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Arcius Energy will begin operations in Egypt. (Image source: Aricus Energy)

Building an effective gas portfolio to sustain market competition, ADNOC-wing, XRG, and energy major, bp, have reached financial close on their new joint venture (JV), Arcius Energy, an international natural gas platform

Launched in February, the JV is backed by XRG's (49%) technical prowess and bp's (51%) long-standing development track records. 

Besides ADNOC, bp had previously entered a venture with another Abu Dhabi-based company, Masdar, to advance plans of a multi-phase green hydrogen (gH2) project in Egypt

Unlocking lower-carbon transition fuel

Arcius Energy will begin operations in Egypt across two development concessions, as well as exploration agreements. The country is playing a major role in developing a gas hub in the eastern Mediterranean

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, 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. 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.

The tenders are targeted for the Moroccan side. (Image source: Adobe Stock)

As part of 2025 Action Plan by the National Office of Hydrocarbons and Mines (ONHYM), Morocco has launched tenders for Nigeria-Morocco Gas Pipeline

Targeted for the pipelines on the Moroccan side, these tenders cover the initial phases of the project. Besides Morocco, Mauritania and Senegal are also included in the first phase. 

A private company is set to be established with an objective to supervise project construction, operation and maintenance.

Far-reaching project

Morocco covers 1,672 kilometers of the 5,600 km-long pipeline that will also connect the Maghreb Europe Gas Pipeline and the European gas network. 

The Nigerian National Petroleum Company (NNPC) Limited deployed the first compressor station for the far-reaching project which is set to motion across Gambia, Guinea Bissau, Guinea, Sierra Leone and Ghana. A second round of memoranda of understanding last year expanded the pipeline network to include Guinea, Ivory Coast, Liberia and Benin

 

 

Africa aims to be competitive in a dynamic international gas market. (Image source: Adobe Stock)

At AOW: Investing in African Energy held in Cape Town form 7-10 October, a dedicated panel discussion considered how the continent can secure its future in a changing landscape

Specifically, the session was dedicated to the role of gas, with the pipeline of associated projects in the continent never being stronger. However, if Africa is to be competitive in a dynamic international gas market, it must ensure that it offers value. This means shaping an offer that meets the financial and environmental sustainability of stakeholders; gas investment propositions must be relevant and future-proof or global capital will not be forthcoming.

“Natural gas is at the centre of what we are doing in Africa,” commented Mario Bello, head of sub-Saharan Africa region at Eni. “It’s the cleanest fossil fuel, producing fewer emissions than coal, so it plays an important role as we transition to renewables… Floating LNG is the key to unlocking the region’s gas potential, making it easier and faster to develop offshore resources.”

A stable investment environment

Meanwhile, Paul Eardley-Taylor, head of oil & gas, southern Africa at Standard Bank, considered the financing challenge that remains a significant hurdle for projects. He emphasised the need for bankable projects that address investor concerns, particularly around sovereign risk. He also drew attention to the transformative potential of large-scale LNG projects and smaller, domestically-focused gas ventures, labelling the impact they could have in African markets “incalculable”.

Stressing the importance of a stable investment climate to attract international capital, Equinor’s senior vice president for Africa, Nina Birgitte Koch, said, “CO2 is the key criteria. It’s not just a ‘nice to have’ any more. I don’t think it’s possible to get capital to a big LNG project unless it’s highly competitive when it comes to CO2."

Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), raised the call for government intervention to address market failures and unlock investment. He outlined CEF's role in enabling critical gas infrastructure projects, such as the Romp pipeline and LNG import terminals. “We need to solve the market failure,” Mokoka surmised, highlighting the need for government-backed gas offtake agreements and risk-sharing mechanisms to attract private capital.

ExxonMobil’s executive director global, LNG marketing, Deri Irawan, emphasised the importance of a holistic approach to project development, considering not just the technical and economic aspects but also the social and political landscape. He commented on the need for strong partnerships and stakeholder engagement to ensure long-term project success. “It is insufficient to just bring a commodity to the doorstep. You also need to unlock that value chain.”

