Shell has agreed to sell its wholly-owned subsidiary, BG Cyprus Ltd., to Hungarian oil and gas firm MOL Group for up to US$720 million (AU$1.1 billion) as it focuses on its LNG portfolio.
Aphrodite is a deepwater gas development project in Cyprus’ Block 12 in the Eastern Mediterranean. It is estimated to hold around 104 billion cubic metres or 632 million barrels of oil equivalent (MMboe) of contingent gas and 8 MMbbl condensate resources.
Cederic Cremers, Shell’s Integrated Gas President, said the divestment aligns with the company’s broader global strategy of capital discipline and portfolio optimisation.
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs,” Cremers said.
“Our decision to exit is driven by disciplined capital allocation and portfolio choices, as we focus on opportunities that strengthen our integrated LNG value chain.”
BG Cyprus holds a 35 per cent non-operated stake in Cyprus Offshore Block 12, which encompasses the offshore Aphrodite gas field in the eastern Mediterranean.
Operator Chevron Cyprus holds a matching 35 per cent stake, with NewMed Energy retaining the remaining 30 per cent interest.
Under current plans, natural gas extracted from the Aphrodite field will be exported via a floating production unit to the Egyptian Natural Gas Holding Company (EGAS) to help meet regional fuel demand.
Shell clarified that while it is divesting its interest in the Aphrodite project, Egypt remains a key region where it will maintain a substantial operational footprint.
The transaction allows Shell to realise value from the asset while the remaining joint venture partners progress the project towards a final investment decision following an agreed development plan established with the Cypriot government in 2025
MOL Group Chairman and CEO Zsolt Hernádi said: “This signing shows that MOL never stops.
“Amid the current geopolitical uncertainties, diversifying and expanding with high-quality assets and reputable international partners are key to maintain our resilience and competitiveness.”
He added that the acquisition is in line with the company’s strategy that focuses on strengthening its international portfolio while building strategic partnerships with highly reputable companies.
MOL Group will assume all associated rights and obligations for the 35 per cent non-operating stake upon transaction closure.
Subject to customary regular and standard closing conditions, the sale is expected to complete in early 2027.
