TotalEnergies has been given permission by the South African government to explore oil and gas off the southwest coast. The Department of Mineral Resources and Energy has given the energy company environmental permission to drill in Blocks 5/6/7, which are located between Cape Town and Cape Agulhas. The area is 10,000 square kilometres in size and is 60 kilometres from the coast at its closest point and 170 kilometres from the coast at its farthest point. Total, Shell, and PetroSA own the exploration block, and drilling is scheduled to take place from Q4 2023 to Q2 2024.
TotalEnergies will have the capability of drilling up to five exploration wells in the area. The company intends to explore the Orange Basin, where two major oil discoveries have been made off the coast of Namibia. TotalEnergies was notified of the DMRE’s decision on April 17, and interested and affected parties have until May 20 to file an appeal with the Department of Forestry, Fisheries, and Environment.
According to SLR Consulting, TotalEnergies’ environmental assessment practitioner, the DMRE concluded that TotalEnergies met all of the prescribed procedural requirements and that the public consultation process complied with regulations. Furthermore, the DMRE discovered that with mitigation, the impacts of drilling range from “negligible to low significance,” and that TotalEnergies has plans in place to deal with a blow-out should one occur.
Green Connection, an environmental justice organisation, will study the decision with the intention of appealing it. The group has been critical of companies such as Shell and Searcher that have attempted to conduct seismic surveys for the exploration of the South African coast. In separate cases where the granting of environmental permits was challenged, the court found that the companies did not conduct adequate public consultation processes.
The decision to grant TotalEnergies environmental authorization is likely to be contentious, as it comes at a time when the world is attempting to reduce its reliance on fossil fuels in order to combat climate change. Furthermore, the proposed drilling area is home to a variety of marine species, including whales, dolphins, and seals. Concerns have also been raised about the possible impact of oil spills on the fishing industry and coastal communities.
Despite these reservations, the South African government is eager to attract investment in the oil and gas sector, believing that it has the potential to generate jobs and boost economic growth. The government also hopes that the sector’s development will help reduce the country’s reliance on imported oil and gas.
The decision to grant TotalEnergies environmental authorization is likely to be welcomed by the energy industry, which has long advocated for increased investment in the sector. However, environmental groups and other stakeholders who are concerned about the potential impact of the drilling on the environment and local communities are likely to challenge it.
Finally, the South African government has given TotalEnergies permission to conduct exploratory drilling for oil and gas off South Africa’s southwest coast. The decision is likely to spark debate because it comes at a time when the world is attempting to reduce its reliance on fossil fuels in order to combat climate change. The government, on the other hand, believes that the oil and gas sector has the potential to create jobs and boost economic growth and that its development will aid in reducing the country’s reliance on imported oil and gas. Environmental groups and other stakeholders are likely to challenge the decision, citing concerns about the potential impact of the drilling on the environment and local communities.