The UK-headquartered energy giant BP and the UAE-based XRG have finalized the creation of Arcius Energy, a new joint venture natural gas platform that will initially concentrate on developing gas assets in Egypt.
Arcius Energy is 51% owned by bp and 49% by XRG, ADNOC’s transformative investment company.
The new joint venture will combine the pair’s deep technical capabilities and proven development track records as it aims to grow a highly competitive gas portfolio.
Arcius Energy, initially to operate in Egypt, includes interests assigned by bp across two development concessions, as well as exploration agreements.
“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,” said Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG.
“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.”
For his part, 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.”
He added “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 Arcius Energy leadership was also appointed as part of the company’s formation.
Naser Saif Al Yafei was appointed as Chief Executive Officer while Katerina Papalexandri was appointed as Chief Financial Officer.
Both executives, from ADNOC and bp respectively, bring decades of experience in the energy sector.
Arcius' concessions in Egypt comprise a 10% interest in Shorouk, which contains the giant Zohr field operated by Eni and 100% of North Damietta, which contains the producing Atoll field operated by the Pharaonic Petroleum Company.
It also has exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
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 tons per annum (mmtpa) liquefaction trains, creating a total capacity of 9.6mmtpa.
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.
XRG is a transformative international energy investment company, focused on lower-carbon energy and chemicals, and headquartered in Abu Dhabi.
Wholly owned by ADNOC, XRG has an enterprise value of over $80 billion.
