Shell seeks government approval to drill up to five ultra-deep offshore wells off South Africa’s west coast, per a draft report by SLR, an environmental consultancy. The company aims to explore and appraise wells in the Northern Cape Ultra Deep Block (NCUD) in the Orange Basin, an area that has been attracting the interest of major oil companies due to significant discoveries in Namibia’s portion. However, the basin extends into South African waters; hence, Shell’s interest. The oil major follows in the footseps of TotalEnergies, which acquired acreage in Block 3B/4B of the basin back in March. According to Jamie McGreevy of Welligence Energy Analytics, the basin offers potential for transformative discoveries for South Africa, especially in light of the huge discoveries in the Namibian part. However, environmental pressures, legal actions, and bureaucracy could hamper South Africa’s oil and gas sector ambitions.
SOURCE: BLOOMBERG