Shell has lost the latest stage of its South Africa offshore exploration dispute after the Constitutional Court ruled that the exploration right off the country’s Indian Ocean Wild Coast should be set aside.
The decision prevents Shell from renewing the exploration right. The legal dispute began in 2021 when environmental activists challenged a seismic survey planned by Shell and a local partner in an area where whales are frequently seen.
Environmental groups later secured an interdict that halted the exploration activity. Their case raised concerns over consultation with local communities and the possible impact of the survey on residents and marine life.
In the following year, a high court set aside the decision granting the exploration right, along with two subsequent renewals. Shell appealed, but the appeal was dismissed.
The Supreme Court of Appeal later ruled that a pending third renewal could proceed if proper consultation was carried out. Environmental groups challenged that decision, arguing that Shell should not be allowed to seek renewal of an exploration right that had already been set aside.
The Constitutional Court subsequently ruled that the exploration right should be set aside. Melissa Groenink Groves, an attorney and program manager at Natural Justice and an applicant in the case, said this was the effect of the decision.
Shell said it had noted the judgment. The company also referred to South Africa’s reliance on energy imports and said viable offshore resources could contribute to the country’s energy security and economic development programmes.
The ruling comes as other offshore oil exploration efforts in South Africa face legal challenges. Shell and TotalEnergies SE are among the companies pursuing offshore prospects in the country after discoveries in Namibia’s waters in 2022.
TotalEnergies SE Chief Executive Officer Patrick Pouyanne has previously described South Africa as a complex legal environment for exploration, citing repeated court proceedings linked to offshore activity.
