Shell Divests Aphrodite Stake to Hungary's MOL

Shell PLC signed an agreement to sell BG Cyprus Ltd to Hungary's MOL Group for $720 million, the companies said Friday.

BG Cyprus, which Shell acquired 2016, owns a 35 percent stake in the Chevron-Corp operated Aphrodite gas field, mostly located in Cypriot waters in the eastern Mediterranean. The Aphrodite consortium is pursuing the project for export to Egypt.

"We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs", Shell Integrated Gas president Cederic Cremers said in a statement. "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", Shell added.

MOL said separately the acquisition, which would mark its entry into Cyprus, would give it "a major derisked development project in the EU and represents the biggest growth opportunity for E&P since acquiring a 9.57 percent stake in the ACG field in Azerbaijan in 2019".

"Amid the current geopolitical uncertainties, diversifying and expanding with high-quality assets and reputable international partners are key to maintain our resilience and competitiveness", said MOL chair and chief executive Zsolt Hernádi. "The agreement we made strengthens MOL Group and the entire Central and Eastern European region".

The parties expect to complete the transaction in "early 2027", subject to regulatory approvals and other closing conditions.

Recently the Aphrodite consortium, Cyprus Hydrocarbons Co and Egyptian Natural Gas Holding Co (EGAS) signed a memorandum of understanding (MoU) to enable the piped export of 100 percent of production from the field to Egypt.

In announcing the MoU July 22, Aphrodite co-venturer NewMed Energy LP also said signatures for a "host government agreement" (HGA) with the Egyptian government for the export project are expected "over the coming weeks".

The planned binding agreement involves the delivery of gas to state-owned EGAS for at least 15 years and up to 20 years, according to an earlier statement by NewMed Energy April 9. Exports would be raised to 700 million cubic feet a day (MMcfd) at least six years after commercial supply began.

Aphrodite lies mostly in Block 12 in Cyprus' exclusive economic zone, while "a few percent" of the area is in Israel's Ishai/370 lease, according to NewMed Energy, part of Israel's Delek Group.

An assessment commissioned by NewMed Energy, published March, increased the best estimate of contingent gas resources on Cyprus' side of Aphrodite by about four percent to 3.67 trillion cubic feet.

Last year the Aphrodite consortium sanctioned pre-construction works for the delayed project.

"[T]he partners in the reservoir adopted a decision on commencement of FEED [front-end engineering design] for the production systems and the transmission infrastructure in the sum of approx. $105.7 million", NewMed Energy said December 23, 2025.

Earlier last year Cyprus approved a $4-billion updated development plan, following failed talks on cost-saving changes to the original terms approved by the government in November 2019.

"Concurrently, an amendment was signed between the partners and the Cypriot government to the PSC [production sharing contract], in the context of which the partners undertook, inter alia, to adopt a final investment decision in 2027", NewMed Energy said February 15, 2025.

The plan that Nicosia approved 2025 involves a floating production unit with a capacity of about 800 MMcfd, NewMed Energy said at the time.

Chevron operates Aphrodite with a 35 percent interest through Chevron Cyprus Ltd. NewMed Energy holds 30 percent.

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