BP and Arcius Energy to drill four new gas wells in Egypt’s Mediterranean

UK energy major BP (LSE: BP) and Arcius Energy are preparing to drill four new gas wells offshore Egypt as part of a broader push to expand exploration activity in the Mediterranean, according to a March 23 statement by the Ministry of Petroleum and Mineral Resources, cited by Al Mal.

Arcius Energy is an international natural gas joint venture between BP (51%) and XRG, a subsidiary of Abu Dhabi’s ADNOC (49%), focusing on gas assets in Egypt. The company holds a 10% stake in the Shorouk concession (which contains the massive Zohr gas field) and 100% of the North Damietta concession (which includes the Atoll field).

The drilling vessel Valaris DS-12 has arrived in Egyptian territorial waters, marking the start of a new phase of offshore drilling operations. The programme includes two wells for BP (one production and one exploratory), followed by two exploratory wells to be drilled by Arcius Energy, a joint venture between ADNOC and BP. The two Arcius wells are called Atoll West and Nofrit. 

Arcius said earlier that it was implementing a five-year plan to double production levels and support the development of Egypt’s gas resources. The company recently reached an agreement to develop the Harmattan gas field in the Mediterranean, with first production expected by early 2028.

The drilling reflects growing confidence among international energy companies in Egypt’s investment climate, supported by recent petroleum ministry incentives to encourage exploration and production.

Egypt is pursuing an ambitious plan to drill more than 100 exploratory wells in 2026, alongside the development of existing fields, to maximise hydrocarbon resources and boost domestic output. As part of efforts to strengthen investor confidence, the government is also working to settle outstanding payments to oil and gas partners by June, while maintaining regular monthly payments.

According to the ministry, arrears owed to foreign partners have declined significantly, from around $6.1bn in June 2024 to around $1.3bn currently, supporting renewed investment in the sector and helping to reduce the country’s energy import bill.