Oil Refineries Announces Readiness for Natural Gas Supply and Spot Agreement

HAIFA, Israel, May 4, 2011 - Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter "the Company,"
"ORL"), Israel's largest integrated refining and petrochemical group
announced today, in continuation with the previous announcement regarding the
natural gas transportation system to Haifa bay and the signing of an
agreement with the East Mediterranean Gas SAE ("EMG") to purchase natural
gas, that on May 3, 2011 the connection of the Company's facilities to the
national transmission system of natural gas, as well as the testing enabling
it to begin gas consumption in the Company's facilities, were completed. EMG
had announced that on April 27, 2011, a gas line, which is part of Egyptian
natural gas system and which provides gas also to EMG, was damaged. As a
result of this incident, the flow of gas by EMG was halted to all its
customers in Israel.

The company concluded with the group of "Tethys Sea" (Noble
Energy Mediterranean Ltd, Delek Drilling Limited Partnership, Avner Oil
Exploration Limited Partnership, and Delek Investments & Properties Ltd.), a
SPOT natural gas supply deal for the dated May 4, 2011 and May 5, 2011, which
will allow the Company to initiate a testing process for its natural gas
system in its facilities and its commissioning. There is no certainty as to
any other SPOT transactions or their terms.

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city of
Haifa, operates Israel's largest integrated refining and petrochemical group.
It is one of the leading refineries in the Eastern Mediterranean area and
integrates, on-site, petrochemical businesses. ORL runs sophisticated and
state-of-the-art industrial facilities with a refining capacity of 9.8
million tons of crude oil per year and a Nelson Complexity Index of 7.4,
providing a variety of quality products used in industrial operation,
transportation, private consumption, agriculture and infrastructure. The
Company's petrochemical sector produces Polymers (through its ownership of
Carmel Olefins Ltd), Aromatics (through its ownership of Gadiv Petrochemical
Industries Ltd), and Lube-Oils (through its ownership of Haifa Basic Oils
Ltd). The Company's shares are listed on the Tel Aviv Stock Exchange under
the ticker ORL. For additional information please visit www.orl.co.il.

ORL is controlled by the Israel Corporation Ltd. and Israel
Petrochemical Enterprises Ltd., both public companies whose shares are traded
on the Tel Aviv Stock Exchange.

The above noted in this release includes forward-looking
statements based on Company data, as well as Company plans and estimations
based on this data. The activity, results and other data may be substantially
different in reality given uncertainty and various risks, including those
discussed under risk factors in the Company's financial statements and
Director's reports.

    Company Contact:                    Investor Relations Contact:
    Rony Solonicof                      Ehud Helft / Porat Saar
    Chief Economist and Head of         CCG Israel
    Investor Relations
                                        Tel. (US) +1-646-233-2161 /
    Tel. +972-4-878-8152                (Int.) +972-52-776-3687

    Contact IREn@orl.co.il              info@ccgisrael.com

.