The Wild Cost of Oil Exploration: Operation Shell

The report examines the legal and social conflicts surrounding Shell South Africa's attempt to conduct seismic surveys off the Wild Coast. It identifies critical gaps between the Mineral and Petroleum Resources Development Act (MPRDA) and the National Environmental Management Act (NEMA), arguing that the 'One Environmental System' created regulatory obscurity. Fieldwork reveals that Shell's consultation process was inadequate, relying on a top-down approach via traditional leaders while excluding fishing communities and ignoring indigenous customs. The document also highlights potential conflicts of interest between the ruling ANC party, its investment arm Thebe Investment Corporation, and Shell, noting that the Makhanda High Court ultimately ruled the exploration right unlawful due to a lack of meaningful consultation.

• The Makhanda High Court in the Eastern Cape ruled that the exploration right granted to Shell and Impact Africa was unlawful because the company failed to conduct meaningful consultation with interested and affected parties.
• There are significant legislative discrepancies between the Mineral and Petroleum Resources Development Act (MPRDA) and the National Environmental Management Act (NEMA), specifically regarding whether an approved Environmental Management Programme (EMPr) under the MPRDA constitutes a full environmental authorisation under NEMA.
• The 'One Environmental System' (OES) introduced in 2008 created a weak governance arrangement by transferring full responsibility for granting and enforcing environmental authorisations to the Department of Mineral Resources and Energy (DMRE), whose primary mandate is to promote mining.
• Shell's consultation process was flawed and negligent, as it relied on a top-down approach by consulting only traditional leaders and ignoring the multi-level decision-making structures of indigenous customary law.
• Practical barriers hindered community participation in Shell's consultation process, including ineffective notification procedures and the placement of meetings in Lusikisiki, which was approximately 324 kilometres and a 5-hour drive from the Umgungudlovu community.
• Potential conflicts of interest exist between the South African government and Shell, evidenced by the ANC's investment arm, Thebe Investment Corporation, acting as Shell's local empowerment partner and the Batho Batho Trust donating R15 million to the ANC during the 2021 protests.

APA

Good Governance Africa (2023). The Wild Cost of Oil Exploration: Operation Shell. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/09/Wild-Cost-of-Oil-Exploration-Report.pdf

Chicago

Good Governance Africa. The Wild Cost of Oil Exploration: Operation Shell. 2023. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/09/Wild-Cost-of-Oil-Exploration-Report.pdf.

Wikipedia

{{cite report |author=Good Governance Africa |title=The Wild Cost of Oil Exploration: Operation Shell |date=September 2023 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/09/Wild-Cost-of-Oil-Exploration-Report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{goodgovernanceafrica2023wild, author = {{Good Governance Africa}}, title = {{The Wild Cost of Oil Exploration: Operation Shell}}, institution = {Good Governance Africa}, year = {2023}, month = sep, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/09/Wild-Cost-of-Oil-Exploration-Report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }