In a major boost to global energy cooperation, the Abu Dhabi National Oil Company (ADNOC) has announced multiple strategic agreements with leading United States energy companies, signalling deeper UAE-US collaboration during the UAE-US Business Dialogue held in the presence of US President Donald J. Trump.
The new agreements are set to potentially unlock $60 billion of US investments in energy projects across the UAE, supporting the nation’s energy transformation while reinforcing a shared commitment to maintaining global energy market stability.
Upper Zakum Expansion: A New Chapter in Offshore Development
Among the most prominent deals is a phased field development plan for Upper Zakum, the world’s second-largest offshore oil field, in partnership with ExxonMobil and INPEX/JODCO. This plan aims to expand the field’s production capacity, deploying AI-enabled operations, remote monitoring, and clean energy power from the UAE grid.
The initiative will also utilise artificial islands for drilling, enhancing environmental stewardship while meeting rising global demand for low-carbon intensity barrels.
Located 84 km northwest of Abu Dhabi, Upper Zakum is a cornerstone of ADNOC’s production strategy. The field’s upgrade will not only increase output but position it as a global benchmark for tech-enabled, sustainable offshore operations.
Shah Gas Expansion and Clean Energy Technologies
ADNOC also signed a strategic collaboration agreement with Occidental to explore boosting production at the Shah Gas Field—already one of the world’s largest sour gas developments. The plan would expand capacity from 1.45 billion to 1.85 billion standard cubic feet per day (bscfd) of natural gas, while also accelerating the integration of advanced technologies.
Situated 180 km southwest of Abu Dhabi, the Shah Gas Field supports both domestic industrial growth and LNG exports, and the proposed expansion aligns with ADNOC’s broader gas self-sufficiency goals.
In parallel, ADNOC’s global investment arm XRG signed a framework agreement with 1PointFive, a subsidiary of Occidental, to explore an investment in a Direct Air Capture (DAC) project in Kleberg County, Texas. The proposed facility, capable of removing 500,000 tons of CO₂ per year, would be among the most ambitious DAC deployments globally, with XRG considering a capital stake of up to one-third of the total development cost.
New US Concession and Investment Outlook
In a further milestone, EOG Resources Inc., a US-based exploration company, was awarded the first-ever unconventional oil exploration concession in Abu Dhabi to a US firm. The Unconventional Onshore Block 3 covers 3,609 sq. km in the Al Dhafra region and signals growing international investor confidence in the UAE’s upstream sector.
ADNOC will oversee the initial exploration and retains the option to join the production phase. The award highlights Abu Dhabi’s appeal as a trusted, innovation-driven energy investment destination.
Strategic Alignment for Global Energy Security
These agreements were announced as part of the UAE’s ambitious $1.4 trillion investment programme into the United States, with UAE energy investments expected to reach $440 billion by 2035. The strengthened ties reinforce the alignment of both nations on energy security, innovation, and sustainable development.
“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 Managing Director and Group CEO. “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.”
XRG’s investment roadmap includes further expansion across the US energy value chain, with focus areas such as natural gas, LNG, specialty chemicals, and energy infrastructure, underscoring the UAE’s confidence in the US as a strategic growth market.