Gianluca Ciricugno, Africa director, enterprise customer solution at Baker Hughes, took the opportunity to stress the need for a long-term vision and collaboration between governments, investors, and technology providers. He urged, “It requires a broader vision, probably government and all the people around the table, with a long-term approach… and not just four-year terms.”

Chevron to supply 600 million scf/day to Angola LNG by year-end. (Image source: Chevron)

Chevron is set to supply 600 million standard cubic feet of gas per day to the Angola LNG (ALNG) facility by the end of this year

This follows the progress of the Sanha-Lean Gas Connection (SLGC) Project, developed by Chevron’s local subsidiary, which aims to deliver lean gas to the ALNG onshore plant and is on track for first production in Q4 2024.

Billy Lacobie, managing director of Chevron’s Southern Africa strategic business unit, made the announcement during an “In Conversation with” session at the Angola Oil & Gas conference in Luanda on Wednesday.

“As we move forward, the opportunities in gas are immense and very exciting,” Lacobie said. “When you talk about energy security, [gas] is one of the key enablers.”

Lacobie explained that the anticipated increase in Chevron’s gas production will result from the installation and tie-in of the SLGC Project to the existing Sanha Condensate Complex, which includes pipelines linking Chevron-operated Blocks 0 and 14 to ALNG.

ExxonMobil drives energy security in Africa with major LNG and deepwater projects, advancing exploration in Angola, Mozambique, and Nigeria. (Image source: Adobe Stock)

ExxonMobil, a leading multinational in the oil and gas sector, continues to advance several key energy projects across Africa, reinforcing its position as a major player in the industry

The company’s recent activities underscore its commitment to enhancing energy security by providing reliable and affordable energy, while maintaining industry-leading emissions standards.

A significant milestone occurred last month when Liam Mallon, ExxonMobil’s upstream president, met with Mozambican President Nyusi to reaffirm the company’s dedication to the US$24bn Rovuma LNG project. During the meeting, Mallon confirmed that front-end engineering design (FEED) for the project is progressing, with a clear timeline aiming for a final investment decision by 2026.

In Southern Africa, ExxonMobil has also cemented its leadership in exploration in Angola’s offshore Namibe Basin, where a wildcat well has been drilled. The industry is eagerly awaiting results, as positive findings could have far-reaching implications for the region’s energy landscape. The Namibe Basin stretches from Angolan waters into northern Namibia, and commercially viable outcomes could influence the area’s energy development for decades.

In Nigeria, ExxonMobil is shifting its focus toward deepwater investments, as it concludes the sale of its shallow-water joint venture assets. Nigeria's offshore oil reserves, currently accounting for 32% of its production, are an area where ExxonMobil’s deepwater engineering expertise will be pivotal in driving the next phase of development. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the nation’s reserves were recently estimated at 37.5 billion barrels, positioning ExxonMobil to play a leading role in Africa’s largest oil reserve base.

Looking ahead, ExxonMobil plans to further its involvement in Africa’s upstream energy sector at the upcoming Africa Oil Week (AOW): Investing in African Energy event, where the company will serve as a platinum sponsor. “ExxonMobil is pleased to be a platinum sponsor for AOW as they commemorate 30 years of convening the energy industry for fruitful engagements and sharing of best practices,” said Richard Barke, ExxonMobil vice-president of South Atlantic Exploration.

The AOW partnership underscores ExxonMobil’s significant role in Africa’s energy landscape. By gathering key stakeholders—governments, regulators, operators, power producers, investors, and service providers—the event fosters dialogue around policy development, investment opportunities, and shaping the continent’s energy future.

Through such strategic partnerships, alongside its deepwater expertise and frontier region exploration, ExxonMobil continues to assert itself as a leading force in the global energy sector.

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