After the Strike: Bazan Oil Refinery Begins Partial Recovery Following Iranian Missile Attack

Following a deadly missile strike that shocked the global energy sector, Israel’s Bazan Group has partially resumed operations at its Haifa-based oil refinery — one of the most critical energy facilities in the Eastern Mediterranean. The attack, part of Iran’s “Operation Rising Lion,” killed three employees and temporarily shut down refining and downstream operations.

Now, in a statement to the Tel Aviv Stock Exchange, Bazan confirmed that operations have resumed in limited capacity and that a systematic recovery plan is underway. Full restoration is expected once key steam-generating systems — essential to refining operations — are rebuilt later this year.

A Strategic Target: Why Bazan Matters

Bazan, formally known as the Oil Refineries Ltd. (ORL), is the largest oil refining and petrochemicals group in Israel, supplying fuel, polymers, and other products across the country and region. With its operations located in Haifa Bay, it plays a vital role in Israel’s strategic fuel reserves, energy independence, and export infrastructure.

The missile strike — part of a wider escalation between Iran and Israel — marked a rare and highly symbolic attack on energy infrastructure. It raises serious questions about vulnerability of refineries and petrochemical plants in active conflict zones.

Gradual Restart: What Bazan Is Facing Now

While production has resumed at some units, full recovery depends on steam system restoration, which Bazan estimates will be completed between September and October. Steam is crucial for:

• Crude oil distillation

• Hydrogen generation for desulfurization

• Catalyst regeneration and pressure balancing

Without it, only limited refining operations are possible — typically involving light distillate processing or rerouting feedstock to unimpacted systems.

Compensation, Insurance, and Operational Flexibility

Bazan has confirmed that it is insured for terrorism-related losses, with coverage for both physical damage and lost profits, capped at $250 million USD. Additionally, it is working with Israel’s property tax and compensation authority to secure advance payments related to damages.

However, the company also cautioned investors: "Restarting facilities after a sudden, external shutdown is inherently uncertain" — citing complex interdependencies, safety protocols, and the challenge of ramping up safely while maintaining environmental compliance.

Energy Infrastructure in the Crosshairs

The Bazan incident underscores a growing global concern: critical energy facilities are increasingly being drawn into geopolitical conflicts. Refineries, terminals, and pipelines — long considered economic targets — are now part of modern asymmetric warfare strategy.

In recent months, we’ve seen:

• The attack on Iran’s Isfahan refinery by unidentified drones

• The Ukrainian strikes on Russian refineries in Belgorod and Ryazan

• Explosions aboard multiple tankers linked to Russian oil exports

These events share one theme: energy assets are no longer immune from the frontlines. Whether by missile, drone, or sabotage, infrastructure once considered untouchable is now actively targeted.

What This Means for the Industry

Bazan’s cautious but determined recovery plan offers a blueprint for post-attack operational continuity:

• Layered insurance coverage, both public and private, helps stabilize financial outlooks

• Pre-planned restoration protocols allow staged restarts of complex systems

• Operational transparency, including investor and regulatory communication, helps maintain confidence

Yet this event also adds urgency to broader conversations around resilience engineering, hardened facility design, and AI-based predictive threat modeling for energy infrastructure.

Conclusion: A Warning and a Test Case

The missile strike on Bazan and the refinery’s ongoing recovery represent more than an isolated incident. It’s a test case for how critical national infrastructure can be targeted, disrupted — and, with the right planning, restored under pressure.

As conflicts broaden and energy becomes more weaponized, the lessons from Haifa will be studied by operators, governments, and insurers alike.