bp, ADNOC’s XRG launch Egypt-focused natural gas platform Arcius Energy

bp and XRG, ADNOC’s international energy investment company, have established Arcius Energy—a joint venture natural gas platform aimed at developing gas assets in Egypt. 

Arcius Energy, first announced earlier this year, is 51% owned by bp and 49% by XRG and includes interests assigned by bp across two development concessions, as well as exploration agreements.

One concession assigned to Arcius Energy in Egypt is Shorouk, operated by Belayim Petroleum (Petrobel), in which bp holds 10% interest. The Zohr natural gas field, which lies in the Shorouk block, about 190 km north of Port Said, is estimated to hold over 30 tcf of gas in place (about 5.5 billion boe). The field was brought online in 2017, the same year bp acquired its 10% stake in the concession from Eni (OGJ Online, Dec. 20, 2017).

The second concession is North Damietta (bp 100%), which contains the producing Atoll field and is operated through Pharaonic Petroleum Co. (PhPC). bp began production at the field in 2018 (OGJ Online, Feb. 13, 2018). 

Exploration concession agreements contributed to Arcuis Energy are for North El Tabya, Bellatrix-Seti East, and North El Fayrouz. 

Naser Saif Al Yafei from ADNOC was appointed as chief executive officer of the joint venture. Katerina Papalexandri from bp was appointed as chief financial officer. 

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.