ADNOC strengthens partnerships with US energy majors

ADNOC has announced a number of agreements with US energy majors which could see US$60bn of US investments in UAE energy projects

The agreements were made during the state visit of US President Donald Trump and reinforce the shared commitment of the UAE and US to maintaining global energy security and the stability of energy markets.

The agreements include a field development plan with ExxonMobil and INPEX/JODCO to sustainably expand the production capacity of Abu Dhabi’s Upper Zakum offshore field, leveraging AI and industry-leading technologies as well as the deep expertise of the three companies. The plan will upgrade the Upper Zakum’s infrastructure to include AI-enabled remote operations, receive power from the UAE’s clean energy grid to reduce emissions, and enable the use of artificial islands for drilling activities to enhance environmental protection.

ADNOC also signed a strategic collaboration agreement with Occidental to explore increasing the production capacity of Shah Gas field’s capacity to 1.85 billion standard cubic feet per day (bscfd) of natural gas, from 1.45 bscfd, and accelerating the deployment of advanced technologies in the field. This will provide more gas for domestic industrial growth and LNG for export.

XRG, ADNOC’s global energy investment company, is looking to boost investments in US energy focusing on expanding gas, LNG, specialty chemicals and energy infrastructure. XRG signed a framework agreement with Occidental subsidiary 1PointFive to evaluate a potential investment in a direct air capture (DAC) project in Kleberg County, Texas. The facility would remove up to 500,000 tons of CO₂ per year using commercial-scale DAC technology, with XRG considering a capital commitment of up to one-third of the project’s total development cost. Occidental and ADNOC have been discussing opportunities to collaborate on carbon capture, utilisation and storage projects in the United States and UAE since signing a memorandum of understanding in 2023.

Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) also granted a new unconventional oil exploration concession to US-based EOG Resources Inc. (EOG), for Unconventional Onshore Block 3, which covers a 3,609 sq km area within the Al Dhafra region of Abu Dhabi. It is the first award of its kind to a US company. ADNOC has the option to join a subsequent production concession.

H.E. Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, ADNOC managing director and Group CEO, said: “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. We see significant opportunities for further UAE-US 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.”