MOL set to replace Shell as third partner in Aphrodite gas project offshore Cyprus
Summary Points
- MOL Group agreed to acquire Shell’s BG Cyprus for up to $720 million.
- BG Cyprus holds a 35% interest in Block 12 offshore Cyprus.
- The deal gives MOL a stake in the Chevron-operated Aphrodite gas field.
- The transaction is expected to close early next year, pending approvals.
- First gas is expected in 2031 if the project reaches final investment decision in 2027.
MOL to Buy Shell’s BG Cyprus Stake in Aphrodite Gas Field
MOL Group has agreed to acquire Shell’s wholly owned subsidiary BG Cyprus, which holds a 35% interest in Block 12 offshore Cyprus, for up to $720 million. The deal would give MOL a stake in the Chevron-operated Aphrodite gas field, subject to regulatory approvals and customary conditions.
What Readers Should Know
- MOL Group agreed to acquire Shell’s BG Cyprus subsidiary for up to $720 million.
- BG Cyprus holds a 35% interest in Block 12 offshore Cyprus.
- The deal gives MOL a stake in the Chevron-operated Aphrodite gas field.
- The transaction is expected to close early next year, subject to approvals and conditions.
- The Aphrodite field is one of the eastern Mediterranean’s largest undeveloped offshore gas projects.
The acquisition would give the Hungarian energy company a stake in the Chevron-operated Aphrodite gas field, one of the eastern Mediterranean's largest undeveloped offshore gas projects. The transaction is expected to close early next year, subject to regulatory approvals and customary conditions.
Located about 170 km southeast of Cyprus, the deepwater Aphrodite Field was discovered in 2011 by Noble Energy, later acquired by Chevron. The field contains estimated contingent resources of 632 MMboe of natural gas and 8 MMbbl of condensate.
How the Aphrodite Project Is Structured
Chevron (35%), BG Cyprus (35%) and NewMed Energy (30%) have proposed a development concept involving four production wells tied back to a floating production facility. Gas would be exported through a new 250-km subsea pipeline connected to Egypt's gas transmission network, with all production destined for Egyptian Natural Gas Holding Co. (EGAS).
Front-end engineering and design (FEED) work on the revised development concept began in December 2025 following a request from the Cypriot government. Subject to a final investment decision (FID) in 2027, first gas is expected in 2031.
Why MOL Wants the Asset
MOL described the acquisition as a rare opportunity to participate in a de-risked development project within the EU and its largest upstream growth opportunity since acquiring a 9.57% interest in bp's Azeri-Chirag-Gunashli (ACG) Field offshore Azerbaijan in 2019.
The purchase price includes contingent payments that Shell could receive as the project achieves specified milestones.
MOL Group Chairman and CEO Zsolt Hernádi said the transaction aligns with the company's strategy of expanding its international upstream portfolio while strengthening partnerships with major industry operators.
What Shell Said About the Sale
Shell, which inherited the Aphrodite stake through its acquisition of BG Group in 2016, said the project remains an attractive development opportunity that can help meet regional energy demand. The company said the divestment reflects its ongoing portfolio optimization efforts and focus on opportunities that strengthen its integrated LNG value chain.
Frequently Asked Questions
What is MOL buying?
MOL is acquiring Shell’s wholly owned subsidiary BG Cyprus, which holds a 35% interest in Block 12 offshore Cyprus.
How much is the deal worth?
The transaction is valued at up to $720 million, including contingent payments tied to project milestones.
What asset does the stake include?
The acquisition gives MOL a stake in the Chevron-operated Aphrodite gas field.
When could the deal close?
The transaction is expected to close early next year, subject to regulatory approvals and customary conditions.
When could first gas begin?
Subject to a final investment decision in 2027, first gas is expected in 2031.