ADNOC Starts Drilling at EOG’s Shale Project in UAE: Report
Abu Dhabi National Oil Company (ADNOC) has started drilling wells at a shale oil project it is running with U.S.-based EOG Resources. According to reports, ADNOC has already drilled horizontal wells and begun producing oil from a shale block in the UAE. EOG Resources’ CEO, Ezra Yacob, confirmed the progress during a conference in New York this week.
EOG’s plans in the UAE and beyond
EOG, which operates the shale block, had earlier announced plans to start drilling in Abu Dhabi’s Al Dhafra region in the second half of 2025. However, reports suggest that the project has moved faster than expected. This marks an important step for ADNOC and EOG in developing shale resources, which are usually more complex and costly to extract than conventional oil.
EOG is also expanding its presence in the Middle East. Earlier in 2024, the company entered Bahrain’s upstream sector by signing a gas exploration agreement with Bapco Energies, Bahrain’s state-owned energy firm. Yacob said that Bapco has already tested gas flows from its onshore prospect, signaling early success in that partnership as well.
ADNOC Drilling’s recent moves
ADNOC Drilling, the unit responsible for ADNOC’s drilling operations, has been active in securing new deals and expanding its fleet. In May, it signed an agreement to buy a 70% stake in Schlumberger’s land drilling rigs business in Kuwait and Oman. The deal includes eight land rigs, which are already working under contracts with the national oil companies of both countries.
Also in May, ADNOC Offshore awarded ADNOC Drilling a contract to provide three island rigs. These rigs will support ADNOC’s ongoing expansion at the massive Zakum oilfield, located offshore Abu Dhabi. The move highlights ADNOC’s strategy of relying on its in-house drilling company to support growth projects.
Earlier, in April, ADNOC announced another major deal. ADNOC Offshore awarded ADNOC Drilling a five-year, $1.6 billion integrated drilling services contract. The aim is to improve the use of its drilling fleet, diversify income sources, and ensure long-term growth for the business.
Strong financial results
ADNOC Drilling has also reported strong financial performance this year. In the first half of 2025, the company’s net profit jumped 21% from the year before, reaching $692 million. Revenue rose 30% to a record $2.4 billion, reflecting higher activity levels and new contracts.
Looking ahead, ADNOC Drilling expects revenue for the full year 2025 to be between $4.7 billion and $4.8 billion. For 2026, revenue is forecast to reach around $5 billion. These numbers underline ADNOC Drilling’s rapid growth as it takes on more regional and international projects.
Big picture
The shale project with EOG Resources marks another milestone in ADNOC’s efforts to expand into unconventional oil production, an area where U.S. companies like EOG have deep expertise. At the same time, ADNOC Drilling is broadening its footprint across the Gulf region and strengthening its role within ADNOC’s wider operations.
Together, these steps show how ADNOC is working to increase output, expand partnerships, and boost profitability, keeping the UAE at the center of the global energy industry.
Published: 4th September 2025
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