Abu Dhabi’s oil and gas sector is poised for significant advancements as EOG Resources and the Abu Dhabi National Oil Company (ADNOC) begin drilling operations at a shale play in the United Arab Emirates. During a recent conference, Ezra Yacob, chief executive of EOG Resources, announced that ADNOC has successfully drilled and tested oil at the site, suggesting promising potential for future development.
In May 2023, EOG Resources secured a new oil exploration concession for the Unconventional Onshore Block 3 (UCO3), covering nearly 900,000 acres in the oil-rich Al Dhafra region of Abu Dhabi. EOG holds complete equity and operatorship of the concession and will work alongside ADNOC to explore and appraise unconventional oil resources in the area.
EOG Resources indicated that after a three-year appraisal phase, there is potential for entering into a production concession, which would allow ADNOC the option to participate in the production phase. According to the company, drilling is expected to commence in the second half of 2025, with no alterations to the current capital plan for that year.
At the Barclays CEO Energy-Power Conference, Yacob elaborated on EOG’s commitment to developing shale resources not only in the UAE but also in Bahrain. In Bahrain, EOG Resources has entered a strategic exploration agreement with the national energy firm BAPCO. “We have captured abundant resources in both plays and partnered with companies that we have very strong stakeholder alignment with,” Yacob stated, highlighting the strategic collaborations in these ventures.
The interest in shale exploration is not limited to the UAE. Various countries with substantial untapped shale resources, including Canada, Argentina, Algeria, China, and Saudi Arabia, are seeking to harness their unconventional oil and gas potential, aiming to replicate the success seen in the United States. With EOG’s extensive knowledge and experience in shale development, the company could play a crucial role in positioning the UAE among the emerging shale producers in the coming years.
As the global energy landscape evolves, EOG Resources and ADNOC’s collaboration could significantly impact the region’s energy output and economic landscape, paving the way for future advancements in unconventional resource extraction.
