Shell to sell Cyprus unit for up to $720 million as it focuses on LNG
Shell's Strategic Divestment and LNG Focus
Details of the Cyprus Unit Sale
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.
Implications for the Aphrodite Gas Field
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's Rationale for the Sale
"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's LNG Expansion Strategy
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.
Stakeholders in the Aphrodite Gas Field
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.
History of BG Cyprus and the Aphrodite Interest
BG Group, which was bought out by Shell in 2016, had acquired the Aphrodite interest in 2015 through its Cyprus unit.
Reporting and Editorial Credits
(Reporting by Prerna Bedi in Bengaluru; Editing by Subhranshu Sahu and Joe Bavier)
