British oil major Shell and its South African partner Impact Oil and Gas have lost their appeal over exploration rights for the Wild Coast despite investing R1.1bn in exploration.
The Supreme Court of Appeal (SCA) dismissed most of the companies’ and energy minister Gwede Mantashe’s appeal bids on Monday after they challenged a high court order that denied them the right to conduct seismic blasting off South Africa's coast.
Environmental activists and small-scale fishing communities successfully argued the oil companies failed to provide proper notice and engage fishing communities, whose livelihoods would be threatened by the exploration activities.
A full bench of the Makhanda high court ruled in 2022 that the oil companies’ exploration right in the Wild Coast — which they shared and was granted by the department of mineral resources and energy — was unlawful.
The SCA confirmed the findings of the high court.
* This is a developing story.
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