Key facts
- Shell is selling its BG Cyprus subsidiary to MOL Group for $720 million.
- BG Cyprus holds a 35% non-operated interest in the Aphrodite gas field offshore Cyprus.
- The Aphrodite gas field is operated by Chevron's local subsidiary.
- Shell's exit is driven by capital allocation and portfolio choices, focusing on its LNG value chain.
- Eni and TotalEnergies recently approved development for the Cronos gas field, also offshore Cyprus.
Shell has agreed to sell its wholly-owned subsidiary BG Cyprus Ltd to Hungary's MOL Group for $720 million, as the UK-based oil and gas supermajor aims to grow its LNG value chain. The sale includes BG Cyprus's 35% non-operated interest in the Aphrodite gas field, located in Cyprus Offshore Block 12. Chevron's local subsidiary operates the field, and Chevron, MOL, and NewMed Energy will work towards a final investment decision for its development. All potential gas produced from Aphrodite is expected to be sold to Egypt's EGAS.
Shell became a holder of the stake after acquiring BG Group in early 2016. Cederic Cremers, Shell's Integrated Gas President, stated that the decision to exit is driven by disciplined capital allocation and portfolio choices, with a focus on opportunities strengthening Shell's integrated LNG value chain. Gas discoveries offshore Cyprus have attracted significant interest from oil majors seeking to establish energy hubs for European supply.
This development follows closely on the heels of Eni and TotalEnergies making a final investment decision this week to develop the Cronos gas field, also offshore Cyprus. Cronos, discovered in 2022 and appraised in 2024, is expected to deliver its first gas in 2028. The gas from Cronos will be processed in Egypt's Damietta LNG plant for export to international markets, primarily Europe.