Shell Sells Cyprus Subsidiary BG Cyprus for Up to $720 Million
Energy giant Shell has agreed to sell its subsidiary BG Cyprus to Hungarian oil and gas company MOL Group in a deal worth up to $720 million. The sale aligns with Shell's long-term strategy of streamlining its upstream portfolio while concentrating investments on liquefied natural gas (LNG), a sector expected to play a key role in the global energy transition.
Under the agreement, MOL Group will acquire BG Cyprus' 35% non-operating stake in the offshore Aphrodite gas field. The Aphrodite gas field is one of the Eastern Mediterranean's most significant natural gas discoveries and is operated by a subsidiary of Chevron, which holds a 35% operating stake.
Shell gained control of the BG Cyprus asset through its 2016 acquisition of BG Group, one of the largest energy mergers in recent history. The company is aggressively expanding its global LNG footprint and recently announced that it expects to make a final investment decision on the second phase of its LNG Canada project by the end of 2026.