Shell has received environmental authorization to drill up to five deepwater wells to explore for oil and gas off the west coast of South Africa.
“Should viable resources ?be found offshore, this could significantly contribute to? South Africa’s energy security and the government’s economic development programmes,” the supermajor said in a statement carried by Reuters.
The company did not provide details of the drilling plans.
Shell applied last year for environmental authorizations to drill ultra-deepwater wells offshore South Africa, targeting drilling in the Northern Cape Ultra Deep Block (NCUD) in the Orange Basin off South Africa’s west coast.
Previous attempts by Shell to drill offshore South Africa have ended up in court as environmental campaigners have challenged oil and gas exploration activities.
Analysts believe some offshore formations that South Africa shares with the offshore areas of Namibia – the latest deepwater exploration hotspot – could hold great resource potential.
Shell and another supermajor, TotalEnergies, have already made large discoveries offshore Namibia, in the same Orange Basin that spans South African and Namibian waters.
The basin extends to South African waters to the south and the majors are now looking to tap into these areas hoping to find huge resources similar to the ones in the Namibian portion of the Orange Basin.
However, red tape and court challenges to drilling offshore South Africa have impeded the majors from exploration off the country’s west coast.
While South Africa struggles to launch a domestic exploration and production sector, Namibia is weighing potential further incentives and financing options to offer to international majors preparing plans for oil production offshore the African country.
Namibia looks at financing mechanisms, including credit support instruments and partnerships with international lending institutions, Kornelia Shilunga, special adviser and head of upstream petroleum unit in the Namibian Presidency, told Bloomberg last month.
Namibia expects TotalEnergies and Norway’s BW Energy to take final investment decisions on oil projects in late 2026, a senior Namibian official said in May.
By Charles Kennedy for Oilprice.com
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