Shell has agreed to sell its wholly owned subsidiary BG Cyprus to MOL Group for up to $720 million, giving the Hungarian energy company a 35% stake in Cyprus' Aphrodite offshore gas field.
The transaction, which is subject to customary adjustments, milestone-linked contingent payments, regulatory approvals and other closing conditions, is expected to complete in early 2027.
BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, which contains the Aphrodite gas field in the eastern Mediterranean.
The field is operated by Chevron Cyprus, which also holds a 35% interest, while NewMed Energy owns the remaining 30%. Upon completion of the transaction, MOL will assume Shell's rights and obligations associated with the stake.
The gas produced from Aphrodite is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).
According to MOL, the acquisition represents its biggest exploration and production growth opportunity since acquiring a 9.57% interest in Azerbaijan's ACG field in 2019 and provides the company with a major de-risked development project within the European Union.
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs. 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,” said Cederic Cremers, Shell's Integrated Gas President.
Aphrodite was discovered in 2011 and is estimated to contain around 104 billion cubic metres of contingent gas resources and 8 million barrels of condensate, according to MOL.
The development plan includes the drilling of four wells, an independent floating production facility (FPU) and a 250-km subsea pipeline connecting the field to Egypt's gas transmission network. The partners are targeting a final investment decision in 2027, with first gas expected in 2031.
“This signing shows that MOL never stops. Whilst in Central Europe we are working hard to maintain and develop the security of supply, in the southern part of Europe we are embarking on one of the most significant exploration and production projects in our history. Amid the current geopolitical uncertainties, diversifying and expanding with high-quality assets and reputable international partners are key to maintain our resilience and competitiveness. The agreement we made strengthens MOL Group and the entire Central and Eastern European region.
“This project represents the most promising growth opportunity for MOL Group’s E&P business since acquiring a stake in the giant ACG field in Azerbaijan in 2019, and I am confident it will play a key role in shaping our future business lines. I am very much looking forward to working together with our international partners to make this a real success story,” added MOL Group Chairman and Chief Executive Officer Zsolt Hernádi.
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