Shell has secured environmental authorization to drill up to five deepwater wells off South Africa’s west coast, a significant move in the company’s efforts to tap into the offshore hydrocarbon potential of the Orange Basin.
The approval represents a major milestone for Shell’s exploration ambitions in South Africa, particularly following its challenges on the country’s east coast, where earlier seismic surveys faced legal opposition over environmental concerns and public consultation procedures. That matter is still pending before South Africa’s Constitutional Court and could influence the broader regulatory landscape for offshore exploration.
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Drilling phase
The drilling will take place in the Northern Cape Ultra Deep Block, with targeted depths ranging between 2,500 and 3,200 meters. Shell’s planned campaign will focus on both exploration and appraisal wells. Should commercially viable resources be identified, the development could play a key role in bolstering South Africa’s energy security and reducing dependence on imported petroleum products.
The country’s refining capacity has been in decline, making it increasingly reliant on foreign fuel supplies. The move also places South Africa in line with regional oil exploration momentum. Neighboring Namibia has seen a wave of major oil discoveries in the Orange Basin, prompting heightened interest from international energy companies. Other oil majors, including TotalEnergies, are also preparing to drill in South African waters within the same geological basin.
While Shell has not yet provided a firm timeline for the drilling operations, the environmental clearance signals renewed investor confidence in the region’s offshore prospects.
The company’s success in the Orange Basin could mark a turning point for South Africa’s long-constrained oil and gas sector, which has struggled with regulatory uncertainty and environmental pushback despite the country’s growing energy demand. Analysts view the development as a potential catalyst for unlocking South Africa’s untapped offshore reserves, contributing not only to domestic energy needs but also to broader economic development.
