Shell Obtains Permission to Drill for Oil and Gas Offshore South Africa

By Alexander Miller, consultant in energy markets. Eurasia Business News, July 11, 2025. Article n°1614

Shell has received environmental authorization to drill up to five deepwater wells off the west coast of South Africa, specifically in the Northern Cape Ultra Deep Block of the Orange Basin. The planned drilling will target depths between 2,500 and 3,200 meters. This approval marks a significant step forward for Shell’s exploration efforts in the region, where it aims to replicate the substantial oil discoveries made in neighboring Namibia.

The drilling campaign will involve appraisal or exploration wells, and if viable resources are found, they could contribute significantly to South Africa’s energy security and economic development. However, Shell has not provided a specific timeline for the drilling operations.

This development follows previous challenges Shell faced on South Africa’s east coast, where exploration programs were delayed due to court litigation over environmental concerns and public consultation issues. The ongoing legal case is expected to be heard by South Africa’s highest court later this year, which could influence future exploration activities.

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South Africa’s oil and gas sector has been constrained by environmental pressures and regulatory hurdles, despite the country’s growing industrial economy and declining refinery capacity, which has increased dependence on imported petroleum products. Shell’s new drilling authorization represents a potential boost to unlocking offshore hydrocarbon resources in the Orange Basin.

Oil companies, including TotalEnergies, are aiming to drill off South Africa’s west coast, where the prolific Orange Basin extends southwards into the country’s waters, with hopes of replicating significant discoveries made in neighbouring Namibia.

Shell’s permission to drill offshore South Africa is a major move toward exploring deepwater oil and gas prospects in the Orange Basin, with potential benefits for the country’s energy landscape and economy.

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© Copyright 2025 – Eurasia Business News. Article no. 1614.