Gulf Region Embracing Unconventional Oil and Gas Production

The Gulf region's oil and gas industries are embracing unconventional production techniques, following in the footsteps of the US shale revolution. Oman was the first to adopt this approach, with BP's Khazzan gas project producing 1.5 billion cubic feet of gas daily since 2017. The tight reservoirs in Khazzan require hydraulic fracturing to allow gas to flow at commercial rates.

The UAE and Saudi Arabia are now catching up, with Saudi Arabia starting production from the Jafurah accumulation in December and aiming for 2 billion cubic feet of gas per day by 2030. This is essential for weaning the kingdom's power generation sector off oil. The Jurassic-aged Jafurah formation yields valuable petroleum liquids along with gas.

The US shale specialist EOG, which has been one of the most successful players in the US shale revolution, has entered Abu Dhabi's Unconventional Onshore Block 3 and reported excellent production results from its first two lateral wells. Adnoc estimates it has more than 220 billion barrels of unconventional oil resources and 460 trillion cubic feet of gas.