Adnoc deepens US energy ties with $60 billion deal

19/05/2025 02:57 AST

The US has pledged up to $60 billion in investments for UAE energy projects, reinforcing a strategic partnership announced during the UAE-US business dialogue with President Donald Trump.

Adnoc, the UAE's state-owned energy giant, signed multiple agreements with US energy firms, bolstering the UAE's role as a global energy hub and a trusted investment destination.

The deals include a landmark collaboration with ExxonMobil and INPEX/JODCO to expand the Upper Zakum offshore field, the world's second-largest of its kind, located 84km northwest of Abu Dhabi. The phased development will leverage AI and clean energy from the UAE's grid to boost production capacity while minimising emissions. Artificial islands will also be used to enhance environmental protection during drilling.

Additionally, Adnoc and Occidental signed an agreement to explore increasing the Shah Gas field's capacity from 1.45 billion to 1.85 billion standard cubic feet per day, enabling more natural gas for domestic industries and LNG exports.

Further expanding US-UAE ties, Abu Dhabi's Supreme Council for Financial and Economic Affairs awarded a new unconventional oil exploration concession to US-based EOG Resources for a 3,609-square-kilometre block in Al Dhafra. This marks the first such award to a US company, with Adnoc overseeing exploration and holding an option to join future production.

The agreements align with Adnoc's global investment arm, XRG, prioritising the US market. XRG plans to expand investments in gas, LNG, specialty chemicals, and energy infrastructure across the American energy value chain. A notable framework agreement with Occidental's 1PointFive will evaluate XRG's potential investment in a Texas-based direct air capture project, capable of removing 500,000 tons of CO² annually, with XRG considering funding up to one-third of the development costs.

Dr Sultan Al Jaber, Adnoc's managing director and UAE Minister of Industry, emphasised the shared commitment to energy security and market stability. "These partnerships with US energy majors strengthen our bilateral ties and unlock sustainable value at the energy-AI nexus," he said.

The enterprise value of UAE energy investments in the US is projected to reach $440 billion by 2035, part of a $1.4 trillion investment plan.

These initiatives underscore Abu Dhabi's attractiveness to global investors and its focus on sustainable energy innovation. By integrating advanced technologies and low-carbon solutions, the UAE aims to meet rising global demand while driving socioeconomic progress, further solidifying its position as a leader in the global energy landscape.

Khaleej Times