Bight Petroleum has withdrawn an application to explore for oil and gas in the waters off Kangaroo Island.

It is planning to submit a new proposal within the next month.

The Federal Government was due to decide on the exploration bid late last year, but ordered a full environmental impact assessment instead.

Bight's chief operating officer Iain MacDougall said one of the main changes would be to the timing of proposed exploration surveys, to minimise any possible impact on marine life.