Shell has agreed to sell its wholly owned subsidiary BG Cyprus to MOL Group for up to $720 million, transferring a 35% interest in the Aphrodite offshore gas field in Cyprus.
The transaction is subject to customary adjustments, milestone-linked contingent payments, regulatory approvals and other closing conditions. Completion is expected in early 2027.
BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, which contains the Aphrodite field in the eastern Mediterranean.
The field is operated by Chevron Cyprus, which owns a 35% interest. NewMed Energy holds the remaining 30%. Following completion, MOL Group will assume the rights and obligations connected with the acquired stake.
Gas from Aphrodite is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).
MOL Group described the acquisition as its largest exploration and production growth opportunity since it acquired a 9.57% interest in Azerbaijan’s ACG field in 2019. The company said Aphrodite provides a major de-risked development project within the European Union.
Cederic Cremers, Shell’s Integrated Gas President, said Aphrodite remains an attractive development opportunity that could support regional energy needs. He said the sale reflects the company’s capital allocation and portfolio decisions as it focuses on opportunities linked to its integrated LNG value chain.
Discovered in 2011, Aphrodite is estimated to contain around 104 billion cubic metres of contingent gas resources and 8 million barrels of condensate, according to MOL Group.
The development plan includes the drilling of four wells, an independent floating production unit and a 250-km subsea pipeline connecting the field with Egypt’s gas transmission network.
The project partners are targeting a final investment decision in 2027. First gas is expected in 2031.
Zsolt Hernádi, Chairman and Chief Executive Officer of MOL Group, said the transaction would expand the company’s exploration and production activities in southern Europe. He also identified Aphrodite as the company’s most significant upstream growth opportunity since the ACG acquisition in 2019.
