Treatment of produced water in the petroleum industry has been a challenge worldwide. In this study, we evaluated the use of direct contact membrane distillation (DCMD) for this purpose, removing oil and dissolved elements and supplying clean water from waste. We synthesized fluorinated polyoxadiazole, a highly hydrophobic polymer, to fabricate hollow fiber membranes, which were optimized and tested for simulated produced water and real produced water treatment. The process performance was investigated under different operating parameters, such as feed temperature, feed flow velocity and length of the membrane module for 4 days. The results indicate that by increasing feed temperature and feed flow rate the vapor flux increases. The flux decreased with increasing the length of the module due to the decrease of the driving force along the module. The fouling behavior, which corresponds to flux decline and cleaning efficiency of the membrane, was studied. The performance of the fabricated hollow fiber membranes was demonstrated for the treatment of produced water, complying with the industrial reuse and discharge limits.