Shell Ditches Cyprus Gas Stake for $720 Million LNG Play

Shell has agreed to sell its wholly-owned subsidiary BG Cyprus Ltd to MOL Group of Hungary for $720 million, as part of a move by Shell to grow its liquefied natural gas (LNG) value chain.

The sale includes Shell's 35% non-operated interest in the Cyprus Offshore Block 12, which contains the Aphrodite gas field operated by Chevron. The potential produced gas from Aphrodite is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).

Shell acquired its stake in the field after purchasing BG Group in early 2016.

Cederic Cremers, Shell's Integrated Gas President, said '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.'