Disclosed is an apparatus for the gravitational separation of the first and second liquid phases of a two phase liquid containing predominantly a continuous first liquid phase with a dispersed second liquid phase having a lower specific gravity than the first liquid. The apparatus comprises a tank defining an interior chamber. A feed inlet introduces the two 5 phase liquid into the lower portion of the chamber. The upper portion of the chamber has an upward flow zone through which the two phase liquid rises, with the dispersed second liquid rising more than the first liquid and being separated therefrom due to the second liquid's lower specific gravity. The second liquid forms a floating layer and a conduit directs separated second liquid from the floating layer to a second liquid outlet.