In September, Woodside made an all-share takeover for Oil Search that valued the PNG company at about US$8 billion.
The offer was swiftly rejected by Oil Search as it "grossly undervalued the company".
Since then, there has been speculation that Woodside was pursuing certain alternatives to acquire an interest in PNG's leading oil and gas field operator.
The Australian independent said today it had "withdrawn its proposal to merge the businesses".
"Woodside
