Photo credit: NewMed Energy
Shell said on Friday it had agreed to sell its 100%-owned subsidiary BG Cyprus Ltd. to Hungary-based oil and gas corporation MOL Group for up to $720m.
BG Cyprus Ltd. holds a 35% non-operated interest in the Cyprus Offshore Block 12, containing the Aphrodite gas field in the eastern Mediterranean.
Aphrodite is a deepwater gas development project in Cyprus’ Block 12 in the Eastern Mediterranean.
The Aphrodite joint venture is operated by Chevron Cyprus (35% interest). BG Cyprus (Shell) holds a 35% non-operating interest and NewMed Energy holds a 30% non-operating interest.
Upon completion of the transaction, MOL will assume Shell’s rights and obligations associated with the interest.
BG Group acquired the Aphrodite interest in 2015 through BG Cyprus. BG Cyprus became a Shell subsidiary following Shell’s acquisition of BG Group in February 2016.
In 2025, the government of Cyprus and the Aphrodite co-venturers agreed to a development and production plan for the field, which includes a floating production unit (FPU), Shell said, adding that a final investment decision has not yet been taken.
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs,” said Cederic Cremers, Shell’s integrated gas president. “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.”
The transaction is expected to complete in early 2027, subject to regulatory approval and closing conditions.
In a separate statement MOL Group said a final investment decision is planned in 2027, with first gas expected in 2031.
