Shell has reached an agreement to sell its 100%-owned subsidiary BG Cyprus Ltd. to MOL Group for up to $720 million, subject to customary adjustments and milestone-linked contingent payments.
BG Cyprus holds a 35% non-operated interest in the Cyprus Offshore Block 12, containing the Aphrodite gas field in the eastern Mediterranean. All produced gas is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS). Shell has worked with the Government of Cyprus and the joint venture partners to progress the Aphrodite project to this point and selling to MOL Group will allow Shell to capture the value created, while the remaining project partners work 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 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.'
Egypt remains an important country for Shell, where we continue to have a significant presence.
The transaction is expected to complete in early 2027, subject to regulatory approval and closing conditions.
Background
- The Aphrodite natural gas field is located in Block 12 in the exclusive economic zone of Cyprus, approximately 170 km southeast offshore.
- 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). A final investment decision has not yet been taken.
Source: Shell
