Biosurfactant is a structurally diverse group of surface-active molecule, Synthesized bymicroorganisms. They have capability of reducing surface and interfacial tension with low toxicity and high specificity and biodegradability. In the study, the soil sample were collected from the oil spilled areas of the automobile workshop and petrol pump. The sample was enriched inMSM agar incorporated with 2% Glucose. The organism was screened for the purpose of biosurfactant production by using the screening tests viz. oil spreading test, blood haemolysis test and emulsification test. The screened organism was identified by GC-FAME analysis using SHERLOCK MIDI software. The organism identified was Bacillus licheniformis. The biosurfactants were then extracted by centrifugation, supernatant obtained then added with chloroform: methanol, then sediment was obtained as result. The dry weight of the biosurfactant produced was calculated as 0.12g. The growth of B.licheniformis was tested in presence of hydrocarbon (toluene).