bp and XRG have reached financial close and completed formation of their new joint venture and international natural gas platform – Arcius Energy.

Announced in February 2024, Arcius Energy is 51% owned by bp and 49% by XRG, ADNOC’s transformative investment company. The new joint venture will combine the pair’s deep technical capabilities and proven development track records as it aims to grow a highly competitive gas portfolio.

Arcius Energy, initially to operate in Egypt, includes interests assigned by bp across two development concessions, as well as exploration agreements.

Murray Auchincloss, chief executive of bp said: "Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region."

H.E. Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG 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.

"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."

Murray Auchincloss, chief executive of bp, added: “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region.

"ADNOC, and now XRG, is a trusted partner, who we have worked with successfully for over five decades. Together, we can continue to build on bp’s 60 years of technical expertise and delivery of safe and efficient operations in Egypt – a hub for new opportunities to build out a highly competitive gas portfolio in the region."

Senior Arcius Energy leadership were also appointed as part of the company’s formation. Naser Saif Al Yafei was appointed as Chief Executive Officer while Katerina Papalexandri was appointed as Chief Financial Officer.

Both executives, from ADNOC and bp respectively, bring decades of experience in the energy sector.