Last updated on April 16, 2014 at 17:34 EDT

Oil Refineries Announces the Successful Activation of the Hydrocracker

January 3, 2013

HAIFA, Israel, January 3, 2013 /PRNewswire/ –

Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter “the Company,”"ORL”), Israel’s largest
integrated refining and petrochemical group, announced that it has successfully activated
the hydrocracker, which passed the project’s acceptance test and is producing distillates
of the required quality and commercial quantities.

Pinhas Buchris, CEO of ORL, commented: “We are pleased with the hydrocracker’s
activation, which is an important step in the implementation of the Company’s strategy.
The hydrocracker is a very complex piece of equipment. The project’s establishment lasted
about three years and cost about $500 million so we see its activation as a business,
technological and organizational achievement. The integration of the hydrocracker into
ORL’s operations will enable us to produce improved and higher quality distillates
relative even to the strict environmental standards and improve our competitive standing
in the world. We believe that through the hydrocracker we can maximize the production
capacity of the Company and positively impact our operational efficiency and hence improve
the Company’s financial results.”

The hydrocracker project is part of the Company’s strategic plan, which was outlined
in late 2007. The $500 million invested in the project was a key part of the 2007
strategic plan, which overall totaled $1 billion. The strategic plan includes, among other
things, upgrading the HVGO desulfurization facility of and other facilities, which have
expanded and upgraded our refining and cracking capacity as well as our production of oil
and petrochemical products.

The hydrocracker is currently working on an input of about 25,000 barrels per day. Its
products – LPG, naphtha, kerosene and diesel – are of a very high quality. The
hydrocracker significantly improves the competitive positioning of the refinery by
increasing the refinery’s complexity and improving the Company’s ability to produce a more
profitable product mix.

The Company believes that the hydrocracker’s operation will improve its refining
margin and as such, its financial results. It will also help to expand and further focus
our efficiency measures and streamlining processes, about which the Company recently
announced. The impact of the facility on the Company’s operating results will depend on
the prevailing refining margins in the global market, and in the Mediterranean market in

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, providing a variety of
quality products used in industrial operation, transportation, private consumption,
agriculture and infrastructure. Besides production of fuels, the company produces in its
wholly owned subsidiaries Polymers (through Carmel Olefins Ltd), Aromatics (through Gadiv
Petrochemical Industries Ltd), and Lube-Oils (through 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 http://www.orl.co.il
[http://r20.rs6.net/tn.jsp?et=1109425676995&s=0&e=0011TrZilaJJXHAO8etvjkanVMHAfDjYJInBc39FsQYJm8DLVC0Ehs_BKspKQ0wFveLexhOJkQg39jwVgHnQOD3JTrMSrZyofry5olQXLanhzM= ]

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 report

        Company Contact:
        Rony Solonicof
        Chief Economist and Head of Investor Relations
        Tel. +972-4-878-8152
        Contact IREn@orl.co.il

        Ehud Helft / Porat Saar
        CCG Israel
        Tel. (US) +1-646-233-2161 / (Int.) +972-52-776-3687

SOURCE Oil Refineries Ltd

Source: PR Newswire