Global energy and petrochemical giant Shell is not backing down on its plans to extract oil and gas off the Wild Coast in Eastern Cape.
This week, the Supreme Court of Appeal (SCA) upheld a ruling by the high court in Makhanda, which ordered that the multinational company should put its plans on hold until it had sufficiently consulted the affected communities.
“It is not in dispute that -neither the public was given notice of the decisions or informed of the right to appeal. The failure to do so, which is unexplained on the papers, is subversive of the procedural entitlements of the appellants,” reads the SCA judgment in part.
The court also slated the Petroleum Agency of South Africa and the Minister of Mineral Resources and Energy Gwede Mantashe for failure to make available copies of the exploration rights to affected parties. “It can hardly be in dispute that impact was required to meaningfully consult with the communities and individuals that would be affected by the seismic blasting. The duty to do so derives from: (i) the obligations imposed upon it, an applicant for exploration rights by the Minerals and Petroleum Resources Development Act and, (ii) the self-standing duty under the Promotion of Administrative Justice Act to consult with the communities as holders of existing customary rights (particularly customary
fishing rights) that would be adversely affected by the seismic blasting, “further noted the court’s judgment.
The court instructed that the consultation process be started afresh, ensuring all concerned communities are engaged, including that all communications should be conducted in the language of the locals isiXhosa and isiMpondo.
The Wild Coast, with breathtaking ocean views, unspoilt nature and coastal life, stretches from Mtamvuma River in the north and the Great Kei River in the south.
In 2021, Shell announced its intention to conduct a seismic survey to search for gas and oil deposits in Port St Johns and Morgan Bay. The move, however, sparked strong opposition from the -ordinary people of the land, environmentalists and land rights activists who asserted that if the plan saw the light of day, it would spell disaster for the communities along the coastline who rely on the ocean for survival.
Shell spokesperson Pam Ntaka told Sunday World that the company respected the ruling. “We welcome the court’s direction that the exploration right remains valid, subject to further public consultation and the renewal application. We are examining the ruling in detail and considering our next steps,” said Ntaka.
She said Shell had undertaken a comprehensive review of the downstream and renewables businesses across all regions and markets in line with Shell’s focus on performance, discipline and simplification.
“As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa,” she explained.
Shell, together with the Department of Mineral Resources and Energy, as well as Impact Africa, the company’s local partner appealed the high court ruling on grounds that it had erred and that the Environmental Management Programme obtained before 2014 was lawfully granted.
In their court papers, the trio also contended that the public consultation process had been met, giving the green light to Minister Gwede Mantashe to apply his mind. They further argue that heritage rights, climate change and other factors needed not to have been considered in arriving at a decision.
Activists and environmental organisations said they were disappointed at the SCA judgment, saying the communities had wanted an outright setting aside of the exploration right.
“This judgment trumps the constitutional environmental rights of people to a safe and healthy environment,” lamented Sinegugu Zukulu of the
organisation Sustaining the Wild Coast.
