"Speculation that Woodside's actions are intended to have a negative impact on the good relationship that exists between Woodside and Shell is incorrect," said Woodside in a statement to the media.

However, the Perth-based oil and gas giant did confirm that it is on the lookout for mergers and acquisitions in key growth areas outside Australia consistent with its previously announced international growth strategy.

"Woodside has screened a number of potential opportunities that might provide a platform for achieving long-term growth consistent with top quartile total shareholder returns," the company said.

"If any opportunity progresses to the stage where a proposal is developed and approved and any necessary negotiations are complete, an immediate announcement will be made."