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Shell agrees to sell Cyprus gas stake to MOL for $720 million

The deal covers Shell’s BG Cyprus unit, which holds a 35% non-operated interest in Cyprus Offshore Block 12 tied to the Aphrodite gas field.

Reported · Written up by our desk · Energy

Shell has agreed to sell its wholly-owned subsidiary BG Cyprus Ltd to MOL Group for $720 million as it seeks to refocus capital allocation on its LNG value chain, OilPrice reports.

BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, where the Aphrodite gas field is operated by Chevron’s local subsidiary. Shell said the transaction is subject to customary adjustments and milestone-linked contingent payments.

Chevron, MOL, and NewMed Energy are expected to become co-owners of the field and work toward a final investment decision to develop Aphrodite. Produced gas from the project is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).

OilPrice also notes that Shell’s 35% interest in Aphrodite came after it acquired BG Group in early 2016, and that offshore Cyprus gas developments have drawn attention as the region looks to strengthen its role as a gas supply hub for Europe.

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