The oil and gas industry has been a cornerstone of WA’s economy for decades. It has driven energy production and innovation, and played a significant role in Australia’s global strength in the resources sector.
However, many fields are approaching the end of their economic viability. As they do, the need for efficient and responsible oil and gas decommissioning becomes increasingly important.
These are challenges of a massive scale. Not only economically, but also environmentally and technically.
For companies undertaking oil and gas demolition, efficiency isn’t just a goal. It’s a necessity that ensures safety, environmental stewardship, regulatory compliance and resource recovery.
The Looming Challenge of Oil and Gas Demolition
The independent advisory body, Centre of Decommissioning Australia (CODA), estimates that over $60 billion (US$40 billion) of decommissioning work is needed over the next 50 years.
Over half of that liability (51%) needs to start within this decade, and another 23% by 2040.
This is particularly important for companies carrying out oil and gas decommissioning in Perth or around WA. Infrastructure off our state’s coast accounts for around two-thirds of the nation’s total oil and gas demolition liability, according to CODA data.
The challenge of efficiency in oil and gas demolition is one of innovation, collaboration, and environmental responsibility. It is also one that is constantly evolving.
Skip ahead to Opportunities to Improve Efficiency in Oil and Gas Decommissioning or keep reading to learn more about the oil and gas decommissioning process.
Decommissioning vs. Demolition
You might see “oil and gas demolition” and “oil and gas decommissioning” used interchangeably. While both relate to the end-of-life phase of structures and facilities, they have different meanings:
Decommissioning is the process of shutting down and dismantling operational facilities. It involves deactivating systems, managing hazardous materials, and meeting regulatory obligations.
Demolition focuses on the physical removal of structures, typically using specialised heavy machinery. Demolition normally occurs after decommissioning, with some of the work happening offshore and some onshore.
In essence, decommissioning is the preparatory phase, while demolition is the final stage of dismantling and clearing the site.
Key Steps in Oil and Gas Decommissioning and Demolition
Planning and Project Assessment
Every successful oil and gas demolition begins years in advance with a comprehensive evaluation:
- Conduct a thorough site assessment to identify potential hazards and challenges
- Develop a detailed decommissioning plan outlining the scope of work, timeline, and safety procedures
- Obtain necessary permits and approvals from regulatory authorities
C.D. Dodd’s expert team collaborates with stakeholders to develop tailored solutions, leveraging 50 years of experience to manage even the most complex projects.
Safety and Risk Management
Safety must be at the core of every oil and gas demolition project:
- Implement rigorous safety protocols to protect workers and the environment
- Conduct regular safety audits and risk assessments to identify and mitigate potential hazards
- Provide comprehensive training to personnel involved in the demolition process
Our globally recognised ISO 45001 safety certification and robust safety management systems reflect our commitment to minimising risks.
Preparing the Structure
Decommissioning oil and gas infrastructure involves systematic dismantling to ensure hazardous materials are contained and safely removed:
- Decommission and deactivate equipment and systems
- Remove hazardous materials, such as asbestos and chemical
- Isolate and drain pipelines and tanks
Well Plugging and Abandonment
Well plugging is a critical step in oil and gas decommissioning. This is typically where the bulk of the costs occur, as the work is technically complex and environmentally delicate:
- Securely plug and abandon wells to prevent future environmental damage
- Test plugs to ensure they are durable and safe under immense pressure
- Comply with regulatory requirements for well-plugging and abandonment
A plugged well is considered abandoned. Production is no longer possible. The next challenge is recovering all the infrastructure and transporting it onshore for demolition.
Recovering Infrastructure
Infrastructure recovery is one of the most technically demanding aspects of oil and gas decommissioning:
- Recover subsea pipelines, risers, and other infrastructure
- Contain hazardous materials to prevent environmental damage
- Transport recovered materials to onshore facilities for recycling or disposal
Unlike onshore mine site demolition projects, oil and gas demolition is made more challenging by the need to employ specialised equipment at every stage.
Recycling Scrap Metal
Once the infrastructure reaches shore, valuable materials are processed and recycled to extract value:
- Sort and separate recyclable materials like steel, copper and aluminium
- Contain and safely dispose of hazardous waste
- Recycle viable materials to minimise waste and conserve resources
- Some scrap metal is sold to recover value
Our processing facility in the Pilbara is strategically located near the Port of Ashburton and purpose-built to support large oil and gas decommissioning projects.
We adapted existing oil and gas decommissioning technologies to design custom machinery that eliminates manual cutting, significantly reducing human intervention and safety risks.
Site Rehabilitation
Whether returning the site to its natural state or repurposing infrastructure as artificial aquatic environments, it is vitally important for titleholders to meet environmental and regulatory requirements:
- Remove debris
- Ensure well plugs are durable and properly identified
- Monitor the site for long-term environmental compliance
Environmental responsibilities extend to onshore oil and gas demolition activities. Our expertise in handling contaminated material, containing and removing hazards, and processing subsea infrastructure ensures our clients can meet their sustainability goals.
Opportunities to Improve Efficiency in Oil and Gas Decommissioning
How Decommissioning Supports Demolition
By carefully planning the hazardous material removal and system deactivation, and assessing structural integrity, decommissioning ensures safety and efficiency when the physical dismantling begins. A well-executed decommissioning phase reduces risks and prevents costly delays during demolition.
Using Advanced Technology and Equipment
Remote-controlled demolition equipment and robotic systems are standard in subsea decommissioning today. Supported by advanced software and experienced operators, these innovative solutions improve precision, reduce labour costs and enhance safety.
Onshore, our adapted oil and gas demolition equipment streamlines the latter parts of the project. We have invested millions into specialised equipment that helps to realise significant savings and safety improvements.
Minimising Environmental Impact
Environmental stewardship is a key focus in oil and gas decommissioning. This involves responsible hazard management, reusing or recycling components, and restoring the site to its natural state.
In some cases, efficiencies can be found in environmental stewardship. For example, there is a growing call to follow the international example of repurposing in-situ infrastructure as artificial reefs. Not only does this reduce the need to recover bulky material, but it also accelerates site rehabilitation and biodiversity.
Regulatory Changes in the Pipeline
Australia’s oil and gas decommissioning regulator, NOPSEMA, is continuously working to improve safety and environmental performance. NOPSEMA focuses on evidence-based decisions that benefit the environment and strengthen regulatory compliance.
By monitoring changes and collaborating with NOPSEMA, oil and gas operators can proactively adapt their decommissioning and demolition plans to meet new requirements.
C.D. Dodd: The Preferred Partner for Efficient Oil and Gas Demolition in WA
With our extensive experience, state-of-the-art equipment, and commitment to safety, we are well-equipped to handle complex oil and gas demolition projects.
From project planning to transportation, hazard containment and scrap metal recycling, we support every project with precision. Our expertise ensures on-time, on-budget and risk-free results.
Contact us today to learn how we support oil and gas demolition projects in WA.