XRG, the international lower-carbon energy and chemicals investment company which was launched by Abu Dhabi National Oil Company (ADNOC) last month, and BP have agreed to form a new natural gas joint venture in Egypt.
The joint venture, Arcius Energy, is 51 per cent owned by BP and 49 per cent owned by XRG. The JV partners will combine their deep technical capabilities and proven development track records as they aim to grow a highly competitive gas portfolio.
ADNOC’s Naser Saif Al Yafei was appointed Chief Executive Officer of Arcius Energy, while BP’s Katerina Papalexandri was named the Chief Financial Officer.
Arcius will start operations in Egypt, which includes interests assigned by BP across two development concessions, as well as exploration agreements, and aim to expand to other countries in the future.
The concessions in Egypt comprise a 10 per cent interest in Shorouk, which contains the giant Zohr field operated by Eni and 100 per cent 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.
Dr Sultan Ahmed Al Jaber, Executive Chairman of XRG, commented: “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.
“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, added: “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.
“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.”
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. The company aims to more than double its asset value over the next decade by capitalising on demand for low-carbon energy and chemicals driven by three megatrends: the transformation of energy, exponential growth of AI, and the rise of emerging economies.
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