Uncertainty hovers over South African drilling ops, as oil push hinges on appeals outcome

May 14, 2026, by Melisa Cavcic

While a specialist panel is being set up to review appeals, clouds still obscure the exact timing of hydrocarbon exploration activities, which are poised to begin once an environmental go-ahead is in hand, enabling the first well to be spud at an offshore block in South Africa’s Orange Basin.

The Department of Mineral Resources and Energy for the Republic of South Africa granted an environmental authorization on September 16, 2024, for exploration activities on Block 3B/4B in the Orange Basin, covering up to five exploration wells.

However, the legislative notification and appeals process in the country was suspended pending a Supreme Court of Appeal judgment in respect of Block 5/6/7, held by TotalEnergies and Shell, which set in motion an application for leave to appeal the decision.

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Meren Energy, formerly Africa Oil, explained that the suspension was lifted in March 2026. As a result, a specialist panel is being appointed to review the environmental authorization appeals process and make a recommendation to the Minister. Despite the progress made so far, the timing of this review process remains uncertain.

TotalEnergies and QatarEnergy acquired participating interests in Block 3B/4B, with the former taking over the operatorship from Africa Oil at the end of August 2024. The deal was completed six months after it was initially announced.

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The operator has stated that the current plan is to drill the first exploration well on Block 3B/4B as soon as the environmental authorization is confirmed. The block is located between 120 and 250 kilometers off the coast of western South Africa.

The firm has identified the Nayla prospect in the northwest of the license area as the potential drilling target. Encompassing an area of 17,581 square kilometers, Block 3B/4B lies in water depths ranging from 300 to 2,500 meters.

This block in the Orange Basin is located directly south of the multi-billion-barrel discoveries offshore Namibia, which were made by Shell (Graff and Jonker) and TotalEnergies (Venus).