Shareholders in Australia's largest oil and gas producer Woodside Petroleum are set to pocket smaller dividends this year if oil prices remain weak.

JP Morgan researchers estimate Woodside’s 2015 dividends could fall to 64 US cents per share if oil prices stay around $US50 a barrel, from an expected $US2.58 in 2014. Earnings per share are also expected to take a substantial hit, as oil prices fell five per cent overnight to new…