What Happens to Subsea Infrastructure After Oil & Gas Production Ends?

Offshore oil and gas fields have a finite productive life. When production stops, there is a significant amount of infrastructure that cannot be simply left on the seabed: pipelines, umbilicals, wellheads and subsea control systems, to name just some. 

Operators remain accountable for safe and environmentally stable subsea decommissioning. Under Australian law, the default expectation is full removal unless the regulator explicitly approves an alternative. 

That challenge is neither simple nor optional. Subsea decommissioning involves complex engineering offshore, high-risk waste handling onshore, and a commitment to environmental protection throughout. And as Australia prepares for a surge in decommissioning activity, especially off the WA coast, getting it right has never been more important.

Subsea Infrastructure Used in Oil and Gas Production

Each field looks different, but most subsea oil and gas operations include:

  • Pipelines and flowlines transporting hydrocarbons
  • Umbilicals carrying hydraulic, electrical or fibre-optic signals
  • Risers and flexible hoses
  • Manifolds and production templates
  • Wellheads and Xmas trees
  • Anchoring systems, chains and mooring lines
  • Subsea control modules
  • Protective structures such as concrete mattresses and grout bags

These systems are built from a mixture of materials. Primarily steel and copper-based alloys, but also plastics, synthetics, composites, concrete coatings and corrosion-resistant materials. Once operations cease, these become a technical challenge – and a recycling opportunity.

NOPSEMA and the Regulatory Landscape

Subsea decommissioning activity in Australia is impacted by a complex landscape of local, national, and international regulatory frameworks. The foremost of these is the Offshore Petroleum and Greenhouse Gas Storage (OPGGS) Act, which sets out a base case of full removal. NOPSEMA, the National Offshore Petroleum Safety and Environmental Management Authority, oversees and enforces the OPGGS Act. NOPSEMA requires operators to:

  • Plug and abandon wells
  • Remove property unless alternative arrangements are explicitly approved
  • Submit environmental management plans 
  • Conduct ongoing monitoring and reporting

A Snapshot of Australia’s Oil and Gas Regulatory Landscape

International Conventions London Protocol UNCLOS & IMO Resolution A.672 Basel Convention Hong Kong Convention Minimata Convention
Australian Legislation OPGGS Act OPGGS(E) Regulations Environmental Protection (Sea Dumping) Act 1981 EPBC Act 1999 EPA 1986 (WA)
National Policies Guideline: offshore petroleum decommissioning Guideline: Transfers, dealings, change in control and other titleholder transactions Guideline: Trailing liability Recovery plans, threat abatement plans, etc National Plastics Plan
NOPSEMA Guidance  Policy: s270 consent to surrender title Policy: s572 maintenance and removal of property Information paper: proactive planning for decommissioning

(Source: NOPSEMA)

When Infrastructure Can Be Left in Place

In rare cases, NOPSEMA may allow operators to leave items on the seabed if they can demonstrate:

  • No feasible removal method without unacceptable environmental harm
  • Long-term stability and safety
  • No interference with fisheries, navigation or other users

There is an ongoing debate in the global oil and gas industry around leaving structures in place, especially as artificial reefs (called “in-situ decommissioning”). However, Australian policy remains firmly removal-first. 

What Happens During Subsea Decommissioning?

A typical subsea offshore program follows a structured, multi-stage lifecycle.

1. Plugging and Abandoning Wells

Wells are sealed with permanent cement and mechanical barriers, and the wellhead is removed. This prevents future leaks and is the most safety-critical stage.

2. Cleaning and Disconnecting Systems

Pipelines and umbilicals are flushed, depressurised, and made safe for handling. This step removes hydrocarbons and residues before lifting begins.

3. Retrieving Equipment

ROVs and heavy-lift vessels cut, detach and raise subsea structures to the surface for barge transport. Vessel time makes this one of the most expensive phases.

