CAPE TOWN (Reuters) -Shell has been granted environmental authorisation to drill up to five deep-water wells off South Africa's west coast, the company said on Friday. The oil major applied for
Shell Secures Approval to Explore for Oil Off South Africa's Coast
CAPE TOWN (Reuters) -Shell has been granted environmental authorisation to drill up to five deep-water wells off South Africa's 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 2,500 metres (8,200 ft) and 3,200 metres (10,500 ft).
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.
"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 any timelines.
Shell's previous exploration programme along South Africa's 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 South Africa's highest court later this year and could either help usher in a new exploration boom or dampen expectations.
Mounting environmental pressures, including a bevy of 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 of its refinery capacity over the last few years and depends even more now on imports of refined petroleum products to meet rising demand.
(Reporting by Wendell Roelf. Editing by Sfundo Parakozov and Mark Potter)
