TotalEnergies contemplates next move after offshore drilling setback

TotalEnergies E&P South Africa and its partners are contemplating their next move having been dealt a huge blow when the Western Cape High Court recently halted their offshore oil exploration plans. 

The court set aside the government's decision to grant environmental authorisation for offshore drilling in Block 5/6/7, along the South-West Coast to TotalEnergies EP South Africa. The court has sent the matter back to the Department of Mineral Resources and Energy (DMRE) for a fresh decision. 

Total intends to transfer the environmental authorisation to Shell.

The ruling follows a legal challenge brought by environmental rights organisations, The Green Connection and Natural Justice, arguing that Total’s Environmental Impact Assessment (EIA) report failed to properly assess the socio-economic impact of the proposed project because it did not assess the socio-economic impact which a well blowout and consequent oil spill may cause on the fishing industry and small scale fishers, among others.

Judge Nobahle Mangcu-Lockwood ruled that Total must be afforded the opportunity to submit new or amended assessments, as the case may be, to cure the deficiencies identified in the first to fifth grounds of review of the judgment.  She also said that public participation must be conducted in regard to the new and/or amended assessments submitted by Total, before the government decided on the matter.  

TotalEnergies E&P South Africa said along with its joint venture partners, they are the process to “legally assess the judgement in more detail and decide on the course of action”. 

“TotalEnergies E&P South Africa acknowledges the decision of the High Court of South Africa to set aside the Environmental Authorisation granted in April 2023 for further exploration in offshore Block 5/6/7 and to remit the matter to the decision-maker for reconsideration following requested additions.  Although the Company announced its exit from this block in July 2024, it remained fully committed to respecting the judicial process to its term and to engaging continuously with all its stakeholders. From the outset of the exploration project, Block 5/6/7 joint venture complied with all required local regulations, in particular environmental and social,” Total Energies said. 

Reacting to the court outcome, the the African Energy Chamber (AEC) said the ruling was a setback for the country’s energy security. 

“South Africans deserve energy security, economic opportunity and industrial growth. Oil and gas exploration, development and production offer the promise of achieving these goals. Standing in the way of responsible oil and gas development does not protect our future, it jeopardises it. We must work together to responsibly harness our resources, end energy poverty and give our people the chance to prosper. 

“In opposing vital projects such as those led by TotalEnergies and Shell, groups such as The Green Connection and Natural Justice continue to demonstrate their commitment to disrupting development in Africa,”  said AEC executive chairperson, NJ Ayuk.  

Environmental groups welcomed the court outcome as a landmark victory. 

Natural Justice defending rights programme manager, Melissa Groenink-Groves said: “This judgment is a victory in the growing opposition to oil and gas exploration in our country. Recently, a number of oil and gas projects have been given Environmental Authorisation, but this judgment again confirms that companies must follow due process, undertake comprehensive assessments and provide communities with an opportunity to have their voices heard, in respect of all relevant information.”

The Green Connection’s Strategic Lead, Liziwe McDaid added: “Our country’s laws demand full, open, and honest assessment, not partial studies, not secrecy, and not ignoring inconvenient truths. For the West Coast’s small-scale fishers, tourism operators, and coastal residents, it means the law is on their side in demanding protection of the ocean they depend on. For the public, it shows that environmental rights, including the right to have the environment protected for present and future generations, have real force in court.”

The DMRE and DFFE, as well as Shell did not respond to requests for comment by deadline.

Cape Times