Shell to sell BG Cyprus Ltd to MOL Group for up to $720 million

Transaction

Shell has reached an agreement to sell its 100%-owned subsidiary BG Cyprus Ltd to MOL Group for up to $720 million, subject to customary adjustments and milestone-linked contingent payments.

Asset and output

BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, which contains the Aphrodite natural gas field. All produced gas is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).

Joint venture and development status

The Aphrodite joint venture is operated by Chevron Cyprus (35% interest); BG Cyprus (Shell) holds 35% non-operating and NewMed Energy holds 30% non-operating. In 2025 the government of Cyprus and the co-venturers agreed a development and production plan that includes a floating production unit; a final investment decision has not yet been taken.

Timing and rationale

Shell said the divestment is driven by disciplined capital allocation and a focus on opportunities that strengthen its integrated LNG value chain, while capturing the value created to date. The transaction is expected to complete in early 2027, subject to regulatory approval and closing conditions.

Background

BG Group acquired the Aphrodite interest in 2015 through BG Cyprus; BG Cyprus became a Shell subsidiary following Shell’s acquisition of BG Group in February 2016.