The United Arab Emirates (UAE) and ExxonMobil have reached an agreement to increase production capacity at the offshore Upper Zakum oil field, Abu Dhabi National Oil Company (ADNOC) announced on Friday. The project, which also involves Japan's Inpex Corp., currently yields over 1 million barrels per day (bpd), though ADNOC did not disclose the new production target.
The expansion comes amid sensitivity within OPEC+, where the UAE and its allies face production limits. While ADNOC's current capacity stands at 4.85 million bpd, its June OPEC+ quota restricts output to just under 3.1 million bpd, leaving significant unused capacity. The planned upgrades, which take years to complete, will further widen this gap.
ADNOC is executing a $150 billion investment strategy aimed at boosting crude output and achieving natural gas self-sufficiency. The company expects to reach its 5 million bpd capacity target by year-end.
The deal was finalized during a meeting in Abu Dhabi attended by ADNOC CEO Sultan Al Jaber and U.S. President Donald Trump, who has actively sought closer energy ties with the UAE. Occidental Petroleum CEO Vicki Hollub also participated, with ADNOC and Occidental agreeing to explore increasing production at the Shah Gas field from 1.45 billion to 1.85 billion standard cubic feet per day.
Additionally, ADNOC will join Occidental's U.S.-based carbon capture initiative, which involves extracting CO₂ from the air and injecting it into oil reservoirs to enhance production. ADNOC's investment arm, XRG PJSC, will support the project.
In another development, EOG Resources secured rights to explore an unconventional oil block in Abu Dhabi. Al Jaber stated that these agreements could bring $60 billion in U.S. investments to the UAE. Meanwhile, the UAE plans to expand its U.S. energy sector investments from $70 billion to $440 billion by 2035.
During his Middle East tour, Trump announced a combined $2 trillion in investment commitments from Saudi Arabia, Qatar, and the UAE.