ADNOC today announced several agreements with major United States (U.S.) energy companies during the United Arab Emirates (UAE)-U.S. business dialogue with U.S. President Donald J. Trump.
These agreements have the potential to facilitate $60 billion in U.S. investments in UAE energy projects throughout their duration.
Among the agreements is a landmark field development plan with ExxonMobil and INPEX/JODCO aimed at expanding the capacity of Abu Dhabi’s Upper Zakum offshore field through a phased approach.
In addition, ADNOC signed a strategic collaboration agreement with Occidental to explore increasing the production capacity of the Shah Gas field to 1.85 billion standard cubic feet per day (bscfd) of natural gas, up from 1.45 bscfd, while also accelerating the deployment of advanced technologies in the field.
Commitment to global energy security
These agreements reinforce the mutual commitment of the UAE and U.S. to uphold global energy security and ensure stability in energy markets. The enterprise value of UAE energy investments in the U.S. is projected to reach $440 billion by 2035, as part of the UAE’s comprehensive $1.4 trillion investment plan in the country.
Dr. Sultan Al Jaber, UAE minister of Industry and Advanced Technology, ADNOC managing director, and group CEO, stated, “The deep-rooted bilateral relationship between the UAE and the U.S. is underpinned by our shared commitment to enabling energy abundance and we are reinforcing this commitment through these agreements with U.S. energy majors. We see significant opportunities for further UAE-U.S.partnerships across the energy-AI nexus and we look forward to working with our American partners to unlock long-term sustainable value and drive socioeconomic progress.”
The U.S. is a top priority market for XRG, ADNOC’s global energy investment company, which is poised to enhance investments across the American energy value chain, focusing on expanding gas, LNG, specialty chemicals, and energy infrastructure.
Building on its ambitious investment strategy for the U.S., XRG signed a framework agreement with Occidental subsidiary 1PointFive to assess a potential investment in a direct air capture (DAC) project located in Kleberg County, Texas. This facility aims to remove up to 500,000 tons of CO₂ annually using commercial-scale DAC technology, with XRG considering a capital commitment of up to one-third of the project’s total development costs.
Read more: UAE to raise U.S. energy investments to $440 billion by 2035, says Al Jaber
New exploration concession for EOG resources
Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) has also awarded a new unconventional oil exploration concession to EOG Resources Inc. (EOG), a leading U.S.-based hydrocarbon exploration and production company. The award for Unconventional Onshore Block 3, which encompasses a 3,609 square kilometer area within the Al Dhafra region of Abu Dhabi, marks the first such award to a U.S. company and underscores the appeal of Abu Dhabi’s energy sector as a trusted investment destination. ADNOC will further oversee and support exploration activities within the concession and has the option to participate in a future production concession.
Additionally, the phased field development plan for Upper Zakum will utilize AI and industry-leading technologies alongside the deep expertise and robust partnership between ADNOC, ExxonMobil, and INPEX/JODCO to sustainably increase production capacity and meet rising global demand with industry-leading low-carbon intensity barrels. Upper Zakum is part of the Zakum field, which is the second largest offshore field in the world.
Moreover, This plan will enhance Upper Zakum’s infrastructure by incorporating AI-enabled remote operations, utilizing power from the UAE’s clean energy grid to reduce emissions, and employing artificial islands for drilling activities to improve environmental protection. The Upper Zakum field is situated 84 kilometers northwest of Abu Dhabi.
The Shah Gas field, one of the largest of its kind globally, is located 180 kilometers southwest of Abu Dhabi. The potential expansion of this facility will provide additional gas for domestic industrial growth as well as liquefied natural gas (LNG) for export.
