The production and properties of a biosurfactant, synthesized by a member of the Bacillus subtilis group (PTCC 1696) which was isolated from an Iranian oil field, have been investigated. The biosurfactant, which was produced as a primary metabolite associated with the growth of PTCC 1696, was able to reduce the surface and interfacial tension of media to 26.7 and 0.1 mN/m, respectively. Crude biosurfactant and acid precipitated biosurfactant have critical micelle concentrations of 10 and 100 mug/ml, respectively. The stability of the biosurfactant at different salinities, pH and temperature and also its emulsifying activity have been investigated. It is an effective surfactant at very low concentrations over a wide range of temperatures, pHs and salt concentrations and also has the ability to emulsify oil, which is essential for enhanced oil recovery.