The Orange Basin petroleum province shared by Namibia and South Africa has become a test case for how African states balance the demands of oil companies and local groups, \u200bwith billions of dollars in\u00a0investment, jobs and tax revenues at stake.<\/p>\n
The province has made Namibia a global exploration hotspot, pushing for first oil by 2030 and expected \u200cto initially produce around 150,000 barrels per day via TotalEnergies’\u00a0Venus project. South Africa has yet to unlock similar reserves.<\/p>\n
Two events in June highlighted the widening gap between how the two countries are handling the basin’s development.<\/p>\n
On June 9, Shell\u00a0put out a statement describing a\u00a0new find offshore Namibia\u00a0as having the “most promising subsurface results to date” in petroleum exploration licence 39, home to multiple promising wells since 2022 including the country’s first major oil discovery \u200bGraff-1X.<\/p>\n
A week earlier, in a packed Cape Town courthouse, environmental groups and fishing communities launched a bid to overturn a permit allowing TGS\u00a0to conduct offshore seismic surveys in South \u200bAfrica’s area of the basin.<\/p>\n
Environmental groups and local communities have launched at least four court cases and numerous other appeals against South African offshore \u2060ventures and proposed onshore liquefied natural gas projects since 2021, according to eco-justice group Green Connection.<\/p>\n
That has delayed up to 10 wells expected to be drilled by 2030, South Africa’s petroleum regulator \u200bPASA said.<\/p>\n
“We cannot explore, we cannot spend money in a geography if we have to face courts permanently and the permitting becomes really too complex,” TotalEnergies CEO Patrick Pouyanne said during October’s results presentation \u200bwhen asked about South Africa and Namibia.<\/p>\n
PERMITS CAN TAKE UP TO FIVE YEARS TO SECURE IN SOUTH AFRICA<\/strong><\/p>\n Formed millions of years ago when South America broke away from Africa, the Orange Basin is named after a river that drains into the Atlantic Ocean along the border of South Africa and Namibia.<\/p>\n In South Africa, where around two-thirds of the basin lies, non-governmental organisations and environmental activists have taken a more aggressive approach to contesting projects in \u200bextractive industries compared to Namibia, with varied success.<\/p>\n Current regulations there, which cut across different ministries, allow for wide-ranging internal appeals against environmental and social impact assessments, as well as judicial reviews in \u200bcourt, whose outcomes can then also be appealed.<\/p>\n Industry body the Offshore Petroleum Association of South Africa says exploration permits can take up to five years to secure in South Africa, compared with three to nine months \u200cin other African \u2060countries.<\/p>\n “A similar route of long delays threatens to frustrate South Africa should there be any discoveries,” OPASA spokesperson Niall Kramer said.<\/p>\n TotalEnergies has acquired acreage along South Africa’s west coast and aimed to drill its first exploration well this year, but its plans are\u00a0now uncertain.<\/p>\n COMMERCIAL INTERESTS VS COMMUNITIES<\/strong><\/p>\n Attention is now focused on a ruling, potentially later this year, from South Africa’s highest court that could make getting offshore exploration permits easier, or more onerous.<\/p>\n The case, first launched in 2021, concerns a challenge by environmental groups and local communities to a Shell-led seismic survey along the tourism-dependent Wild Coast.<\/p>\n Among other things, the \u200bcourt is expected to determine whether commercial interests \u200bcan outweigh the rights and dignity of \u2060coastal communities, environmental lawyer Ricky Stone said.<\/p>\n “This judgment will be one of the most significant precedents in South African environmental and constitutional law in a generation, whatever the Constitutional Court decides,” he said.<\/p>\n Shell declined to comment, citing its close period ahead of earnings.<\/p>\n","protected":false},"excerpt":{"rendered":" The Orange Basin petroleum province shared by Namibia and South Africa has become a test case for how African states balance the demands of oil companies and local groups, \u200bwith billions of dollars in investment, jobs and tax revenues at stake.<\/p>\n","protected":false},"author":6,"featured_media":21652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":15,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[32,2362,30],"tags":[60,5369,122],"class_list":["post-21651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-featured","category-southern-africa","tag-namibia","tag-orange-basin-oil-province","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/comments?post=21651"}],"version-history":[{"count":2,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21651\/revisions"}],"predecessor-version":[{"id":21654,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/posts\/21651\/revisions\/21654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media\/21652"}],"wp:attachment":[{"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/media?parent=21651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/categories?post=21651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qiraatafrican.com\/en\/wp-json\/wp\/v2\/tags?post=21651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}