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Shell sells stake in Cyprus' Aphrodite gas field to Hungary's MOL for $720M
Shell has agreed to sell its 35% stake in the Aphrodite gas field off Cyprus to Hungarian energy group MOL for $720 million. The transaction is expected to close in 2027.
Energy giant Shell is selling its stake in the strategic Aphrodite gas field in the Eastern Mediterranean to Hungary. The company announced it will sell its BG Cyprus unit, which holds a 35% stake in the field off Cyprus, to Hungarian oil and gas group MOL for $720 million.
Shell Integrated Gas President Cederic Cremers said the decision was made in line with disciplined capital allocation and portfolio preferences, adding: "We are focusing on opportunities that will strengthen our integrated LNG value chain." Shell will use the proceeds from the sale to bolster its global liquefied natural gas (LNG) portfolio.
Aphrodite field partnership to shift
The deal is expected to be finalized in 2027. When completed, control of the 35% non-operated stake held by BG Cyprus will fully transfer to MOL Group.
The Aphrodite gas field is operated by the Cyprus unit of US energy major Chevron, which also owns a 35% stake. The remaining 30% is held by Israel's NewMed Energy. Shell had incorporated these shares into its portfolio in 2015 via BG Group, which it acquired in 2016.
Shell is also aiming to expand its LNG portfolio to capitalize on rising global demand. The company announced it will make a final investment decision on the second phase of its LNG Canada project by the end of 2026.
According to financial results announced on Thursday, Shell's second-quarter net profit more than doubled year-on-year to $9.84 billion. The record increase was driven by rising energy prices and the market volatility caused by conflicts in the Middle East. The company's integrated gas business posted a profit of $2.7 billion, up 55% year-on-year, despite a 31% quarterly drop in gas production.
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