Shell agrees to sell its BG Cyprus stake to MOL Group for $720 million

Energy giant Shell has officially announced an agreement to sell its BG Cyprus unit to the Hungarian oil and gas firm MOL Group for a total consideration of up to $720 million. This transaction includes the transfer of a 35 per cent non-operated interest in an offshore block located in the eastern Mediterranean, which contains the significant Aphrodite gas field.

According to Cederic Cremers, Shell’s Integrated Gas President, the divestment is part of a broader strategy to allocate capital more effectively and prioritize the company's integrated LNG value chain. The Aphrodite gas field is currently operated by a Chevron unit with a 35 per cent stake, while Israel’s NewMed Energy retains a 30 per cent interest. BG Cyprus had been part of Shell’s portfolio since the 2016 acquisition of BG Group.

The deal is expected to be completed by 2027, subject to customary closing conditions. This shift in assets aligns with Shell’s ongoing efforts to streamline its portfolio, which recently included a commitment to reach a final investment decision on its Canada LNG project phase 2 by the end of 2026.