Crude oil treatment systems for heavy oil assume paramount importance due to the difficult nature of emulsions formed and presence of water in the form of small droplets. With the aging of heavy oil fields, operating under active water drive, water content in the emulsion produced increases substantially. This has a direct impact on heater-treater performance and treated crude quality. A typical problem is discussed in this paper where the gradual increase in emulsion production over a period of time in heavy oil belts of ONGC have affected the electrostatic heater-treater performance, treating light crude doped heavy crude, resulting in increased BS&W (basic sediments and water) in the treated crude. Critical levels of water cut in both heavy and light crudes have been identified beyond which the existing emulsion treating system becomes ineffective. Analysis have also been carried out to identify optimum mixing proportion which result in the most effective demulsification.