Nicosia, Cyprus. Shell said it had agreed to sell its BG Cyprus unit to Hungarian oil and gas company MOL Group for up to $720 million, as the British energy company focuses on expanding its integrated liquefied natural gas operations.
The transaction is expected to close in 2027, after which MOL will control BG Cyprus’ 35 per cent non-operated interest in the Cyprus Offshore block containing the Aphrodite gas field.
Sale of Cyprus interest
Shell Integrated Gas President Cederic Cremers said the decision to exit the asset reflected the company’s capital allocation and portfolio priorities.
“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,” Cremers said in a statement.
BG Group, acquired by Shell in 2016, obtained its interest in the Aphrodite field through its Cyprus unit in 2015.
Aphrodite field ownership
The Aphrodite gas field is located in Cyprus’ exclusive economic zone in the eastern Mediterranean.
Chevron’s Cypriot unit operates the field and holds a 35 per cent stake. BG Cyprus holds a 35 per cent non-operated interest, while Israel’s NewMed Energy holds the remaining 30 per cent non-operated interest.
Shell LNG strategy
Shell has been seeking to expand its LNG portfolio amid rising global demand for the fuel. The company said on Thursday it would make a final investment decision on phase two of its Canada LNG project by the end of 2026.
Shell also reported that second-quarter net profit more than doubled year-on-year to $9.84 billion, exceeding expectations, supported by higher energy prices and increased market volatility during the Middle East conflict.
Profit from its integrated gas business, which includes LNG trading operations, reached $2.7 billion, 55 per cent above the previous year despite gas production falling 31 per cent quarter-on-quarter.
