The present study reports on the isolation and characterization of a Pseudomonas aeruginosa strain PTz-5 from crude oil from oil field sampled in Assam, India. It was capable to utilize hexadecane, benzene or toluene as a sole source of carbon aerobically. Strain PTz-5 was able to produce extracellular lipase that catalyzed triglycerides to free fatty acid and glycerol. The lipase activity was stable in the temperature range of 40 to 60 degrees C. Strain PTz-5 avidly adhered to the surface of hydrocarbon droplets during their growth in liquid culture medium. These properties could play an essential role in hydrocarbon degradation. The results presented here highlight the metabolic versatility and hydrocarbon biodegradative capability of strain PTz-5, signifying its great potential for the bioremediation of various hydrocarbon-contaminated environments.