Abu Dhabi National Oil Company (ADNOC), based in the UAE, has solidified its energy relationships with major U.S. energy firms through agreements aimed at enhancing oil and gas production capabilities at two significant fields.
This strengthened energy collaboration with American companies was revealed during discussions between President Donald Trump and UAE officials, potentially paving the way for $60 billion in U.S. investments in the UAE’s energy sector over the duration of these projects. Conversely, the value of UAE investments in the U.S. energy market is projected to soar to $440 billion by 2035, as part of the country’s broader $1.4 trillion investment strategy in the American energy landscape.
Dr. Sultan Al Jaber, the UAE’s Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, remarked: “Our long-standing partnership with the U.S. is built on a mutual dedication to fostering energy availability, which we are strengthening through these agreements with American energy companies.
“We recognize considerable potential for expanding UAE-U.S. collaborations in the energy-AI interface and eagerly anticipate working alongside our U.S. partners to generate sustainable long-term value and promote socioeconomic development.”
The collection of agreements signed by ADNOC includes a field development strategy with ExxonMobil and Japan’s Inpex, aimed at increasing production capacity at Abu Dhabi’s Upper Zakum offshore field through a phased approach, thereby addressing the surging global demand while producing low-carbon intensity barrels. Recently, ADNOC Drilling was instructed to provide three island rigs to facilitate the expansion of this oil field.
Additionally, ADNOC has finalized a strategic cooperation agreement with Occidental to explore ways to boost natural gas production at the Shah gas field to 1.85 billion standard cubic feet per day (bscfd), up from 1.45 bscfd, while also expediting the implementation of advanced technologies at the site.
This gas field is recognized as one of the largest globally, located 180 kilometers southwest of Abu Dhabi. Enhancing its capabilities is expected to yield additional gas for domestic industrial development and liquefied natural gas (LNG) exports.
Moreover, the U.S. has been identified as a vital market for XRG, ADNOC’s investment branch, which recently partnered with Petronas and Turkmenistan’s Hazarnebit and Turkmennebit to establish a block in the Caspian Sea. XRG aims to amplify investments across the American energy spectrum, focusing on gas, LNG, specialty chemicals, and energy infrastructure.
In line with this initiative, a framework agreement has been established with Occidental’s subsidiary, 1PointFive, to assess a potential investment in a direct air capture (DAC) project in Kleberg County, Texas. This project could potentially eliminate up to 500,000 tons of CO₂ annually using large-scale DAC technology, with XRG considering financing up to one-third of the total project development costs.
In addition to 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.-based exploration and production firm. Spanning an area of 3,609 square kilometers in the Al Dhafra region of Abu Dhabi, this block marks the first such recognition for a U.S. company, highlighting the appeal of Abu Dhabi’s energy sector as a reliable investment destination.
“These agreements underscore the mutual commitment of the UAE and the U.S. to safeguarding global energy security and ensuring stable energy markets,” affirmed the energy giant from the United Arab Emirates.