Shell gets green light for exploration drilling in the Orange Basin Deep Water Licence Area, off the western part of South Africa by the Department of Environmental Affairs.

The environmental authorization gives Shell permission to drill up to two offshore exploration wells in the northern part of the licence area which is about 37 290km².

Shell was granted the exploration right in the Orange Basin in 2012 by the Department of Mineral Resources. As a result of this, Shell completed a 3D seismic survey of 8 000km² in the licence area in February 2013.

Based on seismic data analysis, Shell put forward a proposal to drill one or possibly two wells in the area.

The Orange Basin Deep Water Licence Area is part of Shell's strategy to build an integrated business in South Africa.

The final environmental impact assessment report on the proposed drilling stated that if the exploration is successful, a chance to develop South African’s oil and gas industry presents itself, News24wire reports.