BP and Abu Dhabi's state-owned Adnoc have set up a natural gas joint venture which will initially focus on developing assets in Egypt, the companies said today.
BP will hold a 51pc stake in the venture, named Arcius Energy, while Adnoc's recently formed energy investment unit, XRG, will have the remaining 49pc.
Arcius Energy "will combine the pair's deep technical capabilities and proven development track record as it aims to grow a highly competitive gas portfolio", Adnoc and BP said in a joint statement.
Today's announcement comes around 10 months after the companies first revealed their intentions to form the joint venture in the second half of 2024. At the time, they said it would focus on Egypt, but they suggested today that Arcius Energy's scope could extend elsewhere.
"Arcius Energy, initially to operate in Egypt, includes interests assigned by BP across two development concessions, as well as exploration agreements," the firms said.
The assets assigned to Arcius Energy include BP's 10pc stake in the Shorouk concession, which contains the giant Zohr gas field, and the North Damietta offshore block in the Nile Delta. Also included are BP's exploration agreements covering the North El Tabya, Bellatrix-Seti East and North El Fayrouz concessions.
In February, the firms said BP would transfer to the new venture a 50pc interest in the North El Burg offshore concession, where four gas discoveries have been made since 2008. But there was no mention of this in today's announcement, implying a change of plan.
Naser Saif al-Yafei has been appoimnted the new venture's chief executive. He has worked for Adnoc for close to 20 years, most recently as senior vice-president for strategy, sustainability and transformation. Katerina Papalexandri will be chief financial officer. She has been at BP for more than 20 years, most recently as vice-president gas and low-carbon energy growth for the Caspian region.
