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UAE Shilaif Shale Shows Strong Output At First Two Wells, Wood Mackenzie Says

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The United Arab Emirates' Shilaif unconventional oil play has received an early boost after the first two wells each produced more than 25,000 barrels in their first 30 days, although further drilling is needed to determine whether the formation can support commercial development at scale, Wood Mackenzie analysts said in a note on Thursday.

The wells, drilled by US producer EOG Resources, each used one-mile horizontal sections and are currently flowing naturally before transitioning to artificial lift, Wood Mackenzie analysis said.

The results have put Shilaif among the emerging unconventional plays attracting international oil companies as exploration increasingly expands beyond North America.

Adnoc has estimated up to 22 billion barrels of technically recoverable unconventional oil in the Upper Cretaceous Shilaif Formation. Unlike some other unconventional resources in the region, the formation is primarily oil-bearing.

EOG was awarded the 900,000-acre UC03 concession in May 2025, its first UAE license. The company has extensive US shale experience and has pursued unconventional opportunities in Oman, Indonesia, and Bahrain.

The initial production is notable because the wells used relatively short laterals by US shale standards. Two-mile-or-longer laterals are common in major US plays such as the Permian and Eagle Ford. On a production-per-foot basis, the Shilaif wells therefore compare favorably with some US liquids-rich acreage, Wood Mackenzie analysts said.

The reservoir is understood to resemble the liquids-rich portion of the Eagle Ford, where EOG is a major producer.

However, two wells are insufficient to establish the size or economics of the broader resource. Both were drilled in the same area and landing zone, leaving questions about reservoir continuity, decline rates, well spacing, and estimated ultimate recoveries.

Petronas and a consortium of Bharat Petroleum and Indian Oil are also drilling nearby, which could provide additional data.

The UAE has committed about $145 billion in real 2026 terms to domestic upstream investment through 2030 and is targeting production capacity of 5 million barrels per day by 2027.

If subsequent drilling confirms the initial results and demonstrates economic recovery across a wider area, Shilaif could eventually contribute to those production ambitions, the analysts said.

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