Shell Challenges South African Court Ruling That Halted Offshore Exploration Plans

by Oluwatosin Racheal Alabi

KEY POINTS


  • Shell files for leave to appeal a South African court ruling that blocked its offshore exploration in Block 5/6/7.
  • The company argues the court misinterpreted environmental laws and overreached its authority.
  • The dispute highlights tensions between energy ambitions and environmental protection in South Africa

Shell Plc has lodged an application for leave to appeal a decision by the Western Cape High Court that blocked its plans to explore for oil and gas in the offshore block 5/6/7 along South Africa’s west coast. 

The move marks the latest twist in a long-running battle between energy companies and environmental groups over the future of exploration in the country’s coastal waters.

A spokesperson for the oil major confirmed that the company had filed the appeal alongside the South African government, arguing that the ruling had gone beyond its legal remit. 

“Shell has filed an application for leave to appeal alongside the Government in relation to the Western Cape High Court’s judgment on Block 5/6/7,” the company said in a statement.

Shell and the State Say Court Misinterpreted Environmental Law

In its filing, Shell contends that the court “misinterprets the National Environmental Management Act, imposes practical and operational constraints outside of the Act, and incorrectly expands the scope by conflating exploration with production.” The company maintains that its exploration activities are in compliance with the country’s environmental regulations and that the judgment threatens to derail legitimate efforts to unlock South Africa’s offshore energy potential.

Oil producers have been seeking to explore the Orange Basin, a resource-rich region that stretches from Namibia into South African waters. 

The area has attracted growing attention following significant oil discoveries made off the Namibian coast in recent years. But environmental groups have repeatedly opposed such projects, warning that drilling could damage fragile marine ecosystems and threaten coastal livelihoods.

In August, the Western Cape High Court nullified a prior environmental authorisation allowing Shell to proceed with seismic surveys and exploratory work in the contested blocks. 

The decision was seen as a victory for environmental activists and local communities who have mounted several legal challenges to offshore drilling projects.

The court’s ruling adds to the hurdles facing South Africa’s push to expand its oil and gas sector. 

Regulatory delays, legal disputes, and growing environmental scrutiny have combined to slow progress, despite the government’s stated ambition to reduce dependence on imported energy and create jobs through domestic exploration.

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