One of the most troubling wasted products in both upstream and downstream petroleum industry is oily sludge. Oil sludge is generated in huge amounts through refining, exploration, storage, pipeline and tanker transportation. Such sludge, containing considerable amounts of hydrocarbons, solids, heavy metals, water and other impurities, presents a stable emulsion, which is difficult to treat. An adequate treatment prevents environmental pollution, protect public health, and installation, as well as preserves an adequate tank capacity. On other hand, oil sludge still contains valuable fuel and water, hence in spite of difficulties; the recovery of resources from sludge is a sustainable generation of fuels and recycling water. Centrifuging is one of the available technologies, which is able to break the sludge suspension into phases, while fuel can be recovered. The objectives of this study were to recovery of oil and water, and decrease hazardous volume for disposal using centrifuging process. The investigations were conducted in order to separate fractions, in a sustainable way, i.e. oil be used as a fuel, water be reused in processing, and solids can be treated or disposed efficiently. In order to optimize phase separation and help in fraction recovery, the centrifuging process was modified by various pre-treatment methods. The results showed that the highest quality of oil and water was recovered when centrifuging process was applied with using such additives like ferric chloride, ferrous sulfate and surfactant (Tween 80). Further improvement was achieved when centrifuging three-phase separation was exposed to pre-heating at 55oC. The calorific value of the recovered fuel increased by 23% comparing to raw oily sludge. Furthermore, an amount sent to disposal decreased by 70%