Arcius Energy, a joint venture between BP and ADNOC’s XRG, will supply Egypt's gas.
BP and Abu Dhabi National Oil Company’s international investment arm XRG announced on Monday that they had closed a deal to create a natural gas joint-venture in Egypt. ADNOC is expanding its efforts abroad.
Arcius Energy is a joint venture owned by BP (51%), and XRG (49%). The joint venture will initially operate in Egypt.
Naser Saif Al Yafei is a former ADNOC executive who was appointed as Arcius CEO. Most recently, he was responsible for strategy, sustainability, and transformation in ADNOC Gas. Katerina papalexandri was named chief financial officer. She is BP's vice president for gas and low-carbon energy growth.
In a statement, BP CEO Murray Auchincloss stated that Arcius Energy "brings together the strengths of both our companies to create a new dynamic platform for international growth for natural gas in this region." He also added that Egypt is "a hub for building out a highly-competitive gas portfolio in the area."
Sultan Al Jaber said that the joint venture "fully aligns" with XRG’s goals to accelerate energy system transformation and build a global integrated gas and chemical portfolio to meet the rising demand in the world.
Arcius has a 10% stake in Shorouk which is home to the massive Zohr oil field operated primarily by Eni, and a 100% share in North Damietta which includes the Atoll producing field operated mainly by Pharaonic Petroleum Company.
The company also has exploration agreements for North El Tabya and Bellatrix Seti East, as well as North El Fayrouz.
ADNOC announced that former BP chief Bernard Looney and Blackstone's Jon Gray will be joining the newly created XRG board. Looney was fired by BP last December for allegedly misleading the board about his past relationships.
ADNOC's aggressive growth strategy is reflected in the appointment of prominent figures from finance and energy on XRG’s board.
ADNOC has estimated that XRG is worth more than 80 billion dollars. The company will concentrate on investments overseas in low-carbon energies, such as gas, chemicals, and renewables.
(source: Reuters)
