BP and XRG Finalize Deal to Launch New Natural Gas Platform – Arcius Energy

BP and XRG have successfully reached financial close and established their joint venture, Arcius Energy, an international natural gas platform. Announced in February 2024, Arcius Energy is 51% owned by BP and 49% by XRG, ADNOC’s investment company. This new venture combines the technical expertise and proven track records of both companies, aiming to develop a highly competitive natural gas portfolio.

Arcius Energy will initially operate in Egypt, focusing on two development concessions assigned by BP, along with exploration agreements. The new platform is expected to capitalize on the region's growing demand for cleaner, more affordable energy, positioning it as a key player in the energy transition.

H.E. Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG, expressed excitement about the partnership, noting that the formation of Arcius Energy aligns with XRG’s goals to transform energy systems and build an integrated gas and chemicals portfolio on a global scale. He emphasized that this collaboration would help provide a lower-carbon transition fuel, enabling smarter and more sustainable energy solutions for both Egypt and the world.

Murray Auchincloss, Chief Executive of BP, highlighted the strengths of the partnership in creating a dynamic platform for growth in natural gas. He reiterated the long-standing relationship with ADNOC, now represented by XRG, and their successful collaboration over the past five decades. Auchincloss also emphasized BP’s 60 years of experience in Egypt, which will help drive future opportunities in the region and strengthen the competitive gas portfolio.

The formation of Arcius Energy also saw the appointment of key leadership positions. Naser Saif Al Yafei, from ADNOC, was named Chief Executive Officer, while Katerina Papalexandri, from BP, was appointed Chief Financial Officer. Both executives bring extensive experience from their respective companies, further strengthening the leadership team as Arcius Energy moves forward in its mission to grow and innovate in the natural gas sector.

Arcius Energy's concessions in Egypt include Shorouk, with BP holding a 10% interest, which contains the producing Zohr field, operated by Belayim Petroleum (Petrobel); North Damietta, where BP has a 100% interest and the producing Atoll field is operated by Pharaonic Petroleum Company (PhPC); and the North El Tabya, Bellatrix-Seti East, and North El Fayrouz exploration concession agreements. Additionally, in June 2024, BP confirmed its intention to acquire a 10% stake in ADNOC’s planned Ruwais liquefied natural gas (LNG) project, subject to necessary approvals. Led by ADNOC with a 60% share, the project aims to deliver two liquefaction trains with a combined capacity of 9.6 million tonnes per annum (mmtpa). BP and ADNOC are also founding members of the Oil and Gas Decarbonization Charter (OGDC), launched at COP28 in Dubai, which aims to accelerate climate action in the energy sector. BP, alongside its partners, produces approximately 70% of Egypt’s gas through its West and East Nile Delta development projects. XRG, a transformative international energy investment company wholly owned by ADNOC, focuses on lower-carbon energy and chemicals. With an enterprise value exceeding $80 billion, XRG’s portfolio includes leading companies that cater to the growing global demand for sustainable energy and chemicals essential for modern life.