Oil firms overlook risks in scramble for Africa

International oil firms have been scrambling for Africa in recent years, but in their hunger for reserves they may be taking greater risks than they realize, raising the prospect of a rush for the door in the future.

A record 106 oil and gas exploration licenses were awarded in Sub-Saharan Africa in 2006, and the figure could be surpassed in 2007, international energy consultants Wood Mackenzie said in an annual review of the African oil industry.

The tens of billions of dollars flowing into the continent’s oil industry partly reflects a global surge in exploration prompted by high oil prices.

Reuters