News Digest (www.upstreamonline.com)
Following a voluntary knowledge-sharing program conducted between August and October, the traditional leaders of seven kingdoms in South Africa's Eastern Cape province have formally endorsed Impact Oil & Gas's plans for offshore exploration. This support, articulated in a signed resolution, represents a significant shift and potential breakthrough for the exploration and production (E&P) sector, which has faced persistent legal and community opposition since 2021.
The resolution, signed by King Ndamase Ndlovuyezwe Ndamase on behalf of six other Kings and acting Kings, offers full backing for responsible offshore petroleum activities off the Wild Coast. This region includes the Transkei-Algoa block, where seismic work by Shell and Impact has been blocked by a 2022 court ruling. The Kings' support is intended to dispel the narrative that exploration occurs against local wishes, with the resolution stating it reflects widespread support among stakeholder groups. While acknowledging they do not speak for all citizens, their respected status makes their endorsement influential.
The voluntary knowledge-sharing program, held in 10 municipalities via town hall meetings (imbizos), was pivotal. It engaged Kings, chiefs, fisheries cooperatives, business associations, and grassroots communities. The program aimed to pre-empt legal challenges that have stalled other projects by proactively sharing information outside the formal Environmental and Social Impact Assessment (ESIA) process. Key lessons highlighted successful international models, notably Norway's coexistence of oil/gas and fishing industries, and Namibia's economic boom from recent discoveries. Discussions also revealed local surprise at South Africa importing gas from Mozambique despite domestic discoveries, and at the potential to produce fertilizer from gas to benefit Eastern Cape agriculture.
Nkosi Mavuso, Deputy Chairperson of the National House of Traditional & Khoi-San leaders, emphasized the program countered "propaganda" from anti-fossil fuel groups. He criticized the emotive language used by non-profits and expressed that, with proper mitigation, many now see "no danger" from seismic surveys. The Kings view the sea as a potential source of economic emancipation to stem migration to cities for jobs. Mavuso called for continued education and pledged to defend and protect companies like Impact to allow the oil business to flourish domestically.
Impact plans to proceed with a seismic survey in Area 2, south of the Transkei-Algoa block, in waters 60-275 km offshore. The survey size is not final, and operations cannot begin until the ESIA process, expected to take 12–18 months, is complete, including resolution of any challenges. Impact is also reviewing a recent August 2025 court ruling regarding Block 5/6/7 off the Western Cape, which required TotalEnergies and Shell to address issues like oil spill plans and climate impacts. This ruling, under appeal, will inform how Impact addresses similar findings within its own upcoming ESIA process. The company's commitment, as stated by CEO Siraj Ahmed, is to work collaboratively with communities to ensure activities are respectful, sustainable, and deliver lasting value.
11 December 2025
This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Iain Esau. All rights to the original text and images remain with their respective rights holders.