company Overview of Gadiv Petrochemical Industries Ltd". www.bloomberg.com. 13 May 2019. Retrieved 2019-05-13.
  25. ^ "Gadiv Petrochemical Industries • HAIFA UP". HAIFA UP. Retrieved 2019-05-13.
  26. ^ "Ministry of National Infrastructures". mfa.gov.il. 20 October 2002. Retrieved 2019-05-21.
  27. ^ ניר, דיאנה בחור (2018-06-29). ""גם אם יקימו את בזן במדבר, תקום סביבנו התיישבות. התעשייה שלנו היא מגנט"". כלכליסט - www.calcalist.co.il. Retrieved 2019-05-21.
  28. ^ "Infrastructure Ministry approves natural gas to be flowed to Haifa refinery". Ynetnews. 2011-06-04. Retrieved 2019-05-21.
  29. ^ Neiman, Rachel. "Israel's Energy Past… and Future". Israel21c. Retrieved 2019-05-21.
  30. ^ "Oil Refineries Ltd to build hydrocracking unit at Haifa". Icis. Retrieved 2019-05-21.
  31. ^ Bousso, Ron (10 April 2013). "Israel's gas bonanza ushers golden era for refiners". Reuters. Retrieved 7 May 2013.

External links[edit]

Coordinates: 32°47′36″N 35°03′07″E / 32.7934°N 35.0519°E / 32.7934; 35.0519 (Haifa Oil Refineries)