Shell announced on Friday that it has agreed to sell BG Cyprus to Hungary’s MOL Group in a deal worth up to $720 million, including potential payments linked to future project milestones.
BG Cyprus Ltd holds a 35% non-operated interest in Cyprus’ offshore Block 12, which contains the Aphrodite natural gas field in the Eastern Mediterranean. All gas produced from the field is expected to be sold to the Egyptian Natural Gas Holding Company, EGAS.
Shell said it had worked with the Cyprus government and its joint venture partners to advance the Aphrodite project to its current stage. The sale will allow the company to realise the value created so far, while the remaining partners continue working towards a final investment decision.
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs,” said Cederic Cremers, Shell’s President of Integrated Gas.
He added that the decision to withdraw was driven by Shell’s approach to capital allocation and portfolio management, as the company focuses on opportunities that strengthen its integrated liquefied natural gas value chain.
The transaction is expected to be completed in early 2027, subject to regulatory approval and other customary closing conditions.
