Shell plc (NYSE:SHEL) announced Friday that it has agreed to sell its wholly owned subsidiary, BG Cyprus Ltd., to MOL Group for up to $720 million, subject to customary adjustments and milestone-based contingent payments.
Shell Exits Aphrodite Gas Project
BG Cyprus holds a 35% non-operated stake in Cyprus Offshore Block 12, which contains the Aphrodite natural gas field in the eastern Mediterranean. The project is expected to sell its gas production to the Egyptian Natural Gas Holding Company.
Shell said it worked with the Cyprus government and its joint venture partners to advance the Aphrodite project. The sale allows the company to realize the value it created. Meanwhile, the remaining partners continue working toward a final investment decision.
“We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs,” said Cederic Cremers, Shell’s Integrated Gas president. “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 added that Egypt remains a key market where it continues to maintain a significant presence. The transaction is expected to close in early 2027, subject to regulatory approvals and customary closing conditions.
Aphrodite Project Ownership
The Aphrodite gas field is located about 170 kilometers southeast of Cyprus in the country’s exclusive economic zone.
Chevron Cyprus operates the project with a 35% interest. Shell, through BG Cyprus, owns a 35% non-operating stake, while NewMed Energy holds the remaining 30%. After the transaction closes, MOL Group will assume Shell’s rights and obligations related to the asset.
BG Group acquired the Aphrodite interest in 2015. The asset became part of Shell after its acquisition of BG Group in February 2016.
In 2025, the Cyprus government and the Aphrodite partners approved a development and production plan that includes a floating production unit. However, the partners have not yet made a final investment decision.
Unveils $3 Billion Stock Buyback
The announcement comes a day after Shell reported mixed second-quarter fiscal 2026 results and unveiled a new $3 billion share buyback program. The company beat Wall Street’s earnings estimates but missed on revenue.
It also said it expects to complete up to $4.23 billion in share repurchases by Oct. 23, 2026, including the remaining authorization from a previously suspended buyback program.
Shell Price Action
SHEL Price Action: Shell shares were up 0.82% at $91.25 at the time of publication on Friday, according to Benzinga Pro data.
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