An oil refinery must be a limited liability corporation and meet the following requirements:
1.Have installed oil distillation, refining, and blending equipment.
2.Have installed or leased an oil storage facility which has a capacity greater than the security stockpile prescribed in Article 24 herein.

In order to set up an oil refinery, an establishment permit must be obtained from the central competent authority. This entails submitting an application that states the following particulars:
1.Plant location along with the size of the distillation, refining, blending, and oil storage facilities as well as the construction schedule and the plant completion date.
2.Principal products and the annual capacity for those products.
3.Two-year production and sales plan following the initiation of production.
This plan must include oil refining, import, export, sales, and storage plans.
4.Other items as promulgated by the central competent authority.

After a business receives an establishment permit for an oil refinery, it must set up a separate company or change its own registration. After doing one of these and then completing a trail run, the business can apply for an operation license to refine oil. A business may not start refining oil until it has been granted an operation license and can apply for one by submitting the following documents to the central competent authority:
1.Company license.
2.Factory registration permit.
3.Documents verifying that the oil storage facility has the capacity to comply with the security stockpile requirement as specified in Article 24 herein. If the facility is leased, lease documents must be provided as evidence.
4.Other documents as required and promulgated by the central competent authority.
If after completing a trial run but before receiving the operation license, an oil refinery operator has constructed or leased an oil storage facility that has a capacity greater than the required security stockpile and it has submitted the documents specified in Item 3 of the preceding paragraph to the central authorities, then the oil refinery operator may sell the petroleum products it produces following the completion of the trial run, subject to the approval of the central competent authority. However, the sale period is limited to six months, and the provisions specified in the first paragraph of Article 17 apply hereto.
The aforesaid business must comply with the security stockpile requirement of an oil refinery operator as specified in Article 24 herein.

Before an oil refinery operator expands or reconstructs its distillation, refining, or blending facilities, it must obtain the approval of the central competent authority. After completing the expansion or reconstruction, the operator must apply to the central competent authority for a new oil refinery operation license.
The provisions specified in Articles 5 and 6 apply to the application procedures mentioned in the preceding paragraph.