The recovery of oil from oily sludge available in the Lagoons / Pits / tank bottoms will assist in solving an environmental problem as well as minimising waste. The methodology is a Thermo-Mechanical Process which is technically demanding in applications for separation technology. It is an integration of proven process techniques which employs separation principles. The equipment selected for the processing plant is designed and engineered to overcome the broad variations found in sludge compositions from tank bottoms, lagoon and landfill oil sludge, bituminous waste etc. The process will facilitate waste minimisation and maximum oil recovery.