Nicosia: Hungary's MOL Group has signed an agreement with Shell to acquire BG Cyprus Ltd., Shell's wholly owned subsidiary that holds a 35% non-operated interest in Cyprus' offshore Block 12, which contains the Aphrodite natural gas field, the company announced on Friday.
According to Cyprus News Agency, the acquisition marks MOL Group's entry into Cyprus' upstream energy sector and represents its largest exploration and production growth opportunity since acquiring a 9.57% stake in Azerbaijan's Azeri-Chirag-Gunashli oil field in 2019. The Aphrodite field, discovered in 2011 in the eastern Mediterranean, is estimated to contain around 104 billion cubic metres of contingent natural gas resources and 8 million barrels of condensate.
Following the transaction, MOL Group will join the Aphrodite consortium alongside Chevron, the operator with a 35% stake, and Israel's NewMed Energy, which holds 30%. The development plan includes drilling four wells and installing a standalone floating production facility in the eastern Mediterranean. The project also includes the construction of a 250-kilometre subsea pipeline connecting the field to Egypt's gas transmission network.
A final investment decision is expected in 2027, with first gas production targeted for 2031. MOL Group said the total consideration for the acquisition could reach up to USD 720 million, subject to closing adjustments and contingent payments linked to key project milestones.
MOL Group Chairman and Chief Executive Officer Zsolt Hern¡di stated that the acquisition strengthens the company's international exploration and production portfolio while expanding its presence within the European Union. The transaction is expected to close in early 2027, subject to regulatory approvals and customary closing conditions.