South Africa's Constitutional Court on Friday blocked offshore exploration led by Shell (SHEL.L) along the country's pristine Wild Coast, a setback for the oil major after years of legal challenges by local communities and environmentalists.
The ruling is the latest outcome in a series of court cases that have dampened investor appetite and delayed exploration offshore South Africa.
The majority decision by South Africa's highest court overturned a 2024 judgment by the Supreme Court of Appeal, which handed a lifeline to Shell and Impact Africa in their quest to conduct seismic surveys off the east coast as part of an exploration right granted in 2014.
"The order of the Supreme Court of Appeal is set aside," Justice Jody Kollapen said.
Shell, which is also looking to explore in South Africa's west coast Orange Basin, said it noted the ruling and remained committed to responsible offshore exploration, meaningful stakeholder engagement and environmental stewardship.
South Africa's ministry of mineral and petroleum resources did not immediately respond to a request for comment.
One of the reasons why communities and environmental groups had challenged Shell's exploration plans was that they argued there had not been sufficient public consultation.
"The court affirmed that the right to public participation is not just about following a procedure and ticking boxes, but rather that it is about placing the dignity of our people at the centre of developmental decisions that will affect them," said Delme Cupido, director at Natural Justice, one of the applicants in the case.
