Surfactant (surface active agent) exhibit numerous interesting properties that enable their use as additional component in mobilising of residual oil from capillary pore after secondary recovery process using gas injection and water flooding. In this study, Sodium Lignosulfonate (SLS) surfactant was successfully synthesized by applying batch method using lignin from oil palm empty fruit bunches as precursor. Furthermore, its performance in reducing interfacial tension of crude oil and formation water colloidal system was compared with commercial available surfactant including Sodium Dodecyl Benzene Sulfonate (SDBS) and Sodium p-Toluene Sulfonate (SpTS). The synthesized SLS surfactant was characterized by using Fourier Transform Infrared (FTIR) spectroscopy. Meanwhile, its performance in reducing interfacial tension of crude oil and formation water colloidal system was analyzed by using compatibility test, phase behaviour analysis, and interfacial tension (IFT) measurement. The compatibility test shows that SLS, SDBS, and SpTS surfactants were compatible with formation water. In addition, the phase behaviour analysis shows that SLS surfactant was better than SpTS surfactant, while SDBS surfactant generates the highest performance proved by the best microemulsion formation resulted by SDBS. Furthermore, the optimum concentration of SLS, SDBS, and SpTS surfactants in reducing the interfacial tension of crude oil and formation water was 1.0%. The IFT measurement indicates that the performance of SLS with the value of 1.67 mN/m was also better than SpTS surfactant with the value of 3.59 mN/m. Meanwhile, SDBS surfactant shows the best performance with the IFT value of 0.47 mN/m.