Oil spills are huge problem for the environment. Biosurfactant are surface active compounds produced by the microorganisms. They have potential to solubilize hydrocarbon contaminants and make them available for microbial degradation. Present investigation deals with the isolation, characterization of bacterial strains from oil contaminated soil and from oil drilling wells. These isolates were further characterized morphologically, biochemically, physiologically and genetically. Strains which showed positive drop collapse and stable emulsion formation were selected. To check their molecular identification, 16SrRNA gene sequencing analysis was carried out. These strains showed resistance to different metals, antibiotics and have antimicrobial activities against pathogenic strains. All these strains contained plasmids. These strains gave complete decolorization of redox indicator which showed their ability to degrade oil. These biosurfactant producers strains have showed appreciable oil degrading ability which can be exploited for bioremediation of oil contaminated sites and can be helpful in oil spill removal in soil and aquifers which have very harmful effects on environment.