South African oil and gas investments valued as much as $1.6 billion have been stopped by legal challenges brought by environmental groups, illustrating the resistance energy companies face from civil society organisations in the country.
Since 2021 five offshore exploration projects were “halted and/or postponed” as a result of court action by non-governmental organisations, Minister of Mineral Resources and Petroleum Gwede Mantashe said in a reply to parliamentary questions.
Environmental and community groups have opposed projects on grounds ranging from the danger such activities present to marine life to inadequate public consultation processes. A case brought against Shell Plc has reached the nation’s top court, where a judgment is awaited.
Mantashe has lashed out against the groups, defending oil exploration and citing numerous seismic surveys done in recent years. South Africa largely relies on oil and gas imports to meet demand.
More exploration is planned by oil majors including TotalEnergies SE in a vast basin that includes oil discoveries in neighbouring Namibia. This could happen as early as next year, according to the French company.
The concerns of NGOs are considered during an environmental assessment processes and community awareness campaigns, the department of mineral resources and petroleum said in its response.
BLOOMBERG