On August 14, South Africa’s Western Cape High Court annulled the environmental permit granted to TotalEnergies and Shell for oil and gas exploration in offshore blocks 5, 6, and 7 along the Wild Coast. The ruling came after local communities and environmental groups argued that the consultation process was inadequate and that the assessment failed to fully consider risks to marine ecosystems, livelihoods, and climate commitments. The court’s decision requires the companies to resubmit environmental and social impact studies if they wish to continue with exploration.
The case is significant because it reflects growing scrutiny of offshore fossil fuel projects in South Africa, where balancing energy security with environmental stewardship is becoming increasingly complex. While the government has encouraged exploration to reduce reliance on coal and imported fuels, civil society movements have gained momentum in contesting projects that may threaten biodiversity and coastal economies. For TotalEnergies and Shell, the setback underscores the need for deeper engagement with affected communities and more robust environmental safeguards to secure regulatory and social acceptance.
This ruling illustrates how judicial systems are shaping the contours of Africa’s energy transition. It signals to investors that compliance with environmental law and genuine community participation are non-negotiable elements in securing a social license to operate. Beyond South Africa, the decision resonates across emerging markets where oil and gas exploration collides with climate goals and local resistance. The outcome will influence not only the future of the Wild Coast blocks but also the credibility of South Africa’s broader energy governance framework.
Project Profile – TotalEnergies/Shell Offshore Exploration (South Africa)
Location: Offshore Blocks 5, 6, 7 (Wild Coast, South Africa)
Companies: TotalEnergies, Shell, local partners
Update (Aug 14, 2025): High Court annulled environmental permit
Main Issues: Inadequate consultation, risks to ecosystems and climate goals
Strategic Implication: Highlights rising legal and social hurdles for fossil fuel exploration; test of social license to operate