Shell sells BG Cyprus to MOL
Analysis based on 11 articles · First reported Jul 31, 2026 · Last updated Jul 31, 2026
The divestiture allows Shell to monetize its Aphrodite stake and reallocate capital to its LNG value chain, while MOL gains a significant de-risked development project within the EU, potentially boosting its long-term production and valuation. The deal underscores continued interest in eastern Mediterranean gas resources and may positively affect sentiment for MOL and the project partners, while having a modest impact on Shell's share price.
Shell plc agreed to sell its wholly owned subsidiary Shell plc — BG Cyprus Ltd to Hungary's MOL (company) for up to USD 720 million, subject to adjustments and milestone-linked payments. BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, which contains the Aphrodite gas field in the eastern Mediterranean. The Aphrodite joint venture is operated by Chevron Cyprus (35%), with NewMed Energy holding the remaining 30%. All produced gas is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS). The transaction is expected to close in early 2027, pending regulatory approvals. Shell stated the exit is driven by disciplined capital allocation and a focus on its integrated LNG value chain, while MOL described the acquisition as its biggest exploration and production growth opportunity since acquiring a stake in Azerbaijan's ACG field in 2019. The Aphrodite field, discovered in 2011, holds an estimated 104 billion cubic metres of contingent gas resources and 8 million barrels of condensate. A development and production plan was agreed in 2025, with a final investment decision targeted for 2027 and first gas expected in 2031. This follows TotalEnergies and Eni confirming a final investment decision for the separate Cronos offshore Cyprus project.
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