Woodside Petroleum has decided to retain its business in the Gulf of Mexico, saying Wednesday it had formed an alliance with a new boutique exploration group, in a move aimed at strengthening its position in the US region.

The Perth-based group, Australia?s largest independent oil and gas producer, said it would pool its exploration, acquisition, development and production activities in the region with Explore Enterprises. Explore is a small, private Louisiana-based group set up in 2003 by a team of executives and engineers that previously worked at oil majors, including Exxon, Amoco and Mobil.