Shell has agreed to sell its wholly owned subsidiary, BG Cyprus, to MOL Group for up to $720 million, subject to customary adjustments and milestone-linked contingent payments.
BG Cyprus holds a 35 per cent non-operated stake in Cyprus' Offshore
Block 12, which contains the Aphrodite gas field in the eastern Mediterranean.
Gas produced from the field is expected to be sold to the
Egyptian Natural Gas Holding Company (EGAS).
Shell said it had worked with the Government of Cyprus and
its joint venture partners to advance the Aphrodite project, with the sale
allowing the company to realise the value created while partners move towards a
final investment decision.
“We believe Aphrodite remains an attractive development
opportunity and will play an important role in supporting regional energy
needs,” said Cederic Cremers, Shell’s Integrated Gas President. “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.”
The transaction is expected to close in early 2027, subject
to regulatory approvals. -OGN/TradeArabia News Service
