Bazan Group Files Petition Against Haifa Municipality as Temporary Operating Permits Near Expiry

Bazan Group's companies filed a petition against Haifa Municipality demanding that it renew temporary business operating permits set to expire on October 31, after the city extended the permits by 60 days subject to conditions. The Jerusalem Post reported that the hearing was postponed to about 30 days later and that the company is examining the implications.

Bazan's Petition and the Permit Extension

Bazan Group is Israel's largest integrated oil refining and petrochemical conglomerate, operating a refinery and polymer and aromatics subsidiaries from Haifa Bay, according to akta.pro company records. The group announced to investors on the Tel Aviv Stock Exchange that Haifa Municipality extended the validity of the temporary business operating permits for its companies by 60 days, subject to a number of conditions.

The petition followed the summoning of the group's companies to a hearing at Haifa Municipality and the municipality's postponement of the hearing date by several days without extending the validity of the business licenses. The companies asked the court to order the municipality to exercise its authority and renew the temporary permits, and submitted an urgent request for an interim order and an interlocutory injunction to ensure their continued validity until a decision is made on the petition.

After the petition was filed, the municipality notified the companies of the 60-day extension, subject to conditions, and that the hearing would take place in about a month. Bazan stated that it updated the court on the development and is examining the implications of the municipality's notice on the continuation of the legal proceedings.

Benzene Order Covers Gadiv Maintenance Work

Bazan reported another development in the benzene emissions case and the works at the Gadiv facilities. An order was received pursuant to Section 45 of the Clean Air Law, establishing a framework for reducing or ceasing renovation works, in accordance with stricter environmental benzene values set in the order. This follows the suspension of work related to periodic maintenance at the aromatics facilities in Gadiv, which the company reported on October 12.

Bazan stated that it is continuing periodic maintenance work at the fuel unit facilities and is operating in full coordination with the Environmental Protection Ministry to carry out the work at the Gadiv facilities. Despite the delay, the company emphasizes that its estimates regarding the impact of periodic maintenance on its financial results remain without material change.

Earlier Bazan Developments in 2026

In September 2026, Bazan CEO Rafael Maman said the October 7 deadline for closing the refinery is irrelevant, as the five-year countdown only starts after infrastructure prerequisites are met, CTech reported. Bazan is seeking over $5 billion in compensation for its planned evacuation from Haifa Bay, citing valuations of $3.2–3.8 billion plus refining margins, while the government says its compensation offer is far lower, CTech reported.

In August 2026, Bazan reported a net profit of $263 million in the second quarter, attributing it to rising refining margins driven by disruptions in energy markets due to the war with Iran, CTech reported.

What Comes Next for Bazan

The hearing at Haifa Municipality is scheduled to take place in about 30 days, according to the company's notice to investors.