Shell loses South Africa offshore exploration case

South Africa's Constitutional Court on Friday overturned oil and gas exploration rights granted to Shell more than a decade ago, ruling in favour of coastal communities and environmental groups.

The decision ended a years-long battle over Shell's plans to conduct offshore seismic surveys along South Africa's Wild Coast. The court overturned an appeals court ruling that had given the British energy company another chance to renew its permit.

The Constitutional Court agreed with a lower court's 2022 judgment that the exploration authorisation granted by South Africa's government in 2014 was unlawful.

The court said “any other remedy would allow financial investment to outweigh grave constitutional violations” and would signal that “the rights of affected parties are subordinate to commercial interests.”

Shell had planned to map more than 6,000 square kilometres off the Indian Ocean coast. Seismic surveys use sonic waves bounced off the sea floor to build a 3D image.