South Africa’s Constitutional Court has blocked offshore oil and gas exploration by Shell along the country’s Wild Coast, dealing a major setback to the energy company after years of legal challenges from local communities and environmental groups.

The ruling overturns a 2024 Supreme Court of Appeal decision that had given Shell and Impact Africa a lifeline to pursue seismic surveys under an exploration right first granted in 2014.

Court puts public participation at the center

The Constitutional Court found that public participation cannot be treated as a procedural exercise, strengthening the position of communities affected by major resource and development projects.

“The right to public participation is not just about following a procedure and ticking boxes,” said Delme Cupido, director at Natural Justice, one of the applicants.

The dispute dates back to 2021, when Shell and Impact Africa sought to conduct seismic surveys off the Eastern Cape coast. The surveys use powerful sound waves to map geological structures beneath the seabed for potential oil and gas deposits.

The Eastern Cape High Court had previously found that the exploration right and its renewals were unlawful, citing inadequate consultation and failures to consider community livelihoods, cultural practices and environmental concerns.

Shell faces setback in South Africa

Shell plc remains one of the world’s largest integrated energy companies, with operations spanning oil and gas exploration, liquefied natural gas, refining and fuel distribution.

Shell said it noted the Constitutional Court ruling and remained committed to responsible offshore exploration, meaningful engagement with stakeholders and environmental stewardship.

The company is also pursuing opportunities in South Africa’s Orange Basin, an offshore petroleum province that has attracted major oil companies because of its exploration potential.

Shell’s broader exploration strategy includes conventional oil and gas, deepwater projects and integrated gas, with the company targeting material liquids production through 2030.

Impact Africa Limited held the original exploration right, while BG International Limited was also involved in exercising the right.

Wider implications for offshore oil

The Wild Coast decision adds another legal hurdle for offshore oil and gas development in South Africa, where projects have faced challenges involving environmental protection, community consultation and regulatory approvals.

For investors and energy companies, the ruling highlights the importance of securing meaningful community participation before pursuing exploration rights.

It also places South Africa’s offshore energy ambitions under renewed scrutiny as companies weigh the country’s petroleum potential against legal, environmental and social risks.