en.Wedoany.com Reported - Shell has agreed to sell its wholly-owned subsidiary BG Cyprus to Hungarian energy group MOL for up to $720 million. Upon completion of the transaction, MOL will acquire a 35% interest in the Aphrodite offshore gas field in Cyprus.
The transaction is subject to customary adjustment conditions, milestone-linked contingent payment arrangements, regulatory approvals, and other closing conditions, and is expected to be completed in early 2027. BG Cyprus holds a 35% non-operated interest in Block 12 offshore Cyprus, which contains the Aphrodite gas field in the Eastern Mediterranean. The field operator is Chevron Cyprus, holding a 35% stake, with NewMed Energy holding the remaining 30% interest. Upon completion of the transaction, MOL will assume all of Shell's rights and obligations under this interest. Natural gas produced from the Aphrodite field is expected to be sold to Egyptian Natural Gas Holding Company (EGAS).
MOL stated that this acquisition represents its largest exploration and production growth opportunity since acquiring a 9.57% interest in the ACG field in Azerbaijan in 2019, and provides it with a development project within the EU that carries significantly reduced risk. The Aphrodite field was discovered in 2011 and is estimated to contain approximately 104 billion cubic meters of contingent gas resources and 8 million barrels of condensate. The development plan includes drilling four wells, constructing a standalone floating production unit (FPU), and a 250-kilometer subsea pipeline to connect the field to Egypt's gas transmission network. The partners aim to make a final investment decision in 2027, with first gas expected in 2031.
Cederic Cremers, Shell's Integrated Gas President, said: "We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy demand. Our decision to exit stems from rigorous capital allocation and portfolio selection, as we focus on opportunities that strengthen our integrated LNG value chain."
Zsolt Hernádi, Chairman and CEO of MOL Group, said: "This signing demonstrates that MOL never stands still. In Central Europe, we work to safeguard and develop supply security; in Southern Europe, we are launching one of the most significant exploration and production projects in our history. In the current geopolitical uncertainty, diversification and expansion through high-quality assets and reputable international partners are key to maintaining resilience and competitiveness. The agreement we have reached strengthens MOL Group and the entire Central and Eastern European region." "This project represents the most promising growth opportunity for MOL Group's exploration and production business since the 2019 acquisition of a stake in the giant ACG field in Azerbaijan, and I am confident it will play a pivotal role in shaping our future business lines. I very much look forward to working together with international partners to make it a true success story."
