Energy giant Shell sells its stake in the Aphrodite field for $720 million

Energy giant Shell is selling its entire 35% stake in the Aphrodite gas field in Cyprus to the Hungarian energy company MOL Group in a deal that could total $720 million. According to a report by NewMed Energy, which holds 30% of the same field, the transaction is subject to regulatory approvals and the completion of additional conditions, with closing scheduled for early 2027.

The deal values the Aphrodite field at more than $2 billion, even before a final investment decision has been made and before commercial development has begun. Upon completion, MOL will replace Shell as the holder of 35% of the rights to the field, while the rest of the ownership structure remains unchanged: Chevron, the operator, will hold 35%, and NewMed Energy, controlled by Yitzhak Tshuva's Delek, will continue to hold 30%.

The Aphrodite natural gas field was discovered in 2011 in Block 12 in Cyprus's exclusive economic zone. It is located about 160 km from the coast of Limassol and about 30 km northwest of the Leviathan field.

According to the partners' estimates, the Aphrodite field contains about 100 billion cubic meters (BCM) of gas and is considered one of the significant gas fields yet to be developed in the Eastern Mediterranean. Earlier this year, the partners, together with Cyprus's state-owned gas company CHC and Egypt's national gas company EGAS, signed a memorandum of understanding under which all gas volumes produced from Aphrodite will be sold to EGAS.

As part of the emerging plan, an underwater pipeline is planned to connect the field to Egypt's gas transmission system. In an announcement published by MOL regarding the deal, it was stated that the development plan includes drilling four wells, building a floating production facility, and laying an underwater pipeline about 250 km long to Egypt. According to the schedule, the first gas production from the field is expected to begin in 2031.