ADNOC has signed a range of agreements with major energy companies from the US during a UAE-US business dialogue event featuring US President Donald Trump.
The agreements have the potential to attract $60bn in US investments into UAE energy initiatives over the duration of the projects.
A key element of these agreements is a field development strategy with ExxonMobil and INPEX/JODCO aimed at increasing the capacity of the Upper Zakum offshore field in Abu Dhabi through a phased development approach.
Additionally, ADNOC has formed a strategic partnership with Occidental to explore boosting the Shah Gas field’s output from 1.45 billion to 1.85 billion standard cubic feet per day of natural gas and to accelerate the adoption of advanced technologies.
The agreements highlight the shared commitment of the UAE and the US to ensuring energy security and market stability globally. UAE’s energy investments in the US are projected to reach $440bn by 2035, as part of a larger $1.4 trillion investment plan.
The US is a key market for XRG, ADNOC’s international energy investment entity, which is set to increase its investments in the American energy sector, focusing on gas, LNG, speciality chemicals, and infrastructure.
XRG has also entered into a framework agreement with 1PointFive, a subsidiary of Occidental, to evaluate a potential investment in a direct air capture (DAC) project in Kleberg County, Texas. The facility aims to remove up to 500,000 tons of COâ‚‚ annually using DAC technology, with XRG considering investing up to one-third of the project’s total development cost.
Moreover, the Supreme Council for Financial and Economic Affairs in Abu Dhabi has awarded an unconventional oil exploration concession to EOG Resources, a US-based company specialising in hydrocarbon exploration and production. The concession for Unconventional Onshore Block 3, covering 3,609km2 in Abu Dhabi’s Al Dhafra region. ADNOC will manage and support exploration activities within the concession and has the option to join a subsequent production concession.
The phased development plan for Upper Zakum will integrate AI and advanced technologies, leveraging the expertise and collaboration between ADNOC, ExxonMobil, and INPEX/JODCO to sustainably increase production capacity and meet global demand with low-carbon intensity barrels.
The plan involves upgrading Upper Zakum’s infrastructure to include AI-enabled remote operations, utilising power from the UAE’s clean energy grid to reduce emissions, and employing artificial islands for drilling to enhance environmental protection. Upper Zakum is located 84km northwest of Abu Dhabi.
The Shah Gas field, located 180km southwest of Abu Dhabi, is one of the largest of its kind. The potential expansion of this facility will increase the supply of gas for domestic industrial growth and LNG exports.
Recently, Aramco inked 34 memoranda of understanding and agreements with major US companies, potentially worth about $90bn.
