News Industry

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

On the same topic
Gabon targets 9.2% non-oil growth in 2026 amid oil decline Infrastructure, LNG, mining, and agro sectors drive diversification push Stability holds,...
Ghana to earn $16B in oil revenue by 2035, Deloitte says Output declining due to aging fields, low investment, no new deals $3.5B in upstream...
Cameroon seeks $6.5B private investment for 2030 energy goals New laws, incentives to boost renewables, grid expansion, access Plan targets 100%...
Shell appeals permit suspension for South Africa offshore block Firm argues exploration phase met environmental legal standards Move follows major...
Most Read
01

BYD to install 200-300 EV chargers in South Africa by 2026 Fast-charging stations powered by grid...

China's BYD Plans 300-Station EV Charging Network for South Africa
02

Drones to aid soil health, pest control, and input efficiency High costs, skills gap challenge ac...

Kenya Plans National Drone Rollout to Modernize Farming
03

Diaspora sent $990M to CEMAC via mobile money in 2023 Europe led transfers; Cameroon dominat...

Mobile Money Transfers to CEMAC Near $1B in 2023
04

TotalEnergies, Perenco, and Assala Energy account for over 80% of Gabon’s oil production, estimate...

Gabon Seeks Foreign Partners to Revive Declining Oil Sector
05

IMF cuts WAEMU 2025 growth forecast to 5.9% Strong demand, services, and construction support...

IMF Lowers WAEMU Bloc’s Growth Forecast to 5.9% for 2025, Benin Now Leading
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.