BP and ADNOC’s JV pouring $500 million to bring Egyptian gas project to life

April 3, 2026, by Melisa Cavcic

Arcius Energy, an affiliate of the UK-headquartered BP and the UAE-based ADNOC’s XRG, has made a final investment decision (FID) for a natural gas field off the coast of Egypt.

With the final investment decision now out of the way, Arcius Energy plans to develop the Harmattan gas field in the El Burg Offshore concession area, which is seen as a significant step toward executing one of its first projects in Egypt. The firm will invest approximately half a billion dollars into this project to help support and increase natural gas production to meet domestic market needs.

As part of the execution phase, Pharaonic Petroleum Company (PhPC), acting on behalf of El Burg Offshore Petroleum Company, awarded the engineering, procurement, construction, and installation (EPCI) contract to ENPPI, with Petroleum Marine Services and Petrojet participating as subcontractors.

Arcius Energy signed the Harmattan scope execution contract with its partners, PhPC and ENPPI, witnessed by its CEO, Egyptian Natural Gas Holding Company (EGAS), BP and XRG, underscoring strong collaboration across partners and stakeholders as the firm moves into the next phase of project delivery. Courtesy of Arcius Energy — Arcius Energy signed the Harmattan scope execution contract with its partners, PhPC and ENPPI, witnessed by its CEO, Egyptian Natural Gas Holding Company (EGAS), BP, and XRG, underscoring strong collaboration across partners and stakeholders as the firm moves into the next phase of project delivery. Courtesy of Arcius Energy

The company acquired the El Burg Offshore concession area in February 2026 in collaboration with Egyptian Natural Gas Holding Company (EGAS). BP (51%) and XRG (49%), ADNOC’s international energy investment company, established Arcius in December 2024 as a regional gas platform focused initially on the development of gas assets in Egypt and the wider Eastern Mediterranean.

The company holds participating interests in concession agreements in Egypt, including 10% of Shorouk, which contains the producing Zohr field; 100% of North Damietta that entails the producing Atoll and Qattameya fields; 100% of El Burg Offshore with the Harmattan field; 100% of the North El Tabya exploration concession, and 50% of the Bellatrix–Seti East and North El Fayrouz exploration concessions.

Naser Al Yafei, Chief Executive Officer of Arcius, commented: “The final investment decision to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production.

“It reflects our confidence in the potential of Egypt’s energy sector and our commitment to close cooperation with the Egyptian government, EGAS, and our execution partners to strengthen Egypt’s natural gas supply, support energy security, and reinforce Egypt’s position as a regional energy hub in the Eastern Mediterranean.”

Egypt’s Ministry of Petroleum revealed in March 2026 that Arcius Energy laid the groundwork to begin drilling two offshore gas exploration wells in the Mediterranean, Atoll West and Nofret.

These drilling activities are aligned with the country’s plan to drill more than 100 exploratory oil and gas wells in 2026 in cooperation with investment partners.