Shell Sells Aphrodite Stake for $720 Million in LNG Expansion Push
Shell has agreed to sell its wholly-owned subsidiary BG Cyprus Ltd to Hungary's MOL Group for $720 million, according to an announcement made on Friday. The UK-based oil and gas major is focusing on expanding its LNG value chain.
The agreement covers BG Cyprus, which holds a 35% non-operated interest in Cyprus Offshore Block 12. The transaction is subject to customary adjustments and milestone-linked contingent payments. Block 12 contains the Aphrodite gas field, operated by Chevron's local subsidiary.
Chevron, MOL, and NewMed Energy will become the new co-owners of the field and will work toward a final investment decision to develop Aphrodite. All potential gas produced from the field is expected to be sold to the Egyptian Natural Gas Holding Company (EGAS).