MOL Group has agreed to buy Shell's fully owned subsidiary BG Cyprus Limited for up to $720 million, a portfolio move that gives the Hungarian company its first upstream position in the eastern Mediterranean. The deal, announced on 31 July, is expected to close in early 2027 subject to regulatory approval.
BG Cyprus holds a 35 percent non operated interest in Cyprus Offshore Block 12, home to the Aphrodite gas field roughly 170 kilometers southeast of the island. Chevron Cyprus operates the block with a matching 35 percent stake, while NewMed Energy holds the remaining 30 percent. On completion MOL will assume Shell's rights and obligations in the joint venture.
Aphrodite was discovered in 2011 and appraised through later drilling campaigns. Operators estimate it holds around 104 billion cubic meters of contingent gas, about 632 million barrels of oil equivalent, plus 8 million barrels of condensate. The produced gas is earmarked for sale to the Egyptian Natural Gas Holding Company, tying the field into Egypt's import needs.
For Shell the sale reflects a tighter focus on its integrated LNG value chain. Integrated Gas President Cederic Cremers said the exit was driven by disciplined capital allocation and portfolio choices, while noting Egypt remains an important country where the company keeps a significant presence. Shell inherited the Aphrodite interest through its 2016 takeover of BG Group.
The Aphrodite development plan calls for four wells, a standalone floating production facility, and a 250 kilometer subsea pipeline connecting to Egypt's gas transmission network. A final investment decision is targeted for 2027 with first gas expected in 2031. MOL Chairman and CEO Zsolt Hernadi framed the purchase as an entry into Cyprus and an expansion within the EU that supports the group's long term production and reserve growth targets.