Pilot scale experiments have been performed to study the effect of a heterogeneous surfactant into the drag and heat transfer coefficient in crude oil pipelines. The effects of surfactant concentration, pipe diameter, Reynolds number and temperature were studied in this research program. An extensive set of data was obtained for heat transfer and friction coefficients for a heterogeneous surfactant known as MDR-2000. A wide range of Reynolds numbers were covered and experiments were conducted for many different Prandtl numbers. All drag and heat transfer reduction experiments were performed in the same installation using the same measurement techniques which facilitates the assessment of the trends caused by the various parameters studied. Typical results showed that the friction coefficient was reduced by half at the optimum concentration. While, the heat transfer coefficient was reduced even more dramatically.