Shell to appeal South African court ruling blocking offshore exploration

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Shell (NYSE:SHEL [https://seekingalpha.com/symbol/SHEL]) said Wednesday it will appeal [https://www.bloomberg.com/news/articles/2025-10-22/shell-appeals-south-african-court-ruling-halting-exploration] a court decision that overturned the environmental permit to explore for oil in the 5/6/7 block off the west coast of South Africa.

The company is challenging, alongside the South African government, a decision by the Western Cape High Court to set aside the environmental impact assessment for the exploration block, escalating a battle between explorers and environmental groups in the country.

"The High Court judgment misinterprets the National Environmental Management Act, imposes practical and operational constraints outside of the Act and incorrectly expands the scope by conflating exploration with production," Shell (NYSE:SHEL [https://seekingalpha.com/symbol/SHEL]) said.

South Africa estimates as much as $1.6 billion of investments have been stopped by legal challenges from non-governmental organizations, Minister of Mineral Resources and Petroleum Gwede Mantashe told parliament last month.

The appeal was heard on October 16 and a judgment is expected in the next few weeks.

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