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The University's Vice-Chancellor, Professor James McWha, said the school is the first of its kind in the southern-hemisphere to combine engineering and geoscience.
"The combination of the two disciplines will mean our education and research programs will be even more closely tailored to international oil and gas industry needs.
The School of Petroleum Engineering and Management (SPEM) has grown quickly since opening last year. More than 70 full-time undergraduate and postgraduate students are now enrolled, including 24 from overseas.
Within the University's formal structure, SPEM is part of the Faculty of Engineering, Computer and Mathematical Sciences, while the NCPGG is in the Faculty of Sciences.
"The new school will allow each specialisation to continue to report to their respective faculties, but operating with a single management structure for program cohesion and efficiency in the use of University resources," said McWha.
The former Director of the NCPGG, Professor John Kaldi, will head a respected team of academic staff. This includes Professor Peter Behrenbruch, who holds the Santos Chair in Petroleum Engineering, Professor Richard Hillis, the South Australian State Chair in Petrophysics and Reservoir Properties and Professor Hemanta Sarma, holder of the Reg Sprigg Chair in Petroleum Engineering.