New regional gas platform JV finalized

XRG and bp have reached completed formation of their new joint venture (JV) and international natural gas platform – Arcius Energy.

Announced in February 2024, the JV is 51% owned by bp and 49% by XRG, ADNOC’s energy investment company. The new joint venture will combine the pair’s 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. Together with its partners, bp currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.

“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 H.E. 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.”

Murray Auchincloss, chief executive of bp, said Arcius Energy brings together the strengths of the two companies to create a dynamic new platform for international growth in natural gas in the region.

“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,” Auchincloss said.

Senior Arcius Energy leadership were 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.

The concessions assigned to Arcius Energy in Egypt are:

• Shorouk (bp 10% interest): contains the producing Zohr field
• North Damietta (bp 100% interest): contains the producing Atoll field
• North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

In June 2024, bp confirmed its intent to take a 10% interest in ADNOC’s planned Ruwais liquefied natural gas (LNG) project, subject to necessary approvals. The project, led by ADNOC with 60% interest, once completed is planned to consist of two 4.8 million tonnes per annum (mmtpa) liquefaction trains, to give a total capacity of 9.6mmtpa.