The metal rolling industry uses oil and water emulsions containing from about 50,000 to 100,000 parts per million of oil. Emulsions at these concentrations of oil cannot, therefore, be passed directly into a public waterway without prior treatment.
one way is to use some de-emulsifiers to separate the oil. Or you can use heat treatment ~50 to 60 C, which will separate the oil from the water and the oil can be drained from a conical bottom tank, after the removal of the bottom water phase.