US operator EOG Resources has been awarded a new onshore oil exploration concession in the UAE by Abu Dhabi’s Supreme Council for Financial and Economic Affairs, the company said on Friday.
EOG said it has been allowed to appraise Unconventional Onshore Block 3 (UCO3) “in an over-pressured, oil prone basin” in Abu Dhabi’s Al Dhafra region. The area encompasses 3609 square kilometres, or nearly 900,000 acres.
EOG will hold a 100% interest in the block and will be the operator, but it will coordinate with Abu Dhabi National Oil Company (Adnoc) to explore and appraise unconventional oil in the concession, according to an EOG news release.
EOG expects to begin drilling in the concession in the second half of 2025.
After a planned three-year appraisal phase, EOG may enter into a production concession with the UAE for the block if it finds commercial hydrocarbons. Adnoc will have an option to participate in that production agreement.
“We are excited for the opportunity to evaluate this hydrocarbon-rich basin for potential horizontal development,” EOG chief executive, Ezra Yacob, said in a statement.
“We look forward to working alongside Adnoc to expand Abu Dhabi's resource potential.”