BP, ADNOC's XRG agree Egypt gas JV Arcius Energy

Energy

December 16, 2024 14:13

BP and Abu Dhabi National Oil Company's international investments arm XRG have closed a deal for a new natural gas joint venture in Egypt, as ADNOC expands its efforts to grow abroad, Report informs via Reuters.

The joint venture, Arcius Energy, is 51% owned by BP and 49% owned by XRG. It will operate in Egypt initially.

Naser Saif Al Yafei, an ADNOC veteran, was hired as Arcius' chief executive. He most recently led strategy, sustainability and transformation at subsidiary ADNOC Gas. Katerina Papalexandri, vice president of gas and low carbon energy growth at BP, was appointed chief financial officer.

"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," BP Chief Executive Murray Auchincloss said in the statement, adding that Egypt was "a hub for new opportunities to build out a highly competitive gas portfolio in the region."

Sultan Al Jaber, XRG executive chairman and ADNOC CEO, said the JV "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."

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.

XRG, which ADNOC said is valued at more than $80 billion, will focus on overseas investments in low-carbon energy, including gas, chemicals and renewables.