Australia's second biggest oil and gas producer Woodside Petroleum Ltd, has reported a 7 percent increase in profits to $1.58 billion in 2010 attributing it to high prices and record output at its North West Shelf natural gas project.

Woodside's profits in 2009 stood at $1.47 billion, the Perth-based oil and gas producer said in a statement today.

Woodside, Chevron Corp. and BG Group Plc are among energy companies developing Australian liquefied natural gas projects to tap increasing Asian demand for the fuel. In November, Woodside said that its Pluto venture will cost A$900 million ($913 million) more and start about six months later than it previously projected.

Woodside shares went up 0.4 percent to A$42.90 at 10:47 a.m. in Sydney trading.

Sales climbed 20 percent to $4.19 billion, even as production declined 10 percent to 72.7 million barrels of oil equivalent, Woodside said. Output dropped after the sale of the Otway gas assets and because of aging fields, it said.

Pluto Gas project

The Pluto LNG project is estimated to cost A$14 billion to develop and production is expected to commence in August and exports are to begin the following month.

Chief Executive Officer Don Voelte, plans to step down in the second half of this year after the Pluto venture begins production.

More from Global Markets:
Newsletter: To receive Global Markets update, sign up here