ADNOC has announced a series of agreements with US energy companies, potentially enabling investments worth $60bn from the US in United Arab Emirates (UAE) energy projects.
These strategic partnerships were unveiled during the UAE-US business dialogue with US President Donald J. Trump.
The agreements aim to strengthen the mutual commitment of the UAE and the US to uphold global energy security and ensure the stability of energy markets.
The enterprise value of UAE energy investments in the US is projected to reach $440bn by 2035.
This is part of the UAE’s broader $1.4trn investment strategy in the US, reinforcing the robust economic ties between the two nations.
The collaborations include a field development plan with ExxonMobil and INPEX/JODCO to enhance the capacity of the Upper Zakum offshore field.
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By GlobalDataThe Upper Zakum development plan will incorporate AI technologies to sustainably increase production. The field will also receive power from the UAE’s clean energy grid, reducing emissions and enhancing environmental safeguards.
Additionally, a strategic collaboration agreement with Occidental aims to increase the Shah Gas field’s production capacity from 1.45 billion standard cubic feet per day (bscf/d) to 1.85bscf/d, utilising advanced technology to optimise output.
Located 180km from Abu Dhabi, the Shah Gas field will support domestic industrial growth and LNG exports through the potential expansion.
Minister of Industry and Advanced Technology and ADNOC managing director and group CEO Sultan Al Jaber 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 socio-economic progress.”
Additionally, XRG, an energy investment company, has entered into a framework agreement with Occidental subsidiary 1PointFive to consider investing in a direct air capture (DAC) project in Texas.
This initiative could remove up to 500,000 tonnes of CO₂ annually. XRG is contemplating a capital investment of up to one-third of the project’s overall development costs.
ADNOC also announced that the Abu Dhabi Supreme Council for Financial and Economic Affairs has awarded EOG Resources an unconventional oil exploration concession in the Al Dhafra region.
This marks the first concession of its kind granted to a US company. ADNOC will support exploration efforts and may join in on production activities.
