ADNOC Strengthens Energy Partnerships With US Companies To Enable $60 Billion Investments

ADNOC has unveiled several agreements with US energy giants during a UAE-US business dialogue attended by US President Donald J. Trump. These agreements could facilitate $60 billion in US investments in UAE energy projects over their lifespan. A significant field development plan with ExxonMobil and INPEX/JODCO aims to expand Abu Dhabi’s Upper Zakum offshore field through phased development.

The collaboration between ADNOC and Occidental focuses on increasing the Shah Gas field's production capacity from 1.45 billion to 1.85 billion standard cubic feet per day (bscfd) of natural gas. This agreement also involves accelerating the use of advanced technologies in the field. The initiatives underscore the shared commitment of the UAE and US to global energy security and market stability.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, stated, "The deep-rooted bilateral relationship between the UAE and the US is underpinned by our shared commitment to enabling energy abundance and we are reinforcing this commitment through these agreements with US energy majors." He highlighted opportunities for further partnerships across the energy-AI nexus.

Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded EOG Resources Inc., a leading US hydrocarbon exploration company, an unconventional oil exploration concession. This award for Unconventional Onshore Block 3 covers a 3,609 square kilometre area within Abu Dhabi’s Al Dhafra region. It marks the first such award to a US company, highlighting Abu Dhabi's attractiveness as an investment destination.

XRG, ADNOC’s global energy investment arm, prioritises the US market. The company plans to increase investments across the American energy value chain, focusing on expanding gas, LNG, specialty chemicals, and infrastructure. XRG signed a framework agreement with Occidental subsidiary 1PointFive to explore investing in a direct air capture (DAC) project in Kleberg County, Texas.

The DAC facility aims to remove up to 500,000 tons of CO₂ annually using commercial-scale technology. XRG is considering committing up to one-third of the project's total development cost. The enterprise value of UAE energy investments into the US is projected to reach $440 billion by 2035 as part of a broader $1.4 trillion investment plan.

Technological Advancements

The Upper Zakum field development plan will utilise AI and industry-leading technologies alongside ADNOC's partnership with ExxonMobil and INPEX/JODCO. This initiative seeks to sustainably boost production capacity while maintaining low-carbon intensity barrels to meet rising global demand. Upper Zakum is part of Zakum field, the world's second-largest offshore field.

The plan includes upgrading infrastructure with AI-enabled remote operations powered by clean energy from the UAE grid to reduce emissions. Artificial islands will be used for drilling activities to enhance environmental protection at Upper Zakum, located 84 kilometres northwest of Abu Dhabi.

The Shah Gas field expansion will support domestic industrial growth by providing more gas for local consumption and LNG exports. Located 180 kilometers southwest of Abu Dhabi, it is one of the largest fields globally.

These agreements highlight ongoing efforts between UAE and US entities to strengthen ties in energy sectors while addressing global demands sustainably.

With inputs from WAM