By Paul Burkhardt
August 16, 2026 (Bloomberg) – Shell Plc has lost a major legal battle against environmental activists regarding its oil exploration efforts in South Africa. The case, which has been going on for five years, was recently decided by the country’s highest court.
The Constitutional Court ruled on Friday that Shell cannot renew its exploration rights along the Wild Coast of the Indian Ocean. This decision comes at a time when other offshore oil exploration projects in South Africa are being challenged, while Namibia is moving forward with developing its own oil discoveries just across the maritime border.
“The ConCourt has decided that the exploration right should be canceled,” said Melissa Groenink Groves, a lawyer and program manager at Natural Justice, one of the groups involved in the case.
This ruling could inspire more activism, as environmental groups have won several court victories against oil exploration efforts.
A Shell spokesperson acknowledged the court's decision. “We are dedicated to responsible offshore exploration, engaging with stakeholders, and protecting the environment,” the spokesperson said in an email. “South Africa relies on energy imports for many of its needs, and discovering viable offshore resources could greatly enhance the country’s energy security and contribute to economic development.”
The legal issues began in 2021 when activists opposed Shell’s plan for a seismic survey in an area known for whale sightings. Environmental groups obtained a court order to stop the exploration due to concerns about inadequate community consultation and potential harm to both residents and marine life.
In 2022, a high court ruled against the granting of the exploration rights and its renewals. Although Shell attempted to appeal, the Supreme Court of Appeal provided a temporary relief, allowing a pending third renewal to move forward but requiring proper consultation.
Activists have stated that the Appeals Court made a mistake by allowing Shell to seek a renewal of a right that was already canceled.
Shell and TotalEnergies SE are among the companies aiming to explore offshore drilling in South Africa, particularly after notable oil discoveries in Namibia in 2022, which have transformed the region into a key exploration area on the continent.
Patrick Pouyanne, CEO of TotalEnergies SE, commented on the complex legal situation in South Africa for exploration. “Every time we want to proceed, we have to go to court,” he remarked during a Nov. 30 earnings call. “It's quite challenging.”