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Adnoc’s new low-carbon energy investment arm XRG and BP are set to launch a new joint venture and gas platform, Arcius Energy, with an initial focus on investing in gas assets in Egypt, according to statements here (pdf) and here. The JV marks XRG’s first since its launch last month. The value of investments set for the JV and its operational start date were not disclosed.
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The details: XRG will own a minority stake of 49% in the joint venture, while BP will own a majority 51% stake. The platform is set to invest in lower-carbon transition fuel, making “smarter, cleaner and more affordable energy accessible for Egypt and the world,” said Executive Chairman of XRG and Industry and Advanced Technology Minister Sultan Ahmed Al Jaber.
Arcius’ concessions in Egypt include a 10% interest in the Shorouk offshore concession, containing the giant Zohr field operated by Eni, and 100% of North Damietta, containing Pharaonic Petroleum Company’s Atoll field, the statement said. It also holds exploration concessions for North El Tabya, Bellatrix-Seti East and North El Fayrouz concessions.
Bringing in big guns… : Adnoc’s Senior VP of Strategy and Sustainability Nasser Al Yafei has been appointed as Arcius Energy’s CEO, while VP of gas and low carbon energy growth Katerina Papalexandri has been appointed as the firm’s CFO.
This is not the first we’ve heard of this: Adnoc and BP agreed in February to form a JV that targets the development of natural gas assets in Egypt.
Refresher: Adnoc launched XRG in November as its international lower-carbon energy and chemicals investment arm, with an enterprise value of over USD 80 bn. It is set to begin operations in 1Q 2025 and will focus on developing three core platforms: a chemicals platform, an international gas platform, and a low carbon energies platform.
IN OTHER ADNOC NEWS-
Adnoc inked a 15-year lower-carbon LNG supply agreement with Germany’s energy infrastructure company EnBW for its Ruwais project, according to a press release. The agreement is effective from 2028, upon the start of Ruwais project’s commercial operations. The Emirati gas giant is set to provide EnBW 0.6 mn tonnes a year (mtpa) of LNG. The two sides signed a preliminary agreement for the LNG purchase back in May. This marks the third SPA agreement for the Ruwais LNG project.
Germany’s a big buyer of the UAE’s LNG: The agreement comes after a separate sales and purchase agreement was inked in November to supply Germany’s SEFE with 1 mtpa of LNG. The UAE and Germany also signed a Joint Declaration of Intent for Sustainable Energy Cooperation in February of this year.
