Question NW2626 to the Minister of Mineral Resources and Energy

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28 December 2021 - NW2626

Profile picture: Madokwe, Ms P

Madokwe, Ms P to ask the Minister of Mineral Resources and Energy

Whether, following the community protests against the exploration of the Wild Coast by Shell, the allegations that his department granted Shell the authorisation to proceed despite scientific warnings that such an exploration would affect marine life in the area and the call for the move towards green energy, his department will consider reviewing its decision and put measures in place to protect our environment instead; if not, why not; if so, what are the relevant details?

Reply:

It is worth noting that the development of the upstream oil and gas industry is part of South Africa’s

economic recovery strategy. Indigenous production of oil and gas will support the country’s energy

security and provide an opportunity for local beneficiation of oil and gas. The IRP2019 has a large

renewable energy build programme which needs to be supported by gas-to-power to ensure stability of

the electricity grid. It would therefore be an added benefit to the economy if the gas to be used in the gas-

to-power programme is indigenous gas.

Having said the above, the decision made by the Department to grant the exploration right and approve

the Environmental Management Programme was based on the following:

1. The application for the exploration right and the development of the Environmental Management

fulfilled the prescribed regulatory framework i.e. Mineral and Petroleum Resources Development

Act, 2002 and its Regulations.

2. The potential impacts associated with the proposed exploration activities on marine life were

identified and assessed. The Department’s evaluation was that the proposed exploration

activities would not cause detrimental impact on the environment as the majority of the potential

impacts were assessed to have very low significance when taking into consideration the

implementation of the mitigation measures.

3. The measures to prevent and minimise impact on the environment and marine life were also

deemed suitable to manage potential environmental impacts.

The Department therefore does not find it necessary to review its decision to allow Shell to undertake the

3D seismic survey as part of its exploration right.