EOG Resources Awarded Onshore Concession to Explore and Appraise Unconventional Shale Block in the UAE

Rhea-AI Summary

EOG Resources (EOG) has secured a significant exploration concession for Unconventional Onshore Block 3 (UCO3) from Abu Dhabi's Supreme Council for Financial and Economic Affairs. The concession covers 3,609 square kilometers (approximately 900,000 acres) in the Al Dhafra region's over-pressured, oil-prone basin.

EOG holds 100% equity and operatorship and will collaborate with Abu Dhabi National Oil Company (ADNOC) to explore and appraise unconventional oil resources. The agreement includes a three-year appraisal phase, after which EOG may enter a production concession where ADNOC has participation options. Drilling operations are expected to commence in H2 2025 without affecting EOG's 2025 capital plan.

Positive

• None.

Negative

• Three-year appraisal phase required before production rights
• ADNOC has option to participate in production phase, potentially reducing EOG's stake
• Success of unconventional oil exploration not guaranteed

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HOUSTON, May 16, 2025 /PRNewswire/ -- EOG Resources, Inc. (EOG) today announced that the company was awarded a new oil exploration concession for Unconventional Onshore Block 3 (UCO3) by Abu Dhabi's Supreme Council for Financial and Economic Affairs (SCFEA).

The UCO3 concession area is 3,609 square kilometers, or nearly 900,000 acres, in an over-pressured, oil prone basin within the Al Dhafra region of Abu Dhabi. EOG holds 100 percent equity and operatorship and, in coordination with Abu Dhabi National Oil Company (ADNOC), will explore and appraise unconventional oil in the concession area. Following a three year appraisal phase, EOG may enter into a production concession in which ADNOC has the option to participate. EOG currently expects to begin drilling in the second half of 2025 with no change to the company's 2025 capital plan.

"We are excited for the opportunity to evaluate this hydrocarbon rich basin for potential horizontal development," said Ezra Y. Yacob, Chairman and Chief Executive Officer of EOG. "We look forward to working alongside ADNOC to expand Abu Dhabi's resource potential."

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.

Investor Contacts
Pearce Hammond	713-571-4684
Neel Panchal	713-571-4884
Shelby O'Connor	713-571-4560
Media Contact
Kimberly Ehmer	713-571-4676

 

 

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SOURCE EOG Resources, Inc.

FAQ

What is the size of EOG Resources' new UAE concession block UCO3?

EOG's UCO3 concession block covers 3,609 square kilometers (approximately 900,000 acres) in the Al Dhafra region of Abu Dhabi.

When will EOG Resources begin drilling operations in the UAE's UCO3 block?

EOG Resources expects to begin drilling operations in the second half of 2025.

What is EOG's ownership stake in the UAE UCO3 concession?

EOG holds 100% equity and operatorship in the UCO3 concession during the exploration and appraisal phase.

How long is the appraisal phase for EOG's UAE concession?

The appraisal phase is three years, after which EOG may enter into a production concession where ADNOC has the option to participate.

Will the UAE concession affect EOG's 2025 capital plan?

No, EOG stated that the UAE concession will not change the company's 2025 capital plan.