10/08/2026 by Daniel Tait
UK-based Shell has reached a deal with MOL Group to sell BG Cyprus Ltd., a wholly owned subsidiary, for $720 million (approximately £535 million).
BG Cyprus owns a 35% stake in offshore Block 12, which hosts the Aphrodite natural gas field. This is located around 105 miles southeast of Cyprus in the country’s exclusive economic zone. The project is a joint venture with NewMed Energy (30%) and operator Chevron Cyprus (35%).
Shell, which makes gear oil and other manufacturing products, says it has worked with its partners and the Government in Cyprus to progress the project. The intention is that the Egyptian Natural Gas Holding Company (EGAS) will purchase the produced gas.
Shell acquired its interest in Aphrodite through the acquisition of BG Group in 2016. The company says the sale will enable it to realise the value created in the project so far. MOL Group and the existing partners are expected to move closer to a final investment decision (FID) to develop the project.
The president for integrated gas at Shell, Cederic Cremers, said:
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs. Our decision to exit is driven by disciplined capital allocation and portfolio choices, as we focus on opportunities that strengthen our integrated liquefied natural gas (LNG) value chain.”
Subject to closing conditions and regulatory approval, completion of the deal is expected early next year. Shell said it would continue to regard nearby Egypt as an important country and maintain a substantial presence there.
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