The waters off South Africa’s west coast hold immense economic promise. The country’s majority share of the Orange Basin is estimated to contain roughly 30 billion barrels of potential oil resources. Just across the border in Namibia, where the geology is similar, streamlined exploration processes have enabled the drilling of over 20 successful wells since 2022. In contrast, South Africa has drilled exactly zero wells in the same period.
Why the stark disparity? While foreign funded environmental NGOs have played a role successfully halting projects worth over USD 1.6 billion and prompting major players like TotalEnergies to abandon promising ventures focusing solely on blame overlooks the root causes. To unlock its resources and avoid repeated delays, South Africa must implement clear legislation, strengthen community engagement, and strike a workable balance between environmental responsibility and economic growth.
Fortifying Frameworks
Since 2021, NGO led litigation has stalled or delayed five upstream oil and gas projects across South Africa. Plaintiffs have successfully argued that companies such as TotalEnergies and Shell did not adequately consult local communities or provide comprehensive environmental impact assessments (EIAs). In some cases, courts have demanded additional emissions projections for potential commercial operations, further complicating the permitting process.
Emmanuelle Garinet, TotalEnergies’ Vice President for Africa Exploration, described the process as “unacceptable,” noting that securing a permit can take three to four years. Echoing this, Eco Atlantic CEO Gil Holzman warned, “If you’re unable to explore, develop, and produce, the money goes elsewhere.” The combination of protracted legal challenges and a vulnerable permitting framework has created a climate of uncertainty, deterring investors and escalating costs for operators.
To counter this, the South African government must introduce legislation establishing clear, enforceable standards for EIAs and community consultations. By doing so, environmental concerns would be addressed early, while limiting the ability of legal challenges to stall projects indefinitely.
Empowering Local Communities
Equally important is proactive community engagement. Historically, consultations were superficial, fueling distrust and empowering NGOs to challenge projects in court. Since 2020, NGOs have become increasingly adept at leveraging regulations to demand more thorough consultations and EIAs, improving accountability but slowing exploration.
A proactive approach such as the Petroleum Agency SA’s community awareness campaigns can educate local populations and involve them early in the EIA process, balancing environmental concerns with the economic benefits of energy development. International examples demonstrate the potential impact: TotalEnergies’ GranMorgu deepwater project in Suriname is projected to create 6,000 local jobs and contribute USD 1 billion to the economy, achieved through ongoing stakeholder engagement and grievance mechanisms.
In South Africa, similar projects could transform regions like Mossel Bay, creating employment, boosting government revenues, and promoting sustainable development. The recently announced lift of the shale gas moratorium, with updated regulations addressing prior environmental concerns, offers a blueprint for how inclusive frameworks can mitigate opposition and enable progress.
Government Advocacy and Institutional Support
Government support is critical. Minister of Mineral and Petroleum Resources Gwede Mantashe has advocated for oil and gas development as a “growth trigger” for the economy, with the shale gas moratorium lift signaling renewed momentum. Tseliso Maqubela, Deputy Director General at the Department of Minerals and Petroleum Resources, acknowledged the government’s past shortcomings in technical consultation, while the South African National Petroleum Company (SANPC) under Godfrey Moagi could play a pivotal role in bridging gaps between regulators, investors, and communities.
A Coordinated Path Forward
Legislation, community engagement, and government advocacy must work together to create a resilient, investor friendly environment. Clear rules with defined timelines, transparent consultations, and safeguards against “abuse of law” will allow South Africa to protect the environment while attracting the investment needed to develop the Orange Basin.
By learning from Namibia, Suriname, and Guyana where regulatory clarity, stakeholder engagement, and streamlined processes have driven billions in investment, South Africa can position itself as a competitive and sustainable oil and gas destination. Without decisive action, however, the country risks leaving its vast resources untapped and losing investors to neighboring nations.
The time for half measures and finger pointing is over. Policymakers must act now to secure South Africa’s energy future and unlock the transformative potential of the Orange Basin.


