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BP plc (BP) and XRG, the international energy investment arm of ADNOC, have officially launched their new joint venture, Arcius Energy, following the financial closure of the deal.
The platform, designed to develop natural gas assets, will initially focus on Egypt, contributing to the region's energy security and economic development. This marks a milestone in the 50-year partnership between BP and ADNOC, aligning with their strategic goals to build a competitive and sustainable energy future.
Arcius Energy is structured as a 51-49% partnership, with BP holding the majority stake. Leveraging BP’s extensive technical expertise and XRG’s transformative investment capabilities, the venture aims to establish a competitive natural gas portfolio. BP’s experience spans over six decades of operations in Egypt, producing around 70% of the country’s gas.
The partnership includes BP’s interests in key Egyptian concessions, including Shorouk, home to the prolific Zohr field, and North Damietta, which hosts the Atoll field. These assets will be managed through Arcius Energy’s operational framework, alongside exploration agreements in promising areas like North El Tabya and North El Fayrouz.
Murray Auchincloss, CEO of BP, highlighted the collaboration as a pivotal step, emphasizing the strong partnership with ADNOC and XRG and BP’s established expertise in Egypt to drive international natural gas growth.
H.E. Dr. Sultan Ahmed Al Jaber, executive chairman of XRG, expressed support for the venture, noting its alignment with XRG's goals to advance energy system transformation and enhance access to cleaner, more affordable energy for Egypt and the wider region.
Arcius Energy’s leadership team includes Naser Saif Al Yafei, CEO, and Katerina Papalexandri, CFO, who bring decades of expertise from ADNOC and BP. Their leadership is expected to drive the platform’s success in delivering sustainable energy solutions.
Beyond Egypt, BP and ADNOC continue collaborating on transformative projects, such as the Ruwais LNG initiative, which aims to create a 9.6 million tons per annum liquefaction facility. These efforts reflect the partners’ shared vision of enhancing natural gas capacity while supporting global decarbonization efforts through initiatives like the Oil and Gas Decarbonization Charter.
Arcius Energy’s establishment highlights BP and XRG’s commitment to addressing growing energy demands with innovative and sustainable solutions, strengthening their leadership roles in the global energy transition.