Olive Oil Soap (3 Pieces) In A Bag. Olive oil has been used in soap making for thousands of years. Olive oil, like all fats and oils, is transformed into soap by adding lye (soda ash is very similar to lye). Over the centuries, the process of making soap from olive oil was improved, different oils were mixed with olive oil, and additives – from algae to minerals – were utilized. This Soap is Made in Israel.