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Market Chatter: Shell Loses Legal Battle With South African Activists Over Oil Exploration

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Shell (SHEL) has lost a five-year legal battle against environmental activists over a South African oil-exploration campaign, after the nation's highest court ruled against the energy major, Bloomberg reported on Friday.

The Constitutional Court decided that Shell will not be permitted to renew its exploration rights off South Africa's Wild Coast along the Indian Ocean. The ruling deals a blow to offshore oil prospecting in the region as environmental challenges mount, even as neighboring Namibia advances major crude discoveries just across the maritime border.

The court's decision is expected to further empower activists following a string of legal victories against offshore explorers. The litigation began in 2021 when local communities and environmental groups challenged a planned seismic survey by Shell and its local partner in an ecologically sensitive marine area frequented by whales.

Shell and TotalEnergies (TTE) are among several companies targeting South Africa's offshore basins for drilling. Shell did not immediately respond to' request for a comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $90.57, Change: $+1.43, Percent Change: +1.60%

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