Woodside Petroleum plans to focus on boosting cash flow over the next few years, as it looks to expand production by developing or expanding existing projects.
It has set a target of generating total free cash flow of $US4.5 billion ($A6 billion) over a five-year period, with investment in any major greenfield projects pushed out by more than a decade.
"We see further upside potential from lower capital intensity and quicker-to-market opportunities," chief executive Peter Coleman said at an investor briefing in Sydney.
"At a time when large greenfield projects are challenging, Woodside is preparing to capture new value from low-cost brownfield developments."
Australia's largest oil and gas producer has stayed in a better position than debt-laden peers who have struggled amid the price downturn last year, reporting an annual net profit of $US868 million in 2016.
It had been on the hunt for acquisition opportunities even as competitors were retreating from international acreage, and in the last year alone, snapped up half of BHP Billiton's stake in the Scarborough area gas fields, off the WA coast, as well as ConocoPhillips' stake in three deepwater oil blocks off the coast of Senegal.
But on Tuesday, the company signalled its long-term future growth would mainly revolve around the existing portfolio of assets.
Mr Coleman outlined its plans spread over three five-year time horizons at the investor briefing.
In the first, near-term, phase - from 2017 to 2021 - the company plans to generate increasing returns from the new Wheatstone liquefied natural gas projects in WA, which is set to start production this year, expand the Pluto LNG project, and undertake exploration work planned in Senegal.
During this period, it hopes to keep gross margins in the 40-45 per cent range, generate cash flow of $US4.5 billion over the five years - based on an average oil price forecast of $US65 a barrel - and maintain strong shareholder payouts.
It will then look to unlock value from large-scale projects such as development of the Browse and Scarborough gas fields off Western Australia between 2022 and 2026, and develop its gas discoveries in Myanmar.
Development of proposed long-term ventures such as the greenfield Kitimat LNG project in western Canada and the Sunrise gas project in the Timor Sea will only be taken up beyond 2026.
"Our portfolio offers exciting prospects for growing shareholder value that will coincide with rising global demand for gas and an anticipated supply shortfall," Mr Coleman said.
He clarified that Woodside is not dialling back from potential acquisitions, saying the suite of opportunities available in the market is "richer" than it has been at any time in recent years.
"But we are able to be very selective in our choices now," he said.
At 1400 AEST, Woodside shares were up 0.2 per cent at $33.01 in a flat Australian market.
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