South African court blocks offshore oil exploration by UK, French-backed energy firms

Business Insider

13 hours ago

A South African court has blocked an offshore oil exploration project backed by France's TotalEnergies and the UK's Shell, citing major flaws in the environmental review process.
A South African court has blocked an oil exploration project by TotalEnergies and Shell due to flaws in the environmental review process.
The ruling rescinds the project's environmental authorization over inadequate assessments of socio-economic impacts and climate effects.
Companies are permitted to submit revised assessments to address identified deficiencies in environmental and social studies.
The ruling rescinds a government-issued environmental authorisation for exploration off the Cape coast, finding that the approval failed to properly assess the potential socio-economic impacts of oil spills and the broader effects of climate change.
While halting the project, the court left the door open for a revised application, stating that the companies should be allowed to address the shortcomings.
"Total must be afforded opportunity to submit new or amended assessments ... to cure the deficiencies identified," Reuters quoted Western Cape High Court Judge Nobahle Mangcu-Lockwood as saying.
The court directed that these updated assessments should include deeper studies on environmental risks, climate impacts, and possible disruption to local fishing and coastal communities.
According to Reuters, the decision marks the latest in a series of legal battles between environmentalists and oil companies seeking to explore South Africa's coastline.
Energy firms have recently intensified their push into the country's west coast, aiming to replicate the string of oil and gas discoveries made in neighbouring Namibia's section of the prolific Orange Basin.
TotalEnergies to review South Africa offshore ruling.
In a statement, a TotalEnergies spokesperson acknowledged the ruling, insisting its local unit and partners had complied with all South African regulations.
'TotalEnergies E&P South Africa, along with its joint venture partners, will now legally assess the judgment in more detail and decide on the course of action,' the spokesperson said.
The French company had already signaled plans to exit the concession, handing operatorship to Shell while PetroSA retained a minority share.
The ruling has reignited debate over foreign-backed fossil fuel projects, balancing energy security and jobs against environmental, biodiversity, and climate concerns.l
South Africa's anti-drilling group hail court ruling
The case comes amid growing tensions in South Africa over balancing economic development with environmental protection.
Supporters say the project could boost energy security and create jobs, while critics warn of lasting harm to marine ecosystems, tourism, and climate goals.
Natural Justice, a non-profit that was among the applicants, praised the court's decision as a major step forward for communities and environmental groups seeking to curb oil and gas exploration along South Africa's coastline.
'This judgment again confirms that companies must follow due process, undertake comprehensive assessments, and provide communities with an opportunity to be heard,' Melissa Groenink-Groves, the organisation's programme manager, told Reuters.