BP holds a 51 percent ownership while ADNOC-owned XRG has the remaining 49 percent. Image by Drazen Zigic via iStock
New international energy investment company XRG and BP have completed the formation of Arcius Energy, an international gas platform joint venture (JV). BP holds a 51 percent ownership while ADNOC-owned XRG has the remaining 49 percent.
In a joint media release, XRG said the JV will combine the technical capabilities of the two companies and their track records to grow a competitive gas portfolio. Initially, Arcius Energy will operate in Egypt, with interests assigned by BP across two development concessions, as well as exploration agreements, the two companies said.
The two development concessions are Shorouk and North Damietta. In the first one, which contains the Zohr field, BP holds a 10 percent interest. In the second one, which contains the producing Atoll field, BP holds a 100 percent interest.
The exploration concession agreements include North El Tabya, Bellatrix-Seti East and North El Fayrouz, the partners said.
"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", Sultan Ahmed Al Jaber, Executive Chairman of XRG, said. "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".
Following the financial close for the JV formation, the two partners appointed Naser Saif Al Yafei as Chief Executive Officer. Katerina Papalexandri was appointed as Chief Financial Officer. Both executives, from ADNOC and BP respectively, bring decades of experience in the energy sector, the two companies said.