Inside the High-Stakes ADNOC–EOG Shale Experiment

ADNOC and EOG advance UAE shale testing, signaling emerging potential as stakeholders monitor early results for future investment decisions

15 Sep 2025

ADNOC and US-based EOG Resources are moving ahead with appraisal work on what could become the UAE’s first commercially viable shale development, marking a rare push into unconventional production in the Gulf.

Initial horizontal wells have brought oil to the surface from a shale formation, giving early support to the testing programme. But the partners said the work remained at an early stage, with commercial viability still unproven.

EOG has indicated the appraisal phase could run for as long as three years. A production decision, along with potential deeper involvement from ADNOC, would come only after that period, highlighting the long lead time before any development moves forward.

The partnership combines ADNOC’s large resource position with EOG’s experience in US shale fields. The effort will test whether techniques used in North America can be applied under the UAE’s different geological and environmental conditions. Analysts note that shale projects outside the US have struggled to match American output because of variations in rock quality, climate and operating costs.

Industry reaction has been mixed. One regional adviser said the UAE was entering “territory once considered unlikely”, pointing to how early well performance had shifted expectations. Others cautioned that technical and cost hurdles remain, including complex subsurface structures, water use requirements and the high expense of early-stage drilling.

Supply chain constraints could also slow progress. Unconventional development depends on specialised equipment, pressure-pumping fleets and advanced monitoring systems, many of which are still in limited supply in the region. Analysts said this explained why other Gulf producers were watching the UAE’s programme rather than accelerating their own.

A successful shale project could widen the UAE’s energy mix, attract international service companies and offer a model for neighbouring producers considering whether unconventional reserves merit more detailed study. But any broader shift would depend on sustained appraisal results and clarity on long-term economics.

For now, the initiative marks the start of a new phase for the country’s energy sector. While shale output is unlikely to displace conventional production, it could become a complementary source if testing continues to advance.