Arcius Energy, an affiliate of BP and the UAE-based ADNOC’s XRG, has taken a decisive step in Egypt’s upstream sector by approving a final investment decision (FID) for a natural gas field located offshore. With the FID secured, the company is moving ahead with the Harmattan gas project in the El Burg Offshore concession area, positioning it as one of its earliest developments in the country. The initiative will involve an investment of approximately half a billion dollars, aimed at strengthening domestic gas supply and supporting increased natural gas production. The Harmattan gas project is expected to play a key role in addressing local energy demand.
As the project transitions into execution, 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 scope of work will include participation from Petroleum Marine Services and Petrojet as subcontractors. The advancement of the Harmattan gas project follows Arcius Energy’s acquisition of the El Burg Offshore concession area in February 2026, completed in collaboration with Egyptian Natural Gas Holding Company (EGAS). Arcius itself was established in December 2024, with BP holding a 51% stake and XRG, ADNOC’s international energy investment company, owning the remaining 49%, forming a regional gas platform focused on Egypt and the broader Eastern Mediterranean.
The company’s portfolio in Egypt includes multiple concession agreements, reflecting its expanding footprint. These holdings comprise a 10% stake in Shorouk, which contains the producing Zohr field, full ownership of North Damietta covering the producing Atoll and Qattameya fields, and 100% control of El Burg Offshore, which includes the Harmattan gas project. Additional exploration interests include 100% of North El Tabya and 50% stakes in the Bellatrix–Seti East and North El Fayrouz concessions. Highlighting the importance of the development, Naser Al Yafei, Chief Executive Officer of Arcius, said: “The final investment decision to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production.”
Separately, Egypt’s Ministry of Petroleum disclosed in March 2026 that Arcius Energy had initiated preparations for drilling two offshore gas exploration wells in the Mediterranean, Atoll West and Nofret. These activities align with Egypt’s broader strategy to drill more than 100 exploratory oil and gas wells in 2026 in partnership with investors. Within this context, the Harmattan gas project underscores Arcius Energy’s commitment to expanding gas development efforts in the region while contributing to the country’s production objectives.
