Introduction
Shell, like several multinational companies, aims to discover commercially viable oil and gas reserves in South Africa following recent developments in Namibia.
Shell’s Exploration Plans
The Anglo-Dutch multinational, Shell, intends to conduct exploratory drilling for oil and gas wells off the coast of South Africa. This was revealed in news on Tuesday, July 9, indicating the company’s initiation of the procedure for this purpose.
Location and Authorization
Shell has submitted an application to the authorities to obtain the right from the government to undertake operations in the Northern Cape Ultra Deep Block (NCUD) of the Orange Basin. This basin extends from southern Namibia, where deposits have been identified, into South African waters.
Environmental Impact Assessment
The company, along with its partners, is awaiting environmental clearance to explore this area of interest. An environmental and social impact assessment conducted by SLR on this site is currently open for public comments until August 8.
Success in Namibia and Withdrawal from Downstream Segment
Shell is banking on its successful operations in Namibia over the past two years to replicate similar discoveries in South Africa. Recently, Shell exited the downstream segment, convinced of the hydrocarbon potential in the Orange Basin.
Challenges and Uncertainties
However, the realization of this prospect remains uncertain due to the almost systematic attempts to block oil and gas exploration projects by environmental advocacy groups, among others.