Fungal cultures isolated from oil-polluted sea water near Mumbai, Indi
a have been studied for their capability to degrade crude oil. A yeast
isolate identified as Yarrowia lipolytica was further investigated wi
th respect to its dimorphic behaviour and alkane degradation. Y. lipol
ytica NCIM 3589 in the yeast form degraded the aliphatic fraction of c
rude oil and also pure alkanes (20-60% within 48 h) under aerobic cond
itions. Unlike most Y. lipolytica strains, our isolate required partia
l anaerobiosis for mycelium formation. Studies with two isolates sugge
sted that mycelium to yeast transition may be the prerequisite for eff
ective alkane degradation.