UK energy major Shell is granted permission to drill offshore South Africa

UK energy supermajor Shell has been granted an environmental authorisation to carry out drilling activities offshore South Africa. The company indicated on July 11 that its drilling campaign would include up to five deepwater wells off the west coast of the country, as reported by Reuters.

The approval follows Shell’s application submitted in 2024 to drill exploration and appraisal wells in the Northern Cape Ultra Deep (NCUD) Block in the South African side of the highly prospective Orange Basin frontier. The wells will be drilled at water depths between 2,500 and 3,200 metres.

“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 cited by the media agency. The company did not provide any timelines for the upcoming drilling campaign.

The ultra-deepwater block’s potential is amplified by its location near commercial discoveries in Namibia, including the Venus-1X field, which is being developed by French supermajor TotalEnergies. The Venus development is expected to reach a final investment decision (FID) in 2026 and could establish Namibia as a major oil producer by 2029.

In the meantime, Shell has encountered strong opposition from environmental groups over its activities offshore South Africa. The company’s exploration efforts along the country’s east coast have faced delays owing to legal challenges over environmental concerns and inadequate public consultation.

A key case is set to be heard by South Africa’s highest court later this year, Reuters says, with potential implications for future exploration. Broader environmental opposition, including campaigns by groups like Greenpeace, combined with regulatory hurdles, has hindered progress in unlocking the country’s oil and gas resources.

According to the African Energy Chamber (AEC), Greenpeace has actively campaigned to block Shell’s offshore exploration efforts. Rallying under the slogan “To Hell with Shell,” they have significantly disrupted the company’s plans to drill off South Africa’s coast.

“However, the environmental authorisation alleviates this by granting the company the right to continue drilling. The authorisation proves that exploration can be conducted in an environmentally-sound manner, enabling Shell to pursue a potential oil discovery,” the AEC said in its press statement on July 11.

Offshore oil and gas discoveries could help South Africa improve fuel security and reduce reliance on imports, which currently leave the country vulnerable to global price swings, says the AEC.

In South Africa, TotalEnergies made two major discoveries - Brulpadda and Luiperd - in 2019 and 2020 in Block 11B/12B in the Outeniqua Basin, approximately 175 km off the country’s southern coast. However, these were later considered commercially unviable by the company.

This setback has driven the French energy giant’s interest to new areas, particularly in South Africa’s part of the Orange Basin. According to the AEC, TotalEnergies, along with QatarEnergy, plans to drill there from 2026, subject to approvals. Other international companies, including Canadian oil and gas exploration companies Africa Oil Corp and Eco Atlantic, have also expanded their offshore presence, highlighting growing global interest in unlocking South Africa’s energy potential.

“We have said it time and time again: drill, baby, drill. This milestone marks the start of a new era of energy development in South Africa and is poised to reshape the trajectory of the country’s economic growth,” AEC’s executive chairman NJ Ayuk said.

“But the work is only beginning. The country has a lot of work to do if it is to realise the potential of its oil and gas industry. The AEC calls for greater coordination across the industry, faster approval timelines and increased investment offshore.”