A South African court has cancelled the environmental authorisation that allowed TotalEnergies and its joint venture partner, Shell, to carry out offshore oil exploration off the country’s west coast near Cape Town. The ruling was delivered by the Western Cape High Court on Wednesday, 13 August 2025, following a legal challenge by environmental and community groups.
The court found that the environmental impact assessment (EIA) submitted for the exploration licence had major shortcomings. It ruled that the assessment failed to properly analyse key issues, including the socio-economic impact of a potential oil spill on local communities and how the project could contribute to climate change. The court also noted that there were gaps in how the project’s impact on marine biodiversity and fishing livelihoods was addressed.
Despite cancelling the permit, Judge Nobahle Mangcu-Lockwood stated that the decision does not permanently stop TotalEnergies and Shell from pursuing the project. The companies were given an opportunity to correct the identified flaws by submitting new or revised environmental reports that meet legal requirements. “Total must be afforded the opportunity to submit new or amended assessments to cure the deficiencies identified,” the judge said.
TotalEnergies had earlier indicated plans to exit the Block 5/6/7 concession, which is part of the Orange Basin offshore region. If that happens, Shell would take over as the main operator, while South Africa’s state-owned PetroSA would retain a minority share in the licence. The Orange Basin has become a hotspot for oil exploration following recent major discoveries in neighbouring Namibia, which shares a maritime boundary with South Africa.
The court ruling is the latest in a series of legal challenges to offshore oil and gas projects in South Africa. Environmental groups have been taking oil companies to court, arguing that some exploration activities have not complied with environmental regulations and have failed to fully consult affected communities.
One of the leading campaign groups in the case, Natural Justice, welcomed the judgment. Its programme manager, Melissa Groenink-Groves, described the ruling as a victory for due process and community rights. “This judgment again confirms that companies must follow due process, undertake comprehensive assessments and provide communities with an opportunity to be heard,” she said. She added that oil exploration in sensitive marine areas poses risks to fisheries, tourism, and coastal livelihoods.
Environmentalists have long argued that South Africa should focus more on renewable energy and sustainable economic development, rather than expanding oil and gas exploration, which they say could worsen climate change. However, supporters of offshore drilling argue that successful oil discoveries could boost the country’s energy security, create jobs, and generate revenue.
The contested Block 5/6/7 lies between Cape Town and Cape Agulhas, an area with rich marine biodiversity and important fishing grounds. Critics of the project say oil exploration activities could disrupt the ecosystem, affect whale migration routes, and harm commercial fishing. Industry players, however, maintain that modern offshore drilling technology can minimise risks and that oil revenues could help fund infrastructure and social programmes.
The court’s decision means TotalEnergies and Shell will now have to return to the drawing board if they wish to continue with the exploration project. Any revised environmental impact assessment will need to address the court’s concerns, especially on socio-economic risks, climate change effects, and the participation of local communities in the decision-making process.
The case also signals a growing trend of judicial oversight over major energy projects in Africa, where courts are increasingly asked to weigh environmental protection against economic development goals. With the Orange Basin drawing international attention from oil companies, the outcome of this case could influence future offshore exploration in both South Africa and Namibia.
