Woodside Petroleum, which was eyeing a stake in a natural gas project in Israel, has missed a deadline for the deal.

The company is aiming to reach a $US2.7 billion or $A2.92 billion deal for a stake in a natural gas project in middle eastern nation. The company was planning to acquire a 25 per cent stake in Leviathan project. It is required to pay an amount of $US850 million up-front but the company has not reached agreement with the Israeli government on the matter yet.

According to media reports in Israel, the company, its joint venture partners and the Israeli government have not reached an agreement on the terms of profits as the company is aiming to use its investments in the field to offset tax rates.

Woodside has said that it will continue to hold discussions with the authorities on the matter. The company is aiming to resolve the outstanding issues and implement its agreements.