Shell has agreed to sell its BG Cyprus unit to Hungarian oil and gas firm MOL Group for up to $720 million, Reuters reported, as the British energy major sharpens its focus on LNG operations.
BG Cyprus’ 35% non-operated interest in a Cyprus Offshore block, home to the Aphrodite gas field in the eastern Mediterranean, will be controlled by MOL upon the expected 2027 completion of the deal.
“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,” Shell’s Integrated Gas President Cederic Cremers said in a statement.
Shell has been seeking to expand its LNG portfolio to capitalise on rising global demand for the fuel, and on Thursday said it will take a final investment decision on its Canada LNG project phase 2 by the end of 2026.
The Aphrodite gas field, located in Cyprus’ exclusive economic zone, is operated by Chevron’s Cypriot unit with a 35% stake, while BG Cyprus and Israel’s NewMed Energy hold 35% and 30% non-operating interests, respectively.
BG Group, which was bought out by Shell in 2016, had acquired its stake in the Aphrodite field in 2015 through its Cypriot subsidiary.
(Reuters)
Read more:
