The Abu Dhabi National Oil Company (ADNOC) Will Collaborate with ExxonMobil to Enhance Recovery at the Upper Zakum Oil Field
The Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE) and ExxonMobil Corporation of the United States will work jointly to enhance oil recovery at the Upper Zakum offshore oil field, ADNOC announced following the recent visit of U.S. President Donald Trump to the Emirates. The field currently produces more than 1 million barrels per day (bpd). ADNOC did not specify its new production target. Another development partner at the field is Japan’s Inpex Corporation, according to Bloomberg.
The issue, Bloomberg notes, is that the UAE is a participant in the OPEC+ agreement, making any increase in oil production a sensitive matter. ADNOC is currently allocated 4.85 million bpd within the UAE’s national quota, which will be reduced to 3.1 million bpd in June. Already, several oil production facilities in the Emirates are idle—despite significant capital investment. An expansion project at Upper Zakum would widen the gap between installed capacity and allowed output.
In addition to the Upper Zakum agreement, multiple other deals totaling $60 billion were concluded during President Trump’s visit. For example:
Occidental Petroleum and ADNOC will expand natural gas production at the Shah Gas Field from 1.45 billion to 1.85 billion cubic feet per day.
EOG Resources, another American company, was awarded a concession for the exploration of an unconventional oil block in Abu Dhabi.
In contrast to crude oil, gas development is less constrained: ADNOC already has a $150 billion investment programaimed at expanding both crude oil and natural gas operations. One of the program’s core objectives is to ensure domestic energy security for the UAE, particularly in natural gas supply.
The $60 billion in agreements is part of the UAE’s broader commitment to invest $440 billion in the United States by 2035.
President Trump’s visit to the Middle East included multiple stops. In addition to the UAE, he secured $600 billion in investment commitments from the Kingdom of Saudi Arabia and joint project agreements with the State of Qatar. According to Trump, the total volume of investment commitments from these three nations amounts to $2 trillion.
