XRG and bp Achieve Financial Close of Arcius Energy

XRG, Abu Dhabi National Oil Company’s (ADNOC) transformative investment company, and bp, a British multinational oil and gas company headquartered in London, have reached financial close and completed formation of Arcius Energy, their new joint venture (JV) and international natural gas platform.

The JV, which was announced in February 2024, is 51% owned by bp and 49% by XRG, ADNOC’s transformative investment company. It 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.

bp Chief Executive Murray Auchincloss said that 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.” 

The UAE Minister and XRG Executive Chairman Dr Sultan Ahmed Al Jaber said that the formation of Arcius Energy marks an exciting new chapter in their 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, the Minister said.

Arcius Energy Projects in Egypt

The concessions assigned to Arcius Energy in Egypt include Shorouk (bp 10% interest): contains the producing Zohr field; operated through Belayim Petroleum (Petrobel); North Damietta (bp 100% interest): contains the producing Atoll field; operated through Pharaonic Petroleum Company (PhPC); and 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.

ADNOC and bp are founding members of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the energy industry. 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.

XRG has an enterprise value of over $80 billion and its portfolio includes interests in industry-leading companies that are meeting rapidly increasing global demand for lower carbon energy and the chemicals that are essential building blocks for products central to modern life.