Israel’s Bazan Group reported Wednesday that the damage caused by an Iranian missile attack on its Haifa Bay refinery and subsidiaries is estimated between $150 million and $200 million.
The company told the Tel Aviv Stock Exchange it has already received an advance payment of 160 million shekels (about $48 million) to begin repairing part of the damage. Bazan said the advance is against the total direct damage and it is working with a compensation fund to secure additional payments while continuing rehabilitation efforts.
The attack struck the refinery’s power generation unit, which is critical for producing steam and electricity for the facility. Bazan noted the assessment of the damage is forward-looking and uncertain, based on current information and work plans. The company said restoring operations after a sudden external stoppage is complex and the final costs and compensation amounts remain unknown.
Three employees were killed in the attack. They were inside the most fortified internal room when part of the building collapsed due to fire. Smoke and intense heat trapped them under the rubble, and authorities estimate they died from smoke inhalation and heat exposure.
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Following the strike, Bazan shut down all refinery operations and subsidiaries. It is working with the Israel Electric Corporation, which responded immediately to help restore stable electricity to the site. Bazan is still assessing the full extent of the damage and the best ways to address it.
To accelerate rebuilding, The Interior Affairs Ministry recently granted Bazan an exemption from building permits for constructing several units at the site. The law allows such exemptions in exceptional cases of national importance but bypasses standard environmental reviews designed to minimize health and environmental harm.
The exemption has faced opposition, including from Haifa Mayor Yona Yahav, who wants Bazan’s facilities relocated from the area. “This is unparalleled recklessness,” Yahav said. “Bazan poses a clear and immediate danger to Haifa’s residents. The plant must be moved in accordance with the government’s decision. Residents will not be held hostage to cynical, populist, and reckless decisions.”