The following steps will allow you to debug your OSB services in Eclipse a local weblogic server.
1) Start your server
2) Open Eclipse
3) Create a Debug Configuration. Run -> Debug Configurations
4) Right click on Oracle Service Bus Debugger and select New
5) Enter a Name for your debug config and the debug Host and Port information for your OSB server. Then click Debug.
6) Add a break point to your OSB service. This can be done by right clicking on any object in your service and selecting Toggle Breakpoint.
7) Execute your OSB service. This can be done through the console, SoapUI or any other tool which can call a web service.
8) Eclipse will prompt you to see if you would like to switch perspectives. Select Yes.
8) This will bring up the Debug Perspective and it will have stopped on the breakpoint you set. From here you get all of the functionality that you would expect from a debugger. You can step into code, step over code and resume processing. There is also a window that can be used to inspect your variables.