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South African court revokes TotalEnergies’ license for offshore oil exploration

The case was brought forward by a climate group
French oil company, TotalEnergies
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A South African court has cancelled an environmental approval granted to TotalEnergies and its joint venture partners to explore for oil off the Cape coast.

The Western Cape High Court ruled that the companies failed to properly assess the potential socio economic impacts of oil spills or address climate change concerns in their application.

Judge Nobahle Mangcu Lockwood, in the August 13 ruling, stated that the deficiencies must be corrected before exploration could proceed.

โ€œTotal must be afforded opportunity to submit new or amended assessments to cure the deficiencies identified,โ€ the judge said.

Legal setback for oil firms

The case concerned Block 5/6/7, a section of offshore acreage located between Cape Town and Cape Agulhas. The concession is held by TotalEnergies, Shell, and the state owned PetroSA.

TotalEnergies announced last year that it intended to exit the block, leaving Shell as operator and PetroSA with a minority interest. A company spokesperson did not immediately respond to requests for comment on the ruling.

The legal challenge was brought by environmental organisations, including Natural Justice, which argued that communities were not given proper opportunities to raise concerns.

Welcoming the judgment, Melissa Groenink Groves, programme manager at Natural Justice, said it showed the importance of thorough environmental reviews.

โ€œThis judgment again confirms that companies must follow due process, undertake comprehensive assessments and provide communities with an opportunity to be heard,โ€ she said.

Wider push into South Africaโ€™s offshore

Meanwhile, oil companies are expanding their interest in South Africaโ€™s west coast, aiming to replicate the success of neighbouring Namibiaโ€™s Orange Basin.

A series of large oil and gas finds in Namibian waters has increased exploration activity in the region.

The Orange Basin extends into South African waters, but much of it remains unexplored. Industry players see the area as having significant potential, but legal and environmental hurdles have slowed progress.

However, environmental groups warn that offshore drilling could threaten marine life, fisheries, and coastal tourism.

They argue that oil spills would have severe consequences for local economies and ecosystems.

South Africaโ€™s offshore sector has been the subject of several court disputes in recent years, with communities and non profits challenging approvals for seismic surveys and drilling.

These cases often centre on whether public consultation and environmental assessments meet legal standards.

The ruling adds to a growing list of legal challenges affecting energy projects in the country.

While the court has given TotalEnergies a chance to resubmit its studies, the process could delay exploration plans and further test investor confidence in South Africaโ€™s offshore oil sector.

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