ADNOC’s landmark energy deals with US majors, see details

The Abu Dhabi National Oil Company (ADNOC) announced on Thursday a series of strategic agreements with major US energy companies that could enable up to $60bn of US investment in UAE energy projects.

The deals were unveiled during a UAE-US business dialogue held with President Trump.

Among the key agreements is a field development plan with ExxonMobil and Japan’s INPEX/JODCO to expand production capacity at the Upper Zakum offshore oilfield, the world’s second-largest offshore field.

ADNOC also signed a strategic collaboration with Occidental to explore boosting output at the Shah Gas field to 1.85 billion standard cubic feet per day (bscfd), up from 1.45 bscfd.

New projects are part of a broader push to deepen UAE-US energy ties

The new projects are part of a broader push to deepen UAE-US energy ties, with the enterprise value of UAE energy investments into the US projected to hit $440bn by 2035. The UAE plans to invest a total of $1.4tn in the US across multiple sectors.

“The deep-rooted bilateral relationship between the UAE and the US is underpinned by our shared commitment to enabling energy abundance,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and ADNOC MD and group CEO. “We see significant opportunities for further UAE-US partnerships across the energy-AI nexus.”

ADNOC’s XRG signs framework agreement 1PointFive

ADNOC’s global investment arm, XRG, will lead new investments in the American energy value chain, with a focus on gas, LNG, specialty chemicals, and infrastructure.

XRG also signed a framework agreement with Occidental’s subsidiary 1PointFive to explore a capital commitment of up to one-third for a direct air capture (DAC) project in Kleberg County, Texas.

The facility aims to remove up to 500,000 tonnes of CO₂ annually using commercial-scale DAC technology.

In another first, Abu Dhabi’s Supreme Council for Financial and Economic Affairs awarded a new unconventional oil exploration concession to US-based EOG Resources.

The concession, Unconventional Onshore Block 3, covers 3,609 square kilometres in the Al Dhafra region and marks the first of its kind awarded to a US company.

ADNOC will support the exploration phase and retains an option to join a subsequent production concession.

The Upper Zakum development will incorporate AI-enabled remote operations and draw power from the UAE’s clean energy grid, while employing artificial islands for drilling to minimise environmental impact.

Located 84 kilometres northwest of Abu Dhabi, the field will leverage technologies to deliver low-carbon intensity barrels.

The Shah Gas field, located 180 kilometres southwest of Abu Dhabi, is among the world’s largest of its kind.

The planned expansion is expected to enhance domestic industrial gas supply and support LNG exports.

The agreements underscore the UAE’s growing role as a hub for sustainable energy development and its ambition to attract long-term foreign investment into its hydrocarbon and clean energy sectors.