In announcing his resignation today, Phillips agreed to stay in the role until the second half of 2007 to oversee the start of commercial production from the company’s fourth cornerstone asset, the Tui Area oil project, in New Zealand.

Phillips said he had mixed feelings about “moving on to new challenges” having achieved what he set out to do with AWE – Australia’s sixth-largest petroleum company – nearly 10 years ago.

“However, interests outside my role at AWE are taking an increasing amount of my time and will preclude me from fulfilling a 24/7 commitment in the years to come,” he said.

“Under such circumstances, it is in the best interest of shareholders that I make way for someone who can make such a commitment.

“Helping AWE grow to where it stands today has been immensely satisfying. The company is now in an excellent position, with a strong balance sheet, high quality assets, a good growth outlook and a talented work force guided by an experienced board of directors.”

Wood will start working for AWE in April, initially as an executive director of business development, before stepping into the role of managing director in the second half of 2007.

Most recently, Wood was the CEO of Delhi Petroleum, which was taken over two months ago by Beach Petroleum in a takeover worth $574 million.

Before Delhi, Wood worked with BHP Petroleum, Shell, Triton Energy, his own consultancy Gas Strategies, and Santos.

Outside Australia, he was employed in Holland, France, the United States and Central America as well as being involved in business development activities in Indonesia.

AWE chairman Bruce McKay said the board was “indebted” to Phillips for his “exceptional contribution” to the company.

“We are fortunate that Bruce Wood is joining AWE and we welcome his guiding hand through the years ahead as we consolidate the company’s achievements and pursue opportunities for continued growth,” McKay said.

“We are confident that this planned change in executive management of the company will not detract from the continued pursuit of our objectives.”

Under the guidance of Phillips, AWE has grown from a junior explorer into Australia’s sixth-largest petroleum producing company with a market capitalisation of more than $1.2 billion and producing assets in Western Australia and in both the offshore Otway and Bass basins off the Victorian coast.