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EOG Resources Advances Shale Project With ADNOC in the Middle East

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Key Takeaways

  • EOG Resources says its shale project with ADNOC in the UAE is advancing on track.
  • ADNOC is drilling horizontal wells and testing oil flow from a shale formation in the UAE.
  • EOG has also partnered with Bapco Energies for shale gas exploration in Bahrain.

EOG Resources (EOG - Free Report) , a U.S.-based exploration and production firm, stated that its shale project with Abu Dhabi National Oil Company (“ADNOC”) is advancing in line with the schedule, without any delays. ADNOC is currently drilling horizontal wells and performing well tests to assess oil flow to the surface from the shale formation in the United Arab Emirates.

EOG Resources and ADNOC jointly operate the shale block in the UAE. Earlier this year, EOG Resources entered into a partnership with Bapco Energies, Bahrain’s state-owned energy firm, for a gas exploration opportunity in the country. Bapco Energies has drilled horizontal wells to check gas flow to the surface from the shale gas reserves in Bahrain. EOG intends to begin exploratory drilling in the Al Dhafra region in the second half of the year.

The company is tapping into opportunities within the upstream sector in the UAE and Bahrain to develop shale oil and gas resources. These initiatives indicate that EOG is expanding its upstream portfolio in the Middle East. The company also mentioned that it has collaborated with clearly aligned partners in Bahrain and the UAE.

EOG’s Zacks Rank & Key Picks

Currently, EOG carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Repsol S.A. (REPYY - Free Report) , Antero Midstream Corporation (AM - Free Report) and Galp Energia (GLPEY - Free Report) . While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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