The capability of hydrocarbon utilizing bacteria to produce biosurfantants was investigated. Out of 38 spore forming alkane utilizing bacteria isolated from Jeddah Refinery facilities, a potent surfactin producing bacterium was isolated, by enrichment technique. The isolate was purified and partially characterized as members of the genus Bacillus and was designated as BDCC-TUSA-3. It was able to biodegrade 11.0 g of n-hexadecane and consume more than 82% in 55 h, but surfactin was not detected. When grown on Maldex-15, a cheap by-product recovered during manufacturing of high fructose syrup from corn starch, up to 4650 mg.l -1 of surfactin was produced in 40 h. The kinetic characterization, for cell growth and surfactin production from Maldex-15 was determined. A maximum specific growth rate of 0.462 h -1 , conversion efficiency of 98.8% and volumetric reactor productivity of 155 g surfactin .l -1 .h -1 were achieved. The obtained results suggest that BDCC-TUSA-3 strain can be of great importance as a feasible MEOR agent particularly in nearly exhausted oil fields.