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.
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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.
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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.
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