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Shell Pushes Ahead with South Africa Offshore Plan Despite Setback

Shell Pushes Ahead with South Africa Offshore Plan Despite Setback
Sunday, 26 October 2025 05:02
  • Shell appeals permit suspension for South Africa offshore block
  • Firm argues exploration phase met environmental legal standards
  • Move follows major finds in Orange Basin, legal outcome uncertain

Shell intends to move forward with offshore exploration in South African waters, even after a Western Cape High Court ruling suspended its permit for block 5/6/7.

International media reported on Wednesday that the energy major has filed an application for leave to appeal the ruling, which halted operations in the Orange Basin, one of southern Africa’s most promising offshore regions following major hydrocarbon discoveries in neighbouring Namibia.

Shell argues that the court’s decision applies an unduly narrow interpretation of South African environmental law and wrongly equates exploration with full-scale production.

The company says its consultation process and environmental assessments met the standards of the National Environmental Management Act (NEMA). It maintains that the planned work represents a limited exploratory phase focused on seismic surveys and appraisal drilling rather than industrial production—a legal distinction it considers critical.

Shell aims to secure new reserves in a basin where recent finds by TotalEnergies and Galp have confirmed significant geological potential.

The next steps in the legal process remain unclear. Under South African law, NEMA governs environmental authorizations, while the Promotion of Administrative Justice Act (PAJA) regulates their judicial review.

The energy major did not lodge an administrative appeal but has instead sought leave to appeal directly to the Supreme Court of Appeal. However, legal precedents suggest that South African courts often reject such appeals when procedural flaws involve public consultation, environmental risk assessments, or NEMA compliance.

Shell’s prospects for success appear limited unless it can demonstrate that its procedures fully met all legal requirements.

Abdel-Latif Boureima

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