Africa is entering the oil-hunt spotlight as drillers, flush with cash after crude’s recovery, are turning their attention back to the continent’s potentially vast resources.

The world’s biggest companies from Exxon Mobil Corp. to Royal Dutch Shell Plc and BP Plc are setting up camp across Africa. Armed with stronger balance sheets and higher crude prices the industry is on track to double drilling in African waters this year. Rising natural gas demand is adding to the attraction.

There are plenty of signs of a recovery. Rigs working in waters off Africa have increased to the highest in two years, according to Baker Hughes data. Consultant Rystad Energy AS expects 30 offshore exploration wells to be drilled this year compared with 17 last year. Acquisitions along the west coast, have also accelerated.

Exploration wells in African waters are forecast to increase this year after three years of declines. Oil has since recovered, trading above $77 on Wednesday, making exploration attractive again. Exploration budgets are one of the first to be cut by companies during downturns. But when prices steady, unlocking new reservoirs becomes paramount as they secure future output.

Source: Bloomberg