Abu Dhabi — Abu Dhabi National Oil Company (ADNOC) has started drilling at a shale oil project in partnership with U.S.-based EOG Resources, marking the UAE’s entry into unconventional oil production. According to reports, ADNOC has already drilled horizontal wells and begun producing oil from a shale block, with EOG Resources CEO Ezra Yacob confirming progress during a New York energy conference this week.
EOG, which operates the block in Abu Dhabi’s Al Dhafra region, had previously planned to commence drilling in the second half of 2025. The early start highlights faster-than-expected execution and represents a significant milestone for ADNOC as it diversifies beyond conventional oil. Shale production is typically more complex and costly, making EOG’s expertise in the field critical to the project’s success.
The move also comes as EOG expands across the Middle East. In 2024, the U.S. company signed a gas exploration agreement with Bapco Energies in Bahrain, where early tests have already shown promising gas flows.
Meanwhile, ADNOC Drilling, the ADNOC unit overseeing drilling operations, continues to scale up aggressively. In May, it acquired a 70% stake in Schlumberger’s land drilling business in Kuwait and Oman, adding eight rigs already under contract. The same month, ADNOC Offshore awarded it contracts for three island rigs to support development at the massive Zakum oilfield. Earlier in April, ADNOC Drilling secured a five-year, $1.6 billion integrated drilling services contract aimed at boosting fleet utilization and long-term growth.
These contracts have fueled record results: in the first half of 2025, ADNOC Drilling reported a 21% profit increase to $692 million, while revenue surged 30% to $2.4 billion. Full-year revenue is forecast at $4.7–4.8 billion, with 2026 expected to reach about $5 billion.
The shale project with EOG underlines ADNOC’s broader strategy: expanding output, leveraging international expertise, and strengthening the UAE’s position at the center of global energy markets. With unconventional oil now part of its portfolio, ADNOC is positioning itself as a more diversified and competitive player in a rapidly shifting energy landscape.
