Shell sells Cyprus gas stake to MOL for $720m to fund LNG pivot
Shell is offloading its stake in the Aphrodite gas field to MOL Group for $720 million, a move that streamlines the supermajor's portfolio toward LNG just as Cyprus emerges as a strategic gateway for European gas supply.
Shell has agreed to sell its wholly-owned subsidiary BG Cyprus Ltd to Hungary’s MOL Group for $720 million. The transaction will transfer Shell’s 35% non-operated interest in the Aphrodite gas field, located within offshore Block 12.
The purchase price is subject to customary adjustments and milestone-linked contingent payments. Chevron’s local subsidiary will retain its position as the field’s operator following the completion of the sale. MOL and NewMed Energy will join Chevron as the new co-owners of the asset.
The newly formed partnership will immediately focus on securing a final investment decision for the Aphrodite development. Under current plans, all potential gas produced from the field is contracted to be sold to the Egyptian Natural Gas Holding Company (EGAS). This ties the project's revenue directly to Egyptian processing and export infrastructure.
For Shell, the divestment represents a deliberate step to simplify its portfolio and recycle capital. The UK-based supermajor originally secured its foothold in the Cypriot asset through its landmark acquisition of BG Group in early 2016. Selling the non-operated stake allows Shell to extract value from a mature pipeline asset rather than funding new regional development capital.
“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,” said Cederic Cremers, Shell’s Integrated Gas President. The strategy signals to investors that Shell is willing to shed peripheral upstream positions to maintain its dominance in global liquefied natural gas trading and marketing.
The deal also underscores the strategic value that Central European buyers like MOL place on Eastern Mediterranean reserves. By acquiring the Block 12 stake, MOL gains a direct share of a gas field positioned to supply energy-hungry markets via established Egyptian export routes.
Regional development accelerates
The asset transfer coincides with a broader acceleration of offshore development in Cypriot waters. Cyprus and neighboring Greece are actively positioning themselves as critical energy hubs capable of providing alternative gas supplies to Europe. The region's proximity to the continent makes it a viable long-term supplier as the EU diversifies away from Russian pipelines.
This week, Eni and TotalEnergies officially took the final investment decision to develop the Cronos gas field in deep waters offshore Cyprus. Discovered in 2022 and successfully appraised in 2024, Cronos is the country’s inaugural hydrocarbon development. First gas from the project is expected to reach the market in 2028.
Like Aphrodite, the Cronos development relies heavily on Egyptian infrastructure. Gas extracted from Cronos will be transported to Egypt for processing at the existing Zohr facilities. It will then be liquefied at Egypt’s Damietta LNG plant before being exported to international markets, primarily targeting European buyers.
