Shell has agreed to sell its BG Cyprus subsidiary to Hungary’s MOL Group for up to $720 million as it sharpens its focus on liquefied natural gas (LNG) operations.
The deal will transfer BG Cyprus’ 35% stake in the Aphrodite offshore gas field to MOL.
Shell confirmed the agreement on Friday, with the transaction expected to be completed in 2027.
Shell confirmed the agreement on Friday, with the transaction expected to be completed in 2027. Under the deal, MOL will acquire Shell’s 35% stake in the Aphrodite gas field off the coast of Cyprus. The field is operated by Chevron, which also owns a 35% stake, while Israel’s NewMed Energy holds the remaining 30%.
Shell’s President of Integrated Gas, Cederic Cremers, said the sale reflects the company’s strategy of focusing its investments on projects that strengthen its LNG business.
“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,” he said.
The company said it is giving priority to LNG projects, including plans to make a final investment decision on Canada LNG Phase 2 by the end of 2026.
BG Group, which Shell acquired in 2016, bought the stake in the Aphrodite gas field in 2015. The sale is part of Shell’s broader effort to streamline its business and focus on LNG, while giving MOL an entry into one of the eastern Mediterranean’s key gas projects.
The announcement came after Shell reported strong second-quarter earnings, with net profit more than doubling to $9.84 billion, boosted by higher energy prices and market volatility linked to conflicts in the Middle East.
Profit from Shell’s integrated gas business also rose 55% year-on-year to $2.7 billion, despite a 31% decline in production.
The deal further highlights Shell’s shift towards expanding its LNG business, while strengthening MOL’s presence in the eastern Mediterranean energy market.