Oil Refineries' Notifies on New Decree Relating to Emissions From the Refinery

HAIFA, Israel, November 30 - Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter: the "Company", "ORL"),
Israel's largest oil refiner, announced that it has come to its knowledge
that Israel's Minister for the Environmental Protection signed, on November
22, 2009, new instructions for the prevention of air pollution from the
Haifa refinery, under the Prevention of Hazards Law- 1961 (hereinafter:
the "New Decree" or "New Personal Decree").

The New Personal Decree determines - among other things - that
the Company must reduce, within eighteen months from the Decree becoming
valid, the emission of a series of materials from its units, to levels
defined in the New Decree, substantially more severe than the emission levels
required today.

Reducing the emissions from the Company's units to the levels
defined in the New Decree are not possible without the Company reverting to
using natural gas in its units by the date defined in the New Decree.

Based on information supplied to the Company by Israel's
Natural Gas Lines Ltd. ("INGL"), as at the date of this report, the works to
lay the transmission infrastructure to the Haifa Bay are currently in
advanced stages however, INGL has encountered problems in conducting the
works to lay this infrastructure in part of the lands under private
ownership.

In October 2009, following the Company's receipt of the draft
New Personal Decree for review, and prior to its signing, the Company
notified the Ministry for Environmental Protection that it has invested,
based on decisions made by the Israeli Government, and representations
supplied by the Government with regards to the arrival of natural gas, over
NIS 150 million in preparation for the implementation of natural gas use by
the refinery and its subsidiaries, as well as in conduction modifications,
required based on the provisions of the decree agreed with the Ministry for
Environmental Protection and the Company during 2008.

Furthermore, the Company announced that while these
investments have already been completed, the Government is not meeting its
commitment and natural gas is not reaching the Haifa Bay. It is not viable
that the Government should demand the Company bear the costs of the
Government's failure and also criticise the Company.

The Company clarified before the Ministry for Environmental Protection
that this decree is of a nature that the public cannot meet and clearly
deviates from reasonable discretion by the authority.

Furthermore the Company has turned to the Prime Minister for
intervention to guarantee that all those involved in the natural gas
transmission project to the Haifa Bay area come to their senses and fulfil
their responsibilities in order to undertake the Governments' declared policy
and to complete the laying of the gas transmission infrastructure.

The New Personal Decree also includes additional instructions,
which the Company is currently evaluating both their meaning and implications
on its current and planned activities.

The New Decree, which will replace the current Personal
Decree, under which the Company currently operates, will become effective 30
days following its receipt.

The Company is currently contemplating its steps with regards
to the New Personal Decree.

About Oil Refineries Ltd.

Oil Refineries Ltd. (ORL), located in the bay area of the city
of Haifa, operates Israel's largest oil refinery. ORL operates sophisticated
and state-of-the-art industrial facilities with refining capacity of 9.8
million tons of crude oil per year, with 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 is also active in the area of Polymers (through Carmel Olefins Ltd.)
and Aromatics (through wholly-owned Gadiv Petrochemical Industries Ltd.). ORL
is traded on the Tel Aviv Stock Exchange under the ticker ORL. For additional
information please visit the Company's website: www.orl.co.il

    Company Contact:
    Rony Solonicof
    Chief Economist and Head of Investor Relations
    Oil Refineries
    Tel. +972-4-878-8320
    ContactIREn@orl.co.il

    Investor Relation Contacts:
    Ehud Helft \ Fiona Darmon
    GK Investor Relations
    Tel. +1-646-797-2868 \ +972-52-695-4400
    info@gkir.com

Company Contact: Rony Solonicof, Chief Economist and Head of Investor Relations, Oil Refineries, Tel. +972-4-878-8320, ContactIREn at orl.co.il; Investor Relation Contacts: Ehud Helft \ Fiona Darmon, GK Investor Relations, Tel. +1-646-797-2868 \ +972-52-695-4400, info at gkir.com