BP and XRG announced today the financial close and formal launch of their joint venture, Arcius Energy, an international natural gas platform aimed at expanding a competitive gas portfolio. Initially announced in February 2024, Arcius Energy is majority-owned by BP (51 percent) and XRG (49 percent), the transformative energy investment arm of ADNOC.
Arcius Energy will commence operations in Egypt, leveraging BP’s existing interests in two development concessions and several exploration agreements, including stakes in the Zohr and Atoll gas fields. The partnership reflects a shared ambition to accelerate the global energy transition while meeting rising demand for reliable and lower-carbon energy solutions.
Ahmed Al Jaber, Executive Chairman of XRG, said: “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp. 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, said: “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. With XRG as a trusted partner, we are well-positioned to build on BP’s 60 years of expertise in Egypt, a hub for new opportunities in a competitive gas market.”
Arcius Energy will be led by Naser Saif Al Yafei as CEO and Katerina Papalexandri as CFO. Both executives bring decades of experience in the energy sector from ADNOC and bp, respectively.
The concessions assigned to Arcius Energy include:
Shorouk (10 percent bp interest): Home to the Zohr Field, operated via Belayim Petroleum (Petrobel).
North Damietta (100 percent bp interest): Location of the Atoll Field, operated through Pharaonic Petroleum Company (PhPC).
Exploration concessions in North El Tabya, Bellatrix-Seti East, and North El Fayrouz.
The launch of Arcius Energy builds on BP and XRG’s extensive collaboration, including BP’s planned 10 percent stake in ADNOC’s Ruwais LNG project, expected to produce 9.6 million tonnes per annum upon completion. Both companies are also founding members of the Oil and Gas Decarbonization Charter (OGDC), a global initiative launched at COP28 in Dubai to accelerate climate action across the energy sector.
BP and its partners currently supply around 70 percent of Egypt’s gas, underscoring the country’s role as a critical energy hub.