Houston, Texas and Manama, Bahrain – EOG Resources Inc., a leading U.S.-based oil and gas exploration and production company, is set to enter Bahrain's upstream sector through a strategic exploration collaboration with Bapco Energies, the state-owned integrated energy company of the Kingdom of Bahrain. The partnership aims to evaluate a promising gas exploration prospect within Bahrain, marking a significant step in EOG's international expansion strategy.
The collaboration, announced in a joint statement, will see the companies commence drilling operations later this year. While the specific location of the exploration prospect remains undisclosed, the venture underscores Bahrain's commitment to enhancing its natural gas resources and EOG's ambition to diversify its global asset portfolio.
"This commitment will advance the Kingdom’s National Energy Strategy through strategic partnerships and innovative technologies to develop natural resources that support Bahrain’s sustainable economic growth," stated Mark Thomas, Chief Executive of Bapco Energies. He emphasized the strategic importance of the collaboration in bolstering Bahrain's energy security and economic diversification efforts.
EOG Resources, headquartered in Houston, Texas, brings extensive expertise in unconventional resource development to the partnership. The company’s current production assets are primarily concentrated in the United States, notably in the prolific Delaware Basin, and Trinidad. The company also maintains an exploration permit offshore Western Australia, indicating its growing international ambitions.
The agreement is subject to customary government approvals, as confirmed by EOG Resources. The company's entry into Bahrain represents a strategic move to leverage its technical expertise and operational efficiency in a new and promising market.
EOG's Strong 2024 Performance and 2025 Outlook
EOG Resources reported robust operational and financial performance for the fourth quarter of 2024. The company's total production reached 1.1 million barrels of oil equivalent per day (MMboed), demonstrating consistent growth. This included 494,600 barrels per day (bpd) of oil and condensate, 2.09 million cubic feet per day (MMcfd) of natural gas, and 252,500 bpd of natural gas liquids (NGLs).
The company's U.S. operations contributed significantly to this output, with 493,500 bpd of oil and condensate and 1.84 MMcfd of natural gas. EOG's quarterly report highlighted a 20,000 boed increase in total production compared to the previous quarter.
Despite a slight decrease in crude oil prices, EOG's fourth-quarter revenue totaled $5.59 billion, driven by increased natural gas and NGL prices. The company generated $2.76 billion in net cash from operating activities and reported a net profit of $1.25 billion, or $2.23 per share.
EOG Resources delivered a record cash return to shareholders in 2024, distributing 98 percent of its $5.34 billion free cash flow. The company also increased its quarterly dividend to $0.975 per share, reflecting its commitment to shareholder value.
Looking ahead to 2025, EOG Resources anticipates production volumes between 1.1 MMboed and 1.14 MMboed, representing a notable increase from the 2024 average of 1.06 MMboed. The company plans to invest $6 billion to $6.4 billion in capital expenditures, focusing on strategic growth initiatives in the Delaware Basin, Utica, and Dorado plays, as well as international exploration projects in Trinidad and Bahrain.
"The disciplined capital program is anchored by steady year-over-year activity levels in the Delaware Basin, with a step-up in activity in the Utica and Dorado plays," EOG stated. "The plan delivers 3 percent oil volume growth and 6 percent total volume growth through the drilling and completion of 605 net wells across EOG's multi-basin portfolio of high-return inventory."
EOG's expansion into Bahrain underscores its strategic focus on identifying and developing high-quality, low-cost resources globally. The collaboration with Bapco Energies is poised to contribute to both companies' long-term growth and sustainability objectives, while also supporting Bahrain's energy security and economic development.
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