Arcius Energy (BP-ADNOC) begins exploratory drilling off the coast of Egypt.

The Arcius Energy joint venture, formed through a partnership between the UK’s BP and XRG (the international investment arm of ADNOC, the national oil company of the United Arab Emirates), is set to launch a major gas exploration campaign off the coast of Egypt. Two exploration wells will be drilled in the eastern Mediterranean, marking a new step in boosting Egypt’s natural gas production.

Established in late 2024, Arcius Energy is 51% owned by BP and 49% by XRG. It brings together several of BP’s strategic gas assets in Egypt, including stakes in the Shorouk (10%, home to the giant Zohr) and North Damietta (100%, including the producing Atoll field) concessions, as well as the North El Tabya (operated by Arcius), Bellatrix-Seti East and North El Fayrouz exploration licences.

According to information confirmed by the Egyptian Ministry of Petroleum and Mineral Resources, the campaign will focus in particular on the Atoll West and Nofret prospects. Drilling will be carried out by the drillship Valaris DS-12, which has left the Canary Islands and is currently en route to Egyptian waters to commence operations.

This initiative forms part of the Egyptian oil sector’s ambitious plan for 2026, which envisages the drilling of more than 100 exploration wells (oil and gas) in cooperation with international partners. It comes at a time when Egypt is seeking to consolidate its role as a regional gas hub in the eastern Mediterranean and to secure its domestic energy needs whilst maintaining its exports to Europe.

Arcius Energy positions itself as a “key long-term energy partner” for Egypt, combining the development of existing fields with active exploration. The joint venture is also continuing the development of the Harmattan field (El Burg Offshore concession), acquired in November 2025: three production wells, a fixed platform and an underwater pipeline of approximately 50 km are planned, with first production expected in 2028.

This new exploration initiative comes at a favourable time. Egypt has improved its payments to international companies, encouraging massive investment: BP is planning to invest around $5 billion, Arcius $2 billion, whilst Eni (Italy) is committing nearly $8 billion.

Arcius Energy’s drilling campaign demonstrates the renewed confidence of major oil companies and Gulf-based players in Egypt’s offshore gas potential. If successful, these discoveries could help offset the natural decline of mature fields and support Egypt’s ambitions to once again become a significant net exporter of gas in the coming years.

The Egyptian Ministry of Petroleum has not yet announced a specific timetable for the results of the two wells, but operations are expected to begin in the coming weeks.