4. When Infrastructure Stays in Place

Occasionally regulators allow items to remain on the seabed if removal poses greater environmental risk. Operators must still monitor and manage these assets long-term.

Offshore Decommissioning Continues Onshore

Offshore recovery is only half the story. The moment subsea infrastructure arrives onshore, it enters a second, equally critical phase: dismantling, contamination control and recycling. This is where oil and gas decommissioning specialists like C.D. Dodd play a vital role.

1. Inspection and Hazard Assessment

Each asset is inspected for marine growth, hydrocarbon residue, hazardous coatings, and electrical components. Any contaminants are isolated and materials are processed in line with WA regulations.

2. Dismantling and Materials Separation

Large components are mechanically cut down for transportation. Concrete coatings, insulation, and composite layers are removed. This separation increases recycling yields and reduces landfill.

3. Hazardous Waste Removal

Non-recyclable or hazardous materials, including contaminated growth, chemical residues, and degraded coatings, are contained and managed to prevent environmental contamination.

4. Recycling and Value Recovery

Recyclable metals like steel, copper and specialty alloys are processed for reuse, delivering ESG benefits and supporting the circular economy. Any remaining waste is directed to approved WA facilities for compliant disposal.

Environmental Considerations Throughout the Process

Environmental protection is a crucial and overarching factor in oil and gas decommissioning. Minimising seabed disturbance, protecting delicate marine ecosystems, preventing invasive species transfer, and reducing emissions all shape operational planning.

This also continues onshore. Hazardous material containment, waste segregation, and clean recycling streams prevent the environmental challenge from merely being rerouted from the sea to the land.

Offsetting Subsea Decommissioning Costs With Value Recovery Opportunities

Cost Drivers

Value Opportunities

Specialist teams and decommissioning personnel Recycling high-value metals
Offshore vessel hire  Reduced landfill expenses
ROV cutting and subsea interventions Encouraging investment through ESG leadership
Hazardous waste handling and disposal Automating dangerous and difficult tasks, reducing labour costs and improving safety
Heavy lift logistics Assessing in-situ decommissioning possibilities

 

Australia’s oil and gas decommissioning liabilities are close to $67 billion between today and 2070, according to a report from November 2025 commissioned by the Department of Industry, Science and Resources (DISR). The average cost per project could run into the hundreds of millions, depending on the scale of assets and the complexity involved. 

As the DISR points out, there are opportunities to improve decommissioning efficiency and control these costs without compromising environmental or safety outcomes:

  • Operator cooperation 
  • Leveraging new technologies
  • Investing in onshore disposal and recycling

How a Specialist Recycler Helps You Reduce Costs and Unlock Value in Subsea Decommissioning

Subsea decommissioning is one of the most demanding asset-management tasks in modern industry. It requires an integrated approach to dismantle offshore structures, contain environmental risks, manage hazardous materials, recover recyclable metals, and maintain traceability for regulatory and ESG requirements.

C.D. Dodd brings exactly this combination. We have extensive capabilities and a proven track record across oil and gas, mining, industrial demolition and large-scale asset recovery.

  • Specialist equipment for offshore pipeline cutting
  • Dedicated large-asset dismantling facilities close to Karratha and Port Hedland
  • Hazardous waste processing and contamination control
  • Commercial metal recycling for steel, copper, alloys, and even batteries

Our capability, compliance, and sustainability – backed by over 50 years of experience — make us a trusted partner for offshore decommissioning in Western Australia.

Speak to C.D. Dodd to manage onshore processing and recycling of subsea infrastructure from offshore decommissioning projects.

Let’s get started

Perth

Gate 1, 521 Dundas Road, Forrestfield WA 6058

Karratha

Lot 109 Bedrock Turn, Gap Ridge Estate, Karratha WA 6714

Port Hedland

10 Trig Street, Wedgefield WA 6721

Kalgoorlie

1 Coath Road, Kalgoorlie West WA 6430

Onslow

Pilbara Regional Waste Management Facility, Onslow Road, Thalanyji