The 10-year bond will be issued by Woodside Finance, a wholly owned subsidiary of Woodside Petroleum, at an interest rate of 5%.

Woodside's chief financial officer, Doug Bailey, said the transaction represented the company's third private offering in the US bond market and continued Woodside's drive for additional financial flexibility and to extend its debt maturity profile.

"We have successfully accessed the large US bond market due to our strong financial base, long-life reserves, investment-grade credit rating and commitment to growth," Bailey said.

Net proceeds from the bond will be used to refinance existing debt.