A biosurfactant producing bacterial strain C-3 was isolated from the sludge of a petroleum refinery and identified as Pseudomonas aeruginosa. The optimal conditions for the growth and biosurfacant production of strain C-3 were investigated. The results showed that strain C-3 could grow well and produce the largest amount of biosurfacant under the following conditions: seed-oil as sole carbon source, 30°C, initial pH 8, Ca2+ concentration of 20 mg/L, 75 mL medium in 250 mL Erlenmeyer flask. The biosurfactants produced by strain C-3 was identified as lipopeptides, showing high surface activity and emulsifying efficiency with critical micelle concentration (CMC) being 50 mg/L.