Abu Dhabi — Abu Dhabi National Oil Company (ADNOC) has started drilling wells at a shale oil project in partnership with U.S.-based EOG Resources, marking a major step in the UAE’s push into unconventional oil production. According to industry reports, ADNOC has already completed horizontal wells and begun initial oil output at a shale block in the country.
Ezra Yacob, CEO of EOG Resources, confirmed the project’s progress at a conference in New York this week. The company had earlier signaled plans to begin drilling in Abu Dhabi’s Al Dhafra region during the second half of 2025, but the timeline appears to have accelerated, underscoring the urgency of diversifying energy production.
EOG’s footprint in the Middle East continues to grow. In 2024, the U.S. shale producer signed an upstream gas exploration agreement with Bapco Energies, Bahrain’s state-owned energy company. Yacob revealed that gas flows have already been tested successfully from Bahrain’s onshore prospect, pointing to early momentum for that venture as well.
Meanwhile, ADNOC Drilling, the operator’s drilling subsidiary, has been strengthening its regional presence through acquisitions and contracts. In May, it agreed to purchase a 70% stake in Schlumberger’s land rig business in Kuwait and Oman, securing eight rigs under active contracts. That same month, ADNOC Offshore awarded ADNOC Drilling a contract for three island rigs to support expansion at the giant Zakum oilfield.
Earlier in April, ADNOC Offshore signed a five-year, $1.6 billion integrated drilling services contract with ADNOC Drilling, further boosting utilization of its growing fleet and diversifying revenue streams.
These moves have been reflected in financial results. For the first half of 2025, ADNOC Drilling’s net profit rose 21% year-on-year to $692 million, while revenue surged 30% to a record $2.4 billion. The company expects full-year 2025 revenue to reach $4.7–4.8 billion, with 2026 forecast at around $5 billion.
The shale partnership with EOG marks a strategic milestone for ADNOC as it taps into unconventional resources where U.S. producers hold deep expertise. Together with ADNOC Drilling’s aggressive expansion across the Gulf, these steps reinforce Abu Dhabi’s position as a central player in the global energy industry while ensuring steady growth for its state-owned enterprises.
