6 Apr 2026
Arcius Energy, an affiliate of UK-based BP and UAE-based ADNOC through its investment arm XRG, has reached a final investment decision (FID) to develop a natural gas field offshore Egypt. Following the FID, Arcius Energy will move ahead with the development of the Harmattan gas field, located in the El Burg Offshore concession area. The project represents one of the company’s first major developments in Egypt, with an investment of approximately $500 million aimed at boosting natural gas production to support domestic demand.
Arcius Energy, an affiliate of UK-based BP and UAE-based ADNOC through its investment arm XRG, has reached a final investment decision (FID) to develop a natural gas field offshore Egypt.
Following the FID, Arcius Energy will move ahead with the development of the Harmattan gas field, located in the El Burg Offshore concession area. The project represents one of the company’s first major developments in Egypt, with an investment of approximately $500 million aimed at boosting natural gas production to support domestic demand.
Project Execution and Partnerships
As part of the execution phase, Pharaonic Petroleum Company (PhPC), acting on behalf of El Burg Offshore Petroleum Company, has awarded the engineering, procurement, construction, and installation (EPCI) contract to ENPPI. The project will also involve subcontractors Petroleum Marine Services and Petrojet.
Arcius acquired the El Burg Offshore concession in February 2026 in partnership with Egyptian Natural Gas Holding Company. The company itself was established in December 2024, with BP holding a 51% stake and XRG holding 49%, as a regional gas platform focused on Egypt and the broader Eastern Mediterranean.
Asset Portfolio in Egypt
Arcius Energy holds a diverse portfolio of gas assets in Egypt, including:
A 10% stake in the Shorouk concession, which includes the producing Zohr field
Full ownership of the North Damietta concession, covering the producing Atoll field and Qattameya field
100% ownership of the El Burg Offshore concession, which includes the Harmattan field
100% interest in the North El Tabya concession
A 50% stake in the Bellatrix–Seti East concession and North El Fayrouz concession
Strategic Significance
Naser Al Yafei, Chief Executive Officer of Arcius Energy, described the FID for the Harmattan field as a key milestone in advancing the company’s early-stage projects in Egypt toward production. He emphasized the company’s confidence in Egypt’s energy sector and its commitment to working closely with the Egyptian government, EGAS, and project partners to strengthen gas supply, enhance energy security, and reinforce Egypt’s position as a regional energy hub in the Eastern Mediterranean.
Exploration Outlook
In March 2026, Egypt’s Ministry of Petroleum announced that Arcius Energy had also initiated preparations to drill two offshore exploration wells in the Mediterranean—Atoll West and Nofret. These efforts align with Egypt’s broader strategy to drill over 100 exploratory oil and gas wells in 2026 in collaboration with international investment partners.
The detailed article is published by https://www.offshore-energy.biz/ can be accessed from https://www.offshore-energy.biz/bp-and-adnocs-jv-pouring-500-million-to-bring-egyptian-gas-project-to-life/
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