- Shell has acquired a stake in South Africa’s portion of the Orange Basin, which extends into Namibia.
- The transaction still requires approval from the Petroleum Agency South Africa (PASA), the oil and gas regulator.
Anglo-Dutch energy major Shell has acquired a stake in South Africa’s portion of the Orange Basin, which extends into Namibia and has yielded several oil finds in recent years, after some of its exploration activities in the country were suspended.
International media reported on Monday that Shell bought a 60 per cent interest in Block 2C. The transaction, which also involves state-owned PetroSA, includes a 25-million-dollar signature bonus paid by Shell.
Under the agreement, Shell will also fund the planned work programme on the block. Documents cited by international outlets indicate this includes drilling three exploration wells at an estimated cost of 135 million to 150 million dollars.
The deal marks another step in Shell’s exploration plans. In July 2025, the company secured rights to drill five wells in the Northern Cape Ultra Deep area, also within the Orange Basin. The PetroSA deal comes as Shell’s activities in Block 5/6/7 remain suspended under a court order the company is challenging.
The transaction still requires approval from the Petroleum Agency South Africa (PASA), the oil and gas regulator. Media reports say PASA has not yet received the formal application for the transfer of interest.
The outcome is uncertain, as Shell, like several other oil majors, operates in a legal landscape shaped by ongoing disputes. These include the 2022 suspension of a seismic survey by the Makhanda High Court. Although the Supreme Court of Appeal issued a partly favourable ruling in 2024, the case remains before the Constitutional Court.