Huge blow for Shell and Total in South Africa
Oil giants Shell and TotalEnergies have been dealt a significant blow in the Western Cape High Court, which set aside the government’s authorisation for offshore drilling.
Following significant oil discoveries in neighbouring Namibia, big multinational energy companies have launched plans to drill off South Africa’s West coast.
However, the country’s courts have now set aside the government’s decision to grant environmental authorisation for offshore drilling.
Although Total won authorisation to drill off South Africa’s West Coast, it intended to transfer the environmental authorisation to Shell, which would then conduct the drilling.
Environmental groups, the Green Connection and Natural Justice, took the matter to the High Court.
“A critical omission, the Oil Spill and Blowout Contingency Plans were withheld from the public until after approval, denying communities the chance to comment on emergency preparedness,” said Shahil Singh, Legal Advisor to The Green Connection.
The court found that the Environmental Impact Assessment failed to examine the potential consequences of a significant oil spill on local and neighbouring coastal communities, ignoring coastal protection laws.
Judge Mangcu-Lockwood reversed the government’s decision, returning the matter to the Department of Minerals and Petroleum.
The judge said that the process to award environmental authorisation was deeply flawed for five reasons:
- No proper study of what a disaster would mean for communities
- Ignoring coastal protection laws
- Climate change impacts were not properly assessed
- No assessment of cross-border harm
- The public was kept in the dark on key emergency plans
The matter will now require issuing fresh assessments, additional information, and public participation.
Total will need to issue new or amended assessments that examine the socio-economic impacts of a well blowout on coastal communities before any approval can be reconsidered.
It must also submit the project’s full lifecycle climate impacts, potential cross-border impacts on Namibia, and detailed oil spill response plans.
The new information must also be subject to public consultation before making a decision.
“This is a significant win for transparency, precaution, and for the rights of coastal communities and small-scale fishers who refuse to be sidelined in decisions that affect their livelihoods and the future of our oceans,” added Singh.
Director at Cullinan Lesai Seema added that the judgment makes it clear that the granting of an environmental authorisation for offshore drilling will not proceed if long-term collective efforts are not considered.
The interests of people and other living organisms that depend on the coastal and marine environment will depend on any deal.
Not the first problem
The latest decision is yet another blow for Shell, which recently lost in court over proposed seismic surveys off the Wild Coast in South Africa.
This came following a lack of public consultation on the seismic surveys that may harm the marine environment.
The Constitutional Court ruled last year that the High Court’s decision to grant the exploration right to do seismic surveys off the Wild Coast by Shell was granted unlawfully.
Even though these latest court challenges affect its upstream business, Shell will keep this business in South Africa and exit its downstream business, which includes 600 petrol stations.
Despite being the nation’s third-largest petrol station chain after Engen and Astron/Caltex, reports indicate that Shell petrol stations will soon be sold to buyers from Abu Dhabi or Switzerland.
The Western Cape High Court ruling can be found below:
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