Shell has been granted environmental authorisation to drill up to five deep water wells off the west coast, the company said on Friday.
The oil major applied for authorisation last year and plans to drill exploration or appraisal wells in the Northern Cape ultra deep block in the Orange Basin at water depths ranging between 2,500m and 3,200m.
Oil companies, including TotalEnergies, are aiming to drill off the west coast, where the prolific Orange Basin extends southwards into the country's waters, with hopes of replicating significant discoveries made in neighbouring Namibia.
“Should viable resources be found offshore, this could significantly contribute to South Africa’s energy security and the government’s economic development programmes,” Shell said in a statement without providing timelines.
Shell's previous exploration programme along the east coast has been disrupted by court litigation over concerns about lack of public consultation and that seismic surveys may harm the marine environment.
The long-running case is expected to be heard in the highest court later this year and could help usher in a new exploration boom or dampen expectations.
Mounting environmental pressures, including court actions to halt drilling, and cumbersome bureaucracy have stifled South Africa's ambitions to develop its oil and gas potential.
Africa's most industrialised economy has lost around half its refinery capacity over the past few years and depends more on imports of refined petroleum products to meet rising demand.
Reuters
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