Shell divests BG Cyprus to Hungary's MOL Group for USD720 million
Shell PLC on Friday said it was selling its subsidiary, BG Cyprus Ltd, to Budapest-based peer MOL Group for USD720 million.
The London-based oil major noted that BG Cyprus has a 35% non-operated stake in Cyprus offshore Block 12, which contains the eastern Mediterranean's Aphrodite gas field.
Chevron Corp's Chevron Cyprus operates the Aphrodite joint venture, with a 35% stake, while NewMed Energy holds the remaining 30% non-operated interest. BG Group acquired interest in the field in 2015. The following year, BG Group was acquired by Shell.
All gas produced from the field is expected to be sold to the Egyptian Natural Gas Holding Co. A development and production plan has been agreed by the JV partners, but no final investment decision has been made as yet.
Shell stressed that Egypt remains important to its business, and that it continues "to have a significant presence" in the country.
The sale of BG Cyprus to MOL is expected to close in early 2027, with the final price tag subject to adjustments and milestone-linked payments.
"Shell has worked with the government of Cyprus and the joint venture partners to progress the Aphrodite project to this point and selling to MOL Group will allow Shell to capture the value created, while the remaining project partners work towards a final investment decision," Shell said on Friday.
Cederic Cremers, Shell's Integrated Gas president, added: "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 LNG value chain."
This follows news on Tuesday from TotalEnergies SE and Eni Spa, which both confirmed a final investment decision for the Cronos offshore Cyprus project, which will see gas exported to Egypt via subsea pipeline.
Shell shares rose 1.8% to 3,379.00 pence each on Friday morning in London.
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