BP and XRG, ADNOC’s international energy investment company, have finalised the creation of Arcius Energy, a new joint venture natural gas platform that will initially concentrate on developing gas assets in Egypt. The financial close and formation of the joint venture were announced today, following the initial announcement of the partnership in February 2024. BP holds a 51% stake in the venture, with XRG owning the remaining 49%.
Arcius Energy is intended to meet increasing regional natural gas demand while supporting Egyptian energy security and economic growth. The new venture combines the technical capabilities and development experience of both companies in an effort to build a competitive gas portfolio.
The joint venture builds on a 50-year partnership between BP and ADNOC and complements the strategic growth plans of both companies. Arcius Energy will take over interests assigned by BP in two development concessions and exploration agreements in Egypt. These include a 10% interest in the Shorouk concession, which contains the producing Zohr field, and 100% interest in the North Damietta concession, containing the producing Atoll field, along with the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.
H.E. Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG, stated, “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp, and fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand. This progressive partnership will unlock a lower-carbon transition fuel to build a future where smarter, cleaner and more affordable energy is accessible for Egypt and the world.”
Murray Auchincloss, chief executive of bp, said: “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region. ADNOC, and now XRG, is a trusted partner, who we have worked with successfully for over five decades. Together, we can continue to build on bp’s 60 years of technical expertise and delivery of safe and efficient operations in Egypt – a hub for new opportunities to build out a highly competitive gas portfolio in the region.”
Senior leadership for Arcius Energy has also been confirmed. Naser Saif Al Yafei of ADNOC has been appointed as Chief Executive Officer, while Katerina Papalexandri from BP will serve as Chief Financial Officer. Both individuals bring decades of experience in the energy industry.
In June 2024, bp confirmed its intention to acquire a 10% stake in ADNOC’s planned Ruwais liquefied natural gas (LNG) project, pending necessary approvals. This project, led by ADNOC with a 60% interest, plans to include two 4.8 million tonnes per annum (mmtpa) liquefaction trains, creating a total capacity of 9.6mmtpa.
Both ADNOC and bp are founding members of the Oil and Gas Decarbonization Charter (OGDC). The charter was launched at COP28 in Dubai as a global initiative to accelerate climate action throughout the energy sector.
BP, along with its partners, currently produces approximately 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.
