Shell to divest BG Cyprus to MOL Group for $720 million to enhance LNG focus
Shell is selling its BG Cyprus unit to MOL Group for up to $720 million to prioritize liquefied natural gas (LNG) operations. This divestiture aligns with Shell's strategy to enhance its integrated LNG value chain amid rising global demand.
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Shell has agreed to sell its BG Cyprus subsidiary, which holds a 35% non-operated interest in the Aphrodite gas field, to Hungary's MOL Group for up to $720 million. The transaction is expected to close in early 2027, pending regulatory approval, allowing MOL to expand its international portfolio.
The Aphrodite gas field is operated by Chevron, with BG Cyprus and NewMed Energy holding 35% and 30% stakes, respectively. The deal supports Shell's capital allocation strategy focused on LNG, with a final investment decision on the Aphrodite project anticipated in 2027 and first gas production expected in 2031. This divestiture may enhance market positioning for both companies amidst growing demand for natural gas.
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