Abu Dhabi National Oil Company's international has withdrawn its proposed $US18.7 billion ($A28 billion) takeover offer for Australian gas producer Santos.

ADNOC's foreign investment arm XRG alongside Abu Dhabi sovereign fund ADQ and private equity firm Carlyle, will not make a binding offer for Santos, XRG said in a statement, capping a months-long takeover saga.

"The XRG-led consortium announced today that it has withdrawn its indicative offer and will not proceed with a binding offer for Santos," the company said in a statement.

"While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium's assessment of its indicative offer."

"While disappointed not to move forward, XRG, and its consorti

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