Sultan Khalid
2 min read
In This Article:
It was recently revealed that Occidental Petroleum Corporation (NYSE:OXY) has formed an agreement with UAE's ADNOC for the development of a direct air capture facility in South Texas. Let us shed some light on this development.
Occidental Petroleum Corporation (NYSE:OXY) is one of the largest oil and gas producers in the United States, including a leading producer in the Permian and DJ basins and offshore Gulf of Mexico.
It was recently announced that Occidental Petroleum Corporation (NYSE:OXY) and its subsidiary, 1PointFive, have entered into an agreement with XRG, the investment company of Abu Dhabi National Oil Company, to evaluate a potential JV to develop a direct air capture (DAC) facility in South Texas. As part of the joint venture, ADNOC will consider investing up to $500 million for the development of the facility, designed to capture 500,000 tons of carbon dioxide per year. The two energy giants have been discussing opportunities to collaborate on carbon capture, utilization, and storage projects in the U.S. and UAE since signing an MoU in 2023.
The Strategic DAC Framework Agreement was signed during President Trump's recent visit to the United Arab Emirates, when the Gulf nation announced plans to raise its energy investments in the United States to $440 billion in the next decade.
Vicki Hollub, President and CEO of Occidental Petroleum Corporation (NYSE:OXY), stated:
“We are proud to advance our decades-long partnership with ADNOC and XRG on our South Texas DAC Hub, which we believe will deliver game-changing technology to support U.S. energy independence and global goals. Agreements like this, along with U.S. DOE support, demonstrate continued confidence in DAC as an investable technology that can create jobs and economic value in the United States and Texas.”
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Disclosure: None.
