South African appeal court suspends order halting Shell exploration
The lack of adequate public consultation was one of the key reasons why a lower court ruled against Shell and other oil companies Impact Africa and BG International
A South African appeals court has suspended a previous ruling that halted offshore exploration by Shell along the Wild Coast and allowed oil companies another chance at public consultation, court documents showed on Monday.
The lack of adequate public consultation was one of the key reasons why a lower court ruled against Shell and other oil companies Impact Africa and BG International.
In a widely expected decision, the Supreme Court of Appeal (SCA) provided a lifeline to oil companies exploring along South Africa’s east coast.
The previous decision by a lower court stopped exploration in the environmentally sensitive area.
The case, which has dragged on for years, was heard by the appeals court in May when lawyers for the affected communities and environmental groups, including Greenpeace, defended a prior ruling from the Makhanda High Court which nullified an exploration right granted to Impact Africa and Shell in 2014.
The oil companies and the Department of Mineral Resources and Energy then appealed this ruling, arguing that the court had erred in various aspects, including that climate change and heritage rights should not have been considered by the court.
On Monday, the appeals court dismissed the appeal but, using its powers, recognised the exploration right and its two subsequent renewals in 2017 and 2021. Shell and Impact did not immediately respond to a request for comment.
“In the circumstances … considerations of justice, equity and the principles of finality and certainty dictate that the harshness of the exploration right being set aside, can and should be ameliorated,” the judgement seen by Reuters said.
The court ordered a further public participation process to “cure the identified defects” pending a third and final renewal application by the oil companies.
“If the right is renewed, then we’re back to square one,” Ricky Stone, one of the environmental lawyers told Reuters.
“We’re now taking instructions to appeal the SCA’s order to the Constitutional Court,” he said of South Africa’s highest court.
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