Shell to Appeal South African Court Ruling Blocking Exploration

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Shell has applied to gain the right to appeal against the decision of a South African court to block exploration in the offshore block 5/6/7, a Shell spokesperson said on Wednesday.

"Shell has filed an application for leave to appeal alongside the Government in relation to the Western Cape High Court’s judgment on Block 5/6/7," Shell said.

"Shell is of the view that 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."

Oil companies are aiming to drill off South Africa's west coast, where the so-called Orange Basin extends from Namibia southwards into South African waters.

Environmental pressures, including a number of court actions to halt drilling, and bureaucracy have stymied South Africa's ambitions to develop its oil and gas potential.

A court order in August set aside a previous environmental authorisation to explore for oil and gas in Block 5/6/7.

Shell's application to appeal was reported by Bloomberg earlier on Wednesday.

(Reuters - Reporting by Shadia Nasralla. Editing by Jane Merriman)