Shell Sells Eastern Mediterranean Gas Field Stake to Hungary's MOL Group

Shell has agreed to sell its 35% stake in the Aphrodite offshore gas field in the Eastern Mediterranean to Hungarian oil and gas company MOL Group for $720 million. The deal is part of Shell's strategy to strengthen its integrated liquefied natural gas (LNG) business.

The Aphrodite gas field, discovered in 2011, is located about 170 kilometers southeast offshore in Block 12 and holds an estimated 100 billion cubic meters of recoverable natural gas. The project will produce up to 800 million cubic feet of gas per day from four production wells, with all output transported to Egypt via a subsea pipeline.

Shell acquired the interest through its acquisition of BG Group in 2016 and has been working with government authorities and joint venture partners to advance the project. Shell's Integrated Gas President Cederic Cremers 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.'