Shell to sell Cyprus unit for up to $720 million as it focuses on LNG
SHEL•Aphrodite field partners and background
The Aphrodite gas field, located in an exclusive economic zone off the Cyprus coast, is operated by Chevron's Cyprus unit with a 35% stake, while BG Cyprus and Israel's NewMed Energy hold 35% and 30% non-operating interests, respectively.
BG Group, which was bought out by Shell in 2016, had acquired the Aphrodite interest in 2015 through its Cyprus unit.
Shell agrees to sell BG Cyprus unit to MOL Group
July 31 (Reuters) - Shell said on Friday it had agreed to sell its BG Cyprus unit to Hungarian oil and gas firm MOL Group for up to $720 million, as the British oil major sharpens its focus on LNG operations.
BG Cyprus' 35% non-operated interest in a Cyprus Offshore block, home to the Aphrodite gas field in the eastern Mediterranean, will be controlled by MOL upon the expected 2027 completion of the deal.
Shell says portfolio shift supports LNG strategy
"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’s Integrated Gas President Cederic Cremers said in a statement.
Shell has been seeking to expand its LNG portfolio to capitalise on rising global demand for the fuel and on Thursday said it will take a final investment decision on its Canada LNG project phase 2 by end of 2026.
