Shell receives permission to drill on the west coast of South Africa

Shell announced on Friday that it has received environmental approval to drill five deepwater wells near the west coast of South Africa.

Oil majors applied for authorization last year, and plan to drill appraisal or exploration wells at depths between 2,500 metres (8.200 ft), and 3,200 metres (10.500 ft), in the Northern Cape Ultra Deep Block of the Orange Basin.

TotalEnergies and other oil companies are planning to drill near the west coast of South Africa, where the Orange Basin extends down into the waters. They hope to replicate the significant discoveries that were made in Namibia.

If viable resources are found offshore, they could contribute significantly to the economic development of South Africa. Shell's statement did not provide a timeline.

Shell's previous exploration program along South Africa's East Coast has been disrupted due to court litigation over concerns regarding lack of consultation with the public and seismic surveys harming marine environment.

This long-running case will be heard by South Africa's top court in the latter part of this year. It could either lead to a new boom in exploration or dampen hopes.

South Africa has been unable to realize its oil and natural gas potential due to mounting environmental pressures. This includes a multitude of court cases to stop drilling and a cumbersome bureaucracy.

Africa's industrialised economy, which has been growing for the past few years, has lost half its capacity in refineries and is now even more dependent on imported refined petroleum products. Reporting by Wendell Roelf. (Editing by Sfundo Parakozov, Mark Potter and Sfundo Parakozov)

(source: Reuters)