Abu Dhabi awarded EOG Resources a concession to develop unconventional oil in the Al Dhafra region of Abu Dhabi. (Source: Shutterstock.com)
Abu Dhabi has awarded EOG Resources a concession to develop unconventional oil in the Al Dhafra region of Abu Dhabi.
The new exploration concession covers Unconventional Onshore Block 3 (UCO3) and was awarded by Abu Dhabi's Supreme Council for Financial and Economic Affairs (SCFEA).
The concession area includes approximately 900,000 acres in an “over-pressured, oil prone basin within the Al Dhafra region of Abu Dhabi,” EOG said in a May 16 announcement. EOG holds 100% equity and operatorship of the asset.
EOG will explore for unconventional oil in the area in coordination with Abu Dhabi National Oil Co. (ADNOC).
“We are excited for the opportunity to evaluate this hydrocarbon rich basin for potential horizontal development,” said EOG Chairman and CEO Ezra Yacob. “We look forward to working alongside ADNOC to expand Abu Dhabi's resource potential.”
EOG may enter a production concession following a three-year appraisal period. ADNOC has the option to participate in a future production joint venture (JV).
The company plans to begin drilling operations in the second half of 2025, “with no change to the company’s 2025 capital plan,” EOG said.
To date, most oil production activity has centered around the Haliba field, in southeast Abu Dhabi near the Omani border, according to Wood Mackenzie.
The move is a significant expansion of EOG’s international exploration. In February, the U.S. wildcatter announced a deal to develop onshore tight-gas sandstone in Bahrain. EOG will be the operator in a JV with Bahrain’s Bapco Energies.
EOG plans to begin drilling in Bahrain in the second half of 2025, the company said in its first-quarter earnings.
In addition to the U.S., EOG operates abroad in Trinidad and Tobago, Canada and Australia.
Other U.S. producers are signing deals to explore internationally. Continental Resources signed a JV to explore unconventional oil and gas resources in Turkey’s Diyarbakir and Thrace basins.
The JV includes Türkiye Petroleum and TransAtlantic Petroleum. TransAtlantic has operated in Turkey for more than 17 years.
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