Shell plc is maintaining its plans to explore South Africa’s offshore Orange Basin, despite a recent annulment of its environmental authorisation. The group has submitted an appeal request to South African courts to challenge a Western Cape High Court decision that suspended the authorisation for exploratory operations on Block 5/6/7.
Confirmed geological potential in the region
Block 5/6/7, located off South Africa’s western coastline, is viewed by geologists as one of the most promising zones in the southern region. This assessment is supported by recent hydrocarbon discoveries in the same basin, particularly in neighbouring Namibia, where TotalEnergies SE and Galp Energia SGPS SA have reported several successful exploration campaigns. Shell aims to secure new reserves within this underexplored area.
Legal distinction between exploration and production
According to the company, the court’s decision relies on a misinterpretation of South African legislation. Shell argues that its planned activities are strictly exploratory, including only seismic surveys and appraisal drilling, without any immediate transition to commercial production. The company asserts that all environmental impact assessments conducted thus far comply with the National Environmental Management Act (NEMA), the framework governing energy projects in South Africa.
Limited legal options under local jurisprudence
The appeal request has been submitted directly to the Supreme Court of Appeal, bypassing traditional administrative recourse. However, South African legal precedent often dismisses such appeals when the original authorisation is challenged based on flaws in public consultation or non-compliance with NEMA provisions. Shell’s chances of success will therefore depend on its ability to demonstrate full procedural compliance and stakeholder engagement.
Sector closely watching legal developments
The case is being closely followed by companies operating across Southern Africa. The outcome may influence strategies of other firms conducting similar exploration programmes, as the region draws increasing investment. Both South Africa and Namibia are focusing efforts on offshore resource development at a time when major oil companies are seeking to diversify geographically.
