Woodside said it regularly holds confidential discussions with such companies to help achieve long-term growth. "This has been the case recently and that these discussions have now been concluded without a transaction," the company said in a statement to the stock exchange.

"Woodside is not currently in negotiations or discussions with any party concerning a major acquisition."

Independent oil and gas player Westport Resources Corp has a number of assets in the Gulf of Mexico, Rocky Mountains, Permian Basin/Mid-Continent and the Gulf Coast. Earlier this year, Woodside failed in its bid to acquire the assets from European oil player BP Veba Oel in a $US2 billion bid.

Many in the market interpret Woodside's latest announcement as a sign the company will not overpay for assets despite the need to lessen its dependence on the North West Shelf and the Timor Sea.