The United Arab Emirates is set to receive a significant boost in energy sector investment as major U.S. energy companies commit to pouring $60 billion into strategic oil and gas projects within the Gulf nation. The announcement came during the UAE-U.S. business dialogue, marking a new chapter in the countries’ bilateral economic and energy relationship. At the same time, UAE-based investments in the American energy industry are expected to soar to $440 billion by 2035, forming part of the UAE’s broader $1.4 trillion plan targeting U.S. energy assets.
Dr. Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology and CEO of ADNOC, emphasized the strength of the UAE-U.S. relationship, noting that it is built on mutual goals of achieving energy security and sustainability. “We are reinforcing this commitment through these agreements with U.S. energy majors. There is significant potential for further collaboration, especially at the intersection of energy and artificial intelligence,” he said.
Major Projects to Expand Oil and Gas Capacity
Central to this wave of cooperation are new agreements signed between ADNOC and prominent U.S. energy companies, including ExxonMobil and Occidental. ADNOC is moving forward with a major expansion of the Upper Zakum offshore field, one of the world’s largest, through a phased development plan. This project, executed in partnership with ExxonMobil and Japan’s Inpex, aims to increase the field’s output while maintaining a low carbon intensity.
In addition, ADNOC has joined forces with Occidental to enhance production at the Shah gas field, one of the largest sour gas reserves globally. The proposed upgrades would raise output from 1.45 billion to 1.85 billion standard cubic feet per day, meeting both domestic industrial demands and supporting liquefied natural gas (LNG) exports. ADNOC Drilling is also contributing to the expansion by supplying rigs for the development of the Upper Zakum field.
These projects align with ADNOC’s strategy to meet growing global energy demands while transitioning toward more sustainable practices. The initiatives also signal a robust and deepening cooperation between the UAE and U.S. energy sectors.
New Ventures and Global Impact
The UAE is also expanding its footprint in the U.S. through ADNOC’s energy investment platform, XRG. The company recently entered into a collaboration with 1PointFive, a subsidiary of Occidental, to explore investment in a direct air capture (DAC) facility in Texas. The project, expected to remove up to 500,000 tons of CO₂ annually, represents a leap toward sustainable carbon management and highlights ADNOC’s interest in emerging clean technologies.
Meanwhile, U.S.-based EOG Resources has been awarded a new unconventional oil exploration concession in Abu Dhabi’s Al Dhafra region. Covering over 3,600 square kilometers, this award marks the first of its kind for a U.S. firm, reinforcing Abu Dhabi’s position as a key global energy investment hub.
Together, these agreements signal a long-term partnership between the UAE and the U.S. aimed at ensuring global energy stability, meeting future demand, and driving innovation across the oil and gas value chain.
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