Abu Dhabi National Oil Company (ADNOC), based in the UAE, has reinforced its energy partnerships with major American energy firms through agreements aimed at enhancing oil and gas production capabilities at two significant fields.
This expansion of energy cooperation with U.S. companies was revealed during the UAE-U.S. business discussions with President Donald Trump. The collaborations could facilitate up to $60 billion in U.S. investments within the UAE’s energy sector over the duration of the projects. Conversely, the value of UAE investments in the U.S. energy sector is projected to reach $440 billion by 2035, as part of a broader $1.4 trillion investment initiative in American energy.
Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, and ADNOC’s Group CEO, remarked: “The strong bilateral relationship between the UAE and the U.S. is founded on our mutual dedication to ensuring energy abundance, which we are strengthening through these agreements with U.S. energy companies.”
“We perceive significant potential for further partnerships between the UAE and the U.S. within the energy and AI sectors, and we eagerly anticipate collaborating with our American partners to create sustainable long-term value and promote socioeconomic development.”
The agreements finalized by ADNOC with U.S. firms include a field development initiative with ExxonMobil and Japan’s Inpex to enhance the capacity of the Abu Dhabi Upper Zakum offshore field through a phased approach aimed at sustainably increasing production capacity to address the growing global demand for low-carbon intensity oil. Recently, ADNOC Drilling was entrusted with providing three island rigs to assist in the expansion of this oil field.
In addition, ADNOC has established a strategic partnership with Occidental to explore opportunities for raising the production capacity of the Shah gas field from 1.45 billion standard cubic feet per day to 1.85 billion standard cubic feet per day, while also accelerating the application of advanced technology in the field.
This gas field is among the largest globally and is situated 180 kilometers southwest of Abu Dhabi. The anticipated expansion will enhance domestic gas supply for industrial growth and provide additional liquefied natural gas (LNG) for export.
Furthermore, the U.S. is identified as a primary market for XRG, ADNOC’s investment division, which recently collaborated with Petronas and Turkmenistan’s Hazarnebit and Turkmennebit in a block in the Caspian Sea. XRG plans to enhance investments throughout the American energy value chain, focusing on gas, LNG, specialty chemicals, and energy infrastructure.
As part of this effort, the company signed a framework agreement with Occidental’s subsidiary, 1PointFive, to assess the feasibility of a potential investment in a direct air capture (DAC) initiative in Kleberg County, Texas. This initiative aims to eliminate up to 500,000 tons of CO₂ annually using commercial-scale DAC technology, with XRG contemplating a capital investment up to one-third of the project’s total development expenses.
Alongside these agreements, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) has awarded a new unconventional oil exploration concession for onshore Block 3 to EOG Resources, a U.S.-headed hydrocarbon exploration and production entity. This block spans an area of 3,609 square kilometers in the Al Dhafra region of Abu Dhabi.
ADNOC will supervise and support the exploration activities within this concession and holds the option to participate in a future production concession, marking this as the first concession of its kind awarded to a U.S. company. This highlights the appeal of Abu Dhabi’s energy sector and its reputation as a reliable investment hub.
“These agreements underscore the shared commitment between the UAE and the U.S. to ensure global energy security and the stability of energy markets,” emphasized the UAE’s energy leader.