Finance
Shell gets permission to drill off South Africa's west coast
Published by Global Banking & Finance Review®
Posted on July 11, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 11, 2025
2 min readLast updated: January 22, 2026
Shell has obtained approval to drill deep-water wells off South Africa's west coast, aiming to boost the country's energy security amidst legal and environmental challenges.
CAPE TOWN (Reuters) -Shell has been granted environmental authorisation to drill up to five deep-water wells off South Africa's west coast, the company said on Friday.
The oil major applied for authorisation last year and plans to drill exploration or appraisal wells in the Northern Cape Ultra Deep Block in the Orange Basin, at water depths ranging between 2,500 metres (8,200 ft) and 3,200 metres (10,500 ft).
Oil companies, including TotalEnergies, are aiming to drill off South Africa's west coast, where the prolific Orange Basin extends southwards into the country's waters, with hopes of replicating significant discoveries made in neighbouring Namibia.
"Should viable resources be found offshore, this could significantly contribute to South Africa’s energy security and the government’s economic development programmes," Shell said in a statement without providing any timelines.
Shell's previous exploration programme along South Africa's east coast has been disrupted by court litigation over concerns about lack of public consultation and that seismic surveys may harm the marine environment.
The long-running case is expected to be heard in South Africa's highest court later this year and could either help usher in a new exploration boom or dampen expectations.
Mounting environmental pressures, including a bevy of court actions to halt drilling, and cumbersome bureaucracy have stifled South Africa's ambitions to develop its oil and gas potential.
Africa's most industrialised economy has lost around half of its refinery capacity over the last few years and depends even more now on imports of refined petroleum products to meet rising demand.
(Reporting by Wendell Roelf. Editing by Sfundo Parakozov and Mark Potter)
Shell has been granted environmental authorisation to drill up to five deep-water wells off South Africa's west coast.
The Orange Basin extends southwards into South Africa's waters, where oil companies aim to replicate significant discoveries made in neighboring countries.
Shell's previous exploration programme along South Africa's east coast has been disrupted by court litigation over concerns about public consultation and potential harm to marine life.
If viable resources are found offshore, it could significantly contribute to South Africa’s energy security and the government’s economic development programmes.
Mounting environmental pressures, court actions to halt drilling, and cumbersome bureaucracy have stifled South Africa's ambitions to develop its oil and gas potential.
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