EOG Goes Desert Wildcatting in UAE Shale Play

Julianne Geiger, a seasoned editor, writer, and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group, reported on May 16, 2025, at 3:35 PM CDT that EOG Resources has acquired a new onshore shale block in Abu Dhabi, adding to its existing interests in the Permian Basin. The U.S. shale giant has gained full operatorship of Unconventional Onshore Block 3 (UCO3), spanning nearly 900,000 acres of oil-rich rock in the Al Dhafra region, a key oil basin globally.

The block is located in a basin with high pressure, indicating significant potential for oil production if managed correctly. EOG is eager to begin drilling in the second half of 2025, with plans proceeding as scheduled despite the new acquisition. ADNOC, the national oil company of the UAE, will support EOG during the exploration phase and may become a partner if the project proves lucrative.

This development follows President Trump’s recent visit to the Gulf, during which the U.S. and UAE committed to substantial energy investments totaling $440 billion by 2035. While EOG’s venture is not directly linked to this initiative, its timing aligns with the spirit of cooperation and confidence in shale development.

EOG’s CEO, Ezra Yacob, expressed enthusiasm for the horizontal development potential of the basin, hinting at the possibility of a significant oil discovery akin to the Permian Basin. Despite uncertainties about replicating success in a foreign market, EOG’s expansion into the UAE indicates a deepening relationship between the U.S. and Gulf nations, encompassing AI technologies, hydrogen projects, and now shale exploration.

In its recent financial report, EOG Resources disclosed strong Q1 adjusted net income of $1.6 billion, generating $1.3 billion in free cash flow.

Written by Julianne Geiger for Oilprice.com.