Eni, Sasol drilling offshore South Africa faces lawsuit

An oil and gas drilling campaign off South Africa's east coast planned by Itay's Eni and South African energy firm Sasol is being challenged in court by a group of non-governmental organisations (NGOs).

The firms plan to drill up to six exploration and appraisal wells at depths of between 1,500m and 3,000m in block ER236, offshore the Kwa-Zulu Natal coast between East London and St Lucia. The exploration area comprises more than 4,600km² and at its closest point is 63km from the shore.

The South Durban Community Environmental Alliance (SDCEA), supported by Natural Justice and Green Connection, filed a review application in the Pretoria High Court last week challenging the Department of Forestry, Fisheries and the Environment's (DFFE) authorisation of the planned exploration.

The SDCEA's application challenges the DFFE's failure to properly regard the project's impacts on key biodiversity areas and the deep sea environment.

The planned drilling sites are located near areas deemed "protection worthy," including marine protected areas, critical biodiversity areas and ecologically and biologically significant areas.

The campaign could harm coral reefs, as well as bird, fish and whale species like the humpback and southern right whales. It could also disrupt the "sardine run," an important ecological process and contributor to the east coast's economy and its communities.

The SDCEA also points out the DFFE failed to consider the significant greenhouse gas (GHG) emissions and climate change impacts that would result if the exploration leads to commercial oil and/or gas exploitation as intended.

Furthermore, any new oil and gas usage undermines South Africa's climate change commitments, including to the Paris climate agreement's target of limiting global warming to 1.5°C. Hence no new oil and gas drilling should be authorised, it argues.

The International Energy Agency (IEA) recently released a report saying that no new oil and gas projects are needed, Green Connection's strategic lead, Liziwe McDaid, said. Green Connection works to empower small-scale fishing communities and protect South Africa's seas.

The SDCEA further cites environmental acts that are intended to preserve and protect coastal public property, ocean resources and biodiversity for present and future generations.

The DFFE is required by law to take the interests of people and marine organisms into account and yet it did not consider the project's impact on ocean resources, it said.

The project would not bring any benefits to the public at large — instead its impacts on marine life and coastal communities could be hugely detrimental, SDCEA said.

Total's discovery of gas condensate in 2019 at the Brulpadda well in block 11B/12B in the Outeniqua Basin off South Africa's southern coast sparked renewed interest in the country's exploration sector as it indicated potential resources of 1bn bl of oil equivalent. Its subsequent discovery at the Luiperd well also showed the potential for high condensate yield.

A draft upstream petroleum development bill that will secure the state a 20pc stake in exploration and production projects has been tabled to the South African parliament. Its adoption will provide investors with greater legislative certainty, which could provide further impetus for Total's offshore drilling programme.

By Elaine Mills