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Utility asset managers and engineers are concerned about the life and reliability of their power transformers which depends on the continued life of the paper insulation. The ageing rate of the paper is affected by water, oxygen and acids. Traditionally, the ageing rate of paper has been studied in sealed vessels however this approach does not allow the possibility to assess the affect of oxygen on paper with different water content. The ageing rate of paper has been studied for dry paper in air (excess oxygen). In these experiments we studied the ageing rate of Kraft and thermally upgraded Kraft paper in medium and high oxygen with varying water content. Furthermore, the oxygen content of the oil in sealed vessels is low which represents only sealed transformers. The ageing rate of the paper has not been determined for free breathing transformers with medium or high oxygen content and for different wetness of paper. In these ageing experiments the water and oxygen content was controlled using a special test rig to compare the ageing rate to previous work and to determine the ageing effect of paper by combining temperature, water content of paper and oxygen content of the oil. We found that the ageing rate of paper with the same water content increased with oxygen content in the oil. Hence, new life curves were developed based on the water content of the paper and the oxygen content of the oil. [ABSTRACT FROM PUBLISHER]