More

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

    A South African court has blocked an offshore oil exploration venture led by France’s TotalEnergies and the UK’s Shell, ruling that the project’s environmental authorisation was granted without adequate consideration of its socio-economic and climate impacts.

    The Western Cape High Court found “significant shortcomings” in the environmental review process for the exploration off the Cape coast, including insufficient assessment of potential oil spill consequences and broader climate effects. 

    According to Reuters, Judge Nobahle Mangcu-Lockwood rescinded the authorisation but allowed the companies to resubmit revised environmental and social impact studies to address the deficiencies.

    The court’s order requires the updated assessments to examine environmental risks in greater depth, evaluate the project’s climate implications, and consider possible disruptions to local fishing industries and coastal communities. 

    Don’t Miss This: Kenya Seeks $2B Airport Expansion Funding from AfDB, China Exim After Dropping Adani Deal

    This ruling is the latest in a string of legal challenges from environmental groups against oil and gas exploration along South Africa’s coastline, where energy firms have been ramping up activity in hopes of replicating recent discoveries in Namibia’s Orange Basin.

    TotalEnergies stated that its South African unit and partners had complied with all regulatory requirements and would review the judgment before deciding on next steps. 

    The French company has already indicated plans to hand over operatorship of the concession to Shell, while PetroSA retains a minority interest.

    Read Also: Burkina Faso Receives Chinese-Made Armoured Vehicles and Artillery to Boost Defence Systems

    The decision has reignited the debate over the balance between economic development, job creation, and energy security versus the protection of marine ecosystems, biodiversity, and climate goals. 

    Natural Justice, one of the applicants in the case, welcomed the ruling as a victory for communities and environmental groups. 

    “This judgment again confirms that companies must follow due process, undertake comprehensive assessments, and provide communities with an opportunity to be heard,” said Melissa Groenink-Groves, the organisation’s programme manager, as quoted by Reuters.

    The case is expected to intensify discussions over South Africa’s energy future and the role of foreign-backed fossil fuel projects in the country’s development.

    Image Credit: Business Insider Africa

    Sign up for our free Daily newsletter

    We'll be in your inbox every morning Monday-Saturday with top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur.

    Related Posts

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Captcha verification failed!
    CAPTCHA user score failed. Please contact us!

    Latest

    U.S. Deportation Flight Carrying Second Batch of Asian Migrants Lands in South Africa

    A second group of Southeast Asian migrants deported from the United States have arrived in Eswatini, marking a new phase in Washington’s controversial third-country...

    Petrol Still Sells at ₦865 Per Litre Despite Dangote’s Free Delivery

    Despite the Dangote Refinery’s recent reduction in ex-depot petrol prices and free logistics initiative, fuel prices at most filling stations across Nigeria have remained...

    Dangote Launches $2.5 Billion Fertiliser Plant Project in Ethiopia

    The President and Chief Executive Officer of the Dangote Group, Aliko Dangote, has officially commenced the construction of a $2.5 billion fertiliser plant in...

    NNPC Attributes Cooking Gas Price Surge to PENGASSAN Strike

    The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has attributed the recent increase in cooking gas prices...

    Oil Prices Rise as OPEC+ Approves 137,000-Barrel Daily Output Increase

    Oil prices edged higher on Sunday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to a modest production increase...