Thermochemical flooding is becoming more popular nowadays as a subsequent EOR method after thermal recovery in extra-heavy oil reservoirs. During this process, in-situ emulsions could happen due to interfacial active components existing in heavy crude oil. The enhanced oil recovery is inevitably related with the formation of emulsions, which is one of the main mechanisms and deserves a thorough study. Also, the features of relative permeability curves during thermochemical flooding should be investigated further, because they are very important but usually are difficult to obtain since physical reactions could happen. Based on core-flooding experiments, combined with careful observation of produced crude oil emulsion morphology, this paper compared and analyzed the features of relative permeability curves and displacement efficiency at different conditions, and the mechanisms of extra-heavy oil production by surfactant displacement is then investigated. The surfactant used are provided by the oilfield at a varied mass fraction of 0.1%, 0.2% and 0.3% and under temperature of 100, 150 and 180 °C. The relative permeability data were processed with JBN method. The experimental results show that both the oil and water relative permeability increase as the temperature increases. As surfactant concentration increases, the relative permeability of the aqueous phase decreases as opposite to oil. The ultimate recovery increased with the increase of temperature and surfactant concentration. Except for the oil viscosity reduction by surfactant, it is interesting to note that the formation of crude oil emulsions (mainly O/W emulsions) are observed to be positively impacting the oil recovery factor. As surfactant concentration increases, larger size of dispersed phase in the emulsions were observed in the effluent corresponding to a higher oil recovery factor. This work is of great significance for heavy oil research and field development.