BP and Abu Dhabi National Oil Company's (ADNOC) international investments arm, XRG, have finalised the creation of a new natural gas joint venture (JV) named Arcius Energy, which will commence operations in Egypt.
The JV is a strategic move for ADNOC as it seeks to extend its international footprint.
Arcius Energy is majority-owned by bp, with a 51% stake, while XRG holds the remaining 49%.
Naser Saif Al Yafei, an ADNOC veteran, has been appointed as CEO of Arcius Energy.
Al Yafei brings extensive experience from his recent role leading strategy, sustainability and transformation at ADNOC Gas.
BP's vice-president of gas and low-carbon energy growth, Katerina Papalexandri, has been named as chief financial officer of the JV.
BP chief executive Murray Auchincloss 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.”
XRG executive chairman and ADNOC CEO Sultan Al Jaber said: “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.”
The concessions assigned to Arcius Energy in Egypt include several key assets. One of these is the Shorouk concession, in which bp holds a 10% interest. This concession contains the producing Zohr field and is operated by Belayim Petroleum (Petrobel).
Another significant concession is North Damietta, where bp holds a 100% interest. This area includes the producing Atoll field and is operated by Pharaonic Petroleum Company.
Additionally, Arcius Energy holds exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
In June 2024, bp confirmed its intention to take a 10% interest in ADNOC’s planned Ruwais liquefied natural gas (LNG) project, subject to the necessary approvals.
ADNOC, which holds a 60% interest in the project, plans to develop two liquefaction trains, each with a capacity of 4.8 million tonnes per annum (mtpa). Once completed, the project will have a total LNG capacity of 9.6mtpa.
Recently, ADNOC announced the composition of XRG's board, which now includes prominent figures such as Jon Gray of Blackstone and former bp chief Bernard Looney.
XRG, which boasts a valuation exceeding $80bn (Dh293.8bn), is set to concentrate on international investments in sectors such as low-carbon energy, gas, chemicals and renewables.
