Oil Refineries Ltd. (ORL) located in the Haifa Bay Area is one of Israel’s largest energy groups operating Israel’s largest oil refining and petrochemical complex. State of the art facilities enable ORL, known in Hebrew as Bazan, to manufacture a broad range of refined products for industry, transportation, agriculture, infrastructure and household consumption. The refinery has a maximum production capacity of approximately 26,600 tons (197,000 barrels) per day. About 85% of ORL’s operations are related to refining and producing high added value products at its refining facilities rated 9.0 on the Nelson Complexity Index, among the highest rankings in the Eastern Mediterranean region. ORL and its subsidiaries, produce mainly oil products, polymers as raw materials for plastics, aromatics for chemicals and petrochemicals, and basic oils and waxes. ORL’s subsidiaries are an extension of its plant. Carmel Olefins Ltd., Gadiv Petrochemical Ind. Ltd., Haifa Basic Oils Ltd are all fully owned by Bazan. In addition, the Company holds 23.63% of Gadot Biochemical Ind. Ltd., 25% of United Petroleum Exports Ltd., 25% PMA – Energy Resources Development Ltd., 25% of Tanker Services Ltd., and 31.25% of Mercury Aviation.
This integration allows ORL to optimize its refining output across product and petrochemical business lines, while increasing aggregate margins and creating cost efficiencies through joint management and facilities. Privatized by the Israeli Government in Feb. 2007, and currently controlled by Israel’s largest holding company, Israel Corp. (37.1%), and by Israel Petrochemical Enterprises (30.7%). ORL’s shares are traded on the Tel Aviv Stock Exchange under the ticker ‘ORL’. The Company also supplies power (electricity) and steam services to industrial customers in Haifa Bay, as well as infrastructure services (storage and conveyance of fuel products).
Meeting the Highest Quality Standards
All of ORL’s products undergo strict quality control and assurance procedures and a series of international (ASTM) tests supervised by the Israel Standards Institution. ORL’s products comply with the ISO 9002 standard and most carry the “Green Shield” of the Standards Institution, indicating their compliance with environmental quality standards. The Company’s environmental management complies with the ISO 14001 Standard and the ORL safety system is ISO 18001 certified.
Producing for Domestic and World Markets
While most products are directed to the Israeli market, ORL’s strict adherence to the most demanding world standards, as well as production capacity capabilities enable it to sell considerable quantities of refined products overseas, mainly to countries of the Eastern Mediterranean. ORL’s trade sector is responsible for improving service and strengthening relations with its direct and indirect customers. This is an additional element in ORL’s effort to constantly adapt its products to the unique needs of its customers by improving the existing products and developing new ones.
Over the years ORL has succeeded in building a modern and efficient organization based on its professional and skilled personnel, operating at the cutting edge of refining technology. More than 50% of ORL’s employees are engineers and practical engineers, or graduates in other disciplines. All employees thrive in the dynamic work environment, which presents technological and operational challenges in meeting advanced industrial standards.
Aggressive Strategic Investment Plan
Today, the Company is completing a Strategic Five-Year Investment Plan which focuses on investing in upgrading handling of the environment, ecology and safety. The plan involves massive investment in increasing some of the high added-value products in the environmental, safety and security sectors and raising operation reliability. The plan also includes investment in new installations and upgrading existing installations to meet current and future requirements of the Ministry of Environmental Protection and rigorous global emission standards. The estimated cost is hundreds of millions of dollars. The plan will bring a dramatic change in environmental and safety parameters.
In Feb. 2012, ORL presented its new organizational structure with its fully-owned subsidiaries’ activities, which aims to create a direct, clear and seamless link along the value chain between each of the Group’s main products. The Group now has three business units, Fuels; Polyolefin’s and Aromatics; Oils and Waxes. Each business unit includes a relevant production unit, marketing, sales and other functions. The business unit serves the joint factory facilities.
Significant Environmental Commitment
As part of the five-year investment plan, Bazan has allocated $161 million of its investment to improve its environmental profile in line with its commitment to be active in the industry’s evolution towards greater environmental responsibility. ORL’s flagship project is the construction of a production installation for clean fuel which should be completed in the third quarter of 2012. When operational the plant will significantly increase the refinery’s complexity and enable production of more, higher added-value refined products from each barrel of oil. It will also increase ORL’s flexibility in the face of changing market conditions when selecting raw materials and a package of products.
Gadiv Petrochemical Industries Ltd., a wholly owned subsidiary, engaged in manufacturing and marketing of aromatics and solvents.
Carmel Olefins Ltd., a wholly owned subsidiary, manufactures and markets ethylene, polyethylene and polypropylene.
Haifa Basic Oils Ltd., a wholly owned subsidiary, manufactures and markets basic oils and wax.