{"id":870295,"date":"2026-08-14T12:44:08","date_gmt":"2026-08-14T10:44:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=870295"},"modified":"2026-08-14T14:12:02","modified_gmt":"2026-08-14T12:12:02","slug":"r4-trillion-international-giant-suffers-another-major-loss-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/870295\/r4-trillion-international-giant-suffers-another-major-loss-in-south-africa\/","title":{"rendered":"R4 trillion international giant suffers another major loss in South Africa"},"content":{"rendered":"\n<p>Shell lost the latest round of a five-year legal fight with environmental activists over a South African oil-exploration campaign that went all the way to the nation\u2019s top court.<\/p>\n\n\n\n<p>The oil major, valued at over R4 trillion, won\u2019t be allowed to renew an exploration right off South Africa\u2019s rugged Indian Ocean Wild Coast, the Constitutional Court ruled on Friday. <\/p>\n\n\n\n<p>The decision comes as other offshore South African oil searches are challenged, while Namibia approaches the development of crude discoveries just over the maritime border.<\/p>\n\n\n\n<p>\u201cWhat the ConCourt decided was that the exploration right should be set aside,\u201d said Melissa Groenink Groves, an attorney and program manager at Natural Justice, an applicant in the case.<\/p>\n\n\n\n<p>A Shell spokesperson said the company had noted the judgment.<\/p>\n\n\n\n<p>\u201cWe are committed to responsible offshore exploration, meaningful stakeholder engagement and environmental stewardship,\u201d the spokesperson said in an emailed statement.<\/p>\n\n\n\n<p>\u201cSouth Africa is currently reliant on energy imports for many of its energy needs. Should viable resources be found offshore, this could significantly contribute to South Africa\u2019s energy security and the Government\u2019s economic development programmes.\u201d<\/p>\n\n\n\n<p>The decision could further embolden activists who have had multiple victories in court against oil explorers.<\/p>\n\n\n\n<p>The legal saga began in 2021 with activists opposing a seismic survey planned by Shell and a local partner in an area where whales are frequently spotted.&nbsp;<\/p>\n\n\n\n<p>Environmental groups won an interdict that halted the exploration activity over concerns that communities weren\u2019t properly consulted, and about the impact the survey would have on local residents and marine life.<\/p>\n\n\n\n<p>The following year, a high court set aside the decision to grant the exploration right, along with two subsequent renewals. <\/p>\n\n\n\n<p>Shell\u2019s appeal was dismissed, though the Supreme Court of Appeal later handed the London-based company a reprieve by&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-03\/shell-loses-appeal-over-case-stopping-south-africa-seismic-work\" target=\"_blank\" rel=\"noreferrer noopener\">ruling<\/a>&nbsp;that a third renewal, which was pending, could proceed subject to proper consultation.<\/p>\n\n\n\n<p>Environmental groups argued that the Appeals Court erred by giving Shell the opportunity to apply for renewal of a right that has been set aside and, therefore, no longer exists.<\/p>\n\n\n\n<p>Shell and TotalEnergies SE are among the explorers looking to utilise prospects to drill offshore South Africa, after discoveries in Namibia\u2019s waters in 2022 turned the area into one of the continent\u2019s exploration hotspots.<\/p>\n\n\n\n<p>TotalEnergies SE Chief Executive Officer Patrick Pouyanne described South Africa as having a complex legal environment to explore. <\/p>\n\n\n\n<p>\u201cEach time we want to do it, we need to go to court,\u201d he said in a 30 November earnings call. \u201cIt\u2019s a little difficult.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shell lost the latest round of a five-year legal fight with environmental activists over a South African oil-exploration campaign that went all the way to the nation\u2019s top court.<\/p>\n","protected":false},"author":59,"featured_media":862744,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2088215321115070831","_sma_facebook_post_id":"191437357620492_2175847793235620","_sma_instagram_post_id":"17959749668984027","_sma_x_attempts":1,"footnotes":""},"categories":[9872],"tags":[26175,2239],"class_list":["post-870295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-oil-exploration","tag-shell"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=870295"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870295\/revisions"}],"predecessor-version":[{"id":870314,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/870295\/revisions\/870314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/862744"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=870295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=870295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=870295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}