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Shell’s Wild Coast setback
South Africa’s Constitutional Court has overturned a Supreme Court of Appeal order that had kept Shell’s offshore oil and gas exploration plans alive off the Wild Coast, setting aside the exploration right and its two renewals.
“the Constitutional Court overturned a Supreme Court of Appeal (SCA) order”
The dispute began in 2021 when Shell announced plans for a 3D seismic survey along the Wild Coast, after environmental organizations and local communities challenged the exploration right over consultation and environmental considerations.
The Constitutional Court reinstated the Makhanda High Court’s decision on Friday, August 14, 2026, and the ruling removed the route for Shell and Impact Africa to revive the existing exploration right through the third renewal process.
The case involved an exploration right granted to Impact Africa, later renewed in 2017 and 2021, with a 50% participating interest later transferred to Shell, and the Constitutional Court majority said consultation more than a decade after the original decision could not fully remedy communities’ lost opportunity to participate.
Voices split on ruling
In celebrating the decision, Melissa Groenink of the environmental group Natural Justice said, "By nullifying Shell’s exploration rights, the court ultimately put people above profits."
The African Energy Chamber condemned the ruling, with its chief executive NJ Ayuk saying, "Africa cannot afford to leave its natural resources under the ground while millions suffer from energy poverty and unemployment."
Climate Home News quoted East Coast resident and environmental campaigner Siyabonga Ndovela saying, "Today’s judgment makes me feel very happy and proud that the ocean is not for profit for mining companies," framing the outcome as a victory for local communities and civil society.
The same Climate Home News report said the Constitutional Court ruled Shell and Impact Africa had failed to meaningfully conduct public consultation and failed to consider the impact on climate change, cultural rights, livelihoods and ecological harm.
What’s at stake next
The Constitutional Court majority, written by Kollapen J, found the case raised constitutional questions including meaningful public consultation, environmental and community rights, administrative justice, and the requirements for a "just and equitable" remedy when government decisions are found unlawful.
“the requirements for a“just and equitable”remedy when government decisions are found unlawful”
The ruling also rejected the Supreme Court of Appeal’s approach of using a further renewal process to address defects, saying consultation more than a decade after the original decision could not fully remedy communities’ lost opportunity to participate.
Offshore-Energy.biz reported that Rogers J, joined by Savage J, dissented and argued the matter should be remitted for fresh consultation and reconsideration, potentially preserving a final three-year exploration period, while warning that permanently blocking the application could leave it in legal limbo.
The dispute centers on seismic explorations aimed to locate new oil and gas deposits in an area between the towns of Morgan Bay and Port St Johns, where the Infobae report said whales, dolphins, seals, penguins, and sharks reside.