Shell has been granted an environmental clearance for exploration drilling in the Orange Basin Deep Water licence area by South Africa’s Department of Environmental Affairs.

The clearance grants Shell permission to drill up to two offshore exploration wells in the northern part of the licence area, off South Africa’s west coast which covers about 37,290km², Oil review Africa reports.

In recent years, the company had shown much interest in South Africa’s oil and gas resources, which is the reason for its application for exploration rights in the Orange Basin. As a result of this, the country’s Department of Mineral Resources approved Shell’s exploration right in the Orange Basin in 2012.

In February 2013, the company completed a 3D seismic survey in an 8,000km² area within the licence area. Subsequent to the analysis of the seismic data, Shell proposed to drill one or two wells in the area.

The company has also applied for a licence in the Karoo Basin to explore for commercial quantities of shale gas. At present, Shell is strongly associated with retail and commercial fuels, lubricants and oils, as well as chemicals, in South Africa.