In this study, the viscosity reduction of heavy oil has been investigated through the formation of oil-water emulsion using a bio/chemical emulsifier mixture. Four bioemulsifiers from indigenous Rhodococcus ergthropolis and Bacillus licheniformis strains were used to stabilize a highly-viscous oil-in-water emulsion. The Taguchi method with an L(9) orthogonal array design was used to investigate the effect of various control factors on the formation of the oil/water emulsions. An emulsion with lowest viscosity was formed using ACO4 strain. The substantial stability of the oil-in-water emulsion allows the heavy oil to be transported practically over long distances or remain stationary for a considerable period of time prior to utilization. As the result of Taguchi analysis, the temperature and concentration of the emulsifier had a significant influence on viscosity reduction of the emulsion.