- Shell urges creation of dedicated environmental court to reduce litigation delays.
- US$1.6 billion in potential investment stalled by ongoing legal challenges.
- Block 5 6 7 and Wild Coast projects remain tied up in higher courts.
Shell plc has called for the establishment of a specialised environmental court in South Africa to address mounting legal challenges that have stalled several of its offshore oil and gas projects.
Aluwani Museisi, Shell’s country manager, said persistent litigation has become one of the industry’s most significant hurdles. He argued that legal uncertainty continues even after environmental authorisations have been granted by regulators, undermining investor confidence and delaying critical energy developments.
The call comes as major offshore exploration projects, including Block 5 6 7 and proposed seismic surveys along the Wild Coast, remain entangled in protracted court proceedings. The South African government estimates that approximately US$1.6 billion in potential investment has been stalled due to legal challenges brought primarily by non governmental organisations.
Shell has pointed to neighbouring Namibia as a more favourable jurisdiction where offshore exploration activities have progressed with significantly less legal friction, positioning the country as an emerging hydrocarbons hotspot in the region.
However, South African courts have taken a firm stance on environmental compliance. The Western Cape High Court previously set aside Shell’s offshore drilling authorisation, describing the environmental impact assessments as deeply flawed. The court found that the assessments failed to adequately consider downstream climate impacts, lacked comprehensive baseline studies and did not sufficiently analyse socio economic risks to coastal small scale fishers.
In addition, the court ruled that Shell had not conducted proper consultation with affected communities along the Wild Coast, raising concerns about procedural fairness and constitutional rights.
The matter is now before the Supreme Court of Appeal, where civil society organisations The Green Connection and Natural Justice have filed an answering affidavit opposing attempts by the State and Shell to broaden the scope of their appeal. The dispute relates to proposed offshore oil exploration approximately 60 km off Cape Point.
A separate judgment remains pending before the Constitutional Court of South Africa concerning seismic blasting rights along the Wild Coast.
Neville van Rooy, Outreach Ambassador for The Green Connection, said the case extends beyond administrative procedure. He noted that the dispute speaks directly to good governance, climate responsibility and the constitutional rights of coastal communities whose livelihoods depend on a healthy ocean.
The litigation is widely regarded as a national test for climate accountability, ocean protection and the balancing of energy security with environmental justice, as South Africa navigates a pivotal phase in its energy transition.
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