A company associated with oil exploration in Kenya has announced its intentions to cut expenditure this year.

Woodside Petroleum Limited, Australia's second largest oil and gas producer arrived at the decision following a 27 billion shillings revenue loss from anticipated output from three exploration fields.

The latest announcement by Woodside Petroleum Limited to reduce its project funding this year is capturing headlines in the Australian media.

This precedes the decision by Woodside and its partners to call-off the second oil exploration venture in Kenya last month.

The first oil exploration costing 7 billion shillings that began in October last year failed to find oil or gas.

The company had predicted it stood a 12 percent chance of getting oil in the first bloc. The company late last month said that production shortfalls from an oil venture in Mauritania, and two projects in Australia required the Perth-based company's 2007 budget to be revised. Woodside last year twice reduced its 2006 output forecast.