Plans to build one of the world's largest prawn farms at a remote cattle station on the border between the Northern Territory and Western Australia are dead in the water, with the entity behind the project calling in administrators.

Project Sea Dragon Pty Ltd entered voluntary administration today while its parent company, Seafarms, requested a trading suspension from the Australian Securities Exchange.

Seafarms confirmed it was no longer pursuing the multi-billion-dollar proposal, which would have resulted in 100,000 tonnes of black tiger prawns being produced at Legune Station, about 120 kilometres north of Kununurra.

"The board of SFG (Seafarms) have resolved that it is no longer in the best interests of the company to continue to fund Project Sea Dragon," Seafarms director Harley Whitcombe said in an email to the ASX.

It came after the Royal Institution of Chartered Surveyors ordered Seafarms to pay $13.9 million to construction company Canstruct, over a contractual dispute earlier this month.

Works on the long-awaited prawn farm began in mid-2021, but progress paused after a review deemed the project "unviable" in March 2022.

Following a change in management, a subsequent review late last year contradicted those findings, claiming there was "no technical reason" the project shouldn't proceed.

The ABC has contacted Seafarms for comment.