Metal removal process is one of the major methods of shaping materials to meet its environmental need. It requires the use of forces thus, heat would be generated and if not controlled, it could affect the expected end results. One of the major ways of controlling the heat during cutting is the use of lubricant. The cutting fluid commonly used for machining in a standard machine shops, are imported at exorbitant cost , hence, analysis was carried out on a vegetable oil from ground nut (GNO)and its properties were integrated by adding additive and emulsifying agents to develop it to a suitable soluble oil for machining operation. The experimental results concluded that the saturated solution of NaOCl and NACO3 when added to the GNO in ratio 1:2 formed perfect emulsiable oil (GNSO). The GNSO and conventional cutting fluid (CCF) were used to carry out machining of mild steel on a Lathe Machine. The results obtained shows that the surface finish of the sample cut with the GNSO is the finest. The two samples were observed for 70days for corrosion effect and their microscopic structure picture were observed, the sample cut with CCF was majorly affected. The reliability of the GNSO was further determined through the various soluble oil ASTM tests, least square regression analysis was used to interpret the correlation coefficient data collated which shows that GNSO is equally reliable and more cost effective than CCF since it can be sourced locally in abundant.