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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 a press release. 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.
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.
Who’s on board? Naser Saif Al Yafei — former Senior Vice President of sustainability and transformation at Adnoc Gas was appointed as Arcius’s CEO, while Katerina Papalexandri — vice president of gas and low carbon energy growth at BP, was appointed as CFO, Reuters reports.
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 ENERGY NEWS-
Adnoc inked a 15-year lower-carbon liquified natural gas (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.
About the Ruwais LNG project: The Ruwais project has two liquefaction trains with a combined capacity of 9.6 mtpa. Over 8 mtpa of the project’s total production capacity has been pledged to international customers through long-term agreements, including agreements with Japanese, Indian, and European buyers.
ICYMI- Adnoc subsidiary Adnoc Gas said in November that it is set to acquire a 60% stake in the Ruwais LNG project from its parent group Adnoc, at an estimated USD 5 bn. The acquisition will more than double Adnoc Gas’ existing operated LNG production capacity to around 15 mtpa.
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.
