In this study, oily sludge samples generated from a Tehran oil refinery (Pond I) were evaluated for their contamination levels and to propose an adequate remediation technique for the wastes. A simple, random, sampling method was used to collect the samples. The samples were analyzed to measure Total petroleum hydrocarbon (TPH), polyaromatic hydrocarbon (PAH) and heavy metal concentrations in the sludge. Statistical analysis showed that seven samples were adequate to assess the sludge with respect to TPH analyses. The mean concentration of TPHs in the samples was 265,600 mg kg⁻¹. A composite sample prepared from a mix of the seven samples was used to determine the sludge's additional characteristics. Composite sample analysis showed that there were no detectable amounts of PAHs in the sludge. In addition, mean concentrations of the selected heavy metals Ni, Pb, Cd and Zn were 2700, 850, 100, 6100 mg kg⁻¹, respectively. To assess the sludge contamination level, the results from the analysis above were compared with soil clean-up levels. Due to a lack of national standards for soil clean-up levels in Iran, sludge pollutant concentrations were compared with standards set in developed countries. According to these standards, the sludge was highly polluted with petroleum hydrocarbons. The results indicated that incineration, biological treatment and solidification/stabilization treatments would be the most appropriate methods for treatment of the sludges. In the case of solidification/stabilization, due to the high organic content of the sludge, it is recommended to use organophilic clays prior to treatment of the wastes.