Environmental activists welcomed the Constitutional Court's decision, which halted the controversial oil and gas exploration program by the multinational company Shell along the Eastern Cape coast.
Activists noted a historic victory for communities in the Wild Coast area against Shell, which completely stopped the company's plans to explore for hydrocarbons in the region.
According to an IOL report, the Constitutional Court's ruling overturned the Appellate Division's 2024 decision. This previous ruling had allowed Shell and the consulting firm Impact Africa to continue conducting marine seismic testing off the Eastern Cape coast, provided violations related to improperly obtained exploration rights were rectified.
Desmond D'Sa, coordinator of the South Durban Community Environmental Alliance (SDCEA), stated that they draw great strength from this victory for the people of South Africa. He expressed hope that Shell will review its strategy and take into account the concerns of communities such as Xolobeni, located in the Eastern Cape.
D'Sa recalled that when Shell submitted its application, the company insisted that it did not need to consult with the residents of Xolobeni or citizens of the country regarding its intention to develop an exploratory well in the Indian Ocean. He noted that Shell decided to 'bypass and work with no one,' directly approaching the government for permission.
He added that he and his organization from Durban, along with other groups in the Eastern Cape and elsewhere, have been fighting Shell and other energy companies for years that sought to 'explore for profit' in the oceans. D'Sa expressed satisfaction that Shell lost the case in South Africa's highest court—the Constitutional Court—and can no longer challenge the decision.
He called on Shell shareholders to urge the company to abandon fossil fuels and invest funds in environmentally friendly alternatives, such as renewable energy, and also advocated for a just energy transition in South Africa.
However, not everyone was pleased with the court's decision. IOL reports that Mikaeteko Mahlaule, chairperson of the Parliamentary Portfolio Committee on Mineral and Petroleum Resources, expressed concern about the impact of this ruling on job creation and investment. He emphasized the need to respect the ruling but warned that persistent legal uncertainty could negatively affect investments, exploration, and job creation in the oil and gas sector.
Mahlaule stated that the country cannot afford for potentially significant economic opportunities and job creation initiatives to remain at the conceptual stage due to uncertainty in exploration. He clarified that exploration is the process by which the presence of resources and the possibility of their subsequent development for the benefit of the South African economy and population are established.
