Shell’s Orange Basin drilling faces court appeal as calls grow for faster South Africa energy permits

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South Africa’s offshore oil and gas ambitions in the Orange Basin have hit a legal hurdle. Shell, recently granted environmental authorization to drill up to five ultra-deepwater wells, now faces a court appeal from environmental groups and coastal communities. While litigation is a natural aspect of democracy, energy experts stress the urgent need to streamline South Africa’s permitting processes to avoid unnecessary delays — particularly those driven by foreign-funded environmental NGOs.

The Orange Basin, situated in the Northern Cape Ultra Deep Block near Namibia’s major Venus discovery, holds the potential to transform South Africa’s energy security. With the country importing around 70% of its oil needs, this project could significantly reduce reliance on costly imports and stabilize the economy against global market fluctuations.

Shell’s Orange Basin deepwater project aims to strengthen South Africa’s energy security.
Shell’s Orange Basin deepwater project aims to strengthen South Africa’s energy security.

Environmental safeguards in place

Critics have raised concerns over the impact of drilling and seismic surveys on marine life. However, Shell’s approval followed a detailed Environmental and Social Impact Assessment that included strict safeguards. Modern seismic technology now uses low-frequency sound waves designed to minimize disturbance, supported by over $30 million annually invested in marine protection and monitoring.

South Africa has seen more than 35 seismic surveys in the past decade without recorded major harm to marine ecosystems. The industry also uses innovations like passive acoustic monitoring and gradual sound ramp-up to protect marine mammals. Shell’s planned wells, at depths of 3,200 to 3,500 meters, will be among the deepest offshore globally and the deepest in South Africa, backed by robust contingency measures for rare incidents like blowouts.

Call for litigation and regulatory reform

The African Energy Chamber (AEC) is urging reforms to prevent disruptive legal challenges from groups such as Greenpeace, Extinction Rebellion, the Green Connection and Natural Justice. According to AEC Executive Chairman NJ Ayuk, meritless litigation undermines investor confidence, halts seismic and drilling campaigns, and delays Africa’s energy progress.

Streamlined regulation, Ayuk argues, would create a stable environment for oil and gas investment, boosting infrastructure development, job creation and regional economic growth across the Southern African Development Community (SADC).

South Africa’s push aligns with a continental trend as companies like TotalEnergies, Africa Oil Corp and Eco Atlantic expand offshore activities under progressive regulatory reforms, including the new Upstream Petroleum Resources Development Act.

The Shell Orange Basin project is seen as a vital step toward bolstering domestic energy supply while balancing environmental protection. Supporters emphasize that while renewable energy is the future, fossil fuels remain essential for Africa’s immediate economic and developmental needs.

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