Hungary's MOL Group said on Friday that it signed an agreement with Shell to buy BG Cyprus Ltd., Shell's 100% subsidiary.
BG Cyprus Ltd. holds a 35% interest in the Cyprus Offshore Block 12 containing the Aphrodite gas field in the eastern Mediterranean.
The total consideration payable by MOL for the transaction is up to USD 720 million.
The transaction provides MOL with a major de-risked development project in the EU and represents the biggest growth opportunity for the exploration and production business since acquiring a 9.57% stake in the ACG field in Azerbaijan in 2019.
Discovered in 2011, the Aphrodite gas field is estimated to hold around 104 bcm (632 MMBoe) of contingent gas and 8 MMbbl condensate resources. Chevron holds a 35% stake and Israel’s NewMed 30% in the project.
The development plan of the field includes the drilling of four wells and the establishment of an independent floating production facility.
The final investment decision is planned in 2027, with first gas shipment expected in 2031. The project also includes the construction of a 250-km subsea pipeline linking the field to Egypt’s gas transmission network.
MOL Group chairman-CEO Zsolt Hernádi said the step was "in line with our E+P strategy that focuses on strengthening our international portfolio while building strategic partnerships with highly reputable international companies. … This large-scale, long-life offshore gas development asset supports our long-term production targets and will enable us to achieve significant growth in our reserve base."
The transaction is expected to be completed in early 2027, subject to regulatory approvals and closing conditions.
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