Last update - 02:02 21/02/2007
Ofer: Israel Corp. won't stop at Bazan
By Sharon Kedmi
The Israel Corporation will not stop with the Haifa-based Oil Refineries (Bazan) and look into further investments in the local economy, Idan Ofer told TheMarker yesterday. A day after buying a controlling stake in Bazan together with the Federman group for $700 million, Ofer said he was surprised that Africa Israel had withdrawn from the competition for the lucrative refineries.
Regarding Bazan's option to buy gas stations, he said he and his brothers had not looked much into the matter, "and it doesn't look like it will be the first thing Oil Refineries management intends to look into, though no decision on the matter has been made."
The group's energy will be focused on developing and improving Oil Refineries' capacity, according to Ofer. "A year has passed since we left the oil refinery and we will need to see what to do now. There are a lot of investments from our perspective, especially in enlarging its capacity." He stressed the new owners would work to provide good service to refinery customers, "and will turn it into a platform for international operations in the energy field."
As for further energy investments, Ofer said the Israel Corporation is looking into introducing alternative fuels into the Israeli market. The company recently announced its entry into a number of bio-diesel projects in Europe. When it will become viable in Israel, the company will consider introducing these alternative fuels through the oil refineries in Haifa, Ofer said.
Ofer refused to comment whether Israel Corp. plans to enlarge its holdings in Bazan, saying that the matter is not on the agenda right now, and that the holdings acquired through the IPO brought the company a sufficient controlling stake.