The company, in a statement, noted that it had received confirmation from the authorities that it is approved to vary current commitments for a nominal fee.
A formal application to relinquish the licence has been submitted and the relinquishment is expected to take immediate effect. It noted that it will not incur any further costs or penalties associated with the outstanding work programme.
"We are grateful to The Department for Energy and Mining for agreeing to a low-cost relinquishment of this licence in South Australia,” said Scott Aitken, Cabot chief executive.
“The management team believes it is responsible practice to focus financial and operational resources on delivering value from the company's core assets.
“This means prioritising our Canadian land position, which has a production facility capacity of up to 10,000 barrels of oil per day, along with our highly unique, leading licence position in Italy with 1 billion barrels of identified prospects and discoveries."
Cabot noted that it had assigned zero book value to the asset, as the majority of the asset was previously impaired in 2015.